Potash One Inc.
TSX VENTURE : KCL
FRANKFURT : I5X

Potash One Inc.

December 19, 2007 09:51 ET

Potash One Announces Equity Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 19, 2007) - Potash One Inc. (the "Company" or "Potash One") (TSX VENTURE:KCL) (FRANKFURT:I5X) is pleased to announce a non-brokered equity private placement of up to 4.15 million units at a price of $2.65 per unit for gross proceeds of $10,997,500. Each unit shall consist of one common share and one-half common share purchase warrant. Each whole warrant shall be exercisable for one common share at a price of $3.25 per share for a period of 15 months following closing. In the event that the common shares close at $4.00 or greater for 10 trading days, subsequent to the expiry of the 4 month hold period, the expiry date may be accelerated by the Company to a period of 30 days (the "Placement"). Potash One shall pay a finder's fee of 5.0% of the gross proceeds of the Placement.

The net proceeds of the Placement will be used to expedite further exploration and development of Potash One's previously explored Legacy potash project in Saskatchewan, and for general corporate purposes. The Placement is subject to certain conditions including, but not limited to the receipt of all necessary regulatory approvals.

The securities described herein have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States unless registered under the Act or unless an exemption from registration is available.

The Company controls over 97,000 acres of previously explored potash-bearing property which is directly adjacent to a large producing potash mine to the south of the Company's property.

Potash One's Legacy project in Saskatchewan was previously explored by Imperial Oil Ltd. (now Exxon) and Lumsden Potash Corporation.

The Company also reports that it has co-participated with several institutions in a private placement of a recently established private junior potash exploration company by subscribing for 1 million units at $0.50 per unit.

ON BEHALF OF THE BOARD OF DIRECTORS,

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

About Potash One Inc.

Potash One Inc. is a Canadian potash company engaged in the identification, acquisition, exploration and development of advanced resource properties. The Company has a solid balance sheet and experienced technical and corporate management to advance its current project to the next level. The primary interests of the Company include an option to acquire 100% interest in a 97,240 acre Potash Subsurface Exploration permit in Saskatchewan, Canada.

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 further production, reserve potential, exploration and development activities and events or developments 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 further 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, 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