Athabasca Potash Inc.
TSX : API

Athabasca Potash Inc.

June 13, 2008 19:15 ET

Shareholders of Athabasca Potash Inc. Approve Shareholder Rights Plan

SASKATOON, SASKATCHEWAN--(Marketwire - June 13, 2008) - Athabasca Potash Inc. ("Athabasca" or the "Company") (TSX:API) announced today that its shareholders voted in favour of a resolution to ratify and approve the Company's shareholder rights plan (the "Rights Plan") at the Company's Annual General and Special Meeting held on June 12, 2008. The Rights Plan was adopted by the Company's board of directors on May 12, 2008. The Rights Plan has a term of three years.

The purpose of the Rights Plan is to ensure that all shareholders of the Company are treated fairly in connection with any take-over bid for the Company. The Rights Plan will provide shareholders with adequate time to properly assess a take-over bid without facing undue pressure. The Rights Plan also provides the Board of Directors with additional time to consider any take-over bid and, if applicable, to explore other alternatives to maximize shareholder value.

The Rights Plan is not designed to prevent take-over bids that treat Athabasca shareholders fairly. Pursuant to the terms of the Rights Plan, any bid that meets certain criteria intended to protect the interests of all shareholders are deemed to be "Permitted Bids". A Permitted Bid must be made by way of a take-over bid circular prepared in compliance with applicable securities laws and, in addition to certain other conditions, must remain open for 60 days. In the event a take-over bid does not meet the Permitted Bid requirements of the Rights Plan, the rights issued under the plan will entitle shareholders, other than any shareholder or shareholders involved in the take-over bid, to purchase additional common shares of Athabasca at a significant discount to the market price of the common shares at that time.

The Rights Plan was not adopted in response to, or in anticipation of, any specific take-over bid or proposal to acquire control of the Company.

About Athabasca:

Athabasca Potash Inc. is a Canadian based corporation and was founded with a goal of establishing itself as a pre-eminent Canadian public company engaged solely in potash exploration and development, and to provide its shareholders with a unique investment opportunity focused entirely on potash.

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