Intrepid Potash Announces First Quarter 2014 Results; Delivers Strong Potash Sales Volume and Firming Potash Pricing

DENVER; Apr. 30, 2014 - Intrepid Potash Inc. (Intrepid) (NYSE: IPI) today
announced financial results and operating highlights for its first quarter ended
March 31, 2014.


Financial results for the first quarter of 2014 include:
*  Net loss of $0.4 million, or $0.00 per diluted share, compared with the
first quarter 2013 net income of $14.9 million, or $0.20 per diluted share

* Adjusted net loss(1) of $0.8 million, or $0.01 per diluted share, compared
with adjusted net income of $14.9 million, or $0.20 per diluted share, for
the first quarter last year

* Adjusted EBITDA(1) of $17.2 million, compared with $38.0 million for the
first quarter of 2013

* Cash flow from operating activities of $17.3 million, compared with $11.6
million in the comparable quarter of 2013

* Cash, cash equivalents, and investments totaled $9.8 million at March
31, 2014

"Our first quarter sales volume results underscore why we believe our strategy
is the correct one.  Through our geographic and logistical advantages, combined
with our diversified end markets, we achieved better-than-expected potash sales
volumes and a per ton average net realized sales price(1 )that we believe will
be the highest of any North American producer.  We also improved our cost
structure sequentially for SG&A and for cash operating costs(1) for potash on a
per ton basis," said Bob Jornayvaz, Intrepid's co-founder and Executive Chairman
of the Board.

Mr. Jornayvaz continued, "We have created momentum in the first quarter toward
fully realizing the benefits of our recent capital investments and our
transformation during 2013.  The initial commissioning of the HB mill is
progressing well and we are very pleased with the quality improvement we are
seeing from our North plant.  I am confident that as we continue optimizing the
assets we have recently placed into service, we will lower operating costs
further and unlock efficiencies in our operations.  All of this work and effort
will result in increased flexibility in our production and marketing, as well as
in margin and cash flow generation opportunity."


First quarter 2014 product highlights include:

Potash
* Average net realized sales price per ton of $317 ($350 per metric tonne),
compared with $417 per ton ($460 per metric tonne) in 2013's first quarter,
and $338 per ton ($373 per metric tonne) in the fourth quarter of
2013

* Cash operating costs of $205 per ton, compared with $174 per ton in the
first quarter of 2013, and a sequential 8% improvement from $224 per ton in
the fourth quarter of 2013

* Potash sales volume was 242,000 tons, up from 185,000 tons in the same
quarter of 2013

* Potash production was 220,000 tons, essentially flat compared with the
222,000 tons in the same period a year ago

Intrepid increased potash sales volume 31% from the first quarter of 2013.
Customers became more confident in the stability of potash price early in the
first quarter, which helped spur buying.  Intrepid's ability to have success in
this market was a direct result of its warehouse strategy.  Intrepid has
strengthened its customer-centric approach by adding warehouse positions in the
Midwest and by having product already located at dealers' locations, making it
possible to meet customers' orders despite the transportation limitations the
industry faced from constraints on rail car and power availability.

Intrepid reduced, on a per ton basis, cash operating costs and cost of goods
sold for potash sequentially 8% and 5%, respectively, from the fourth quarter of
2013 with improvements in cash operating costs from the East facility and strong
Utah sales.  The year-over-year cash operating costs per ton increase was driven
by the decreased comparative production from the West facility due to lower ore
grade and reduced recoveries, and the higher-cost start-up tons from the HB
facility.  The year-over-year increase in cost of goods sold per ton was driven
by the aforementioned items as well as additional depreciation expense from the
recent capital investments.

Intrepid expects, on a per ton basis, that its cash operating costs and cost of
goods sold will be meaningfully lower in the second half of this year.  These
improvements in costs will be driven by production from the second, larger
harvest at the low-cost HB Solar Solution mine that will commence in the fall;
as well as lower per ton cost production from the West facility as the
improvement projects are completed this summer.

