Encanto Potash and Muskowekwan First Nation Engage Golder for Environmental Studies

TSXV: EPO

VANCOUVER, Aug. 7, 2018 /CNW/ - Encanto Potash Corp. ("Encanto" or the "Company") (TSXV: EPO) and the Muskowekwan First Nation are very pleased to announce that they have engaged Golder Associates Ltd. ("Golder"), a consulting, design and construction services company, as a vital part of the next step in developing a significant potash mine in Saskatchewan.

As part of Encanto's previously stated plan to strive to significantly reduce both the OPEX and CAPEX for an advanced potash solution mine, Golder will prepare two studies for Encanto over the remaining summer months.

1. A water study to finalize the most appropriate and viable water supply for the Muskowekwan Potash Project with regards to cost savings and environmental stewardship.
   
   
2. An Environmental Impact Study (EIS) gap analysis to determine all steps necessary to complete the full EIS and proceed with the Environmental safeguarding for the entire Muskowekwan Potash Project.

"Golder has completed numerous environmental studies and work in Saskatchewan and around the world and is very respected in their field by both their peer group and government agencies," said Chief Operating Officer Richard Lively. "After careful consideration, we decided to appoint Golder as our partner to move ahead for this very important aspect of our project. Golder has an immaculate reputation and a wealth of experience to draw from. We feel very confident having them as part of our team moving ahead. Golder's experienced and dedicated team of professionals will be a great asset to Encanto and our plan to start moving this project forward is a meaningful and strategic manner."

Golder's inclusion comes at a time when the financial support of the Government of Canada via funding through Indigenous Services Canada to support the upcoming engineering steps of the project has become available (please refer to the press release dated July 23, 2018). "After much hard work and open communication, this initial government demonstration of support for a major Encanto/Muskowekwan First Nation project couldn't have come at a better time," stated Mr. Lively.

With Golder on board, Encanto is confident in their ability to deliver multiple updates to its stakeholders and the investment community in 4^th Quarter, 2018. These reports will form the basis of a firm work plan to finalize and deliver a technically advanced and construction ready project by November, 2019.

About Golder
Founded over a half century ago in 1960, Golder was created to offer specialized ground engineering services that exceed client expectations. The Golder of today continues to excel and deliver on a vision, driving our industry forward, and anticipating and responding to our clients' needs. With over 6,500 highly skilled engineers and scientists operating in more than 150 offices worldwide, Golder provides consulting, design, and construction services in the specialized area of earth and environment differentiated through technical excellence, innovative solutions and award winning client service. www.golder.com

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. 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

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SOURCE Encanto Potash Corp.