Mr. Mike Ferguson reports

GENSOURCE ANNOUNCES $3,000,000 NON-BROKERED PRIVATE PLACEMENT

Gensource Potash Corp. has arranged a proposed best efforts non-brokered private placement for gross proceeds of up to $3-million. The offering will consist of the sale of up to 27,272,728 units of the company at a price of 11 cents per unit. Each unit will consist of one common share and one-half of one purchase warrant. Each whole warrant will entitle the holder to acquire one share for 17 cents for a period of 24 months after closing. The terms of the financing were established in the context of the market over the last 30 days.

The company intends to use the proceeds from the offering to initiate geological and engineering study work toward a second project module in the Vanguard project area. Proceeds will also be used for matters relating to the completion of the proposed joint venture signed with Essel Group ME as detailed in the memorandum of understanding announcement of Nov. 29, 2016, as well as for general working capital purposes. The offering will take place by way of a private placement to qualified investors in such provinces of Canada as the company may designate, and otherwise in those jurisdictions where the offering can lawfully be made. The securities to be issued pursuant to offering will be subject to a statutory four-month-and-one-day hold period from the closing date.

It is expected that the closing of the offering will occur on or before Jan. 19, 2017, and is subject to the approval of the TSX Venture Exchange.

Gensource's president and chief executive officer, Mike Ferguson, commented: "We are looking forward to closing this financing fully subscribed quickly. As indicated by the use of proceeds, this financing will help Gensource continue to execute its business plan in a methodical and aggressive manner, with each successful step bringing us closer to our goal of becoming a new and independent producer of potash."

About Gensource

Gensource is based in Saskatoon, Sask., and is focused on developing the next potash production facility in that province, using new and more efficient mining and processing methods and employing a new-to-the-potash-industry business model that connects the consumer of potash (agricultural producers) as directly as possible to the production of the product. Gensource's president and chief executive officer, Mike Ferguson, PEng, has assembled a management and technical team with direct and specific expertise and experience in potash development in Saskatchewan.

The technical information presented in this news release has been reviewed and approved by Mr. Ferguson, PEng, the president, CEO and a director of the corporation, who is a qualified person according to NI 43-101 requirements.

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