Langbeinite - Trio(®)
* Average net realized sales price per ton for langbeinite, which is marketed
as Trio(®), in the first quarter was $340 ($375 per metric tonne), compared
with $351 per ton ($387 per metric tonne) in 2013's first quarter, and $345
per ton ($380 per metric tonne) in the fourth quarter of 2013

* Cash operating costs were $216 per ton, compared with $180 per ton in the
same quarter of 2013, and a sequential 4% improvement from $225 per ton in
the fourth quarter of 2013

* Trio(® )sales volume was 36,000 tons, down from 39,000 tons for the same
period in the prior year

* Production was 32,000 tons, compared with 46,000 tons in the first quarter
of 2013

Sales volume and pricing for Trio(®) were down year over year, reflecting the
pressures on potash prices.  Demand for this specialty fertilizer, particularly
the granular and premium products, remains solid, but the export demand for
standard product has been significantly less than a year ago.

Trio(® )production decreased 30% from the same period last year as the
operations team continues to modify the mine plan to shift into ore zones with
higher grades than those being mined currently.  Lower production year over year
led to an increase, on a per ton basis, in both cash operating costs and cost of
goods sold.  A portion of this production decrease is a result of losses
attributed to the ongoing work to improve the conversion of standard-sized
material into premium-sized product.  The team increased pellet production for
the second consecutive quarter as they continue to make changes in the process
to both increase efficiency and to decrease losses in the pellet plant.
Sequentially from the fourth quarter, Intrepid improved cash operating costs per
ton by 4% while holding cost of goods sold per ton flat.

The Trio(® )production outlook, and as a result the per ton cash operating costs
and cost of goods sold, for the year have been adjusted to account for the
current production loss ratio as work continues to optimize production from this
facility.

Capital project update and highlights include:

Intrepid has been investing to build new assets and enhance existing operating
assets to increase production and lower costs.  The benefits of these
investments, which have begun to positively influence financial results, will be
more evident in the second half of this year as HB production ramps up according
to plan and as the West facility upgrades are completed.  Intrepid anticipates
making capital investments in 2014 totaling in the range of $40 million to $50
million.  Approximately half of this budget is associated with maintenance and
sustaining items, while the remainder is allocated to completing the West
facility upgrades, the HB Solar Solution mine, and the North Compaction
project.  First quarter capital investments totaled $16.2 million, including
capitalized interest of $0.3 million.

HB Solar Solution mine

Intrepid successfully produced approximately 13,000 tons of potash from the HB
Solar Solution mine during first quarter, and expects to produce a total of
50,000 to 100,000 tons of potash from HB this year.  The first harvest of potash
from the pond system is currently underway with expected activity through
spring.  The second harvest is anticipated to begin in late August, following
the peak evaporation season, and will be larger because of the benefit of longer
retention time in the mines combined with full ponds for a complete evaporation
season.  As the ramp up continues, full annual production rates of 150,000 to
200,000 tons are expected beginning with the 2015/2016 harvest season.  During
the start-up phase, when there are fewer production tons over which to spread
the costs, per ton cash operating costs are elevated compared to the estimated
range of $80 to $100 per ton at full production rates.

North Compaction project

The North Compaction project was designed to improve the quality of Intrepid's
potash and to create the capacity to granulate all of the production from HB and
West.  This flexibility provides the sales and marketing team with the ability
to pursue the highest margin sales opportunities and extends the reach of its
marketing efforts.  The new North facility is now processing high-quality tons
from production out of both the West and HB facilities.

West facility upgrades

The West facility is being upgraded in order to stabilize and increase
recovery.  The corresponding production improvements and lower per ton costs are
expected to begin being realized during the second half of 2014 when the
modifications are finished and fully integrated.  The new compactors at North
leverage the opportunities to improve recoveries from the West plant as Intrepid
can now operate the facility differently and thereby work to improve recoveries.

