Potash One Inc.

Potash One Inc.

September 11, 2009 12:14 ET

Potash One Announces Purchase of Legacy Project Plant Site Land

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 11, 2009) - Potash One Inc. (the "Company" or "Potash One") (TSX:KCL) is pleased to announce that it has completed the purchase of sufficient surface land acreage to facilitate the development of the plant site facility for its Legacy potash solution mining project in Saskatchewan, Canada.

Since its inception in 2005, Potash One completed a significant exploration program over its wholly owned KP-289 Potash Permit area (the "Legacy Project"). This program has led the Company to favor a land position in the south region of the permit area for its initial mining activity. The area was selected based upon the most favorable solution mining characteristics which include total potash thickness, KCl grade, along with formation depth and temperature.

With its primary mining area determined, Potash One has focused its efforts to the selection of the plant site location. The plant site placement is an extremely important aspect of the Legacy Project as it affects both Environmental and Regulatory approvals, as well as project economics.

The plant site will support the following:

- processing facilities,

- clean salt storage area,

- brine pond and cooling ponds,

- maintenance and administration buildings, and

- utility infrastructure.

The site selection was also driven by geophysical and hydrogeological characterization, proximity to transport infrastructure and water and utility services.

Potash One completed an airborne geophysical survey (performed by Fugro) over the entire 97,000+ acre permit area and executed an extensive geotechnical drilling program (comprising over 40 geotechnical and hydrogeological holes) in and around the preferred plant site region. From this data, an optimal plant location was selected and a land acquisition program undertaken.

The land acquisition program, while remaining active, has now successfully secured over 1,920 acres (777.3 ha) which encompasses its preferred site location. This area is sufficient to house all intended plant site facilities for the full 40 year initial mine life. Additional land acquisitions are being considered in order to provide other strategic advantages and buffer space, but those optional lands are not necessary for the Legacy Project to establish its primary mine site and production facility.

Paul F. Matysek, President and CEO of Potash One Inc., commented: "Purchasing adequate surface land in the area that was identified as the ideal plant site location represents a significant accomplishment in the ongoing development of the Legacy Project. We now have direct ownership of ample land acreage to ensure a flexible and efficient plant layout and design. This along with the highly detailed geological and solution mining data obtained to date, truly brings Potash One a significant step closer to making Legacy a reality."

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 Measured Resource of 29 million tonnes of KCl, Indicated Mineral Resource of 222 million tonnes of KCl and an Inferred Mineral Resource of 852 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 Mineral 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 corporation'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