Encanto Potash Corp. - Update on Successful TLE Property Drilling

Trading Symbol:  TSXV   EPO.V

VANCOUVER, Sept. 30, 2011 /CNW/ - Encanto Potash Corp. ("Encanto" or the "Company") (TSXV:EPO) (OTCQX:ENCTF) is pleased to report that the first of two (2) planned wells to be drilled in order to expand the resource to the northeast on the Muskowekwan Treaty Land Entitlement lands has been completed. North Rim Exploration Ltd., of Saskatoon is overseeing the drill program and handling of the core.  The first hole was drilled to a depth of 1,245 metres and successfully intersected each of the Patience Lake, Belle Plaine, and Esterhazy Members. The core will be assayed and will also have engineering studies completed to determine certain cavern design and production parameters.  The additional studies are necessary for the planned solution mine development.  Drilling of the second test well will commence within days and is expected to be completed over the next several weeks.

Based on the results of these two holes, and previous 2D and 3D seismic work, an updated NI 43-101 compliant resource estimate is scheduled to be released in Q4 2011 or early Q1 2012 depending on assay turnaround time.

Encanto and the Muskowekwan First Nation ("MFN") also report that the treaty land designation vote has been rescheduled due to heavy caseloads within the respective Federal agencies having responsibility for this process. The agencies have now finalized the process and MFN has been advised the new voting date is Saturday November 26, 2011.

"The rescheduling of the vote is a purely procedural issue and certainly not contentious," states Encanto President and CEO Jim Walchuck. The information campaign to the MFN stakeholders was completed successfully and we remain extremely confident that we have gained the support and the trust of the MFN through this entire process." The MFN continues to keep their membership updated both on and off the MFN Home Reserve.  Encanto is confident that the results of the vote will be favourable as indicated by the continued support of Chief Bellerose who was recently re-elected on a pro potash platform.

The Company and MFN look forward to the completion of the drilling program, TLE designation vote and release of a significantly expanded resource estimate over the coming weeks as the Company continues its development of the MFN Property.

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.

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 THE 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 NEWS 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 Brian Martin
President and CEO  Vanguard Shareholder Solutions
Tel:  604-683-2402 Tel:  604-608-0824
  Toll Free:  1-866-918-0824

 


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