Market conditions and 2014 outlook:

The February announcements by the major Canadian producers of a $20 per potash
ton spring price increase, and the settlement of the China and India contracts
by the international suppliers created confidence that drove potash purchasing
for the spring application season.  Sales activity has been robust through the
quarter and Intrepid expects continued demand through the spring providing
weather does not disrupt the fertilizer application window.  Rail car
availability, which remains below expectations, is an additional risk in the
second quarter, especially for shipments out of Carlsbad, New Mexico. The
challenge comes from the fact that, if fertilizer is not in place for
application before the seeding windows, there is a reasonable chance that
farmers will reduce or skip application until the fall.

Intrepid's risk is somewhat mitigated by the diversity of its sales into the
industrial and feed markets as well as its ability to utilize trucks to deliver
product to customers.  In the first quarter, and throughout the spring, Intrepid
has been able to sell inventory that it had in place in its field warehouses and
placed at distributors' locations through marketing programs.  Over the years,
Intrepid has expanded its network by adding additional distribution locations as
customers attempt to mitigate their concentration of supply-chain risk in
response to situations similar to the rail limitations experienced this spring
season.

Intrepid's outlook for the first and second half, and full year of 2014 is
presented below.  This information is Intrepid's best estimate at the current
time and will be impacted by actual market conditions, results of operations,
and production results.


      First-Half     Second-Half     Full-Year

    2014   2014   2014
----------------- ----------------- ----------------
Potash

400,000 - 435,000 - 835,000 -
Production (tons)   420,000   455,000   875,000

440,000 - 420,000 - 860,000 -
Sales (tons)   460,000   440,000   900,000

Cash operating
costs ($/ton)   $195 - $210   $180 - $195   $185 - $200

Total COGS ($/ton)   $275 - $290   $245 - $260   $260 - $275



Trio(®)

145,000 -
Production (tons)   65,000 - 75,000   80,000 - 95,000   170,000

150,000 -
Sales (tons)   75,000 - 85,000   75,000 - 85,000   170,000

Cash operating
costs ($/ton)   $200 - $215   $175 - $190   $185 - $200

Total COGS ($/ton)   $275 - $295   $245 - $260   $260 - $275



Other


$2.5 - $3.0 - $5.5 -
Interest expense   $3.0 million   $3.5 million   $6.5 million



Depreciation,
depletion, and $38 - $38 - $76 -
accretion   $40 million   $42 million   $82 million

Selling and
administrative
expense (excludes
approximately $1.8
million of
restructuring
charges in the $13- $13 - $26 -
first quarter)   $15 million   $15 million   $30 million




$40 - $50
Capital investment   not provided   not provided   million





Notes

(1) Adjusted net income (loss), adjusted net income (loss) per diluted share,
adjusted earnings before interest, taxes, depreciation, and amortization
(adjusted EBITDA), average net realized sales price per ton, and per ton cash
operating costs are non-GAAP financial measures.  See the non-GAAP
reconciliations set forth later in this press release for additional
information.

Unless expressly stated otherwise or the context otherwise requires, references
to "tons" in this press release refer to short tons.  One short ton equals
2,000 pounds.  One metric tonne, which many international competitors use,
equals 1,000 kilograms or 2,204.62 pounds.

Conference Call Information

A teleconference to discuss the quarter is scheduled for May 1, 2014, at 10:00
a.m. ET.  The dial in number is 800-319-4610 for U.S. and Canada, and is
631-982-4565 for other countries.  A recording of the conference call will be
available two hours after the completion of the call at 800-319-6413 for U.S.
and Canada, or 631-883-6842 for other countries.  The replay of the call will
require the input of the conference identification number 763324.  The call will
also be streamed on the Intrepid website, www.intrepidpotash.com.  An audio
recording of the conference call will be available at www.intrepidpotash.com
through June 2, 2014.

About Intrepid

Intrepid (NYSE: IPI) is the largest producer of potash in the U.S. and is
dedicated to the production and marketing of potash, which is essential for
healthy crop development; and Trio(®), a specialty fertilizer supplying three
key nutrients, potassium, magnesium and sulfate, in an single particle.
Intrepid owns six active production facilities across New Mexico and Utah.
Intrepid is unique in the U.S. in its utilization of low-cost solar solution
mining at three of its facilities, including the newly constructed HB Solar
Solution mine.

