Stonegate Agricom Announces Positive Fertilizer Test Results for Lower Zone Deposit at Paris Hills Phosphate Project

TORONTO, Aug. 5, 2011 /CNW/ --
TORONTO, Aug. 5, 2011 /CNW/ - Stonegate Agricom Ltd. (the 'Company')
(TSX: ST) today announced that a composite sample from the Lower Zone
of the Paris Hills Phosphate Project in Idaho was successfully used to
manufacture Diammonium phosphate (DAP) and Monoammonium phosphate (MAP)
fertilizers under laboratory conditions.

The DAP and MAP fertilizers manufactured during testing exceeded
industry specifications. Fertilizers are measured on the content of
three macro-nutrients: nitrogen ('N'), phosphorous ('P') and potassium
('K'), in the format N-P-K.  The N-P-K assay results for the Paris
Hills DAP were 19-50-0, compared to the minimum industry specifications
of 18-46-0, and for the Paris Hills MAP were 12-56-0, compared to
industry minimum specifications of 11-52-0.

The Paris Hills material used for the testing was a 105-kg composite
Lower Zone sample that was compiled directly from six different diamond
drill core holes with no additional processing.  The composite sample
assay averaged 32.33% P(2)O(5), with a minor element ratio (MER) of 0.057, and a CaO: P(2)O(5) ratio of 1.52.

'We are very pleased with these positive fertilizer test results, which
demonstrate the ability to manufacture DAP and MAP products from our
in-situ Lower Zone material without the need for additional processing,
or in industry terms, 'beneficiation'.  This supports the technical
viability of our preferred project development scenario of an
underground mine producing a direct-ship product. We view this as a key
milestone for the Paris Hills Project and the results will be
incorporated into the Paris Hills pre-feasibility study, which is
scheduled to be completed by the end of 2011,' said Mark Ashcroft,
President and Chief Executive Officer.

'Phosphate mining operations in the Americas typically require a
beneficiation plant near their mining operations in order to upgrade
mined phosphate material into a marketable phosphate rock concentrate
suitable for the production of DAP and MAP fertilizers,' Mr. Ashcroft
added.

'Due to the high quality and grade of the Lower Zone material, it did
not require any beneficiation prior to successfully producing merchant
grade phosphoric acid and both DAP and MAP fertilizer.'

Kenneth L. Norris, P.Eng., Vice President, Project Development of
Stonegate Agricom Ltd., who is a qualified person as defined in
National Instrument 43-101, supervised the testing program and has
reviewed and approved the contents of this news release. The tests were
performed at an engineering consultancy based in Florida.

About Stonegate

Stonegate Agricom, which is actively engaged in acquiring and developing
agricultural nutrient projects, is currently focused on the development
of two potentially world-class, long-life phosphate deposits, the
Mantaro Phosphate Project located in Peru and the Paris Hills Phosphate
Project located in Idaho. Stonegate is confident that the two deposits
have sufficient size and grade and are in the right locations to become
strategic, cost-effective sources of phosphate supply for major
fertilizer producers. The Company intends to continue definition and
exploration drilling to confirm and expand estimates of NI 43-101
compliant mineral resources in the deposits and then complete
feasibility studies leading to a decision to proceed with extracting
and processing the phosphate. More information is available at www.stonegateagricom.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains 'forward-looking statements' and
'forward-looking information' within the meaning of applicable law.
Generally, forward-looking statements and forward-looking information
can be identified by the use of forward-looking terminology such as
'plans', 'expects' or 'does not expect', 'is expected', 'budget',
'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates' or
'does not anticipate', 'believes', or variations of such words and
phrases or statements that certain actions, events or results 'may',
'could', 'would', 'might' or 'will be taken', 'occur' or 'be achieved'.
All forward-looking statements and forward-looking information are
based on reasonable assumptions that have been made by the Company as
at the date of such information. Forward-looking statements and
forward-looking information are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of the Company to be
materially different from those expressed or implied by such
forward-looking statements and forward-looking information, including
but not limited to: the general risks associated with the speculative
nature of the Company's business, commodity prices, current global
financial conditions, uncertainty of additional capital, price
volatility, the Mantaro and Paris Hills projects are advanced
exploration stage projects, limited operating history, no history of
earnings, government regulation in the mining industry, environmental
risks and hazards, impending climate change legislation, required
approvals and permits, foreign subsidiaries, political and economic
risk in Peru, risks relating to the retention of the Mantaro project,
risks relating to the retention of the Paris Hills project, expiration
of leases and permits for the Paris Hills Project, title to mineral
properties, obtaining and converting mineral concessions and surface
rights, community relations and project support, water rights,
exploration, development and operating risks, uncertainty in the
estimation of mineral resources, uncertainty of inferred mineral
resources, mineral exploration, reliability of historical exploration
work, absence of public trading market, risks associated with having a
controlling shareholder, arbitrary offering price, dilution to the
common shares, dependence on key personnel, currency fluctuations,
insurance and uninsured risks, competition, legal proceedings,
conflicts of interest and lack of dividends as well as those factors
discussed in the section entitled 'Risk Factors' in the Company's most
recently filed annual information form available at www.sedar.com. Although the Company has attempted to identify important factors that
could cause actual results to differ materially from those contained in
forward-looking statements and forward-looking information, there may
be other factors that cause results not to be as anticipated, estimated
or intended. There can be no assurance that such information will prove
to be accurate, as actual results and future events could differ
materially from those anticipated in such statements or information.
Accordingly, readers should not place undue reliance on forward-looking
statements or forward-looking information. The forward-looking
statements and forward-looking information contained in this press
release are included for the purpose of providing investors with
information to assist them in understanding the offering as well as the
Company's expected financial and operational performance and may not be
appropriate for other purposes. Stonegate does not undertake to update
any forward-looking statement or forward-looking information that is
included herein, except in accordance with applicable securities laws.

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