Athabasca Potash Inc.
TSX : API

Athabasca Potash Inc.

May 15, 2009 20:36 ET

Athabasca Potash Inc. Announces First Quarter Results

SASKATOON, SASKATCHEWAN--(Marketwire - May 15, 2009) - Athabasca Potash Inc. ("API" or the "Company") (TSX:API) announces that it has filed the results of API's operations for the three months ended March 31, 2009 all of which will be available at www.sedar.com or www.athabascapotash.ca.

Highlights for the first quarter include:

- Preferred shaft and mill site identified and selected for the Burr Project.

- SNC-Lavalin Inc. ("SNC-Lavalin") engaged to provide pre-feasibility study services on the Burr Project.

- Thyssen Mining Construction of Canada Ltd. ("TMCC") awarded the contract for the shaft, hoist and headframe sections of the pre-feasibility study. TMCC is one of the world's most experienced shaft sinking contractors in the potash industry.

- Expenditures on mineral properties totalled $3,393,050 for the quarter.

- Cash and cash equivalents of $28,173,042 at March 31, 2009.

- Issued and outstanding shares of 37,070,041 at March 31, 2009.

Burr Project

During the first quarter of 2009 API continued to focus on its 100% owned Burr Project. The Burr Project site is located 107 km (140 km by highway) east of the City of Saskatoon in the Province of Saskatchewan, Canada. The southern boundary of the project area is located 13.5 km north of the Lanigan Mine headframe (owned and operated by Potash Corporation of Saskatchewan) and 26 km NW of the town site of Lanigan.

The environmental impact studies (EIS) and tailings management and siting study are continuing to be conducted in connection with the Environmental Assessment and Permitting Report. Environmental baseline field studies initiated in early 2008 are now complete. As well, a tailings management siting study was carried out during 2008 with a preferred site selected to support the completion of an Environmental Assessment and Permitting Report for the Burr Project. The Company intends to submit an environmental impact study report on the Burr Project to the Ministry of Saskatchewan Environment for environmental permitting in the third quarter of 2009.

API initiated pre-feasibility studies on the Burr Project in the quarter. The Company, SNC-Lavalin, MDH Engineered Solutions Corp., TMCC and other consultants will each address specific elements of the pre-feasibility study (the "Study"). Based on this work SNC-Lavalin will develop capital and operating cost estimates with an intended accuracy of plus or minus 25% and a preliminary project execution schedule. The Company intends to file a new NI 43-101 compliant technical report in connection with the Study. The Study is scheduled for completion in the third quarter of 2009.

Quarter End Results ($ 000's)

As of March 31, 2009, API's cash and cash equivalents balance decreased to $28,173 from $31,578 at December 31, 2008. At March 31, 2009, API's working capital position decreased to $26,315 from $30,368 at December 31, 2008. The Company raised a small amount of capital for gross proceeds of $52 during 2009 derived from exercised stock options and broker warrants related to the IPO completed in December 2007.

API recorded a net loss of $1,004 or ($0.03) per share compared to a gain of $956 or $0.03 per share for the same period in 2008 due in part to increased activities in all areas of the Company's operations. Income for the quarter resulted from the Company's investments of excess cash reserves in short-term deposits. For the quarter ending March 31, 2009, the Company reported interest revenue of $93 compared to $534 for the quarter ending March 31, 2008.

Total operating costs for the quarter ending March 31, 2009 equalled $1,405 compared to $425 in the first quarter of 2008. This represents an increase of $980 reflecting an increase in the majority of the Company's categories of operations. Significant increases occurred for governance ($135), office and administration ($115) and professional fees ($470). These increases reflect the impact of increased administrative, professional and governance support.



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Balance Sheet ($ 000) March 31, 2009 December 31, 2008
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Current Assets 28,340 31,578
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Total Assets 61,713 62,280
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Current Liabilities 2,025 1,507
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Future income tax liability 724 1,032
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Share capital 57,281 57,222
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Contributed surplus 5,973 5,805
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Deficit (4,290) (3,286)
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For the Three Months Ended
Statements of Income March 31, 2009 March 31, 2008
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Interest Income 93 534
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Operating Expenses 1,405 425
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Loss for the period before income taxes (1,312) 109
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Net (Loss) income for the period (1,004) 956
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(Loss) income per share (.03) .03
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For the Three Months Ended
Statements of Cash Flows March 31, 2009 March 31, 2008
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Cash flows from operating activities (562) 88
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Cash flows from investing activities (2,895) (3,993)
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Cash flows from financing activities 52 6,418
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Increase (Decrease) in cash and cash
equivalents (3,405) 2,513
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Cash and cash equivalents - beginning of
period 31,578 44,264
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Cash and cash equivalents - end of period 28,173 46,777
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Outlook

API has adopted a cash conservative approach, focusing available human resources and short-term expenditures on the most critical activities. Efforts continue on the environmental impact studies and tailings management and siting study being conducted in connection with the Environmental Assessment and Permitting Report and the pre-feasibility study for the Burr Project. The Company intends to file a new NI 43-101 compliant technical report in connection with the pre-feasibility studies being undertaken on the Burr Project. This NI 43-101 technical report is expected to be available in the third quarter of 2009. With the completion of the geological exploration and a mineral resource estimate of sufficient quality to support a pre-feasibility study and a feasibility study in the last fiscal year, API has had constructive preliminary discussions with third parties regarding potential strategic alliances to develop the Burr Project and will continue to pursue such discussions in 2009.

Dawn Zhou, President and CEO, states "The strong interest in Saskatchewan potash from global mining and fertilizer companies show their understanding of the long term industrial fundamentals and the potential of Saskatchewan potash resources. API is focused on the creation of shareholder value through adding value and a business strategy to advance the Burr Project into future development."

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 with focus on the Company's wholly owned Burr Project, 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 API'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 API, 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 risks, lack of historic drill hole documentation, challenges or impairments to title, access to certain potash mineralization must be negotiated, permit requirements, governmental regulations, aboriginal land use, environmental risks and competition in attracting and retaining personnel. 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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