Intrepid routinely posts important information, including information about
upcoming investor presentations and press releases, on its website under the
Investor Relations tab.  Investors and other interested parties are encourage to
enroll on the Intrepid website, www.intrepidpotash.com,
to receive automatic email alerts or Really Simple Syndication (RSS) feeds
regarding new postings.

Forward-looking Statements

This document contains forward-looking statements - that is, statements about
future, not past, events.  The forward-looking statements in this document often
relate to our future performance and management's expectations for the future,
including statements about our financial outlook.  These statements are based on
assumptions that we believe are reasonable.  Forward-looking statements by their
nature address matters that are uncertain.  For us, the particular uncertainties
that could cause our actual results to be materially different from our forward-
looking statements include the following:

* changes in the price, demand, or supply of potash or Trio(®)/langbeinite
* circumstances that disrupt or limit our production, including operational
difficulties or operational variances due to geological or geotechnical
variances
* interruptions in rail or truck transportation services, or fluctuations in
the costs of these services
* increased labor costs or difficulties in hiring and retaining qualified
employees and contractors, including workers with mining, mineral
processing, or construction expertise
* the costs of, and our ability to successfully construct, commission, and
execute, any of our strategic projects, including our HB Solar Solution
mine, our North compaction plant, our West plant upgrades, and our Moab
cavern systems
* adverse weather events, including events affecting precipitation and
evaporation rates at our solar solution mines
* changes in the prices of raw materials, including chemicals, natural gas,
and power
* the impact of federal, state, or local governmental regulations, including
environmental and mining regulations; the enforcement of those regulations;
and governmental policy changes
* our ability to obtain any necessary governmental permits relating to the
construction and operation of assets
* changes in our reserve estimates
* competition in the fertilizer industry
* declines or changes in U.S. or world agricultural production or fertilizer
application rates
* declines in the use of potash products by oil and gas companies in their
drilling operations
* changes in economic conditions
* our ability to comply with covenants in our debt-related agreements to avoid
a default under those agreements, or the total amount available to us under
our credit facility is reduced, in whole or in part, because of covenant
limitations
* disruption in the credit markets
* our ability to secure additional federal and state potash leases to expand
our existing mining operations
* the other risks, uncertainties, and assumptions described in Item 1A. Risk
Factors of our Annual Report on Form 10-K for the year ended December
31, 2013

In addition, new risks emerge from time to time.  It is not possible for our
management to predict all risks that may cause actual results to differ
materially from those contained in any forward-looking statements we may make.

All information in this document speaks as of April 30, 2014.  New information
or events after that date may cause our forward-looking statements in this
document to change.  We have no duty to update or revise publicly any forward-
looking statements to conform the statements to actual results or to reflect new
information or future events.

Contact:
Gary Kohn, Investor Relations
Phone:  303-996-3024
Email: gary.kohn@intrepidpotash.com








Intrepid Potash Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 2014 AND 2013
 (In thousands, except share and per share amounts)


Three Months Ended March
    31,
----------------------------
    2014   2013
-------------- -------------
Sales   $ 98,875     $ 99,257

Less:

Freight costs   9,932     8,097

Warehousing and handling costs   2,812     3,579

Cost of goods sold   78,573     53,773

Lower-of-cost-or-market inventory adjustments   3,566     8
-------------- -------------
Gross Margin   3,992     33,800



Selling and administrative   6,746     9,492

Accretion of asset retirement obligation   406     375

Restructuring expense   1,827     -

Other operating (income) expense   (2,947 )   171
-------------- -------------
Operating (Loss) Income   (2,040 )   23,762



Other (Expense) Income

Interest expense   (1,380 )   (213 )

Interest income   53     52

Other income   234     16
-------------- -------------
(Loss) Income Before Income Taxes   (3,133 )   23,617



