Potash One Inc.
TSX : KCL

Potash One Inc.

March 12, 2009 13:43 ET

Potash One's Resource Confirmation Wells Average a Total of 32.4 Meters of Potash Mineralization With Average Grade of 17.7% K2O

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 12, 2009) - Potash One Inc. (the "Company" or "Potash One") (TSX:KCL) is pleased to announce that the company has completed the resource confirmation drilling program on the Southern Area of the 100% owned 97,240 acre Potash One Legacy Project. All 6 drill holes are located within an area of approximately 35 km2 on a 3.2 km (2 mile) spacing that forms the Resource Confirmation Area (RCA). Results of the resource confirmation drilling are summarized in Table 1:



Table 1: Thickness and weighted average grade of each zone including all
assay intervals within the zone for all Southern Area resource confirmation
wells

---------------------------------------------------------------------------
Total
Patience Belle Ester- Potash Average
Lake Patience Plaine Belle hazy Ester- Zone Potash
Thick- Lake Thick- Plaine Thick- hazy Thick- Zone
ness % ness % ness % ness %
Well Name (m) K2O (m) K2O (m) K2O (m) K2O
---------------------------------------------------------------------------
South-1(i) 18.3 20.0 7.8 20.0 13.5 15.6 39.6 18.3%
---------------------------------------------------------------------------
South-2(i) 17.4 18.4 7.4 16.9 6.6 15.6 31.4 17.5%
---------------------------------------------------------------------------
South-14 17.3 17.6 9.0 15.8 11.7 15.5 38.1 16.5%
---------------------------------------------------------------------------
South-15 17.2 20.1 8.5 16.2 7.3 16.6 33.0 18.3%
---------------------------------------------------------------------------
South-16 18.2 18.5 8.2 18.1 10.1 22.6 36.6 19.6%
---------------------------------------------------------------------------
South-3 15.9 15.8 N/A N/A N/A N/A 15.9 15.8%
---------------------------------------------------------------------------
Average 17.4 18.4 8.2 17.4 9.8 17.2 32.4 17.7%
---------------------------------------------------------------------------

(i) Note: South-1 and South-2 Assay results were previously released


Paul F. Matysek, President and Chief Executive Officer of Potash One, states, "I am very pleased with the results of our KP-289 Southern Area resource confirmation drilling program. The assay results for South-1, South-2, South-14, South-15, and South-16 average 35.7 m at 18% K2O and compare favorably to the historic drill holes reported in the Legacy Project NI 43-101 resource estimate. Geophysical and assay results indicate good lateral continuity among these wells. A 3D seismic survey is currently being carried out over the Southern Area of the lease which encompasses the RCA. Potash One is anticipating releasing a NI 43-101 technical report and resource estimate for the RCA about the middle of Q2."

SOUTH-14

South-14 is located approximately 6.4 km west of the South-1 well, at the western boundary of the RCA and establishes lateral continuity with wells South-1 and South-2. South-14 has strong potash mineralization in the Patience Lake, Belle Plaine, and Esterhazy potash zones.

The following tables summarize select mineral resource parameters of the South-14 well:



Table 4: South-14 - Thickness and weighted average grade of each zone
including all assay intervals within the zone

-------------------------------------------------------------------------
Depth Depth Thick-
From To ness
Potash Zone (m) (m) (m) % K20 % MgO % Insols
-------------------------------------------------------------------------
Patience Lake 1523.5 1540.9 17.3 17.6 0.1 10.1
-------------------------------------------------------------------------
Belle Plaine 1544.0 1553.0 9.0 15.8 0.1 4.8
-------------------------------------------------------------------------
Esterhazy 1564.2 1575.9 11.7 15.5 0.0 2.6
-------------------------------------------------------------------------
Total Thickness &
Averages 38.1m 16.5% 0.1% 6.5%
-------------------------------------------------------------------------


Table 5: South-14 - Thickness and weighed average grade distribution
within each zone

