Potash One Inc.

Potash One Inc.

March 06, 2009 18:58 ET

Potash One Inc.: Re-Filing of October 31, 2008 Interim Unaudited Consolidated Financial Statements

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 6, 2009) - In connection with Potash One Inc.'s (the "Company") (TSX:KCL) proposed business combination (the "Transaction") with Potash North Resource Corporation ("Potash North"), the Company has today filed on SEDAR restated interim unaudited consolidated financial statements for the six months ended October 31, 2008 (the "Financial Statements").

The financial statements were required to be reviewed by the Company's auditors in order for the statements to be included in Potash North's Information Circular which Potash North will prepare and mail to its shareholders in order to approve the Transaction.

The amendments were in respect of the following:

Additional payables of $553,311 relating to mineral property expenditures
On December 8, 2008 when the Company filed its October 31, 2008 unaudited interim consolidated financial statements, the Company had not received invoices in the amount of $553,311. As of the date of the review by the Company's auditors, the Company had received these invoices and as a result, the Financial Statements include these additional payables as at October 31, 2008.

Future income tax rate has been reduced from 31.5% to 27%

The Company had previously recorded future income taxes at the income tax rate of 31.5%. The Company's auditors have advised that the income tax rate to be used should be the "effective rate" for the years in which future income taxes are likely to be paid and not based on the current tax rate. As a result, future income taxes have been recorded at 27%.

Accounts payable in respect of exploration expenditures

Exploration expenditures, including unpaid amounts were previously classified as an investing activity. In connection with the review of the financial statements, the Company's auditors advised the Company not to include unpaid exploration expenditures as an investment activity.

As a result, accounts payables of $2,510,253 and $3,192,836 in respect of exploration expenditures for the period ended July 31, 2008 and October 31, 2008 respectively have been eliminated from investing activity in the statement of cash flows.


George Lim, C.A., Chief Financial Officer

About Potash One Inc.:

Potash One Inc. is a TSX-listed Canadian resource company engaged in the exploration and development of advanced potash properties amenable to solution mining. The Company owns 100% of more than 330,000 acres of contiguous Potash Subsurface Exploration Permits in Saskatchewan, Canada. This land package includes the 97,240 acre Legacy Project that has a NI 43-101-compliant Inferred Mineral Resource of 391.5 million tonnes of K2O and Indicated Mineral Resource of 40.8 million tonnes of K2O. The Legacy Project is adjacent to the largest producing solution potash mine in the world.

Contact Information

  • Potash One Inc.
    George Lim, C.A.
    Chief Financial Officer
    (604) 331-4431
    (604) 408-4799 (FAX)
    Website: www.potash1.com