Athabasca Potash Inc.

Athabasca Potash Inc.

June 25, 2009 12:20 ET

Athabasca Potash Inc. Announces Termination of President and Establishment of Special Executive Committee

SASKATOON, SASKATCHEWAN--(Marketwire - June 25, 2009) - Athabasca Potash Inc. ("API" or the "Corporation") (TSX:API) announces that Dawn Zhou, President and Chief Executive Officer of the Corporation has been removed from her executive positions with the Corporation. Ms. Zhou remains a director of the Corporation. Ms. Zhou's entrepreneurial expertise and experience in geotechnical matters surrounding exploration was key in the formation and early development of API. API has now reached a stage where the skills required of its chief executive officer, in addition to familiarity with potash and the related chemicals processing industry, include mining project finance and development, and building completion and operations experience. A new CEO will be sought who also brings to the Corporation strong management and administrative skills required from an internal governance perspective as well as externally with respect to the marketplace.

The Board has established a Special Executive Committee (the "Committee") which will be responsible for the general exercise of powers and authority of the Board in managing the business and affairs of the Corporation. The Committee will also be responsible for managing the transition process with respect to search and retention of a new chief executive officer. The Committee consists of three directors; Mr. J.G. (Jim) Gardiner, who will act as Chairman, and Messrs. Leo Bingleman, CA and John King Burns. Mr. Gardiner is the former President and Chief Executive Officer of Fording Canadian Coal Trust, Mr. Bingleman is chairman of the Corporation's audit committee and has 25 years experience as a finance executive in the mining industry. Mr. King Burns is Managing Director of NuCoal Energy Corp., a Saskatchewan based energy company. Mr. King Burns will continue as interim Chairman of the Board of Directors.

The Committee expects to work closely with the Corporation's Chief Operating Officer, Terry Walbaum, in advancing of the Corporation's preliminary feasibility study with respect to its Burr Project.

The Board along with Management continues in it's belief that the Burr Project, as indicated by the May 29, 2009 Resource Update, has the potential to be developed as a low cost conventional potash mine.

About Athabasca Potash Inc.

API 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 Corporation's wholly owned Burr Project in Saskatchewan, and to provide its shareholders with a unique investment opportunity focused entirely on potash.

Caution Regarding Forward-Looking Information

This press release contains forward-looking information within the meaning of applicable Canadian securities legislation. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause 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. Such factors include, among others, exploration risks, lack of historic drill hole documentation, challenges or impairments to title, the negotiation of access to certain potash mineralization, permit requirements, governmental regulations, aboriginal land use environmental risks and competition in attracting and retaining personnel. In addition, the forward-looking information contained in this press release is based upon what management believes to be reasonable assumptions, including, but not limited to, assumptions regarding the mining and processing methods to be used in connection with any future development at the Burr Project, mining and processing costs, transport costs, minimum mining widths, metallurgical recovery rates, the long term price of potash, the bulk density of potash mineralization and the estimated extraction ratio. 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 the forward-looking information contained herein. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation. API undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.

Contact Information

  • Athabasca Potash Inc.
    John King Burns
    Interim Chairman
    (306) 933-4298
    Athabasca Potash Inc.
    Jim Gardiner
    Chairman, Special Executive Committee
    (306) 933-4298