Salt Lake Potash Limited announced production results for the second quarter ended December 31, 2016. Surface Aquifer Exploration Program: An 8.5 tonne amphibious excavator completed 127 shallow test pits and 7 trial trenches in the shallow aquifer at the Lake Wells Project. Sustained pump tests were completed on two 4.5m deep trenches in the southern part of the lake. Highlights from modelling completed in January 2017 include: Modelled annual flow rates of 1.1 - 1.3 Litres per second (L/s) based on a 1 year simulated model of the results recorded during the 50m trial trench pump test. Modelled annual flow rates of 0.23 - 0.28L/s based on a 1 year simulated model of the results recorded during the 25m trial trench pump test.Deeper Paleochannel Aquifer: The off-lake aircore drilling program, targeting the Lake Wells paleochannel, continued to successfully intersect Basal Paleochannel Sediments along the entire length of the paleochannel unit, which will comprise the main productive aquifer in the deeper part of Lake Wells brine resource. A second off-lake bore in the deep basal sand aquifer in the northern part of Lake Wells was test pumped at a constant rate of 8L/s for 4 days. The drawdown data exhibited boundary conditions consistent with the paleochannel setting. Process Development Testwork: The company conducted a range of process development testwork to significantly enhance the Lake Wells process model. Substantial volumes of brine from Lake Wells were concentrated into harvest salts (Potassium and Sulphate mixed salts) in three separate trials under simulated and actual site conditions. The conversion and crystallisation of harvest salts at Hazen Research in Colorado then produced the first Sulphate of Potash (SOP) samples from Lake Wells brine. An extensive Site Evaporation Trial (SET) was established at Lake Wells. The SET has to date processed approximately 125 tonnes of brine and producing harvest salts on a continuous basis. The SET will continue to operate for up to 12 months generating site specific evaporation data and producing sufficient harvest salts for bulk production of SOP samples for distribution to potential partners and customers. Regional Lakes: Geophysical surveys were performed at Lake Irwin and Lake Ballard to resolve the geometry of the paleovalley, and to define the position and depth of the paleochannel at each Lake. Initial evaporation testwork on Lake Irwin brine confirmed the suitability of harvest salts for SOP production.