Potash One Inc.
TSX : KCL

Potash One Inc.

July 23, 2009 12:47 ET

Potash One Files Summary of the Pre-Feasibility Study Report

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 23, 2009) - Potash One Inc. (the "Company" or "Potash One") (TSX:KCL) is pleased to announce that further to its news release dated June 18, 2009, it has filed today with the Canadian securities regulators, a 17 page summary (the "Summary") of the Preliminary Feasibility Study (the "PFS") on its Legacy potash solution mining project in Saskatchewan, Canada. The Summary was compiled by Potash One Inc. The Summary will be available on SEDAR at www.sedar.com on July 24, 2009 and also on the Company's website at www.potash1.com.

The highlights of the Potash One - Legacy Project include:



- Initial Mine Life: 40 years

- Measured Resources of 29 million tonnes and Indicated Resources of 222
million tonnes of KCl Product

- Annual Potash Production: 2.5 million tonnes per year of KCl

- Estimated Project Capital Cost - (Millions US$)

Direct Costs 1,134.8
EPCM Services 133.7
Field Indirects 44.6
Owner's Cost 89.1
Commissioning and Start-up 15.7
Escalation 80.4
20% Contingency 299.7
Risk Allowance 78.5

Total Estimated Project Capital Cost 1,877

- Estimated after-tax and royalty Internal Rate of Return (IRR) is 30.1%

- Estimated Net Present Value (NPV) after tax at a 10% discount rate is
US$4.47 Billion

- After-tax payback period of approximately 3.3 years

- A Q2 2009-normalized flat line average price of US$525 per tonne of KCl,
FOB Vancouver over life of mine

- Recommendation to Potash One by SNC Lavalin to advance the Legacy Project
to the Feasibility Study stage, based on the favourable results of the PFS
summarized above


The economic analysis was performed based on 100% equity and used estimates of capital expenditures, major sustaining capital expenditures and operating costs described in detail in the PFS. Since the analysis is based on a cash flow estimate, it should be expected that actual financial results would vary from these predictions. An accuracy assessment of the cost estimates was completed as part of the PFS and is estimated to be -20% to +35%.

Paul F. Matysek, President and CEO of Potash One stated, "Potash One is pleased to have completed the Pre-Feasibility Study on our Legacy Project. The results of the study clearly show that Legacy is a robust project having an IRR of 30.1% even after providing for escalation, risk allowances and contingencies, equivalent to 40% of the direct costs of the project."

The Legacy Project PFS was prepared by a team of world-class engineering and specialized consulting firms with the following responsibilities:

- SNC-Lavalin Inc. -- Compilation of study components, Plant Engineering, Cost Estimating, and Project Economics (pre-tax)

- North Rim Exploration and Agapito Associates - Geology

- Agapito Associates, Cavern Engineering, and Potash One - Mining

- Golder Associates - Environmental and Socio-Economic Aspects

- Swenson Technology - Evaporation-Crystallization Technology

- Potash One - Utilities and Off-Site Infrastructure

- Bullee Consulting - Sewage Treatment and Potable Water Treatment

- Hergott Duval Stack and Partners - Taxation and Royalty impacts

- British Sulphur Consultants - Market Analysis

Mike Ferguson, P.Eng., Vice President, Projects for Potash One Inc. is a Qualified Person as defined by NI 43-101 and has reviewed and approved the contents of this news release.

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 more than 515,000 acres of Potash Subsurface Exploration Permits in Saskatchewan, Canada. It also includes 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 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.

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.

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