Mr. Patrick Laracy reports

RED MOON ASSAYS HIGH GRADE SALT IN DRILL CORE

Red Moon Potash Inc. has assayed significant widths of high-grade salt from its 2013 drill program in the Bay St. George basin of western Newfoundland. Drill hole CC No. 2 is approximately 1,000 metres northeast of the potash/salt discovery hole CC No. 1 (previously reported). CC No. 3 is 500 metres southwest of CC No. 1. A drill hole location map is available on the company's website.

A first-pass sampling program was carried out on both core holes to gauge the tenor of sodium chloride (NaCl) (halite, salt) grade over the various zones identifiable by visual interpretation. The samples are considered representative of the wider zones in which they are contained. The results in the attached table include all the samples assayed.

Hole CC No. 2                                                                 

    Depth    Length  Halite   Geochemical analysis         XRD analysis       
From      To     (m)   zone     NaCl     Insoluble      Halite     Anhydrite 
(m)       (m)                     (%)           (%)         (%)           (%)

307.0  307.3   0.30  Upper      96.3           0.4                          
310.0  310.3   0.30             97.6           0.4                          
312.0  312.3   0.30             97.9           0.9        98.7           1.3
315.0  315.3   0.30             87.9           7.5                          
342.0  342.3   0.30 Middle      95.6           0.4                          
345.0  345.3   0.30             93.8           0.4                          
350.0  350.3   0.30            100.0           0.1                          
353.0  353.3   0.30             95.4           0.1                          
355.0  355.3   0.30             97.8           0.2                          
368.0  368.3   0.30             93.5           2.7                          
369.0  369.3   0.30             96.9           0.1        99.2           0.8
408.0  408.3   0.30  Lower      91.2           2.8                          
409.0  409.3   0.30             87.2           6.5                          
411.0  411.3   0.30             90.2           4.1                          
414.0  414.3   0.30             90.3           4.0                          
417.0  417.3   0.30             86.2          10.2                          
420.0  420.3   0.30             94.0           0.7                          
                                                                           
Hole CC No. 3                                                                 

    Depth    Length  Halite   Geochemical analysis         XRD analysis       
From      To     (m)   zone     NaCl     Insoluble      Halite     Anhydrite 
(m)       (m)                     (%)           (%)         (%)           (%)

228.0  228.3   0.30  Upper      89.3           4.4                          
232.0  232.3   0.30             89.8           5.3                          
235.0  235.3   0.30             86.9           5.8        93.9           6.1
237.0  237.3   0.30             87.5           6.0                          
240.0  240.3   0.30             85.1           4.6                          
245.0  245.3   0.30             93.3           1.9        96.6           3.4
248.0  248.3   0.30             97.1           3.6                          
262.0  262.3   0.30 Middle      91.3           7.4                          
263.0  263.3   0.30             86.2          12.5                          
266.0  266.3   0.30            100.0           1.1                          

The analysis was carried out by Activation Laboratory Services Ltd. of Ancaster, Ont. Assays greater than 94 per cent NaCl are generally considered to meet specifications for use as road de-icing salt -- the major use for salt in northeastern North America.

Based on the geochemical analysis, CC No. 2 contains two high-grade intervals, one each in the upper and middle halite zones. The samples assayed were selected as representative of these zones. The upper zone is 15 metres of continuous massive halite. The middle zone is 40 metres of massive halite (net) exclusive of the potash beds (previously reported). The lower zone is 74 metres of massive halite with increasing inclusions of anhydrite (insolubles) near its base. Further sampling over this lower zone will be required to gain better control on its grade variation. Depending on mining methods, a minable width for salt can range from five to 15 metres.

Based on the geochemical analysis, CC No. 3 encountered high-grade salt over narrower intervals compared with CC No. 2. Geological data suggest that CC No. 3 represents a more marginal depositional setting than CC No. 2 resulting in less salt deposition in the lower zone and probable dissolution of the top part of the upper halite zone. The net effect being a gross halite interval of 68 metres in CC No. 3 compared with 150 metres in CC No. 2.

Four samples were submitted for XRD (X-ray diffraction) analysis to compare the results of the geochemical analysis. Given the consistently higher results derived from the XRD method, further comparative analysis will be required to resolve the apparent discrepancies between the two methods.

CC No. 2 is 1,000 metres northeast of the discovery hole CC No. 1. Given the high-grade salt results (32 metres exceeding 96 per cent NaCl) in CC No. 1 and the positive indications from seismic data in the area, the Captain Cook location is showing the potential to contain a significant salt resource. As a result, the company has initiated a detailed, in-house evaluation of the salt data to assess whether or not a National Instrument 43-101-compliant salt resource report is viable at this time. The Captain Cook area has access to important infrastructure, including two nearby deepwater ports, an airport, the Trans-Canada highway, a high-voltage power grid and an extensive woods road network. Red Moon will pursue parallel paths toward evaluating both the salt and potash potential of the region. Subject to financing, the company is planning a drill program in 2014 to test targets for both salt and potash east of the existing holes. For interested parties, information regarding the salt industry is available at the Salt Institute website.

All core samples were acquired, sampled, packaged, labelled and transported by or under the direct supervision of company personnel. Patrick J. Laracy, PGeo, president, and Corwin Northcott, PGeo, exploration manager, are qualified persons responsible for the contents of this news release as defined in NI 43-101

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