Encanto Potash Corp. reports on completed First Nation meetings and comments on imminent preliminary economic assessment

TRADING SYMBOL:  TSXV  EPO

VANCOUVER, Aug. 2, 2011 /CNW/ - Encanto Potash Corp. ("Encanto" or the "Company") (TSXV:  EPO)(OTCQX: ENCTF) is pleased to report on the first in a series of both on and off-reserve meetings between our partners, the Muskowekwan First Nation, and their membership. These meetings are being held in large part so that members who no longer live on the Home Reserve have the opportunity to attend an open forum where they can be fully apprised and discuss the benefits of voting to add additional property "the Treaty Entitlement Lands" or "TLE" to the existing joint venture with Encanto. This would result in a significant increase in the size of the land package included in the joint venture from 17,000 acres to 32,500 acres.

Meetings have recently been held both on the Home Reserve of Muskowekwan and in Regina with good turnouts and positive feedback. Muskowekwan Chief Reginald Bellerose explains, "Many of our membership no longer live on the reserve so we thought it was very important that we make the effort to travel to meet with them to ensure that they are getting factual and clear answers to any concerns that they may have regarding the mining process, environmental safeguards in the potash industry and the significant advantages that this partnership with Encanto will bring to the people, the community and the Nation in terms of employment and training, business development opportunities and ongoing royalties that will, in the long term, provide for much needed programs, facilities and services. I believe that we were able to address the memberships' concerns and we left with more support and understanding than we arrived with. This is very encouraging for us as we already knew there was significant support for our efforts on-reserve".

Further meeting locations are to include Saskatoon, Edmonton, Calgary and Winnipeg.

Encanto is further pleased to report that Company President Jim Walchuck recently spent several days in Saskatoon, reviewing data in connection with the preparation of the upcoming Preliminary Economic Assessment (PEA).  As reported in the release of June 8th 2011, the PEA is designed to determine the most economical method for extraction of potash from the Muskowekwan Prospect and make a recommendation on either a solution or conventional mining operation. This will be a major milestone for Encanto, whose focus is to outline an 80 - 100 year resource on the Muskowekwan Home Reserve and TLE  Lands, and then continue with the necessary steps to develop a producing mine as quickly as possible. Encanto is pleased to confirm that the PEA remains on track for release in mid-August.

Jim Walchuck commented "We're pleased at the pace at which our PEA is moving along. It's a critical document for us that will lay the groundwork for a successful and profitable mining scenario. We appreciate the efforts of Wardrop Engineering (a Tetra Tech company) for their willingness and diligence in working with us in order to meet our objective of an early to mid- August deadline for the report."

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.

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



Fred Leigh
Vanguard Shareholder Solutions
Tel:  604-608-0824
Tel:  1-866-918-0824

 


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