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Milestone, Saskatchewan

The Milestone property consists of three contiguous permits and comprises a total of 123,948 acres. The property is located approximately 30 km southeast of Regina and 50 km southeast of Mosaic’s Belle Plaine Mining lease, which is home to one of the largest producing potash solution mines in the world. The Milestone property is also directly adjacent to the potash permits held by BHP Billiton, Vale and Potash One. Western Potash Corp. has the exclusive right to explore and prospect for subsurface minerals for a term of five years.

Phase Two -  NI 43-101 Resource Estimate and Scoping Study

Scoping Study

On April 13th 2010, Western Potash Corp. announced that AMEC Americas Limited has initiated a Preliminary Economic Assessment, also known as the Scoping Study, on the Milestone project. The Preliminary Economic Assessment will aim to conceptualize the viability of a potash mining operation on the Milestone property.  The Scoping Study will place particular focus on quantifying the expected positive effects that the higher potash formation temperatures measured at Milestone may have. The lower formation temperatures are expected to reduce the energy requirements of a potash operation, and as a result, lower the operating costs. Golder Associates Ltd. of Saskatoon, Saskatchewan will assist the Company with the environmental baseline studies and the preparation of the Environmental Impact Statement (“EIS”) on the project. The target date for the Scoping Study's delivery is September, 2010.

NI 43-101 Resource Estimate

On June 3rd 2010, Western Potash Corp. delivered its Updated NI 43-101 Resource Estimate.  This Updated Resource Estimate significantly upgrades the Milestone properties resource, which consists of 41 million tonnes of Measured Resource (contained KCl), 133 million tonnes of Indicated Resource, and 560 million tonnes of Inferred Resource.  The resource estimate at Milestone was prepared by Agapito Associates Inc. (“AAI”) of Grand Junction, Colorado. A detailed summary of the Measured, Indicated and Inferred Mineral Resource is presented in Table 1, 2 and 3 respectively.

Table 1. Measured Mineral Resource*

Bed

Average KCL
Grade (%)

In-place
Tonnage (Mt)

In-Place KCL
Tonnage (Mt)

KCL
Resource** (Mt)

Patience Lake

28.81

215.95

62.21

20.45

Belle Plaine

29.13

91.71

26.72

8.78

Esterhazy

36.15

100.84

36.45

11.98

Total

31.00

408.51

125.38

41.21

* Search Radius of 800 m  used; Mt = million tonnes; Patience Lake thickness > 1.1 m, Belle Plaine K2O grade > 15%, Esterhazy Carnallite < 6%, Density = 2.08, KCl = 1.58303 K2O.
** Resource accounts for geologic anomalies (5%), and extraction ratio (34.6%).

Table 2. Indicated Mineral Resource *

Bed

Average KCL
Grade (%)

In-place
Tonnage (Mt)

In-Place KCL
Tonnage (Mt)

KCL
Resource (Mt)**

Patience Lake

28.72

726.14

208.58

65.67

Belle Plaine

29.21

303.42

88.63

27.91

Esterhazy

35.57

352.76

125.47

39.51

Total

30.79

1,382.32

422.69

133.09

* Search Radius: 1.6 km outside radius and 2.5 km inner radius (between drill holes); Mt = million tonnes; Patience Lake thickness > 1.1 m, Belle Plaine K2O grade > 15%, Esterhazy Carnallite < 6%, Density = 2.08, KCl = 1.58303 K2O.

** Resource accounts for geologic anomalies (9%), extraction ratio (34.6%).

Table 3. Inferred Mineral Resource*

Bed

Average KCL
Grade (%)

In-place
Tonnage (Mt)

In-Place KCL
Tonnage (Mt)

KCL
Resource (Mt)**

Patience Lake

28.84

3,534.64

1,019.35

264.52

Belle Plaine

28.84

1,683.71

485.59

126.01

Esterhazy

36.07

1815.21

654.72

169.90

Total

30.85

7,033.55

2,159.67

560.43

* 8.0 km radius used; Mt = million tonnes; Patience Lake thickness > 1.1 m, Belle Plaine K2O grade > 15%, Esterhazy Carnallite < 6%, Density = 2.08, KCl = 1.58303 K2O.
** Resource accounts for geologic anomalies (9%), extraction ratio (34.6%).

Phase One - Exploration Drilling, 2D and 3D Seismic

Phase one consisted of several areas of exploration that lead up to the delineation of Milestone’s Resource Calculation, some of these items were are listed below:

  • 9 Exploration Drill Wells
  • 3D Seismic Survey
  • 2D Seismic Survey and the Interpretation of Existing 2D Seismic Data
  • Land Acquisition