Encanto announces improved resource, results of 3D seismic and creep/core dissolution testing

VANCOUVER, June 3, 2013 /CNW/ - Encanto Potash Corp. ("Encanto" or the "Company") (TSXV: EPO and OTCQX: ENCTF) is pleased to announce that the Muskowekwan Project resource has improved as a result of the recalculation of the geologic data. This resource now includes the data obtained from the latest 3D seismic program along with the results of the previous 3D seismic program and drill holes.

The latest 3D seismic program was completed in late December, 2012 and the data sent to RPS Boyd PetroSearch of Calgary, Alberta for seismic interpretation. Those results were forwarded to North Rim Consulting of Saskatoon in order to calculate the new resource.

The latest reserve/resource breakdown is as follows:

Solution Mining Resource Summary                     Reserves used in PFS
            (Proven and Probable Reserves)   KCI Reserves (MMT)
Category                            
Total Proven Reserves               34.23             34.23
Total Probable Reserves            127.74            127.74
Proven and Probable Reserves       161.97            161.97

Solution Mining Resource Summary (Measured and Indicated) 	Resource used in PFS
Category 	KCI Resources (MMT)
Total Measured 	  4.84 	0.0
Total Indicated 	30.56 	31.31

Total Proven, Probable, Measured and Indicated 197.37 193.28

Solution Mining Resource Summary (Inferred) 	Resource used in PFS
Total inferred 	165.80 	158.69

This reassessed resource continues to add technical confidence to the Muskowekwan Project reserve/resource and the additional 3D data will allow the mine plan to be finalized in the Feasibility Study. This should result in more resource to be converted into Reserves upon issuance of the Feasibility Study currently underway.

"The Muskowekwan Project's proven, probable reserves, combined with our measured and indicated resources could support a mine life in excess of 70 years, assuming an annual production of 2.8 million tonnes per year. The merit of putting this project into production keeps getting stronger with each milestone" stated Encanto CEO and President, Jim Walchuck.


Creep and Dissolution Testing

Laboratory creep testing of sylvinite and halite was completed by two independent laboratories as part of the previously released Preliminary Feasibility Study. Tests were completed on the Belle Plaine and Patience Lake Members and the salt interbeds above, between and below the two Members at both 45 and 65O C. The test results showed favourable creep rates that may allow larger caverns and smaller pillars, resulting in higher extraction ratios. As a result, cavern dimensions will be further evaluated during the Feasibility Study.

Laboratory dissolution testing of core samples at 60°C and 75°C was performed by NG Consulting of Sondershausen, Germany. The samples were collected from the Patience Lake Member, the interbed between the Patience Lake and Belle Plaine Members, and the Belle Plaine Member. The results of the testing confirmed that:

- Dissolution rates varied as expected between those for pure sylvinite and pure halite and correlated well with theoretical data

- Dissolution rates of the Encanto samples are equivalent to other high grade deposits in this area

The brine composition data resulting from this work will be used as input data for the processing plant design currently being performed by Veolia Water Solutions & Technologies at their Research Center for HPD® Evaporation and Crystallization technologies.

The technical content of this news release has been reviewed by Jim Walchuck, P. Eng., a qualified person as defined by NI 43-101.


About Encanto:

Encanto Potash Corp. is a TSX Venture Exchange listed and OTCQX 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. ("MFN JV") on our flagship property, Encanto has a project land package, which totals approximately 61,000 largely contiguous acres. A PFS was released in February 2013 confirming Proven & Probable KCI Reserves totaling 162 MMt grading 28% which supports primary and secondary mining for over 50 years at an annual rate of 2.8 million tonnes.

The Company has a 100% interest in two additional potash properties in Saskatchewan: the 55,000 acre Ochapowace/Chacachas property and the 91,550 acre Spar property.

Encanto is currently exploring domestic and international strategic partnerships for the financing, development and sale of potash production from its MFN JV Property.

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

Per: "James Walchuck"
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.



For further information:

Encanto Potash Corp.
James Walchuck, President and CEO
Tel: 604-683-2402

Martin Gagel CFA, MBA
Vanguard Shareholder Solutions
Tel: 604-608-0824
Toll Free: 1-866-918-0824