Encanto Potash Corp Initiates Funding Drawdown with Global Emerging Markets, Submits Project Details for Funding Opportunities with Indigenous and Northern Affairs Canada

VANCOUVER, Jan. 30, 2018

VANCOUVER, Jan. 30, 2018 /PRNewswire/ - Encanto Potash Corp. ("Encanto") the TSX-V listed Potash development; Mining and Operating company (TSX-V: EPO) is pleased to announce Encanto has filed the requested project information in advance of its application for supplemental funding across various government departments led by Indigenous and Northern Affairs Canada ("INAC"), a federal government department responsible for meeting the Government of Canada's obligations and commitments to First Nations. The filed project information included focuses on upcoming steps of the feasibility study, as well as the projected economic impact for Muskowekwan First Nations, the province of Saskatchewan, and the federal government of Canada. The filed information included a detailed cost forecast and schedules of engineering works planned for 2018. Over the next coming weeks, Encanto and INAC will work together to present specific project elements for funding to the appropriate federal, provincial, and regional departments.

Working with Global Emerging Markets ("GEM"), the pricing and subscription period regarding the draw-down under the Share Subscription Facility Agreement ("SSF") with GEM, as previously announced on September 20, 2017, has commenced and that GEM has provided Encanto a draw-down advance. The draw down will provide Encanto Potash with the necessary funds for the continuing operations, feasibility study, and FEED (front end engineering and design) work of 2018.  GEM and Encanto continue their collaboration on Encanto's financial strategy including the sourcing of new capital partners for Encanto Potash.

About Encanto Potash Corp

Encanto Potash Corp. is a TSX Venture Exchange listed and traded Canadian Resource Company engaged in the development of potash properties in the Province of Saskatchewan, Canada, the largest producing potash region in the world. Through a joint venture agreement with Muskowekwan Resources Ltd, Encanto has secured a project land package which totals approximately 61,000 largely contiguous acres. Pre-Feasibility Study dated February 28, 2013 titled "Encanto Potash Corp. Technical Report Summarizing the Preliminary Feasibility Study for the Muskowekwan First Nations Home Reserve Project in South Eastern Saskatchewan, Canada" confirms the Proven and Probable KCI Reserves totaling 162 Mt grading 28% KCl (average) which supports primary and secondary mining for over 50 years at an assumed annual rate extraction rate of 2.8 Mt of MOP. The PEA dated May 24, 2017 titled " NI 43-101 Technical Report on a Preliminary Economic Assessment and Preliminary Feasibility Study of the Muskowekwan Potash Project, South-Eastern Saskatchewan, Canada" summarizes an alternative development option that supports primary and secondary mining of the Mineral Resources for 48 years at an annual extraction rate of 3.4 Mt of MOP. On December 30, 2016, Encanto signed a 20-year off-take agreement with the National Federation of Farmers' Procurement, Processing, and Retailing Cooperatives of India Ltd., (NACOF) registered under the Ministry of Agriculture, Government of India to supply 5 million metric tons a year of potash. 

About Global Emerging Markets

Global Emerging Markets ("GEM") is a USD $3.4 billion alternative investment group that manages a diverse set of investment vehicles and has offices in Paris, New York and Los Angeles. Since 1991, GEM has completed over 370 transactions across 70 countries. GEM's investment vehicles provide the group and its investors with a diversified portfolio of asset classes that span the global private investing spectrum.