Milestone, Saskatchewan 43-101 Compliant and Hydrocarbon Potential Identified

During May 2008, the Company was granted three potash permits in south-eastern Saskatchewan. The three contiguous permits were granted by the Saskatchewan Ministry of Energy and Resources and comprise a total of 123,948 acres.

The permits potash permits are immediately adjacent to potash permits help by BHP Billiton, Vale and Potash One. The three permits are located approximately 30 km southeast of Regina and to the southeast  of the Mosaic Belle Plaine KL-106-R mining lease, which hosts one of the largest producing potash solution mines in the world. Each of the permits grants Western Potash the exclusive rights to explore and prospect for subsurface minerals for a term of 5 years.

On October 9, 2008, the Company entered into an agreement with Boyd Petrosearch of Calgary, Alberta to acquire and evaluate 2D seismic data for the potential for potash in Western Potash’s permits in KP407, KP408 and KP409 in southeastern Saskatchewan.

The agreement provided for the purchase of the data, along with interpretation of the data for the potential in this area for potash mining, to determine areas for potential future drilling, and to evaluate the land position for large anomalous areas.

Seismic data confirming the presence of potash prospective salt beds on the eastern portion of the Milestone property have highlighted a sizeable and attractive new exploration target area amenable to solution mining technologies. The exploration area already has water, power, natural gas and rail infrastructure to serve the project, allowing the transportation of the final product to Vancouver and the Asian markets.

Phase One - Exploration/Preliminary Resource Calculation

The Company completed its first potash exploration well on the Milestone property in southern Saskatchewan. The Milestone property, comprising approx. 500 square km, is located approximately 30 km southeast of Regina, and southeast of Mosaic’s Belle Plaine Mine, one of the largest producing potash solution mines in the world. The property is immediately adjacent to the Regina Potash Property held by Vale, and potash permits held by BHP-Billiton, and Potash One.

The first well, drilled vertically, was drilled to a total depth of 1,776m. Coring commenced at a depth of 1,640m, and intersected the Prairie Evaporite Formation at a depth of 1,657m. A total of 24.5m of potash mineralization was drilled. Visual observation and down hole logging indicate the presence of the following potash members.

Visual interpretation of the gamma ray logs from this zone suggests a moderate to strong potash grade within this zone. The logs also indicate minimum formation temperatures of 62 C, confirming the strong heat anomaly described by Holter (1969) underlying the property. Temperature is important because higher formation temperatures improve the potash dissolution process, and reduce heat input required for the injected brines thereby significantly reducing production costs. The temperatures in this part of the potash belt are considered very good for production of potash from a solution mining operation.

The Company was very encouraged by the results received to date, as the geological setting and mineralization are consistent with characteristics of other potash deposits in Saskatchewan. Please see Table 1 for well summary:

Table 1:  Milestone Well Summary

The drill program’s purpose was to define the extent, grade, thickness and type of potash mineralization present on the property. All holes were drilled vertically targeting the Prairie Evaporite formation, which were conventionally cored using invert drilling fluids so as to not dissolve the salt and potash sequences. Samples were collected from the potash sequence for description and analysis, and each hole was logged using industry standard down-hole geophysical logging techniques.

The Company is very pleased with the potash grades intersected in the Patience Lake and Belle Plaine potash members reported for the Milestone-003 well, as these are considered particularly exceptional.  The fourth well indicates that the extent of the mineralization extends at least 12.5 kilometers south from the first well. The company is pleased to see the presence, thickness and grade of the fourth well are consistent with those mined at the Belle Plaine solution mine. In addition, it has now demonstrated regional continuity of all three potash members, spanning a strike length of over 12.5 km, between the first and fourth wells.

The potash assays results from the Milestone-003 well support the Company’s decision to accelerate a resource definition program in the vicinity of this well as reported in the July 23, 2009 press release. The Company budgeted approximately $5.4 million CAD for this drill program, and will prepare an inital NI 43-101 compliant Inferred resource calculation on the Milestone property  in 2009.