Income Tax Benefit (Expense)   2,778     (8,698 )
-------------- -------------
Net (Loss) Income   $ (355 )   $ 14,919
-------------- -------------


Weighted Average Shares Outstanding:

Basic   75,444,953     75,340,559
-------------- -------------
Diluted   75,444,953     75,392,527
-------------- -------------
(Loss) Earnings Per Share:

Basic   $ 0.00     $ 0.20
-------------- -------------
Diluted   $ 0.00     $ 0.20
-------------- -------------




Intrepid Potash Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
AS OF MARCH 31, 2014 AND DECEMBER 31, 2013
(In thousands, except share and per share amounts)


    March 31,   December 31,

    2014   2013
--------------- --------------
ASSETS

Cash and cash equivalents   $ 3,234     $ 394

Short-term investments   6,586     15,214

Accounts receivable:

Trade, net   30,268     20,837

Other receivables   10,773     7,457

Refundable income taxes   13,697     15,722

Inventory, net   93,065     105,011

Prepaid expenses and other current assets   4,549     5,653

Current deferred tax asset   6,987     8,341
--------------- --------------
Total current assets   169,159     178,629
--------------- --------------


Property, plant, equipment, and mineral
properties, net   823,508     826,569

Long-term parts inventory, net   14,106     12,469

Long-term investments   2     9,505

Other assets, net   4,231     4,252

Non-current deferred tax asset   147,974     143,849
--------------- --------------
Total Assets   $ 1,158,980     $ 1,175,273
--------------- --------------


LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts payable:

Trade   $ 19,388     $ 27,552

Related parties   28     50

Accrued liabilities   21,521     29,845

Accrued employee compensation and benefits   9,557     9,122

Other current liabilities   1,234     2,059
--------------- --------------
Total current liabilities   51,728     68,628
--------------- --------------


Long-term debt   150,000     150,000

Asset retirement obligation   20,287     19,959

Other non-current liabilities   2,919     2,715
--------------- --------------
Total Liabilities   224,934     241,302
--------------- --------------


Commitments and Contingencies



Common stock, $0.001 par value; 100,000,000
shares authorized; and 75,507,091 and
75,405,410

shares outstanding at March 31, 2014, and
December 31, 2013, respectively   76     75

Additional paid-in capital   573,033     572,616

Accumulated other comprehensive income (loss)   2     (10 )

Retained earnings   360,935     361,290
--------------- --------------
Total Stockholders' Equity   934,046     933,971
--------------- --------------
Total Liabilities and Stockholders' Equity   $ 1,158,980     $ 1,175,273
--------------- --------------




Intrepid Potash Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 2014 AND 2013
(In thousands)

    Three Months Ended March 31,
-----------------------------
    2014   2013
----------- -----------------
Cash Flows from Operating Activities:

Reconciliation of net (loss) income to net cash
provided by operating activities:

Net (loss) income   $ (355 )   $ 14,919

Deferred income taxes   (2,778 )   8,381

Items not affecting cash:

Depreciation, depletion, and accretion   19,649     14,141

Stock-based compensation   1,028     1,140

Lower-of-cost-or-market inventory adjustments   3,566     8

Other   223     425

Changes in operating assets and liabilities:

Trade accounts receivable, net   (9,431 )   (12,715 )

Other receivables, net   (3,316 )   (344 )

Refundable income taxes   2,025     3

Inventory, net   6,743     (8,781 )

Prepaid expenses and other assets   1,005     714

Accounts payable, accrued liabilities, and
accrued employee
     compensation and benefits   (335 )   (4,295 )

Other liabilities   (700 )   (1,975 )
----------- -----------------
Net cash provided by operating activities   17,324     11,621
----------- -----------------


Cash Flows from Investing Activities:

Additions to property, plant, equipment, and
mineral properties   (31,919 )   (61,148 )

Proceeds from sale of property, plant,
equipment, and mineral properties   -     10

