Encanto Potash Announces Positive Outcome from Designation Vote

VANCOUVER, Feb. 27, 2012 /CNW/ - Encanto Potash Corp. ("Encanto" or the "Company") (TSXV: EPO or OTCQX: ENCTF) announces that they have received the results of a second and successful Mineral Rights Designation vote which occurred Saturday February 25, 2012. This vote was in regard to the designation of minerals for the TLE and pre-reserve Muskowekwan lands which are in addition to the already designated Muskowekwan Home Reserve.

The Company has been formally notified by Muskowekwan Resources Limited ("MRL"), as general partner of the Muskowekwan Limited Partnership and the Muskowekwan First Nation ("MFN") that the final voting results, as tabulated by Aboriginal Affairs and Northern Development Canada ("AANDC") were as follows:

- 545 Muskowekwan FN members exercised their right to cast their vote.

- Of those that voted, 435 or 80% voted in favour of the designation and it therefore passed by a significant margin, having met the AANDC regulatory requirement of 50% plus one to succeed.

Muskowekwan FN Chief Reginald Bellerose stated that, "This vote is a clear mandate from our membership to continue with our work to develop Canada's first potash mine on our First Nation lands. Going forward we understand and commit to sustain our due diligence to the environmental responsibilities of our homeland. We now welcome an active leadership role as providers of career and entrepreneurship development, educational advancement, and skills training opportunities for our people. We anticipate there will be many other community and economic benefits that will accrue through a future production royalty. This decisive vote result is viewed as a very positive landmark event for our First Nation."

As previously released by the Company on February 2, 2012, the land package that is governed by the Joint Venture Agreement ("JVA") was increased by approximately 42,800 acres, bringing the total land package to roughly 58,300. The process of further land acquisition is not complete and these totals may be added to in the future.

Encanto looks forward to the issuance of an updated NI 43-101 Technical Report containing a new resource estimate. The resource calculation will be carried out by North Rim Exploration Consultants and will include the new lands which were just designated.

Encanto President and CEO, James Walchuck offered this additional update. "We are more than pleased with the results of this milestone in the history of Encanto Potash and our Joint Venture Agreement partner. We'd like to once again thank Chief Bellerose and his Council as well as the Muskowekwan First Nation people for having the faith and understanding that together we can do great things for both the Muskowekwan First Nation and our shareholders. With previous drill programs having established coverage over the majority of the new lands, we are looking forward to delivering a new and expanded resource estimate as we continue to move this project towards becoming a producing potash mine."


About Encanto:

Encanto Potash Corp. is a TSX Venture Exchange and OTCQX 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. Encanto's flagship Muskowekwan First Nation property has a recent NI 43-101 resource estimate containing 79.1 million tonnes of KCI grading 29.4% in the Indicated resources category along with 60.5 million tonnes grading 29.7% in the Inferred resource category. With recent agreements announced with Muskowekwan Resources Limited, Encanto has been successful in adding a 3.5 fold increase to the Project's land package, now totalling approximately 58,300 acres. A Preliminary Economic Assessment (PEA), based solely on the Indicated Resource estimate, was released in August of 2011 and a further release of an expanded NI 43-101 compliant resource estimate is pending.

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.

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"
James Walchuck, President and CEO



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.



For further information:

James Walchuck
President and CEO
Tel: 604-683-2402

Daniel Caamano
Vanguard Shareholder Solutions
Tel: 604-608-0824
Toll Free: 1-866-918-0824