Western Potash Delivers Scoping Study for Scalable Pilot Plant at Milestone

VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 2, 2015) - Western Potash Corp. (TSX:WPX)(FRANKFURT:AHE) (the "Company") is pleased to announce the completion of a Scoping Study for a Pilot Plant Scale Selective Solution Mining Operation (the "Pilot Study") on the Company's 100% owned Milestone property in southern Saskatchewan (the "Project"). The Pilot Study is a preliminary economic assessment and was prepared by Novopro Projects Inc. in conjunction with Agapito Associates Inc. The Pilot Study outlines how the Company may effectively exploit the Milestone asset through reduced targeted levels of potential production, using innovative selective potash solution mining techniques, while projecting a reduced CAPEX and competitive OPEX. The Pilot Study includes a resource estimate for the study area.

The Pilot Study reports that the resulting after-tax/royalty projected Net Present Value ("NPV") is $56.7M CAD, with an Internal Rate of Return ("IRR") of 25.2 % assuming a nominal discount rate of 10%, CAPEX of $80.6M CAD, OPEX of $80 CAD per tonne, and a potash price of $315 USD per tonne FOB Vancouver.

Pat Varas, President and CEO of the Company, commented: "In the current pricing environment, it has been very difficult to find solutions for financing and moving the Milestone project forward. In taking a step back and re-scoping the Project, the Company is greatly encouraged by the results of this study, as it projects a significantly reduced risk profile and allows for the staged development of our Milestone project. The anticipated lower CAPEX requirements, alternative potential production scenario and improvement in projected economics will potentially facilitate a fresh look at investment in the Company by a much larger project financing and investment pool. With this new platform, management is looking forward to renewed interest by the investment community to fund the initial development of Milestone."

Rationale for Pilot Study:

The initial Milestone Feasibility Study, delivered and announced by the Company in December of 2012, was designed with a specific strategic perspective: one that focused on financing and project risk reduction while maximizing value, resulting in a large tonnage, long life, mining methodology similar to that used for over forty years at Mosaic's Belle Plaine Potash Solution Mine. The Company has diligently pursued Project finance scenarios that would bring Milestone into potential production on that basis. This process has proven to be challenging given the current potash pricing environment and the broad commodity pricing cycles inherent to the market. Consequently, a new paradigm was required to move the Project forward in order to effectively exploit the Milestone asset while projecting a significantly reduced CAPEX and competitive OPEX, and potentially insulating the Company from these broad commodity pricing cycles.