Athabasca Potsash

(1) A reasonable prospect of economic extraction of potash from the Burr Project for purposes of this Inferred Mineral Resource estimate was assisted by an order of magnitude estimate of the capital cost and development schedule to bring a 2,000,000 product tonne per year potash mine and process plant from feasibility study to full production for the Burr Project in the order of $2.033 billion, assuming an underground ore grade of between 24% and 26% K2O, taking an estimated seven to 7.5 years to develop. No engineering studies were included in the order of magnitude estimates and assumptions were made as to the similarity of the Burr Project to similar potash deposits and mines found in Saskatchewan.
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(2) The Salt Back for the Lower Patience Lake Sub-member is considered to include the Upper Patience Lake Sub-member and the interbed salts between the Upper and Lower Patience Lake Sub-members.
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(3) A cut-off grade of 15% K2O over a three metre minimum mining width for this Inferred Mineral Resource Estimates was based on generally accepted industry practice and experience with underground mineable potash deposits in Saskatchewan. The following assumptions were applied for purposes of calculating this cut-off grade: (i) mining and processing costs of $50 per tonne of KCl produced; (ii) transportation costs of $50 per tonne of KCl delivered to Vancouver; (iii) minimum mining width of three metres; (iv) metallurgical recovery of 85%; and (v) long term potash prices of $132 per tonne of KCl FOB Vancouver (4) Potash Mineralization intersections grading at least 15% K2O. Tonnages are net of deductions for collapse structures possibly located between seismic lines (14%), extraction ratio (40%) and Freehold Mineral Rights.

Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability, but do have reasonable prospects for economic extraction. Inferred Mineral Resources are estimated based on limited information not sufficient to verify geological and grade continuity and to allow technical and economic parameters to be applied. Inferred Mineral Resources are too speculative geologically to have economic considerations applied to them to enable them to be categorized as Mineral Reserves and there is no certainty that Inferred Mineral Resources will be upgraded to Mineral Reserves through continued exploration.

Promising Geological Attributes
Results from historic drilling on the Burr Project suggest the presence of a number of promising geological attributes. For example, Inferred Mineral Resources for the Burr Project have an estimated grade of 25.64% K2O. By comparison, the reported grades of estimated Proven and Probable Mineral Reserves from a number of nearby producing Saskatchewan potash mines operated by PCS are as follows:

Mine Average Grade K2O%(1)
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PCS —Cory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25.1%
PCS —Allan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25.9%
PCS —Lanigan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22.0%
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Note:
(1) Proven and Probable Mineral Reserves are diluted, estimated over mineable widths and have economics applied to them. Inferred Mineral Resources, such as estimated for the Burr Project, are undiluted, not estimated over mineable widths and have not been subjected to any economic considerations.
Source: PCS

In addition, the average thickness of the Lower Patience Lake Sub-member encountered by historic drilling on the Burr Project is 4.22 metres, which is economically significant and in excess of the minimum mineable width for cut-off purposes of 3.0 metres. The average thickness of the Lower Patience Lake Sub-member being mined at the adjacent Lanigan mine is reported as 4.88 metres. However, the thickness of the potash horizon between these two projects is not directly comparable, because economic considerations have been applied to the mined thickness at Lanigan which will result in a narrower reported thickness than that intersected by historic drilling on the Burr Project, which has not been subject to economic considerations.

Historic drill holes on the Burr Project also have intersected a favorable Salt Back above the Lower Patience Lake Sub-member, which combined with the Upper Patience Lake Sub-member and the interbed salts between the Upper and Lower Patience Lake Sub-members, averages 18.96 metres in thickness. A thick Salt Back is essential to establish a support roof for underground potash mining, as it seals the back of the mine against collapse of the clay-rich sediments above and water penetration. A Salt Back of nine to 15 metres is desireable depending upon the quality and competency of the bedded salts and the clay content and distribution. Further review of the Salt Back on the Burr Project will be required to determine if it is thick enough, competent and does not contain too much clay or clay seams that would weaken the support roof.

Exploration and Mineral Resource Expansion Potential
API seeks to expand and upgrade its estimated Inferred Mineral Resource base at the Burr Project through its drill program conducted between July 7, 2007 and September 4, 2007. API drilled five new holes totaling 5,617 metres in the areas of the Burr Project where 2D seismic survey results indicated favourable potash mineralization or possible geological conditions. API is awaiting assay results from these drill holes, which are expected in late December 2007."


"Other Projects

Mineral Property Held by API

In addition to the Burr Project, API holds exploration permits over ten additional properties in Saskatchewan. In aggregate, API holds permits covering approximately 937,341 acres (or 379, 623 hectares), which constitutes the second largest mineral permit area relative to other potash companies in Saskatchewan.

API plans to conduct exploration programs, consisting of reviewing historical drill core (if available), 2D seismic surveying and new drilling on these and additional projects starting in 2009."