---------------------------------------------------------------------------
Totals and
Patience Lake Belle Plaine Esterhazy Averages
------------- ------------- ------------- -------------
Avg Avg Avg Avg
% % % %
meters K2O meters K2O meters K2O meters K2O
---------------------------------------------------------------------------
Average Grade
greater
than 30% K20 7.7 30.0 2.6 30.0 4.1 30.8 14.3 30.2
---------------------------------------------------------------------------
Average Grade
greater
than 25% K20 11.0 25.2 4.2 25.3 6.4 25.1 21.6 25.2
---------------------------------------------------------------------------
Average Grade
greater
than 20% K20 15.1 20.0 6.8 20.0 8.8 20.1 30.7 20.0
---------------------------------------------------------------------------
Average Grade
greater
than 15% K20 17.3 17.6 9.0 15.8 11.7 15.5 38.1 16.5
---------------------------------------------------------------------------


Table 6: South-14 - Thickness and weighted average grade including
inter-bedded salt layers

-------------------------------------------------------------------------
Depth Depth Thick-
From To ness
Geological Zone (m) (m) (m) % K20 % MgO % Insols
-------------------------------------------------------------------------
Top of Patience Lake
Through Bottom of
Belle Plaine 1523.5 1553.0 29.5 15.4% 0.1% 8.1%
-------------------------------------------------------------------------
Top of Patience Lake
Through Bottom of
Esterhazy 1523.5 1575.9 52.4 12.9% 0.1% 6.2%
-------------------------------------------------------------------------


SOUTH-15

South-15 is located approximately 4.8 km west and 3.2 km north of the South-1 well at the northwestern boundary of the RCA and establishes lateral continuity with wells South-1, South-2, and South-14. South-15 has strong potash mineralization in the Patience Lake, Belle Plaine, and Esterhazy potash zones.

The following tables summarize select mineral resource parameters of the South-15 well:



Table 7: South-15 - Thickness and weighted average grade of each zone
including all assay intervals within the zone

-------------------------------------------------------------------------
Depth Depth Thick-
From To ness
Potash Zone (m) (m) (m) % K20 % MgO % Insols
-------------------------------------------------------------------------
Patience Lake 1501.2 1518.4 17.2 20.1 0.1 8.6
-------------------------------------------------------------------------
Belle Plaine 1521.5 1530.0 8.5 16.2 0.1 3.8
-------------------------------------------------------------------------
Esterhazy 1547.1 1554.4 7.3 16.6 0.0 2.2
-------------------------------------------------------------------------
Total Thickness &
Averages 33.0m 18.3% 0.1% 6.0%
-------------------------------------------------------------------------


Table 8: South-15 - Thickness and weighed average grade distribution
within each zone

---------------------------------------------------------------------------
Totals and
Patience Lake Belle Plaine Esterhazy Averages
------------- ------------- ------------- -------------
Avg Avg Avg Avg
% % % %
meters K2O meters K2O meters K2O meters K2O
---------------------------------------------------------------------------
Average Grade
greater
than 30% K20 9.4 30.0 2.6 30.9 2.6 30.1 14.6 30.2
---------------------------------------------------------------------------
Average Grade
greater
than 25% K20 13.3 25.0 4.4 6.8 3.9 25.0 21.6 21.3
---------------------------------------------------------------------------
Average Grade
greater
than 20% K20 17.2 20.1 6.8 20.0 5.8 20.2 29.8 20.1
---------------------------------------------------------------------------
Average Grade
greater
than 15% K20 17.2 20.1 8.5 16.2 7.3 16.6 33.0 18.3
---------------------------------------------------------------------------


Table 9: South-15 - Thickness and weighted average grade including
inter-bedded salt layers

-------------------------------------------------------------------------
Depth Depth Thick-
From To ness
Geological Zone (m) (m) (m) % K20 % MgO % Insols
-------------------------------------------------------------------------
Top of Patience Lake
Through Bottom of
Belle Plaine 1501.2 1530.0 28.8 17.1% 0.1% 7.3%
-------------------------------------------------------------------------
Top of Patience Lake
Through Bottom of
Esterhazy 1501.2 1554.4 53.2 12.9% 0.1% 5.1%
-------------------------------------------------------------------------


SOUTH-16

South-16 is located approximately 1.6 km west and 3.2 km north of the South-1 well at the northeastern boundary of the RCA and establishes lateral continuity with wells South-1, South-2 and South-15. South-16 has strong potash mineralization in the Patience Lake and Belle Plaine potash zones and exceptional potash mineralization in the Esterhazy potash zone.

