Potash Mining Company - Potash Project

Potash Legacy Project Technical Report Geology of Solution Mining of Potash in Saskatchewan Photos

Potash One is developing the Legacy Project, an advanced stage solution mining potash project in Saskatchewan. The Legacy Potash Project is located about 80 kilometers northwest of Regina and immediately adjacent to Mosaic's Belle Plaine potash solution mine, the largest potash solution mine in the world. The project consists of 97,240 acres of Crown mineral lands held by Subsurface Mineral Permit KP 289.

The potash deposits underlying and surrounding the area of Permit KP 289 were penetrated by 25 surface drill holes. The permit lands have been surveyed by a number of vintage reflection seismic programs.

Three members of the permit lands are estimated to contain sylvinite with potential economic interest: Patience Lake Member, Belle Plaine Member and Esterhazy Member.

Potash One completed a National Instrument 43-101 Technical Report on the Findlater Project renamed The Legacy Project on February 8, 2007. The full text of the Technical Report is available on our website.

The Technical Report has estimated that the Indicated and Inferred Mineral Resource for the Patience Lake and Belle Plaine potential solution mining intervals are:

Indicated Mineral Resource: 36.8 million tonnes of K₂O
Inferred Mineral Resource: 360.4 million tonnes of K₂O

Potash One has initiated a two phase drill program at its Legacy Solution Mining Project where its first 3-5 wells will test two areas identified by initial seismic surveys as having potential to support long term solution mining operations. The second phase will consist of 7-9 more wells to further delineate resources within those areas. The planned infill drilling and a 3D seismic survey of the area will be conducted to support the preparation of a revised National Instrument 43-101 compliant resource estimate with the goal of supporting a minimum of 25 years of mining at the production rate of 2 million tonnes of potash per year.

The Saskatchewan Potash Basin contains deposits that are renowned for their consistency and continuity. The guidelines prepared by the Estimation Best Practices Committee of the Canadian Institute of Mining and Metallurgy and Petroleum ("CIM") 2003, state:

"The potash deposits that are located in Saskatchewan, Canada, are characterized by their remarkable consistency of grade and thickness over many tens of kilometers. It is therefore possible to characterize a deposit with relatively few drill holes, supplemented by sufficient seismic coverage to establish continuity between the holes."

The company continues to advance the Legacy Project on schedule and is in good position to deliver a pre-feasibility study on the Legacy project by Summer 2009.

In addition, the company also controls three exploration permits contiguous to the Legacy Project covering ~230,000 acres in areas amenable to solution mining. Vast exposure to this part of the basin has effectively blocked potential junior competitors from gaining the advantages of entering the solution mining market.

Potash One Inc. is a Canadian Company.

Suite 1238 - 200 Granville Street, Vancouver, BC, Canada, V6C 1S4