NEWS RELEASE
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ENCANTO
POTASH CORP. UPDATES MUSKOWEKWAN PROJECT
April
12, 2011
Encanto Potash Corp. (TSXV: EPO) is
pleased to congratulate Chief Reginald Bellerose on his recent
re-election as Chief of the Muskowekwan First Nation and to
congratulate incumbent and new Council members. As previously
reported in the Company's news release of March 18th, 2011,
the top agenda item for the Company and its joint venture partners post
election is to expeditiously conclude the designation process on the
project's TLE Reserve Land's mineral rights.
Chief Bellerose today stated that "our
priority is to move the designation process forward as quickly as
possible. We are confident that an additional 15,500 acres contiguous to
our Home Reserve will soon be designated Reserve status. We are excited
about what the future holds with respect to the benefits our Nation will
receive by continuing to work closely together with Encanto."
Upon completion of the TLE designation process,
currently underway, Encanto will have access to 100% of the potash rights
underlying both the Muskowekwan First Nation Home Reserve comprising
16,830 acres and the 15,500 acres of TLE Reserve Lands for a total of
32,220 acres.
The TLE Reserve Lands have already had widely
spaced 2D seismic shot over their entirety. In addition, the 3D
seismic program covered approximately 40% of the TLE Reserve Lands.
Encanto's management and consultants have completed an extensive review
of this 2D and 3D seismic data and have identified two (2) future
resource drill hole locations on the TLE Reserve Lands. The Company
currently has in excess of $7.5 million in its treasury and has budgeted
funds to drill the additional wells.
Drilling the additional two (2) drill holes is
expected to add significant tonnage to the current resource. Upon
completion of these two (2) drill holes North Rim Exploration Ltd., of
Saskatoon, Sask., will be commissioned by the Company to issue an amended
NI 43-101 Technical Report to include the anticipated new resources on
the TLE Lands.
Encanto is further pleased to report that work on
the Preliminary Economic Assessment, which is being conducted by Wardrop,
A Tetra Tech Company, is now well under way with the draft report
expected to be delivered in the third quarter of this year.
The technical content of this news release has been
reviewed by Ross Moulton, VP of Exploration for Encanto, a qualified
person as defined by NI 43-101.
About
Encanto:
Encanto Potash Corp. is a TSX Venture
Exchange-listed Canadian resource company engaged in the exploration and
development of potash properties in the Province of Saskatchewan, Canada,
the largest producing region for potash in the world.
For additional information about Encanto Potash
Corp., please visit the Company's website at www.encantopotash.com or
review the Company's documents filed on www.sedar.com.
ON
BEHALF OF THE BOARD OF DIRECTORS
James Walchuck
President and CEO
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For further
information, please contact:
James
Walchuck, President & CEO
Encanto Potash Corporation
Ph. 604.683.2402
Vanguard
Shareholder Solutions
Ph. 604.608.0284
Toll Free 866.918.0824
ir@vanguardsolutions.ca
www.encantopotash.com
NEITHER TSX VENTURE EXCHANGE NOR ITS
REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF
THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE.
THE FOREGOING INFORMATION MAY CONTAIN
FORWARD-LOOKING INFORMATION RELATING TO THE FUTURE PERFORMANCE OF THE
COMPANY. FORWARD LOOKING INFORMATION IS SUBJECT TO A NUMBER OF KNOWN AND
UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS THAT MAY CAUSE ACTUAL
RESULTS TO DIFFER MATERIALLY FROM THOSE ANTICIPATED IN OUR FORWARD
LOOKING STATEMENTS. SUCH RISKS AND OTHER FACTORS INCLUDE, AMONG OTHERS,
THE ACTUAL RESULTS OF EXPLORATION ACTIVITIES, CHANGES IN WORLD COMMODITY
MARKETS OR EQUITY MARKETS, THE RISKS OF THE MINING INDUSTRY INCLUDING,
WITHOUT LIMITATION, THOSE ASSOCIATED WITH THE ENVIRONMENT, DELAYS IN
OBTAINING GOVERNMENTAL APPROVALS, PERMITS OR FINANCING OR IN THE
COMPLETION OF DEVELOPMENT OR CONSTRUCTION ACTIVITIES, TITLE DISPUTES,
CHANGE IN GOVERNMENT AND CHANGES TO REGULATIONS AFFECTING THE MINING
INDUSTRY, AND OTHER RISKS AND UNCERTAINTIES DETAILED FROM TIME TO TIME IN
THE COMPANY'S FILINGS WITH THE CANADIAN SECURITIES ADMINISTRATORS
(AVAILABLE AT WWW.SEDAR.COM ). FORWARD-LOOKING
STATEMENTS ARE MADE BASED ON VARIOUS ASSUMPTIONS AND ON MANAGEMENT'S
BELIEFS, ESTIMATES AND OPINIONS ON THE DATE THE STATEMENTS ARE MADE.
SHOULD ONE OR MORE OF THESE RISKS AND UNCERTAINTIES MATERIALIZE, OR
SHOULD UNDERLYING ASSUMPTIONS PROVE INCORRECT, ACTUAL RESULTS MAY VARY
MATERIALLY FROM THOSE DESCRIBED IN THE FORWARD-LOOKING INFORMATION
CONTAINED HEREIN. THE COMPANY UNDERTAKES NO OBLIGATION TO UPDATE
FORWARD-LOOKING STATEMENTS IF THESE ASSUMPTIONS, BELIEFS, ESTIMATES AND
OPINIONS OR OTHER CIRCUMSTANCES SHOULD CHANGE, EXCEPT AS REQUIRED BY
APPLICABLE LAW.
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