The following tables summarize select mineral resource parameters of the South-16 well:



Table 10: South-16 - Thickness and weighted average grade of each zone
including all assay intervals within the zone

-------------------------------------------------------------------------
Depth Depth Thick-
From To ness
Potash Zone (m) (m) (m) % K20 % MgO % Insols
-------------------------------------------------------------------------
Patience Lake 1508.0 1526.2 18.2 18.5 0.1 10.2
-------------------------------------------------------------------------
Belle Plaine 1529.4 1537.6 8.2 18.1 0.1 3.3
-------------------------------------------------------------------------
Esterhazy 1553.2 1563.3 10.1 22.6 0.0 3.6
-------------------------------------------------------------------------
Total Thickness &
Averages 36.6m 19.6% 0.1% 6.8%
-------------------------------------------------------------------------


Table 11: South-16 - Thickness and weighed average grade distribution
within each zone

---------------------------------------------------------------------------
Totals and
Patience Lake Belle Plaine Esterhazy Averages
------------- ------------- ------------- -------------
Avg Avg Avg Avg
% % % %
meters K2O meters K2O meters K2O meters K2O
---------------------------------------------------------------------------
Average Grade
greater
than 30% K20 8.6 30.2 2.0 30.7 6.9 30.0 17.6 30.2
---------------------------------------------------------------------------
Average Grade
greater
than 25% K20 12.5 25.1 4.4 25.2 8.7 25.4 25.6 25.2
---------------------------------------------------------------------------
Average Grade
greater
than 20% K20 16.7 20.2 7.2 20.0 10.1 22.6 34.0 20.9
---------------------------------------------------------------------------
Average Grade
greater
than 15% K20 18.2 18.5 8.2 18.1 10.1 22.6 36.6 19.6
---------------------------------------------------------------------------


Table 12: South-16 - Thickness and weighted average grade including
inter-bedded salt layers

-------------------------------------------------------------------------
Depth Depth Thick-
From To ness
Geological Zone (m) (m) (m) % K20 % MgO % Insols
-------------------------------------------------------------------------
Top of Patience Lake
Through Bottom of
Belle Plaine 1508.0 1537.6 29.6 16.7% 0.1% 7.7%
-------------------------------------------------------------------------
Top of Patience Lake
Through Bottom of
Esterhazy 1508.0 1563.3 55.3 14.4% 0.1% 5.5%
-------------------------------------------------------------------------


SOUTH-3

Located approximately 1.6 km west and 3.2 km south of the South-1 well, South-3 is collared in the southern portion of the RCA. It was drilled to investigate a possible deeper structural trend and an interpreted general thickening of the Prairie Evaporite sequence as defined by 2-dimensional seismic profiles. Although the well confirmed the presence of a deeper, thicker Prairie Evaporite Formation, the mineralization within the Belle Plaine and Esterhazy potash zones was weaker and thinner relative to other wells on the property.

The following tables summarize select mineral resource parameters of the South-3 well:



Table 2: South-3 - Thickness and weighted average grade of each zone
including all assay intervals within the zone

-------------------------------------------------------------------------
Depth Depth Thick-
From To ness
Potash Zone (m) (m) (m) % K20 % MgO % Insols
-------------------------------------------------------------------------
Patience Lake 1569.6 1585.5 15.9 15.8 0.1 10.3
-------------------------------------------------------------------------
Belle Plaine 1597.4 1598.5 1.0 8.2 0.0 1.9
-------------------------------------------------------------------------
Esterhazy 1625.0 1627.9 2.9 4.9 0.0 1.5
-------------------------------------------------------------------------
Total Thickness &
Averages 19.8m 13.8% 0.1% 8.6%
-------------------------------------------------------------------------


