Potash North Completes Acquisition and Private Placement

Potash North Resource Corporation (the "Company") (TSX VENTURE:PON) is pleased
to announce that it has completed the acquisition of a private company which
holds rights to a 100% interest in the two potash exploration permits known as
KP 416 and KP 417 (the "Permits"), located in Saskatchewan, as described in the
Company's news release dated May 12, 2008. At the closing of the acquisition the
Company paid Peninsula Merchant Syndications Corp. ("Peninsula") $1,125,000 in
cash for the shares of such private company and, in accordance with the
obligations assumed by the Company at closing, paid Potash One Inc. $2,597,880
in respect of the acquisition of rights to the Permits. In addition, upon
receipt of Exchange approval of a NI 43-101 compliant report on the Permits, the
Company has also agreed pay Peninsula a further $825,000 in cash and issue it a
$1.75 million unsecured convertible debenture, having the terms described in the
Company's news release dated May 12, 2008.


The Company is also pleased to announce that it has closed its private placement
announced on May 12, 2008 and has issued 24 million units at $0.35 per unit for
gross proceeds of $8,400,000. Peninsula was paid a finder's fee of $628,162.50.
Significant investors in the private placement included Potash One Inc.
(6,583,850 Units) and Zebra Holdings and Investments Limited (4,000,000 Units),
a private corporation owned by a trust whose settler is the late Adolf H.
Lundin. As a result, Potash One Inc. holds approximately 12.5% of the
outstanding common shares of the Company, calculated on a non-diluted basis.
Each unit comprises one common share and one common share purchase warrant
exercisable at a price of $0.50 per share for two years. The common shares and
any common shares issued pursuant to the exercise of the common share purchase
warrants before October 13, 2008 are subject to a hold period and restricted
from trading on the TSX Venture Exchange until October 13, 2008.


Concurrent with the completion of the acquisition and private placement the
Company appointed Craig A. Angus as President and Chief Executive Officer and
Doris Meyer as Chief Financial Officer and Corporate Secretary. David Baker
resigned as an officer but remains on the Board. Brent Peters and J. Earl Terris
resigned as directors and the Company appointed as directors Terry Eyton, Paul
F. Matysek and Craig A. Angus. Finally Kin Communications Inc. was appointed as
the Company's investor relations representative all as outlined in the May 12,
2008 news release.


The Company has commissioned Agapito Associates Inc. of Colorado, USA and North
Rim Exploration of Saskatoon, Saskatchewan, to complete an NI 43-101 Technical
Report on the Permit areas. The Company expects the report to include detailed
recommendations for the exploration and evaluation of the Permit areas and will
endeavor to commence such recommended programs as early as practicable.


ON BEHALF OF THE BOARD

Craig A. Angus, President

Potash North Resource (Tier2) (TSXV:PON)
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