Purchases of investments   (5 )   -

Proceeds from sale of investments   18,051     21,586
----------- -----------------
Net cash used in investing activities   (13,873 )   (39,552 )
----------- -----------------


Cash Flows from Financing Activities:

Employee tax withholding paid for restricted
stock upon vesting   (611 )   (577 )
----------- -----------------
Net cash used in financing activities   (611 )   (577 )
----------- -----------------


Net Change in Cash and Cash Equivalents   2,840     (28,508 )

Cash and Cash Equivalents, beginning of period   394     33,619
----------- -----------------
Cash and Cash Equivalents, end of period   $ 3,234     $ 5,111
----------- -----------------



Intrepid Potash Inc.
SELECTED OPERATIONS DATA (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 2014 AND 2013

Three Months Ended
    March 31,
------------------------
    2014   2013
------------ -----------
Production volume (in thousands of tons):

Potash   220     222
------------ -----------
Langbeinite   32     46
------------ -----------
Sales volume (in thousands of tons):

Potash   242     185
------------ -----------
Trio(®)   36     39
------------ -----------


Gross sales (in thousands):

Potash   $ 84,497     $ 82,778

Trio(®)   14,378     16,479
------------ -----------
Total   98,875     99,257

Freight costs (in thousands):

Potash   7,661     5,466

Trio(®)   2,271     2,631
------------ -----------
Total   9,932     8,097

Net sales (in thousands)((1)):

Potash   76,836     77,312

Trio(®)   12,107     13,848
------------ -----------
Total   $ 88,943     $ 91,160
------------ -----------


Potash statistics (per ton):

   Average net realized sales price((1))   $ 317     $ 417

   Cash operating costs((1)(2))   205     174

Depreciation and depletion   64     46

Royalties   11     16
------------ -----------
Total potash cost of goods sold   $ 280     $ 236
------------ -----------
Warehousing and handling costs   10     16
------------ -----------
      Average potash gross margin((1))   $ 27     $ 165
------------ -----------


Trio(®) statistics (per ton):

   Average net realized sales price((1))   $ 340     $ 351

   Cash operating costs((1))   216     180

Depreciation and depletion   68     54

Royalties   17     18
------------ -----------
      Total Trio(®) cost of goods sold   $ 301     $ 252
------------ -----------
Warehousing and handling costs   10     14
------------ -----------
      Average Trio(®) gross margin((1))   $ 29     $ 85
------------ -----------

((1)  )Net sales, average net realized sales price, cash operating costs and
average gross margin are non-GAAP financial measures.  See the non-GAAP
reconciliations set forth later in this press release for additional
information.
((2)) On a per ton basis, by-product credits were $6 and $10 for the first
quarter of 2014, and 2013, respectively.  By-product credits were $1.4 million
and $1.9 million for the first quarter of 2014, and 2013, respectively. By-
product credits are excluded from cash operating costs and GAAP total cost of
goods sold.


Intrepid Potash Inc.
UNAUDITED NON-GAAP RECONCILIATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2014 AND 2013
(In thousands, except per share amounts)

To supplement our consolidated financial statements, which are prepared and
presented in accordance with GAAP, we use several non-GAAP financial measures to
monitor and evaluate our performance.  These non-GAAP financial measures include
adjusted net income (loss), adjusted net income (loss) per diluted share,
adjusted EBITDA, net sales, average net realized sales price, cash operating
costs, and average potash and Trio(®) gross margin.  These non-GAAP financial
measures should not be considered in isolation or as a substitute for, or
superior to, the financial information prepared and presented in accordance with
GAAP.  In addition, because the presentation of these non-GAAP financial
measures varies among companies, our non-GAAP financial measures may not be
comparable to similarly titled measures used by other companies.

We believe these non-GAAP financial measures provide useful information to
investors for analysis of our business.  We also refer to these non-GAAP
financial measures in assessing our performance and when planning, forecasting
and analyzing future periods.  We believe these non-GAAP financial measures are
widely used by professional research analysts and others in the valuation,
comparison and investment recommendations of companies in the potash mining
industry.  Many investors use the published research reports of these
professional research analysts and others in making investment decisions.

