Potash One Inc.
TSX : KCL

Potash One Inc.

October 05, 2009 09:01 ET

Potash One Initiates a Full Feasibility Study for Its Legacy Project in Southern Saskatchewan

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 5, 2009) - Potash One Inc. (the "Company" or "Potash One") (TSX:KCL) is pleased to announce that it has commenced work on a feasibility study (the "Study" or the "Feasibility Study") for its Legacy potash solution-mining project in Southern Saskatchewan, Canada.

Potash One Inc. has re-engaged SNC-Lavalin Inc. of Montreal, QC to complete the study in cooperation with Potash One and other specialized consultants, which include Whiting Equipment Canada, Inc. a leading provider of evaporator and crystallizer technology to the potash industry.

Subsequent to the very positive results of Legacy's completed Pre-Feasibility Study as announced in June 2009 (NR 09-14), the Company's engineering staff and consultants focused on reviewing project parameters and completing a number of key trade-off and optimization studies in preparation for the Feasibility Study. Feasibility engineering and procurement work started in August 2009 and, as of the current date, the project team is now mobilized and working through the planned report.

With an expected completion date of mid 2010, the Feasibility Study will provide a comprehensive overview of all aspects of the project including the following: land and mineral rights, processing, transportation and logistics, port space options, a detailed market analysis and, of course, refined capital and operating cost estimates along with financial performance metrics.

Paul F. Matysek, President and CEO of Potash One Inc., commented: "A bankable Feasibility Study is the next progressive step in the project development of Legacy. The initiation of our Feasibility Study is a continuation of the Company's long term strategic plans for the Legacy project to become the first new greenfield Potash mine in Saskatchewan in over 40 years. Our Management team has a proven track record for timely delivery and rigorous execution of our Project development plans and the completion of this final phase will position us head and shoulders above any other planned greenfield project in Canada in terms of a thorough independent evaluation and clear development path."

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 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 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.

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