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Western Potash Corp. Signs Memorandum of Understanding with the City of Regina for Milestone Potash Project Water Supply

22.02.2011  |  Business Wire


WESTERN POTASH CORP., (the 'Company?) (TSX Venture: WPX) is pleased to
announce that it has signed a Memorandum of Understanding ('MoU?) with
the City of Regina (the 'City?) for potential water supply options for
the Company′s Milestone Potash Project ('Milestone?). As a result of
this MoU, the Company will include new water supply options in its
feasibility study process, which underscores the substantial
environmental, as well as, economic benefits for both the Company and
the City of Regina.


The Company recently announced the commissioning of the feasibility
study process at Milestone, which will include an assessment of all the
facilities required for the development of a new potash solution mining
operation. A Scoping Study prepared by AMEC America Limited confirmed
that the Milestone resource shows significant positive economics, and
that the asset is of sufficient size and grade to support solution
mining for more than forty years at a production rate of 2.5Mt/yr. The
MoU allows for the Company and the City to assess water supply options
with the aim of entering into a definitive agreement whereby the City
supplies the required water to the Milestone Project.


The final water volume design for the Milestone Project is currently
being determined as part of the Company′s ongoing feasibility and
environmental studies. The integrated feasibility study is progressing
well and is estimated to be complete in about 18 months.


Patricio Varas, CEO and President commented: 'The Company is very
pleased with the signing of this MoU, and the cooperation with the City
of Regina. We look forward to realizing the economic and environmental
benefits inherent in this type of co-operative approach.?


In addition to the supply of water, the City is interested in the
operation and maintenance of the water supply system to the Project. The
MoU engages the Company and the City to discuss options for upgrading
existing facilities and constructing new facilities to the mutual
benefit of both the Company and the City.


The 100% owned Milestone property, comprising 500 square kilometers, is
located 30 kilometers Southeast of Regina, and Southeast of Mosaic′s
Belle Plaine Mine, one of the largest producing potash, solution mines
in the world.


Western Potash Corp. is a resource development company engaged in the
evaluation and development of potash mineral properties in Western
Canada. The Company intends to develop a world-class potash deposit in
an ecologically sustainable, economically efficient, and socially
responsible manner.


For more information on Western Potash Corp.'s projects, please visit
the Company's website at: www.westernpotash.com.


ON BEHALF OF THE BOARD OF DIRECTORS


'J. Patricio Varas?


J. Patricio Varas


President and CEO


Cautions Regarding Forward-Looking Statements


This news release contains forward-looking statements regarding our
intentions and plans. Forward looking statements in this press release
include that we will enter into an agreement for the City of Regina to
supply water for our project, that our feasibility and environmental
studies will be completed within 18 months, that water facilities will
be upgraded and that we can develop a world-class potash deposit in an
ecologically sustainable, economically efficient, and socially
responsible manner. The forward-looking statements that are contained in
this news release are based on various assumptions and estimates by the
Company and involve a number of risks and uncertainties. As a
consequence, actual results may differ materially from results forecast
or suggested in these forward-looking statements and readers should not
place undue reliance on forward-looking statements. Various factors may
prevent or delay our plans, including but not limited to, our ability to
reach agreement with the City, environmental impact of our project,
access to our project, our ability to finance development, mineral
prices, success or failure of the exploration and development carried
out at various stages of the program, potash prices and general
business, economic, competitive, political and social conditions having
an impact not only on whether or not the Company obtains access to a
water supply, but also on whether the project is feasible. The Company
expressly disclaims any obligation to update any forward-looking
statements, except as required by applicable securities laws. Readers
should refer to the risks as discussed in the Company's filings with
Canadian securities agencies.

Neither the 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.


Western Potash Corp.

Patricio Varas

T: 604.689 WEST (9378)



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