SOURCE: Universal Potash Corp

February 17, 2011 12:30 ET

Universal Potash Corp Acquires Interest in Three Square Miles Adjacent to Lisbon Valley Paradox Basin KPLA

FOX ISLAND, WA--(Marketwire - February 17, 2011) - Universal Potash Corporation (the "Company") (PINKSHEETS: UPCO) is pleased to announce the company has negotiated the acquisition to a majority interest in the potash rights to three square miles of prospective ground in the Paradox Basin of Utah. The leased property is located less the 1,000 yards west of the Bureau of Land Management's designated KPLA (Known Potash Leasing Area) reserve. The UPCO acquisition encompasses nearly 2,000 acres of the School and Institutional Trust Lands Administration (SITLA) tracts of subsurface potassium rights. Direct access and infrastructure is immediately contiguous to the acquired project area. This includes a pool of professional labor, a major highway, natural gas pipeline and close proximity of a major power source. Improved roads crisscross the leases. The company has in its possession oil and gas well data displaying sections of salts nearly 3,000 feet thick containing multiple potassium (Potash) beds within the Paradox salts. 

This purchase fits well with our earlier successful acquisition in which we were the winning bidder on Utah Potash Lease Applications for a total of 640 acres of prospective ground northwest of Moab in the Paradox Basin of Utah. These leased properties are located immediately to the South and contiguous to the company's current Potash applications pending approval, covering a total of 29,000 acres. The two new properties are immediately west and adjacent to School Sections that have seen previous drilling for oil/gas and encountered significant intersections of both Sylvite and Carnallite, with Sylvite (Potash) values averaging near 20%, but ranging as high 49%.

World and domestic food shortages have potash fertiliser prices moving higher. The current demand for the product is driven by increased production to meet the growing world demand and the necessity to offset the grain shortages in the world due to climate change and the world's middle class population growth. Grain demand has resulted in an 8 fold increase to satisfy the population's demand for more protein products worldwide. Potash price increases have sent the share prices of many potash producers as well as explorers higher in recent months supported by BHP Billiton's recent $39 billion hostile takeover bid for Potash Corporation of Saskatchewan, the world's largest producer.

About Universal Potash Corp.
Universal Potash Corp. is an acquisition driven exploration stage potash mining corporation dedicated to increasing shareholder value. The Management of Universal Potash's principal focus is the acquisition of premium leasehold properties and the future development of these properties and business interest on a global basis. Management efforts are channeled into building Universal Potash Corp into an international enterprise and becoming a key player in meeting the growing challenge of feeding the world.

"Safe Harbor" Statement: Under the Private Securities Litigation Reform Act of 1995: The statements in all press releases that relate to the company's expectations, with regard to the future impact on the company's results from new projects in development, are forward-looking statements. A complete disclosure of our "SAFE HARBOR "statement is posted on our website at www.UniversalPotash.com under the heading "NEWS."

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