Potash One Inc.
TSX : KCL

Potash One Inc.

April 07, 2010 08:00 ET

Potash One Announces Purchase of Key Long Lead Materials for Its Legacy Potash Solution Mine in Southern Saskatchewan

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 7, 2010) - Potash One Inc. (TSX:KCL) ("Potash One" or the "Company") is pleased to announce the next major step in its strategic implementation plan for its Legacy Potash Solution Mine in Saskatchewan.

As a new entrant into potash production, solution mining provides the Company with two principal advantages over conventional potash mining: a relatively lower capital cost and a shorter implementation time to production. Additionally, the Company is positioned to take advantage of the world economic slowdown and access materials and labour at significantly lower costs.

Currently, commissioning and startup of the mine is planned for late 2013. As part of the plan to meet that schedule, Potash One has placed the first order for long-delivery alloyed materials required to fabricate the evaporation/crystallization equipment. The evaporation/crystallization plant is the core of the Legacy processing facility and is being designed and supplied by Whiting Equipment Canada Ltd. This initial material order of Inconel™-clad steel plate will enable Whiting to deliver the major equipment to the Legacy site starting in 2012.

In addition to maintaining project schedule, the purchase of the specialty clad plate material also allows Potash One to take advantage of reduced pricing and readily available shop space currently being offered by suppliers. As noted by Whiting, prices and delivery times are substantially less than they were one year ago. Further, as the world-wide economic recovery progresses and nickel prices start to rise, the cost of these alloys will only increase.

Paul F. Matysek, President and Chief Executive Officer of Potash One, stated: "I am pleased that the engineering associated with the ongoing feasibility study, currently being led by SNC-Lavalin Inc., continues on track and has progressed to the point that a key long lead item can be purchased. This first material purchase represents another significant milestone in the Legacy Project development."

ON BEHALF OF THE BOARD OF DIRECTORS,

Paul F. Matysek, M.Sc., P.Geo., President and Chief Executive Officer

About Potash One Inc.:

Potash One Inc. is a well-funded TSX-listed Canadian resource Company engaged in the exploration and development of advanced potash properties amenable to solution mining. The Company owns a 100% interest in the 97,240 acre Legacy Project which has an NI 43-101 compliant Measured Resource of 29 million tonnes of recoverable KCl, Indicated Mineral Resource of 222 million tonnes of KCl and an Inferred Mineral Resource of 853 million tonnes of KCl. The Company has recently completed a pre-feasibility study with SNC-Lavalin with robust economics at current potash pricing. The Legacy Project is adjacent to the largest producing solution potash mine in the world. The Company also owns more than 515,000 acres of Potash Subsurface Exploration Permits in Saskatchewan, Canada.

Forward-Looking Statements: Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Company's periodic filings with Canadian Securities Regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. Statements in this press release other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, constitute forward-looking statements. Forward looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in mineral exploration and development. The Company does not assume the obligation to update any forward-looking statement. There are numerous risks and other factors that will influence a development decision, including concluding resource evaluations on mineral properties, extraction and processing design limitations, financing requirements, permitting risks and economic factors, all of which may be beyond the control of the Company.

The Toronto Stock Exchange has neither approved nor disapproved the contents of this press release.

Contact Information

  • Potash One Inc.
    Paul F. Matysek, M.Sc., P.Geo.
    President and Chief Executive Officer
    (604) 331-4431
    (604) 408-4799 (FAX)
    info@potash1.com
    www.potash1.com