Ethiopian Potash Corp.

Ethiopian Potash Corp.

December 12, 2011 10:42 ET

Ethiopian Potash Assays Confirm Shallow Robust Sylvite on Danakil Project

TORONTO, ONTARIO--(Marketwire - Dec. 12, 2011) - Ethiopian Potash Corp. ("EPC" or the "Company") (TSX VENTURE:FED)(TSX VENTURE:FED.WT)(OTCQX:ETPHF) is pleased to announce the results for the first six holes assayed on the Discovery Zone located in the Southwest Corner of its Danakil Potash Project, Ethiopia. The drill hole locations are shown in the following figures, the assay results are summarized below:

Hole No. Unit From (m) To (m) Interval (m) KCL%
DAL-002 Sylvite 82.00 86.50 4.50 34.21
including 83.50 84.50 1.00 44.48
Carnallite 86.50 96.00 9.50 19.17
Kainite 96.00 104.50 8.50 16.37
DAL-004 Sylvite 92.50 98.50 6.00 32.98
including 94.00 95.00 1.00 44.48
Carnallite 98.50 101.50 3.00 11.95
Kainite 101.50 114.00 12.50 16.66
DAL-007 Sylvite 134.50 137.50 3.00 37.20
including 136.00 136.50 0.50 44.17
Carnallite 137.50 140.50 2.50 19.22
Kainite 153.50 163.50 10.00 19.20
DAL-008* Sylvite* 164.50 165.50 1.00 25.65
Carnallite 165.50 174.00 8.50 19.90
Kainite 174.00 176.50 2.50 16.50
DAL-006* Carnallite 86.00 88.00 2.00 13.13
Kainite 88.00 89.00 1.00 4.63
DAL-005* Kainite 131.50 136.50 5.00 0.88
NOTE: * Core sampling being extended to cover the upper portion of the potash bearing horizon.

The table above includes all sample assays contained within the reported interval. Based on the assay results of holes DAL-002, -004 and -007, the weighted composite average grade of KCL over the entire potash bearing horizon, comprising the Sylvite, Carnallite and Kainite layers, is 21.3% KCL over an average true width of 19.8m.

In addition, the assay results for holes DAL-005, -006 and -008 suggest that the original sampling interval was too short; management has instructed the field geologists to re- examine the drill core and extend the original sampling interval into the hanging wall and footwall zones of the potash bearing sequence. Based on the thickness of the sylvite zone intersected in hole DAL-002, -004 and 007, management believes that the additional sampling will identify sylvite mineralization.

Mr Wahl, President, CEO and Director stated: "I am very happy to be able to report such high grade sylvite assays, considering that these holes were located based on ready access prior to the construction of drill site access roads."

"Equally significant is that after almost four months, the flow of assay information has started. EPC has completed 19 holes totalling 3,760.40 metres, all of the holes have been logged, sampled, and shipped to Saskatchewan Research Council for analysis. I look forward to reporting on additional assays as they are received. Despite a slow start, due to weather and access related issues, the accelerated construction of access roads and drill platforms has positioned EPC to catch up to its peers in the Basin."

"The Company is now drilling Hole 20 and anticipates completing its program of 29 holes on the Southwest Discovery Zone in January. At that time, Ethiopian Potash will be in a position to commission a new 43-101 compliant resource estimate on its Southwest Discovery Zone. Concurrently, EPC will refocus the drilling campaign on its shallow Colluli target area. Construction of the access road from the Southwest Discovery Zone to the Colluli area is proceeding on schedule."

About Ethiopian Potash Corp.

Ethiopian Potash Corp. (TSX VENTURE:FED)(TSX VENTURE:FED.WT)(OTCQX:ETPHF) is a Canadian company based in Toronto, Ontario, and Addis Ababa, Ethiopia. Ethiopian Potash controls 481 sq km of shallow mineralization potash development concessions in the fairway of the Danakil Depression, Ethiopia. The Company has an existing 128 mil tonne resource at 21% potash and is intent on aggressively fast-tracking its properties to production.

Quality Control and Quality Assurance

The QA/QC program employed during the initial phases of the drill program has been recently revised by ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH to ensure that all sampling techniques and sample results meet international reporting standards. The revised protocols for handling core samples begin with securing the potash-bearing HQ-NQ-sized core at the drill site in plastic poly-tubing which is then thermally sealed. Core is placed in plastic core boxes and transported to EPC's camp for geological logging, geotechnical logging and photographing. Significant intervals are dry cut in half using a specially modified tungsten carbide bladed band-saw. Half core samples are then double bagged and thermally sealed prior to transporting to Addis Ababa by EPC's air charter. In this initial phase, halite blanks are randomly inserted into the sample stream at a rate of 1 in 20 and sent for analysis with the core samples. The remaining core is re-sealed in plastic poly-tubing and the core boxes secured at EPC's exploration camp. Upon arrival in Addis Ababa, the core samples are stored at EPC's office and then taken to the Ethiopian Ministry of Mines & Energy where permission is obtained to export the samples. The bagged samples are then carefully packed into boxes and shipped via DHL to the Saskatchewan Research Council in Saskatoon and periodically reviewed by EPC's President and CEO.

EPC is utilizing SRC's Potash ICP Analysis package designed for multi-element analysis of potash samples. Upon arrival at SRC Geoanalytical Laboratories, core samples are jaw crushed to 95 % passing at minus 2mm and 100 g sub sample is split out using a riffler and transferred to vials. The subsample is pulverized to 95 % passing at minus 0.106 mm using a puck and ring grinding mill to create a pulp. The grinding mills are cleaned between groups using Quintus quartz. The pulp is then transferred to a labelled plastic snap top vial. An aliquot of pulp is placed in a test-tube with 15 ml of 30°C DI water. The sample is shaken. The soluble solution is analyzed by ICP-OES and the CL and Bro are analyzed by ICP-MS. The soluble solution is then analysed by ICP-MS. In addition, samples are analysed for Fe2O3 (wt%), Br and Cl by MS, plus insolubles. SRC Geoanalytical Laboratories has been certified by the Standards Council of Canada (SCC) to conform to the requirements of ISO/IEC 17025:2005 (CAN-P-4E). Additionally, SRC Geoanalytical Laboratories is currently being assessed by the Standard Council of Canada for Potash analysis to the ISO/IEC 17025:2005 standard. The laboratory is expecting to have confirmation of the accreditation next week.

David G. Wahl, P.Eng., P.Geo., ICD.D is a Qualified Person as defined under National Instrument 43-101 and has reviewed and approved the technical information presented in this release.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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