Below is additional information about our non-GAAP financial measures, including
reconciliations of our non-GAAP financial measures to the most directly
comparable GAAP measures:

Adjusted Net Income (Loss) and Adjusted Net Income (Loss) Per Diluted Share

Adjusted net income (loss) and adjusted net income (loss) per diluted share are
non-GAAP financial measures that are calculated as net income or earnings per
diluted share adjusted for certain items that impact the comparability of
results from period to period.  These items include, among others, restructuring
expenses and reversal of the reserve associated with the employment-related high
wage tax credits in New Mexico.  We consider these non-GAAP financial measures
to be useful because they allow for period-to-period comparisons of our
operating results excluding items that we believe are not indicative of our
fundamental ongoing operations.
Three Months Ended
  March 31,
----------------------
  2014   2013
---------- -----------
Net (Loss) Income $ (355 )   $ 14,919

Adjustments

Allowance for New Mexico employment credits (1) (2,563 )   -

Restructuring expense 1,827     -

Calculated income tax effect (2) 294     -
---------- -----------
Total adjustments (442 )   -
---------- -----------
Adjusted Net (Loss) Income $ (797 )   $ 14,919
---------- -----------

(1) In the third quarter of 2013, Intrepid received notification that its
application for certain New Mexico employment-related high wage tax credits had
been denied and established a pre-tax, non-cash reserve of approximately $2.8
million for the credits relating to the denied periods.  In March of 2014,
Intrepid received notification from the State of New Mexico that the vast
majority of the credits will be allowed and therefore has reversed most of the
reserve to reflect the expected amount of cash to be received.

(2) Assumes an annual effective tax rate of 40%.


Three Months Ended
  March 31,
---------------------
  2014   2013
----------- ---------
Net (Loss) Income Per Diluted Share $ 0.00     $ 0.20

Adjustments

Allowance for New Mexico employment credits (0.03 )   -

Restructuring expense 0.02     -

Calculated income tax effect -     -
----------- ---------
Total adjustments (0.01 )   -
----------- ---------
Adjusted Net (Loss) Income Per Diluted Share $ (0.01 )   $ 0.20
----------- ---------



Adjusted EBITDA

Adjusted earnings before interest, taxes, depreciation, and amortization (or
adjusted EBITDA) is a non-GAAP financial measure that is calculated as net
income adjusted for the reversal of the reserve associated with the employment-
related high wage tax credits in New Mexico, restructuring charges, interest
expense, income tax expense, depreciation, depletion, and amortization, and
asset retirement obligation accretion.  We consider adjusted EBITDA to be useful
because it reflects our operating performance before the effects of certain non-
cash items and other items that we believe are not indicative of our core
operations.  We use adjusted EBITDA to assess operating performance and as one
of the measures under our performance-based compensation programs for
employees.



Three Months Ended
  March 31,
------------------------
  2014   2013
------------ -----------
Net (Loss) Income $ (355 )   $ 14,919

Allowance for New Mexico employment credits (2,563 )   -

Restructuring expense 1,827     -

Interest expense, including realized and

unrealized derivative gains and losses 1,380     213

Income tax (benefit) expense (2,778 )   8,698

Depreciation, depletion, and accretion 19,649     14,141
------------ -----------
Total adjustments 17,515     23,052
------------ -----------
Adjusted Earnings Before Interest, Taxes,

Depreciation, and Amortization $ 17,160     $ 37,971
------------ -----------


Net Sales and Average Net Realized Sales Price per Ton

Net sales and average net realized sales price are non-GAAP financial measures.
Net sales are calculated as sales less freight costs.  Average net realized
sales price is calculated as net sales, divided by the number of tons sold in
the period.  We consider net sales and average net realized sales price to be
useful because they remove the effect of transportation and delivery costs on
sales and pricing.  When we arrange transportation and delivery for a customer,
we include in revenue and in freight costs the costs associated with
transportation and delivery.  However, many of our customers arrange for and pay
their own transportation and delivery costs, in which case these costs are not
included in our revenue and freight costs.  We use net sales and average net
realized sales price as key performance indicators to analyze sales and price
trends.  We also use net sales as one of the measures under our performance-
based compensation programs for employees.


