Ethiopian Potash Corp. Corporate Update

Ethiopian Potash Corp. (the "Company" or "EPC") (TSX VENTURE:FED) is pleased to
provide this corporate update on developments in Ethiopia in advance of its
annual and special meeting of shareholders, scheduled for June 30, 2013 (the
"Meeting").


THE MEETING

The Company would like to advise shareholders of the anticipated structure and
operations of the Company after the Meeting, assuming the transactions
contemplated, as described in the Company's Management Information Circular (the
"Circular") receive the required shareholder approval and other conditions
precedent to closing are met. As set out in the Circular and materials relating
to the Meeting, in the case that shareholder approval for any contemplated
transaction is not received, none of the contemplated transactions will be
completed and, as a result of EPC not having the ability to fund operations in
Ethiopia, EPC will undertake the process of winding-up and delisting.


If the contemplated transactions receive the requisite shareholder approval, the
Company will receive US$1.5 million as consideration for the transfer of a 70%
interest in the project, will retain a 30% interest in the Danakil properties
(the "Danakil Project") and will not be required to contribute to any further
expenditures until a total of $8.5 million is contributed by the other parties
with an interest in the Danakil Project and the scoping study is completed. In
addition, the Company will hold valuable and highly prospective tenements in
Togo with established exploration targets for phosphates and industrial minerals
adjacent to existing phosphate mining operations, approximately 30 Kilometres
from tide water and with access to all infrastructures normally associated with
the exploitation of these minerals. In addition, EPC will obtain the right to
explore for potassium and other prescribed minerals in the Taoudeni and Oglat
zones in the Kidal region of Mali located in the northern part of Mali.


In addition, the Company has proposed a change in management with the addition
to the board of directors of Ian Stalker and David De Jong Weill, each providing
financial and mining expertise and experience. Their respective CVs are set out
in the Circular relating to the Meeting and the shareholders of the Company will
have an opportunity to elect these two new nominees at the Meeting.


THE DANAKIL PROJECT UPDATE

The Danakil Project is under the direct management of Plinian Capital Ltd.
("Plinian"), a private equity company that specializes in mining investment and
operation controlled by Mr. Bradford Mills. Plinian Capital is a significant
investor in TSX listed Mandalay Resources Corporation where Mr Mills serves as
CEO and West African Minerals Corporation where Mr. Mills serves as the
Executive Vice-Chairman of. Mr. Mills is the current Managing Director of Circum
Minerals Ltd. ("Circum"), and the Plinian group is the largest shareholder of
Circum.


MONTHLY ACTIVITIES REPORT

During May, senior geological staff reviewed all available project data and
finalized operational plans for commencement of resource definition drilling in
June. All of the necessary drilling, road construction and camp management
contracts were put in place and drilling is expected to start in the last week
of June. 


The license renewal request was filed on May 24, 2013 to the Ministry of Mines,
Ethiopia. Planned activities for June include the selection of the
Pre-Feasibility consultant and QA/QC lab for the project, commencement of
drilling, commencement of water resource assessment, transport options and port
options. 


Plinian has engaged two senior geologists, who are established in Addis Ababa,
Ethiopia and at the camp site in the Danakil Depression, along with a complement
of ten Ethiopian staff. 


APPOINTMENT OF INDEPENDENT STUDY MANAGER 

Completion of the Pre-Feasibility Study relating to the Danakil Project will
require oversight of an Independent Study Manager. The search has been narrowed
to two groups. Both groups have extensive experience with In-Situ Leaching
('ISL') of potassium salt deposits. Once appointed, the Independent Study
Manager will complete the resource statements, in-situ leach design, processing
flow sheet and plant design. Plinian's senior engineer will complete the
infrastructure inputs, namely water, power, road/rail transportation solutions
and port handling requirements. It is anticipated that the Company will benefit
enormously in cost and time from the prior feasibility study work completed by
its neighbours. 


PHASE I PROJECT - RESOURCE ESTIMATION 

The key objectives of phase 1 of the Danakil Project is to: (i) prove to an
indicated resource category of sufficient tonnage and grade to trigger the
progression of the project. The drill programme currently being implemented is
targeting; (i) a completed economic Scoping Study by the Fall 2013 and (ii) a
completed Pre-Feasibility Study ("PFS") by mid 2014.


To view the graph associated with this release, please visit the following link:
http://media3.marketwire.com/docs/n626fed1.pdf.


GENERAL 

In order to increase shareholder participation at the June 30, 2013 meeting, the
Company has retained CSTPhoenix Advisors ("Phoenix") in connection with the
solicitation of proxies at a cost of $23,000 and reimbursement of disbursements
related to the solicitation. The expenses of soliciting proxies, including the
cost of preparing, assembling and mailing the Management Information Circular
and proxy material to shareholders, will be borne by the Company. 


If you have any questions about this letter, the Management Information Circular
or how to vote, please contact Phoenix by telephone 1-800-239-6813 or e-mail at
inquiries@phoenixadvisorscst.com.


ABOUT ETHIOPIAN POTASH CORP. 

Ethiopian Potash Corp. (TSX VENTURE:FED) is a Canadian company based in Toronto,
Ontario and Addis Ababa, Ethiopia. 


Mr. Bruce Cumming B.Sc.Hons (Geol.), Pr.Sci Nat, an independent "qualified
person" as defined in Canadian National Instrument 43-101, has prepared or
supervised the preparation of the information that forms the basis for the
written disclosure in this press release related to the Danakil Project. A copy
of the Preliminary Resource Assessment Study - Danakil Potash Deposit, Afar
State / Ethiopia is available on SEDAR at www.sedar.com.";


On behalf of the Board of Directors 

George Roach, CEO & Director

Forward-Looking Information 

This press release may contain forward-looking statements based on assumptions,
uncertainties and management's best estimates of future events. All statements
that address future activities, events or developments that the Company
believes, expects or anticipates will or may occur (including, but not limited
to, matters relating to the contemplated transactions and the Danakil Project)
are forward-looking information. Forward-looking information is based upon
assumptions by management that are subject to known and unknown risks and
uncertainties and other factors that may cause actual results to differ
materially from those expressed or implied by the forward-looking information.
Factors that may cause actual results to vary materially include, but are not
limited to, the failure to satisfy all conditions precedent within the requisite
time, including (without limitation) the entering into of all necessary
definitive agreements, obtaining the requisite third-party consents and
regulatory and shareholder approvals, and changes in general economic conditions
or conditions in the financial markets. Such forward-looking information is
based on a number of assumptions, including but not limited to, there being no
material changes to the terms of any proposed transaction, and no significant
decline in existing general business and economic conditions. There can be no
assurance that the Company will be successful in completing the contemplated
transactions. Accordingly, readers should not place undue reliance on
forward-looking information. The Company undertakes no obligations to update
publicly or otherwise revise any forward-looking information, except as may be
required by law. For a more detailed discussion of such risks and other factors
that could cause actual results to differ materially from those expressed or
implied by such forward-looking statements, refer to the Company's filings with
the Canadian securities regulators available on www.sedar.com.


Neither the 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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Ethiopian Potash Corp.
George Roach
Chief Executive Officer and Director
+44 779 626 3999
george@regentresources.co.za


Ethiopian Potash Corp.
Michael Galloro
Chief Financial Officer and Director
416 907 5644
Agriminco Corporation (TSXV:FED)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024