Mr. Stephen Butrenchuk of Passport Potash reports

PASSPORT POTASH INC. SIGNS AGREEMENT ON THE HOLBROOK POTASH PROJECT

Further to the Stockwatch news release of Aug. 10, 2010, Passport Potash Inc. has signed a mineral property option agreement with Sweetwater River Resources LLC and American Potash LLC to acquire the rights to five exploration permits. The five permits consist of Arizona State Land Department exploration permits covering more than 3,200 acres that are wholly owned by Sweetwater. Sweetwater is a Wyoming private company. American Potash is a Nevada limited liability company owned 50 per cent by Confederation Minerals Ltd. and 50 per cent by Magna Resources Ltd. The agreement is subject to exchange approval.

Passport Potash has been leading the charge for the consolidation of mineral interests in the Holbrook basin. With the completion of the agreement, Passport has solidified its position as the largest mineral estateholder for the production of potash in the region. Passport now controls most of the western side of the basin and now adjoins leaseholders on the eastern side of the basin where drilling permits have recently been granted.

The agreement gives Passport the right to acquire a 100-per-cent interest in the permits in exchange for Passport issuing 500,000 shares by Dec. 15, 2010, paying $90,000 in three installments of $30,000 each at 12 months, 18 months and 24 months from the date of signing the agreement, and meeting the exploration expenditures as required by the Arizona State Land Department. Exploration expenditures on the permits will be paid for by PPI on a 100-per-cent basis. Under the agreement, PPI will be subject to a 2-per-cent net smelter returns royalty, with PPI retaining the option to purchase the royalty at the price of $150,000 per 1 per cent or $300,000 (U.S.) for 2 per cent in favour of American Potash.

"We are very pleased at having reached an agreement with American Potash," says Passport's president. "The sections of land to which rights have been acquired link our state lease lands to the east side of the Holbrook basin. Just as important is the fact that we are now the largest landholder exploring for potash in the Holbrook basin. Passport now has 87 sections of land equivalent to some 87 square miles. We now control rights to some 14 per cent of the potash underlying the basin."

About the Holbrook potash project

The Holbrook basin is located in an area with excellent infrastructure and is known to contain a 600-square-mile potash bed in the Permian Supai formation as documented by the Arizona Geological Survey (AGS) Open File Report 08-07. The potash bed was drilled and delineated in the 1960s and 1970s by Duvall Corporation and Arkla Exploration. Due to low potash prices in the 1970s, the Holbrook basin potash bed was not developed after discovery.

Stephen B. Butrenchuk, president, PGeol, is the qualified person as defined in National Instrument 43-101, who has reviewed and approved the technical content of this news release.