Athabasca Potash Inc.
TSX : API

Athabasca Potash Inc.

November 12, 2009 21:00 ET

Athabasca Potash Inc. Announces Third Quarter Results

SASKATOON, SASKATCHEWAN--(Marketwire - Nov. 12, 2009) - Athabasca Potash Inc. (TSX:API) ("API" or the "Company") announces that it has filed the results of API's operations for the nine months ended September 30, 2009 all of which will be available at www.sedar.com or www.athabascapotash.ca.

Highlights for the third quarter include:

- Burr Project Environmental Impact Statement documents were received by the Saskatchewan Ministry of Environment for review.

- New Board of Directors elected consisting of Arnold Hilliar, Robert Cross, Brian Goodwin, Charles Ye, Kenneth MacNeill, Dawn Zhou and Bradley Fettis. Kenneth MacNeill was appointed Lead Director and Dawn Zhou as Executive Chairman.

- Expenditures on mineral properties totalled $1,931,190.

- Cash and cash equivalents of $18,526,562 at September 30, 2009.

- Issued and outstanding shares of 37,646,196 at September 30, 2009.

During the third quarter of 2009, API continued to focus on the Environmental Impact Statement (EIS) and the Pre-feasibility study (PFS) for its 100% owned Burr Project. Environmental baseline studies were initiated in early 2008 and a tailings management siting study were carried out during 2008 to support the completion of the EIS. The EIS was completed by API and received by the Saskatchewan Ministry of Environment for review on August 5, 2009. The Company continues to work on completing a 2.0 million tonnes per year pre-feasibility study report for a low operating cost conventional potash mine. During this period, the Company has opted to also complete an order of magnitude evaluation on the Burr Project at 3.0 million tonnes and 4.0 million tonnes of product per year.

Outlook

API has adopted a cash conservative approach, focusing available human resources and short-term expenditures on the most critical activities. The Burr Project has an established mineral resource of sufficient quantity and quality to support a pre-feasibility study and a feasibility study. The Company will be assisting the Saskatchewan Ministry of Environment with the review of the Burr Project EIS. The Company intends to file a new NI 43-101 compliant technical report in connection with the pre-feasibility studies. API has been making progress on its global discussion with a number of third parties regarding potential strategic alliances to develop the Burr Project and will conclude such discussions in due course.

Quarter End Results ($ 000)

As of September 30, 2009, API's cash and cash equivalents balance decreased to $18,526 from $31,578 at December 31, 2008. API recorded a quarterly net loss of $9,229 or ($0.25) per share compared to a loss of $575 or ($0.02) per share for the same period in 2008.

Income for the quarter resulted from the Company's investments of excess cash reserves from short-term deposits. For the quarter ending September 30, 2009, the Company reported interest income of $30 compared to $331 for the three months ended September 30, 2008. The decrease in revenues is due to lower cash balances and lower interest rates in the third quarter of 2009 compared to the third quarter of 2008.

Total operating costs for the quarter ending September 30, 2009 equalled $9,345 compared to $1,018 for the third quarter of 2008 representing an increase of $8,327. Included in the third quarter was a charge for stock based compensation of $5,749. Expenses for the first nine month period ended September 30, 2009 increased $4,606 and totalled $6,286 (before stock based compensation) compared to $1,680 for the nine months ended September 30, 2008.

In the nine month period ended September 30, 2009 there were significant non-recurring expenses which were authorized by the former Lead Director and the Executive Committee prior to the Annual general Meeting held on September 3, 2009. The non-recurring cash expenses incurred during this period were Consulting Fees ($190), Legal Fees ($900), Special Directors Fees ($147), Deferred Stock Units payable to the former Directors ($481) and severance to officers ($913). These non-recurring expenses represent approximately 43% of the cash expenses of the Company during the nine months ended September 30, 2009. Revenues decreased $1,000 to $245 for the nine months ended September 30, 2009 from $1,245 for the same nine months in 2008. This decrease was due to lower interest income resulting from significantly lower cash deposits held and lower interest rates during the nine month period in 2009 compared to 2008.



----------------------------------------------------------------------------
Balance Sheet ($ 000) September 30, December 31,
2009 2008
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Current Assets 18,729 31,875
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Total Assets 58,203 62,280
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Current Liabilities 3,112 1,507
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Future income tax liability - 1,032
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Share Capital 57,893 57,222
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Contributed Surplus 11,416 5,805
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Deficit (14,218) (3,286)
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Statements of Income September 30, September 30,
(For the 3 Months Ended) 2009 2008
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Interest Income 30 331
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Operating Expenses 9,345 1,018
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Loss for the period before income taxes (9,315) (687)
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Net (Loss) income for the period (9,229) (575)
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(Loss) income per share (.25) (.02)
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Statements of Cash Flows September 30, September 30,
(For the 3 Months Ended) 2009 2008
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Cash flows from operating activities (1,429) (487)
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Cash flows from investing activities (3,056) (6,726)
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Cash flows from financing activities 102 (27)
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Increase (Decrease) in cash during the
period (4,383) (7,240)
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Cash and cash equivalents - beginning of
period 22,909 45,807
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Cash and cash equivalents - end of period 18,526 38,567
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Burr Project

The Burr Project site is located 107 km (140 km by highway) east of the City of Saskatoon in the Province of Saskatchewan, Canada. The southern boundary of the project area is located 13.5 km north of the Lanigan Mine headframe (owned and operated by Potash Corporation of Saskatchewan) and 26 km NW of the town site of Lanigan and 20 km south of the City of Humboldt.

The potash wells have all encountered stable overlying rocks which are an important consideration for reasonable prospects of economic extraction. The geological setting and favourable mineralization shown at the Burr Project are consistent with characteristics of existing Saskatchewan potash mines.

About Athabasca:

Athabasca Potash Inc. is a Canadian based corporation and was founded with a goal of establishing itself as a pre-eminent Canadian public company engaged solely in potash exploration and development with focus on the Company's wholly owned Burr Project, and to provide its shareholders with a unique investment opportunity focused entirely on potash.

Caution Regarding Forward-Looking Information

Certain of the statements made and information contained herein is "forward-looking information" within the meaning of certain securities laws. This includes statements concerning API's plans at its mineral properties, which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of API, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Forward-looking information is subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, exploration risks, lack of historic drill hole documentation, challenges or impairments to title, access to certain potash mineralization must be negotiated, permit requirements, governmental regulations, aboriginal land use, environmental risks and competition in attracting and retaining personnel. In addition, forward-looking information is based on various assumptions. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation, Athabasca undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.

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