Americas Petrogas Inc.
TSX VENTURE : BOE

Americas Petrogas Inc.
GrowMax AgriCorp.

GrowMax AgriCorp.

June 24, 2010 12:44 ET

Americas Petrogas Inc.: Bayovar Concession Milestones

CALGARY, ALBERTA--(Marketwire - June 24, 2010) - Americas Petrogas Inc. (TSX VENTURE:BOE) - GrowMax Agri Corp. and its subsidiary, Americas Potash Peru S.A., (collectively, "GrowMax") is pleased to announce recent milestones on its potash project in Bayovar, Peru. These recent milestones involve:

  1. Confirmation drilling;
  2. Lab testing;
  3. Pilot plants;
  4. Pre-feasibility study in process; and
  5. Environmental.

Further details of the aforementioned recent developments are discussed below.

1. Confirmation Drilling

GrowMax has recently drilled 22 confirmation boreholes, ranging from 18 meters to 157 meters depth, on its 202,000 acre Sechura mineral-rich brine concession. The information from these wells, coupled with earlier surface resistivity measurements, has re-confirmed the presence of the subsurface brine over a substantial area. The results so far support the earlier historical work from the 1960's by Kaiser Chemical. These wells will provide necessary data for the completion of reserves information in accordance with National Instrument 43-101. As previously reported, Ercosplan, an engineering firm focused in the potash and mineral salt industry and qualified to report in accordance with National Instrument 43-101, has been engaged to prepare the reserves information. Additional wells will be drilled to facilitate a regional interpretation of the brine resource.

2. Lab Testing

Lab testing has successfully produced samples of both carnallite and sylvite from the Ramon-Sechura surface brines. Carnallite is a potassium-magnesium-chloride mineral that can be processed into potash, and sylvite is potassium chloride (KCl) in its natural form. The carnallite and sylvite samples were produced, via solar evaporation simulation, at GrowMax's lab, located in Piura, Peru near the Bayovar project. Nine carnallite leaching tests were performed with production of sylvite of 99% KCl purity or 62% potassium oxide (K2O), confirming previous results obtained in the historical pilot plant.

3. Pilot Plants

In addition to the successful lab tests, GrowMax has been operating three new small pilot plants southwest from the historical pilot plant on the Ramon-Sechura site. Recent test results from these new pilot plants have confirmed the ability to produce carnallite and sylvite via solar evaporation of shallow ponds of brine.

In addition, GrowMax has installed a 7x24 computerized weather station on the Ramon-Sechura site that collects a continuous stream of meteorological information which will be used for engineering design and sizing of solar evaporation ponds.

Since beginning this project, the Company has intended to employ low-cost, low-carbon-footprint, quicker-to-market solar evaporation processing of brines to recover potash and other minerals rather than conventional mining or solution mining which generally involve higher capital costs, energy-intensive, higher operating costs and longer development timelines. The recent lab results and pilot plant tests are a validation of the Company's initial plans for this project and essentially replicate the original recovery of brines using low-energy consumption, solar evaporation in the historical pilot plant that was successfully operated on the property.

4. Pre-Feasibility Study in Process

GrowMax is in the process of completing a pre-feasibility study of the KCl potash fertilizer project. The study should provide a preliminary basis for locations of solar evaporation ponds, capital costs and operating costs, among other things. Completion of the pre-feasibility study is expected in the third quarter of 2010.

5. Environmental - Public Forum

As previously announced, GrowMax completed the 1st of three public forums at which environmental matters on its potash project were discussed and addressed. Such public environmental forums are an important and necessary part of the whole environmental impact assessment process.

Mr. Barclay Hambrook, President of Americas Petrogas, the parent company of GrowMax, stated that "The recent milestones represent major steps forward for our Peru project. This recent work helps to re-confirm the historical resources, validates the effectiveness of solar evaporation methods in the region, and supports the company's plans for monetizing the resources."

About GrowMax

GrowMax is a subsidiary of Americas Petrogas Inc. (TSX VENTURE:BOE) (www.americaspetrogas.com). Americas Petrogas' partner shareholder is Indian Farmers Fertiliser Co-operative (www.iffco.nic.in), the world's largest manufacturer and marketer of fertilizer in the cooperative sector with over 50 million farmers associated with it and five fertilizer plants producing a total of approximately 8.2 million tonnes of phosphate and nitrogen fertilizers.

About Americas Petrogas Inc.

Americas Petrogas Inc. is a Canadian company whose shares trade on the TSX Venture Exchange under the symbol "BOE". Americas Petrogas has oil and gas exploration, development and production activities and holds over 1,808,000 acres of land in Argentina's most prolific Neuquen Basin. Americas Petrogas' plans for 2010 include drilling a minimum of 15 wells on its oil and gas properties. In Peru, through GrowMax, Americas Petrogas is developing a surface potash (and other minerals) brine reservoir and evaporite deposit at Bayovar in the Sechura Desert of Northwest Peru. Management, along with its partner/investor IFFCO, intends to build GrowMax into a potash and specialty fertilizers company.

Certain statements in this Press Release constitute forward-looking statements under applicable securities legislation. Such forward-looking statements, such as expected re-confirmation of historical data/results, success of solar evaporation testing, expected date of completion of pre-feasibility study, methods of processing, expectations regarding completion of a report compliant with National Instrument 43-101, plans for monetizing resources, potential for additional minerals, and drilling plans and development of a surface potash (and other minerals) brine reservoir and evaporite deposit at Bayovar involve risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. This forward-looking information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels and timing of activity and achievements to differ materially from those expressed or implied by such information.

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