Athabasca Potash Inc.
TSX : API

Athabasca Potash Inc.

January 08, 2008 13:49 ET

Underwriters Exercise Athabasca Potash Inc. Over-Allotment Option

SASKATOON, SASKATCHEWAN--(Marketwire - Jan. 8, 2008) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION TO U.S. NEWS WIRE SERVICES

Athabasca Potash Inc. (TSX:API) ("Athabasca") announced today that the underwriters of its initial public offering have exercised their over-allotment option and will purchase from Athabasca's treasury 1,521,000 common shares of Athabasca at a price of Cdn.$4.25 per share, for gross proceeds of Cdn.$6,464,250. The closing of the over-allotment option is expected to take place on January 10, 2008.

As of January 10, 2008, following the closing of the over-allotment option, Athabasca will have 36,279,516 issued and outstanding common shares.

Genuity Capital Markets and National Bank Financial Inc. co-led the underwriting syndicate that also included TD Securities Inc., Wellington West Capital Markets Inc. and Research Capital Corporation.

This press release does not constitute an offer of the securities described herein in any jurisdiction. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state and may not be offered or sold in the United States absent an exemption from registration.

About Athabasca

Athabasca is a company actively engaged in the exploration of potash projects in Saskatchewan, Canada. Athabasca's objectives are to establish itself as the 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. Athabasca is actively exploring its wholly-owned Burr Project and recently completed a 2D seismic survey of the project as well as five new exploration drill holes. Following completion of its initial public offering, Athabasca will proceed with further seismic surveys, drilling, a scoping study and, if results warrant, a preliminary feasibility study to assess the viability of underground potash mining on the Burr Project. Athabasca also plans to conduct exploration programs over some of the ten exploration permits it holds in Saskatchewan in addition to the Burr Project.

The directors of Athabasca are Mr. Kenneth E. MacNeill, Dawn Zhou, Gary L. Billingsley, James G. Gardiner, Dr. Edward A. Schiller, and John King Burns. Dawn Zhou is also the President and Chief Executive Officer of Athabasca and Gary Billingsley is its Chief Financial Officer.

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