Encanto announces plant site location finalized

TRADING SYMBOL:  TSXV:EPO

VANCOUVER, June 28, 2012 /CNW/ - Encanto Potash Corp. ("Encanto" or the "Company") (TSXV: EPO and OTCQX: ENCTF) is pleased to announce that it has completed a site selection survey, including a drilling program that verified the suitability of the preferred plant site for the Muskowekwan potash mine project.

Plant Site Location Confirmed

Novopro Projects Inc., a project development and management company specializing in potash related projects, which has been engaged to carry out Encanto's Prefeasibility Study, has conducted a site selection survey which identified a preferred location of the plant site based on the least impact with respect to the following factors:

  • Our Muskowekwan First Nation partner's traditional land use and heritage sites (if any)
  • Vegetation, forest areas or wildlife
  • Proximity to the Muskowekwan potash resource and highest K2O content
  • Proximity to rail infrastructure
  • Proximity to road infrastructure
  • Proximity to utility infrastructure
  • Favourable topography and soil characteristics
  • Allowance for potential major expansion

A drilling program carried out by MDH Engineered Solutions Corp. ("MDH"), a member of the SNC-Lavalin Group, provided the technical data in support of determining the suitability of the site for the key tailings management area. The environmental assessment of the site is being conducted by Stantec Consulting Ltd.

"Finalizing the plant site location is a key step as we move closer to our first producing mine," said Encanto President and CEO, Jim Walchuck. "We've defined an area that takes into account tailings management, production facilities, storage, utility infrastructure, loading areas, and staff and administration office space. The location also allows for a potential major production expansion."

About MDH Engineered Solutions Corp.

MDH Engineered Solutions Corp., a member of the SNC-Lavalin Group, specializes in geotechnical, hydrogeological, and environmental consulting, and provides advanced laboratory soil, rock and mine waste testing. For more than 30 years, MDH has delivered comprehensive, state-of-the-art consulting services for a diverse range of consulting and research projects, in both the public and private sectors, in Canada and internationally.

About Stantec Consulting Ltd.

Stantec Consulting Ltd. ("Stantec"), founded in 1954, provides professional consulting services in planning, engineering, architecture, interior design, landscape architecture, surveying, environmental sciences, project management, and project economics for infrastructure and facilities projects.

For the Muskowekwan project, Stantec has been mandated to deliver a complete Environmental Assessment.  Key activities for this mandate are already underway.

About Encanto:

Encanto Potash Corp. is a TSX Venture Exchange listed and OTCQX traded Canadian resource company engaged in the development of potash properties in the Province of Saskatchewan, Canada, the largest producing potash region in the world. Through the joint venture agreement with Muskowekwan Resources Limited on our flagship property, Encanto has been successful in adding a 3.5 fold increase to the project land package, which now totals approximately 58,300 acres. A Preliminary Economic Assessment (PEA), based solely on the Home Reserve Lands (15,500 acres), was released in August of 2011 and an updated NI 43-101 report describing the increase to the compliant resource estimate was filed on May 10, 2012.

Encanto's Muskowekwan First Nation property has a current NI 43-101 resource estimate containing Measured and Indicated resources of 130.7MMt grading 29.6% KCl or 18.7% K2O and Inferred resources of 234.7MMt grading 28.3% KCl or 17.9% K2O.

The Company has 100% interest in two additional potash properties in Saskatchewan: the 55,000 acre Ochapowace/Chacachas property and the 140,000 acre Spar property.

The technical content of this news release has been reviewed by Ross Moulton, Vice-President 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"
Per: _________________
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.


SOURCE Encanto Potash Corp.

For further information:

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

Martin Gagel  CFA, MBA
Vanguard Shareholder Solutions
Tel:  604-608-0824
Toll Free:  1-866-918-0824


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