SOURCE: Universal Potash Corp.

January 11, 2011 12:00 ET

Universal Potash Plans 2011 Expansion of Acquisition and Exploration Program

FOX ISLAND, WA--(Marketwire - January 11, 2011) - Universal Potash Corp. (PINKSHEETS: UPCO), an acquisition-driven, exploration stage lithium and potash mining corporation dedicated to increasing shareholder value, is pleased to announce it will be aggressively bidding at the upcoming Trustlands Auctions to be held in Utah on the 27th of January, 2011, and the Bureau of Land Management land auctions in New Mexico to be held on 19th of January. UPCO plans to target lithium, as well as potash which potentially occur together in the same salt horizons. The areas being targeted are known for historic oil and gas drill logs which contain potash as well as lithium brines. Currently active bids and budgets are being prepared. UPCO plans to re-enter abandoned oil drill sites in search of potash and lithium using modern technology not available at shut down. Previous logs will be analyzed for economical valuations for potash, as well as lithium brines, with a focus on the salt horizons containing the lithium and potash.

Potash and lithium are both in great demand on world markets at this time and are projected to increase due to their unique properties. Potash is used internationally as a fertilizer increasing crop yields by as much as 50%. World population growth and the rise of the standard of living around the world continue to put a strain on world food supplies. Potash is one of the most economical ways to increase world food yield. Lithium is a white metal used in the manufacture of ultra light weight batteries for cell phones, power tools and in electric cars. Demand for lithium ion batteries for electric vehicles is projected to soar in the next 10 years.

"UPCO management is excited to be able to explore for and potentially produce two demand minerals from the same targets. Production of lithium and potash is done through what is known as In-situ Mining where a well is drilled down to the brine horizon and another return well is also drilled," stated Kevin M Murphy, CEO of Universal Potash Corp. Hot water is then pumped down the first well dissolving the potash and lithium salts into a brine fluid that is then forced back up the return well into an evaporation pond where the water evaporates and the minerals condense for final processing.

In-situ mining is a non-invasive, environmentally friendly mining process involving minimal surface disturbance which extracts minerals from porous sandstone or brine aquifers by reversing the natural processes which deposited the minerals. The mineral (potash or lithium) deposit must occur in permeable aquifers. These aquifers provide the "plumbing system" for both the original emplacement and the recovery of the mineralization. The minerals were emplaced by ground water which moved through the plumbing systems of the geologic formation. To effectively extract lithium or potash deposited from ground water, UPCO will first thoroughly define this plumbing system and then design well fields that best fit the natural hydro-geological conditions. Once the geometry of the ore bodies is known, the locations of injection and recovery wells are planned to effectively extract the lithium and potash.

"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 http://UniversalPotash.com under the heading "NEWS."

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