Overview

Western Potash Corp. (TSX:WPX) is a Potash Company focused on building Canada’s most efficient Potash Solution Mine. Having delivered a Robust Preliminary Economic Assessment, and Positive Pre-Feasibility Study, Western Potash is working toward the completion of a Feasibility Study at its Milestone Project in Saskatchewan, Canada. The company’s 100%-owned Milestone property is located approximately 30 kilometres Southeast of Regina, Saskatchewan, Canada. The Company is planning to build a solution mine at Milestone by 2016, with lower expected capital costs and a shorter timeline to production than conventional underground mining entails. The Company is one of the last public junior potash pure plays with high-quality assets in Saskatchewan, with close proximity to some of the world’s largest potash mines and land holdings.

Investment Highlights

• The company has delineated a significant potash resource
• Macroeconomic indicators support increased fertilizer use in the future
• Excellent infrastructure, close to markets
• The milestone project is located adjacent to known potash producing properties
• The political risk is minimal due to its location in Canada
• The company has begun discussions with strategic partners
• Advanced engineering company involved in the feasibility process
• Robust Pre-feasibility Study completed

Company Objectives

• Choose the most appropriate water source option for the solution mine
• Arrange financing to build the mine
• Complete Feasibility Study by late 2012
• Submit an Environmental Impact Assessment study to the Government
• Begin mine construction in 2013
• Begin potash production in 2016

Key Property

Milestone, Saskatchewan

The company’s flagship property, Milestone, is located 30 kilometers southeast of Regina, Saskatchewan, and about 50 kilometers from the world’s largest potash solution mine (Mosaic’s “Belle Plaine” Mine).

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Size of Property

The Milestone Project has now progressed to a mining lease (KLSA 008). The KLSA 008 Lease boundary encompasses some 157,500 acres of which 87,530 acres are Crown mineral lands covered by the permit as shown in map above. These Crown Mineral Rights represent the mineral rights for all, or part of, 137 sections, or approximately 57% of the total area in the 246 sections within the physical boundaries of the KLSA 008 Lease area.

The remaining acreage is owned by individuals or corporations, i.e., “Freehold” lands. WPX has negotiated and signed potash mineral leases with the owners of Freehold Mineral Rights within and adjacent to the KLSA 008 Lease area. As of October 31, 2011, WPX has negotiated leases covering 22,115.81 acres within the boundaries of the KLSA 008 Lease. (Source: NI 43-101 Technical Report Summarizing the Preliminary Feasibility Study for the Milestone project, dated 15 December 2011).

Mineral Resource

On December 15th 2011, the Company announced the filing of an updated NI 43-101 Technical Report. The updated resource estimate slightly increases the Milestone recoverable Potash Resource (Patience Lake, Belle Plaine, and Esterhazy Members including interbeds) to 66.60 million tonnes of Measured Resource (contained KCL), 186.68 million tonnes of Indicated Resource, and 708.18 million tonnes of Inferred Resource. The updated resource estimate was prepared by Agapito Associates Inc. (“AAI”) of Grand Junction, Colorado.

Click here to see full updates from December 2011 press release

History

The company completed a two phase exploration program on the Milestone Property in 2009-10 and has now progressed to the feasibility and mine development stage.

Phase one consisted of 179 line kilometers of 2D seismic geophysics and purchased 284 line km of regional 2D seismic data. Additionally, four exploratory wells totaling 7,198 meters were completed, representing the first drilling completed on the permit. Phase one ended with the initial NI 43-101 resource calculation being delivered.

Phase two consisted of a 3D Seismic Survey as well as an additional five exploratory wells. Phase two ended with the delivery of an NI 43-101 resource calculation totaling 174 million tones of measured and indicated resource.

An additional two wells were drilled in 2010 to obtain information for the feasibility process resulting in the delivery of an updated NI 43-101 Technical Report summarizing the Preliminary Feasibility Study totaling 253.28 million tonnes of measured and indicated resource. The updated and expanded resource calculation will now be incorporated into the solution mining plan, part of the integrated feasibility process (“PFS + FS”) currently being completed by AMEC Americas Limited.

Current Program

In September 2011, AMEC Americas Ltd. completed a Pre-Feasibility Study of the Milestone Project. AMEC is a leading international engineering and project management company that currently manages multiple potash expansion projects in Saskatchewan with a capital value of several billion dollars.  The Pre-Feasibility Study confirms that the Milestone Project shows significant positive economics and that the asset is of sufficient size and grade to support primary and secondary solution mining for more than forty years at a production rate of 2.8Mt/yr. Western Potash Corp. has retained AMEC Americas Ltd. to provide a Feasibility Study for the Milestone project. The Feasibility Study is expected to be completed by the end of 2012.

Golder Associates Ltd. of Saskatoon, Saskatchewan continues to assist the Company with environmental baseline studies and the preparation of an Environmental Impact Statement (EIS) for the Milestone project. This work remains on schedule and on budget, with an anticipated EIS submission date of Q3 2012.

Management

Patricio Varas, President and CEO.

• Patricio is a P.Geo with over 23 years experience in exploration.
• Pat has worked and collaborated with major and junior mining companies in exploration projects that span North and South America, Europe, Africa, Asia and Australia.
• Involved in the discovery of the Diavik Diamond mine.
• Involved in the discovery of the Santo Domingo Sur deposit in Chile with Far West mining.

Buddy Doyle, Geological Advisor & Director

• Buddy’s experience includes more than 27 years exploring for gold and diamonds.
• Mr. Doyle led the team that discovered the currently-producing Diavik/Aber Diamond mine.
• Served as Vice President of Exploration for North American Diamonds with Kennecott Exploration, a division of Rio Tinto.
• He recently was awarded the Hugo Dummitt Award for excellence in Diamond exploration by his peers in the industry.

Dean Pekeski, Executive Vice President

• Mr. Pekeski is a P.Geo with over 17 years’ experience in mineral exploration.
• Mr. Pekeski was employed as an exploration geologist and project manager for Rio Tinto Exploration where he has explored for base metal and diamond deposits across Canada, southern Africa, and India.
• Mr. Pekeski’s lead the Rio Tinto exploration team that discovered diamondiferous Bunder kimberlites in India.
• His most recent responsibilities included managing Rio Tinto’s diamond exploration programs in North America.

Ian Graham, Evaluation and Project Development

• Mr. Graham has over 20 years of mineral exploration and evaluation experience with Anglo American and Rio Tinto.
• Mr. Graham has extensive geological and project management experience in the field of mineral exploration and project development in Canada and abroad.
• Ian is assisting WPX in the management and development of effective scoping (order of magnitude), pre-feasibility and feasibility studies, and in identifying, evaluating and negotiating for resource related projects that have high potential.
• Mr. Graham has Saskatchewan experience via diamond exploration projects (Candle Lk. Evaluation) and uranium exploration projects (including the Maverick Zone discovery with Kennecott/JNR) and resided in the province between 1986 and 1989. In 2007/08 he provided Canadian based support to Rio Tinto’s acquisition of its Regina Potash project, which that company sold to Vale early in 2009.

Patrick Power,  VP Corporate Finance & Director

• Mr. Power is a seasoned venture capitalist and financier with over 17 years of experience as a stock market professional and as director of public companies.
• Western Potash benefits from Mr. Power’s wealth of experience as a shrewd dealmaker, an adept financier and as a tireless, results-driven leader of dynamic public companies.
• The company enjoys Mr. Powers’ large network of contacts within the industry, his enthusiasm and his efforts as a board member and trusted advisor.