Athabasca Potash Inc.

Athabasca Potash Inc.

September 10, 2008 09:45 ET

Athabasca Potash Inc. 2008 Summer Drilling Program Update

4 New Wells Intersect 4.2-5.0m of Lower Patience Lake Potash

SASKATOON, SASKATCHEWAN--(Marketwire - Sept. 10, 2008) - Athabasca Potash Inc. ("Athabasca" or the "Company") (TSX:API) is pleased to announce an update on its 2008 Summer Exploration Drilling Program at the Burr Project.

Athabasca has recently completed drilling four potash test wells to the north and northeast of the central area of the Burr Project. The new drilling is within an area covered by the 2006 2D seismic survey, and north and east of the 2007 3D seismic survey. Visual observation of potash mineralization in the drill cores and the geophysical log response in each of the four wells identified economically interesting thickness and grades of potash from the Lower Patience Lake ("LPL") Sub-Member. The drilling, in combination with seismic data, has confirmed the continuity of the potash bearing members, including the "LPL" Sub-Member from the previously drilled areas of the Burr Project. The thickness of the "LPL" Sub-Member, which is the member from which the Burr Project's current inferred mineral resource is derived, ranges from 4.2 to 5.0 meters. Equivalent potash grade is being estimated using geophysical logs and is subject to confirmation by chemical analysis. (1)

Potash Intersections from 2008 Summer Drilling Program

Well Burr 16-36 (m) Burr 16-32 (m) Burr 01-34 (m) Burr 04-23 (m)
Depth Thickness Depth Thickness Depth Thickness Depth Thickness
Potash 939.4 945.5 930.6 940.3
Potash 4.2 4.2 4.7 5.0
Potash 943.6 949.7 935.3 945.3

To see a map of the 2008 Exploration Drill Holes and Previous Exploration Drilling at Burr Project, click the following link:

"These preliminary drilling and geophysical results are very encouraging to us as we actively advance the project" said Dawn Zhou, President and CEO.

Detailed results from these four test wells recently completed, including equivalent grade of potash mineralization intersected as estimated from geophysical logs, will be included in an updated resource estimate by AMEC Americas Limited which is expected to be available in the coming weeks. The updated resource estimate will include results from the four potash test wells described above, the five potash test wells completed in 2007 (disclosed in the Company's press release dated February 19, 2008 at or and five historical potash test wells, which collectively constitute all drilling on the Burr Project to date. A new National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI43-101") compliant technical report will be available 45 days after the resource update is released.

The 2008 six-well drilling program was originally planned in 2007. Given the new technical data acquired in the past 9 months and with the availability of drilling rigs, the Company has decided to expand the 2008 drilling program to nine potash test wells from six. Athabasca is in the process of applying for drilling licenses to drill five more wells which are expected to be completed by the end of November, 2008. Results from the additional wells yet to be drilled are not expected to be available in time for inclusion in the upcoming resource estimate.

The drilling program at the Burr Project has been supervised and the results disclosed above have been prepared and approved by Bradley V.A. Fettis, P.Eng., Athabasca's Qualified Person under NI 43-101. The Burr Project drilling programs utilize an extensive QAQC (quality assurance and quality control) protocol for assaying and core sample handling. Samples from the main potash zones have been kept for further study at the Saskatchewan Research Council laboratory (SRC) in Saskatoon, Saskatchewan.

(1) Schlumberger of Canada conducted the geophysical down hole wire line logging for the four potash test wells. Gamma ray, neutron, density, and photoelectric logs are used to calculate the equivalent potash grade and clay content of the four wells. Dr. Don Gendzwill, Ph.D., P.Eng., P.Geo., is the geophysicist who conducted the analysis. The confirmation of chemical assay will only be available once all 2008 planned wells drilled, detailed geological logging of the cores from all wells completed, and chemical analysis conducted by SRC in Saskatoon. The chemical analysis expected will include K2O, MgO and water insolubles.

About Athabasca:

Athabasca Potash Inc. is a Canadian based corporation and was founded with a goal of establishing itself as a 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.

Caution Regarding Forward-Looking Information

Certain of the statements made and information contained herein is "forward-looking information" within the meaning of certain securities laws. This includes statements concerning Athabasca's plans at its mineral properties, which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Athabasca, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Forward-looking information is subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, exploration and development risks, the economic viability of the extraction of potash from identified deposits, the cyclicality of the potash industry, potash supply increases, the cost-effectiveness of brownfield expansion of potash production, lack of historic potash test well documentation, additional funding requirements, challenges or impairments to title, access to certain potash mineralization must be negotiated, volatility in potash prices, currency exchange rate fluctuations, insurance limitations, the loss of key employees, imprecision in the Burr Project's Inferred Mineral Resource estimate, permit requirements, governmental regulations, environmental risks, competition, attracting and retaining personnel, and changes to tax laws. In addition, forward-looking information is based on various assumptions. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation, Athabasca undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.

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