Table 3: South-3 - Thickness and weighed average grade distribution within
each zone

---------------------------------------------------------------------------
Totals and
Patience Lake Belle Plaine Esterhazy Averages
------------- ------------- ------------- -------------
Avg Avg Avg Avg
% % % %
meters K2O meters K2O meters K2O meters K2O
---------------------------------------------------------------------------
Average Grade
greater
than 30% K20 5.9 30.0 0.0 N/A 0.0 N/A 5.9 30.0
---------------------------------------------------------------------------
Average Grade
greater
than 25% K20 9.0 25.1 0.0 N/A 0.0 N/A 9.0 25.1
---------------------------------------------------------------------------
Average Grade
greater
than 20% K20 12.1 20.2 0.0 N/A 0.0 N/A 12.1 20.2
---------------------------------------------------------------------------
Average Grade
greater
than 15% K20 15.9 15.8 0.0 N/A 0.0 N/A 15.9 15.8
---------------------------------------------------------------------------


The dual-well solution mining method currently being planned by Potash One will allow the solution mining of one, two or all three mineralized potash zones from a single solution mining cavern. Solution mining technology has the direct benefits of scalable production capacity, lower capital cost, shorter timeline to production and significantly less mining risk as compared to conventional potash operations.

To obtain a record of the potash mineralization South-3 was cored from 1549 to 1654 m, South-14 was cored from 1504 to 1607 m, South-15 was cored from 1480 to 1587 m, and South-16 was cored from 1488 to 1596 m. The core was packaged, shipped, cut, logged, and sample intervals were prepared under the direction of Debbie Shewfelt, M.Sc., P.Geo., of North Rim Exploration Ltd.

Within the mineralized potash zones, the full-diameter cores were first cut in half, and then one of the core halves was sampled and assayed. The remaining half of the core is currently being stored at the Potash One core facility in Saskatoon, Saskatchewan. A cumulative total of 1,059 assays were completed over 297 meters of core from wells South-3, South-14, South-15 and South-16. The average assay length was 0.27 meters.

The prepared samples were then forwarded to the Geoanalytical Laboratories at the Saskatchewan Research Council (SRC) in Saskatoon, Saskatchewan where they were crushed, split, and analyzed using SRC's basic potash package. Quality assurance and quality control measures were strictly adhered to, including the use of standards, blanks and repeats throughout the analyses. SRC is ISO accredited to 17025.

Detailed geological correlation of the assay results, Prairie Evaporite geological members, and wireline geophysics is currently ongoing. All depths presented are from a vertical hole and are as drilled. Potash intervals selected for rock mechanics or dissolution testing are included in the sum of intervals but not included in the average grade calculations.

During the RCA drilling program Potash One drilled over 9,000 meters in six resource confirmation drill holes and completed the Legacy Project resource confirmation drilling in mid February. The 2008 - 2009 Potash One drilling program focused exclusively on the southern area of the KP-289 lease. The confirmation drilling has been designed to fully support a solution mining pre-feasibility study which is targeted for completion in the second quarter of 2009.

The assay results and this news release have been reviewed by Dr. Michael Hardy P.E., Agapito and Associates Inc., and Steve Halabura P.Geo., North Rim Exploration Ltd. Both individuals are Qualified Persons under NI 43-101.

The technical content in this news release has been read and approved by Debbie Shewfelt, M.Sc., P.Geo., North Rim Exploration Ltd. and a consultant to Potash One. Shewfelt is a Professional Geologist registered in the Province Saskatchewan and is a Qualified Person as defined by NI 43-101.

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 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. It includes the 97,240 acre Legacy Project which has an NI 43-101-compliant Indicated Mineral Resource of 40.8 million tonnes of K2O and an Inferred Mineral Resource of 391.5 million tonnes of K2O. The Legacy Project is adjacent to the largest producing solution potash mine in the world.

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