Potash North Completes Private Placement and Purchase of Permits

Potash North Resource Corporation (the "Company") (TSX VENTURE:PON) is pleased
to announce that it has closed its private placement announced on June 10, 2008
and has issued 13,100,000 units at $2.50 per unit for gross proceeds of
$32,750,000. 


The syndicate of agents led by Canaccord Capital Corporation, and including GMP
Securities L.P., National Bank Financial Inc., Wellington West Capital Markets
Inc., Genuity Capital Markets Inc. and Salman Partners Inc. were paid a cash
commission of 6% of the proceeds and 786,000 compensation options each
exercisable to purchase one unit at $2.50 per unit until July 9, 2010. Peninsula
Merchant Syndications Corp. ("Peninsula"), a company controlled by Sam Magid,
was paid $600,000 for investment and consulting services related to the
offering.


Each unit sold in the offering and each unit which can be acquired on exercise
of the compensation options comprises one common share and one common share
purchase warrant with each warrant entitling the holder to acquire one common
share of the Company at $4.00 per share until July 9, 2010. The common shares
and any common shares issued pursuant to the exercise of the common share
purchase warrants before November 10, 2008 are subject to a hold period expiring
on and restricted from trading on the TSX Venture Exchange until November 10,
2008.


Of the 1,100,000 units sold pursuant to Potash One's participation rights,
Potash One Inc. subscribed for 1,000,000 units, bringing the total number of
securities of the Company owned by them to 7,538,850 common shares, 6,583,850
common share purchase warrants at an exercise price of $0.50 and 1,000,000
common share purchase warrants purchased in this offering at an exercise price
of $4.00.


Net proceeds from the offering will be used to finance the exploration,
evaluation and potential development the Company's KP 416 and KP 417 potash
permits in Saskatchewan and for general corporate purposes. The exploration
program outlining the program was announced on July 8, 2008.


Further, in accordance with the purchase and sale agreement under which the
Company indirectly acquired permits KP416 and KP 417 and as a consequence of
receiving TSX Venture Exchange acceptance of the Technical Report filed on Sedar
on July 7, 2008 the Company has paid the balance of the purchase price for KP416
and KP417 to Peninsula by issuing a $1.75 million unsecured convertible
debenture (the "Debenture") and paying Peninsula $825,000. The terms of the
Debenture are set forth in the Company's news release of May 12, 2008 and the
Debenture and any shares and warrants issuable thereunder are subject to a hold
period expiring on November 10, 2008.


ON BEHALF OF THE BOARD

Craig A. Angus, President

Potash North Resource (Tier2) (TSXV:PON)
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