Encanto Potash Corp. announces closing of $6,000,000 private placement
offering of flow-through shares and non flow-through units

Trading Symbol: TSXV EPO.V

VANCOUVER, July 6 /CNW/ - Encanto Potash Corp. ("Encanto" or the "Company") is pleased to announce the closing of its brokered private placement with Primary Capital Inc., and Industrial Alliance Securities Inc., on July 6 , 2010 for its private placement offering (the "Offering") of 33,333,332 common shares to be issued on a "flow-through" basis ( the "Flow-Through Shares") and 6,666,667 non flow-through units (the "Units"), for aggregate gross proceeds to the Company of $6,000,000.

The Offering was priced at $0.15 per Flow-Through Share and $0.15 per Unit, each Unit consisting of one common share and one-half of one common share purchase warrant. Each whole common share purchase warrant will entitle the holder to acquire one common share of the Company at a price of $0.20 per common share on or before July 6, 2012.

A cash commission has been paid to the Agents of 6.0% of the aggregate gross proceeds as well as 2,400,000 broker warrants exercisable at an exercise price of $0.20 per common share at any time on or before July 6, 2012.

All securities issued in connection with the Offering will be subject to a hold period expiring on November 7, 2010.

About Encanto:

Encanto Potash Corp. is a TSX Venture Exchange-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 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.

SOURCE Encanto Potash Corp.

For further information: For further information: James Walchuck, President and CEO, 604-683-2402; Keith Schaefer, Vanguard Shareholder Solutions, Tel: Tel: 604-608-0824, Toll Free: 1-866-918-0824


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