Athabasca Potash Inc.

Athabasca Potash Inc.

January 16, 2008 09:00 ET

Athabasca Potash Inc.: Update

SASKATOON, SASKATCHEWAN--(Marketwire - Jan. 16, 2008) - Athabasca Potash Inc. ("Athabasca") (TSX:API) is pleased to provide an update on the exploration work currently in progress on its wholly-owned Burr Project, located 20 kilometres north of the Lanigan potash mine, and 26 kilometres from the town of Lanigan.

Boyd Exploration Consultants Ltd. ("Boyd") has now completed a 3D seismic survey over a portion of the Burr Project area. The survey covers 60.22 square kilometres and will help identify localized geological hazards, and will also identify the optimal location for a mine shaft. The area surveyed is a sufficient portion of the project to assist in mine planning for 20 years. The results of the 3D seismic will be compiled, interpreted and applied to the enhanced Scoping Study.

Athabasca has engaged Wardrop Engineering Inc. ("Wardrop") to complete an enhanced Scoping Study for the Burr Project and this study is expected to be completed in the first half of 2008. Wardrop has also been engaged to initiate environmental baseline studies on the project in preparation for completion of an Environmental Assessment and Permitting Report as the project advances.

Athabasca has also received the analytical results from the drill core submitted to the Saskatchewan Research Council in late 2007. Approximately 250 samples from 5 new drill holes completed in the fall of 2007 were submitted. Athabasca is compiling the assay results and expects them to be available by the end of January.

"This is a very exciting time for Athabasca," states Dawn Zhou, President. "We are being very aggressive in completing the necessary ground work to move the project ahead as rapidly as we can."

"The fundamentals that support the need for a new Saskatchewan potash mine continue to exist despite the challenges facing the North American economy," she adds. "The changing diets in the growing middle-class in the emerging markets of Asia will continue to drive the demand for potash."

Athabasca Potash Inc. was founded with a goal of establishing itself as a pre-eminent Canadian public company engaged solely in potash exploration and development, and to provide its shareholders with a unique investment opportunity focused entirely on potash production.

Certain information contained herein may constitute forward looking statements. Readers are cautioned that forward looking statements are not guarantees for future results. Athabasca expressly disclaims any obligation to update or revise any forward looking statements, whether as a result of new information, events or otherwise.

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