Potash One Inc.

Potash One Inc.

March 27, 2008 10:47 ET

Potash One Acquires New Potash Permits in Saskatchewan

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 27, 2008) - Potash One Inc. (the "Company" or "Potash One") (TSX VENTURE:KCL) is pleased to announce that it has significantly expanded its potash permit holdings around its Legacy Project and acquired permit applications under review in southeastern Saskatchewan. The Company signed an agreement with an arms-length vendor to acquire 100% of three potash exploration permits in Saskatchewan (KP-355, KP-356 and KP-357) and two permit applications (KP-416 and KP-417) currently under review. All of the permits and applications border or are in the vicinity of existing or planned potash operations.

The land size covered by these permits and permit applications is as follows:

Permits: KP-355 - 72,181 acres; KP-356 - 87,002 acres; KP-357 - 79,920 acres (Total equals 239,100 acres)

Permit applications: KP-416 - 91,120 acres; KP-417 - 96,240 acres (Estimated equals 187,360 acres)

The newly acquired potash permits, KP-355 and KP-357, are immediately adjacent to Potash One's Legacy project (KP-289) to the northeast and southwest respectively. KP-355 borders Kennecott Canada Exploration subsurface mineral permits to the southeast. KP-356 is to the east of KP-357 and to the southeast of the Mosaic Company's KL-106-R mining lease. KP 356 is to the west of the City of Regina and subsurface mineral permits held by BHP Billiton and south of Kennecott Canada Exploration permits located to the north of Regina. The permits KP-355, KP-356 and KP-357 in addition to Potash One's currently held KP-289 subsurface mineral permit create a large contiguous potash-bearing property that almost completely surrounds Mosaic's Belle Plaine KL-106-R mining lease, which hosts one of the largest producing potash solution mines in the world.

The subsurface mineral permit application KP-417 is adjacent to KL-125 mineral lease held by Potash Corporation of Saskatchewan and the KP-339 subsurface mineral permit held by BHP Billiton, while subsurface mineral permit application KP-416 borders Mosaic's Esterhazy conventional potash mine to the north. These subsurface mineral permit applications offer Potash One some options with respect to developing another potash situation using conventional mining means or as a potential property for a joint venture or sale.

Historical exploratory drilling and seismic programs were conducted on the newly acquired properties in the 1950s and 1960s. This historic information will be reported once the Company has completed its review of all relevant historical data. Currently there is no NI 43-101 report on the new permit areas, nor are there any known mineral resources or mineral reserves on the new permit areas. Please visit our website (http://www.potash1.com/s/Permits.asp) to view the new Potash permits and permit applications.

The purchase price payable to arms-length vendor consists of 1,408,000 common shares of the Company (with a 4 month hold) and $2,897,880 in cash upon closing.

Paul F. Matysek., President and Chief Executive Officer of Potash One Inc., said: "We are very pleased to expand our potash asset base in Saskatchewan. The acquisition of new permits in the vicinity of KP-289 creates a critical mass in an area that is potentially amenable to potash solution mining. Potash One controls permits and permit applications that cover over 500,000 acres in this important potash producing region of the world. This allows us to position Potash One as one of the key potash development companies in Saskatchewan."

The agreement is subject to regulatory approval. The Company will pay a finder's fee in connection with this transaction.

The technical content in this news release has been read and approved by Stephen P. Halabura, Principal Geologist and Owner of North Rim Exploration Ltd. He is a Professional Geologist licensed in Saskatchewan and a Qualified Person as defined by National Instrument 43-101.


Paul F. Matysek, M.Sc., P.Geo., President and Chief Executive Officer

About Potash One Inc.

Potash One Inc. is a Canadian resource company engaged in the identification, acquisition, exploration and development of advanced solution mine amenable potash properties. The Company holds an option to acquire 100% interest in a 97,240 acre Potash Subsurface Exploration Permit in Saskatchewan, Canada ("the Legacy Project"). The Legacy Project was previously explored by Imperial Oil Ltd. (now Exxon) and Lumsden Potash Corporation and is adjacent to the largest producing solution potash mine in the world. The Company has a solid balance sheet and experienced technical and corporate management to advance its current project to the next level.

Forward Looking Statement

This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration and development activities and events or developments, including the issuance of permits upon acceptance of permit applications, that the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploration and development successes, continued availability of capital and financing, the denial of permit applications by applicable government authorities, and general economic, market or business conditions. Please see our public filings at www.sedar.com for further information.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Potash One Inc.
    Paul F. Matysek, M.Sc., P.Geo.
    President and Chief Executive Officer
    (604) 331-4431
    (604) 608-4979 (FAX)
    Email: info@potash1.com
    Website: www.potash1.com