Encanto Potash Announces Successful Outcome of Ochapowace Sub-Surface Designation Vote

TRADING SYMBOL:  TSXV:EPO

VANCOUVER, June 7, 2012 /CNW/ - Encanto Potash Corp. ("Encanto" or the "Company") (TSXV: EPO or OTCQX: ENCTF) announces that it has received the results of a successful and final Mineral Rights sub-surface Designation vote which occurred Thursday May 31, 2012. This vote was in regard to the designation of Potash and other minerals for Home Reserve, TLE reserve and pre-reserve Ochapowace lands.

The Company has been formally notified by the Ochapowace Chief and Council that the final voting results, as tabulated by Aboriginal Affairs and Northern Development Canada ("AANDC") greatly exceeded the 50% plus one voting requirement to successfully pass.

"We're extremely pleased to see an overwhelming 88% voter support for the sub-surface mineral designation process on what we consider our second flagship property" stated Encanto President and CEO Jim Walchuck.  "We now intend to drill a test hole to check the potash grade and then follow up with a drilling and 3D seismic program in order to develop  a significant NI 43-101 compliant resource estimate on this second flagship property."

Approximately 50,000 acres of the designated lands are governed under existing Mineral Exploration Agreements and Exploration Permits from Indian and Northern Affairs Canada and Exploration Participation Agreements with the First Nation. The process of continued land acquisition and permitting has the ability to further add to the total acreage.

Encanto further confirms that they recently arranged for an analyst tour of the Muskowekwan First Nation property and the proposed mine processing site that was hosted by Chief Reginald Bellerose and members of his Council. Analysts, Fund Managers and investment banking representatives were among the attendees. Photos of this tour are available at the Company website at www.encantopotash.com.

Jim Walchuck commented "We're very pleased at the level of interest that we are attracting from institutional investors and analysts from across North America. We're confident of receiving increased research coverage which will help broaden our base of investors and raise the profile of our project as we move closer to production."

Encanto continues to meet with analysts and investors across Canada, the United States and Europe as well as exploring domestic and international strategic partnerships for the financing, development and sale of its potash production.

The Company also announces that due to personnel changes at Venture Liquidity Providers ("VLP") Encanto has ceased to work with them as our market maker. We thank them for their efforts.

About Encanto:

Encanto Potash Corp. is a TSX Venture Exchange listed and OTCQX traded Canadian resource company engaged in the exploration and 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 Ochapowace/Chacachas project and the 140,000 acre Spar projects.

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"
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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