Western Potash Corp. Delivers Robust Prefeasibility Study at Milestone

WESTERN POTASH CORP., (the 'Company?) (TSX: WPX) is pleased to
announce the receipt of an independent positive Prefeasibility Study
(the 'Study?) from AMEC Americas Limited ('AMEC?) on its 100% owned
Milestone property in southern Saskatchewan (the 'Milestone Project?).
AMEC is a leading international engineering and project management
company that currently manages multiple potash expansion projects in
Saskatchewan with a capital value of several billion dollars. AMEC was
chosen to carry out the Study because of their technical expertise as
engineers and EPCM contractors, as well as their experience in potash
mine construction, potash processing and their expertise in producing
potash feasibility studies.

This Study confirms that the Milestone Project shows significant
positive economics and that the asset is of sufficient size and grade to
support primary and secondary solution mining for more than forty years
at a production rate of 2.8Mt/yr. The Milestone Project hosts a potash
resource which consists of 64 million tonnes of Measured Resource
(contained KCl), 180 million tonnes of Indicated Resource, and 701
million tonnes of Inferred Resource. The Study was based on, and
supported by, the NI43-101 Technical Report 'Updated Technical Report
Concerning Mineral Resource Estimates Subsurface Mineral Lease KLSA 008
Saskatchewan?, dated June 8, 2011 and filed on SEDAR on June 10, 2011
(the 'Report?).¹

An assessment of project economics was also included in the Study.
Assuming a discount rate of 10%, the resulting project Net Present Value
is $4.14B CAD, while the Internal Rate of Return is 22.7 %. The
economics were modeled using pricing based on a CRU market report. This
report provided average yearly potash price estimates for the period
from 2015 through 2025. The average for those years, equating to $US
511/t, was used for the 2025 to 2055 period. The economic model assumes
a flat US$ exchange rate, CAPEX based on 100% equity, and tax and
royalties calculated using a flat rate of $28.90/t CAD. A complete list
of the assumptions used in this model can be found in Table 1. Since the
analysis is based on a cash flow estimate, it could be expected that
actual financial results may vary from these predictions.

Table 1: Model Assumptions

The Study includes all facilities required to operate a potash solution
mine, including a cavern and well field layout, a two-train multiple
effect evaporization-crystallization plant, a dry processing plant,
product storage, load out and all other necessary site infrastructure.
This design was detailed to a sufficient level to allow the capital cost
estimate to be upgraded to AACE 'Class 4? standard. The annual
production rate can be expanded to a higher annual production rate,
achievable through a higher level of capital expenditure.

This Study was intended to provide a high degree of project definition,
building on the Scoping Study completed in 2010. The Prefeasibility
Study commenced with the completion of tradeoff studies where important
design options were investigated. Ultimately a single plant design was
identified, which was carried through the Study. Agapito Associates,
Inc. was contracted by the Company to complete the Solution Mining
Design for the Study, which included a solution mining plan and
schedule, well field design, cavern layout and recovery modeling, and
subsidence analysis. AAI′s experience includes work for Intrepid Potash
Inc. in the US, Rio Tinto and Vale at the PRC project in Argentina, and
work for several prospective potash projects located in Saskatchewan.

Capital and operating cost estimates were generated with a target
accuracy of  ?20%, typical for this level of Study. The initial CAPEX
estimate for the plant is $2.758B CAD, including allowances for port
infrastructure, water supply pipeline, and off site railway. An
allowance of $300M CAD has been included for port infrastructure which
was excluded from the Company′s Scoping Study completed in 2010.
Removing this allowance for port from the current Study results in an
approximate 2% reduction in initial CAPEX when compared to the Company′s
Scoping Study. Construction is assumed to take place over a three year
period, with production beginning in project year three. Full primary
and secondary production will be achieved over a six year ramp up period.

The Project unit operating costs were estimated to be $62.35/tonne CAD
at full production capacity. These operating costs include estimates for
labour, maintenance, power, natural gas, water, consumables, diesel, and
uncapitalized well field operations. Operating costs do not include
taxes, royalties, or the costs associated with transportation to port
and ship loading. Sustaining capital has been projected to remain flat
at 0.5% of replacement cost for the first 10 years of operations.
Sustaining capital ramps up from 0.5% to 2.0% of replacement cost
between years 14 and 23 of the Project.

The Study resulted in significant advancement of the level of definition
of the project. The Milestone Project remains economically very strong
with no known limitations that may prevent a successful and profitable
project outcome. The Study recommends immediate commencement of a
Feasibility Study which will adhere to the AACE 'Class 3? classification
for projects.

Patricio Varas, CEO and President comments: 'The PFS confirms the
compelling opportunity that the Milestone project represents for the
Company and the Province of Saskatchewan to develop a world class potash
mining operation. In addition to the 40 year scope of mining
contemplated in the PFS, the known resource is sufficient to support
ongoing mining for an additional 40 years and beyond. We are pleased
with the on time and on budget delivery as well as the thorough analysis
of the available options considered for project optimization. The
coordinated efforts of the internal and external teams are to be
complimented for their work in delivering a comprehensive report, a
critical step as the Company continues the process of de-risking the
Milestone asset. '