    Three Months Ended March 31,
----------------------------------------------------------------------------
    2014   2013
-------------------------------------- -------------------------------------
    Potash   Trio(®)   Total   Potash   Trio(®)   Total
------------ ------------ ------------ ------------ ------------ -----------
Sales   $ 84,497     $ 14,378     $ 98,875     $ 82,778     $ 16,479     $ 99,257

Freight
costs   7,661     2,271     9,932     5,466     2,631     8,097
------------ ------------ ------------ ------------ ------------ -----------
Net sales   $ 76,836     $ 12,107     $ 88,943     $ 77,312     $ 13,848     $ 91,160
------------ ------------ ------------ ------------ ------------ -----------


Divided
by:

Tons sold
(in
thousands)   242     36         185     39
------------ ------------ ------------ ------------
Average
net
realized
sales
price per
ton   $ 317     $ 340         $ 417     $ 351
------------ ------------ ------------ ------------



Cash Operating Costs per Ton

Cash operating costs is a non-GAAP financial measure that is calculated as total
of cost of goods sold divided by the number of tons sold in the period and then
adjusted to exclude per-ton depreciation, depletion, and royalties.  Total cost
of goods sold is reported net of by-product credits and does not include
warehouse and handling costs.  We consider cash operating costs to be useful
because it represents our core, per-ton costs to produce potash and Trio(®).  We
use cash operating costs as an indicator of performance and operating
efficiencies and as one of the measures under our performance-based compensation
programs for employees.


    Three Months Ended March 31,
---------------------------------------------------------------------------
    2014   2013
-------------------------------------- ------------------------------------
    Potash   Trio(®)   Total   Potash   Trio(®)   Total
------------ ------------ ------------ ------------ ----------- -----------
Cost of
goods sold   $ 67,859     $ 10,714     $ 78,573     $ 43,823     $ 9,950     $ 53,773

Divided by
sales volume
(in
thousands of
tons)   242     36         185     39
------------ ------------ ------------ -----------
Cost of
goods sold
per ton   $ 280     $ 301         $ 236     $ 252
------------ ------------ ------------ -----------
Less per-ton
adjustments

Depreciation
and
depletion   $ 64     $ 68         $ 46     $ 54

Royalties   11     17         16     18
------------ ------------ ------------ -----------
Cash
operating
costs per
ton   $ 205     $ 216         $ 174     $ 180
------------ ------------ ------------ -----------


Average Potash and Trio(®) Gross Margin per Ton


Average potash and Trio(®) gross margin are non-GAAP financial measures and
calculated by subtracting the sum of total cost of goods sold and warehousing
and handling costs from the average net realized sales price.  We believe the
average gross margin for both potash and Trio(®) to be useful as they represent
the average amount of margin we realize on each ton of potash and Trio(®) sold.
The reconciliations of average potash and Trio(® )net realized sales price to
GAAP sales is set forth separately above under the heading "Net Sales and
Average Net Realized Sales Price per Ton."


Three Months
    Ended March 31,
------------------
    2014   2013
------------------
Potash

Average potash net realized sales price   $ 317     $ 417

Less total potash cost of goods sold   280     236

Less potash warehousing and handling costs   10     16
--------- --------
Average potash gross margin per ton   $ 27     $ 165
--------- --------


Three Months
    Ended March 31,
------------------
    2014   2013
------------------
Trio(®)

Average Trio(®) net realized sales price   $ 340     $ 351

Less total Trio(®) cost of goods sold   301     252

Less Trio(®) warehousing and handling costs   10     14
--------- --------
Average Trio(®) gross margin per ton   $ 29     $ 85
--------- --------




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Source: Intrepid Potash Inc. via GlobeNewswire
[HUG#1781754]