Mr. Tao Liu reports

PACIFIC POTASH CORPORATE UPDATE

Pacific Potash Corp. has received confirmation from Bank of Montreal that certain funds in the amount of approximately $60,000 wired to Brazil in order to make a tax payment due to the Departamento Nacional de Producao Mineral of the government of Brazil (DNPM) were returned to the company for reason that the correspondent intermediary bank was invalid.

As disclosed in the company's management discussion and analysis for the financial year ended June 30, 2015, the company determined in October, 2014, that it was no longer able to exercise control over its Brazilian subsidiary, Potassio Ocidental Mineracao Ltda. This resulted from the actions of former members of the company's senior management and management of Potassio, which have effectively prohibited the company from directing operations of Potassio and accessing its assets. Effective Oct. 31, 2014, the company lost all ability to manage and control Potassio's assets and operations and became unable to access Potassio's books and records. The status of the company's ownership could not be verified. Even though the company has legal title to its investment in Potassio, it was no longer able to exercise any control or influence over its subsidiary, including its day-to-day operations. Additional information on the company's Amazonas project in Brazil can be found in the company's disclosure available on SEDAR.

The company has previously entered into a non-binding memorandum of understanding with Northern International Group, which was announced on Nov. 19, 2014, to raise capital for development of the company's exploration program and for general working capital. The company has worked toward advancing the strategic co-operation between the parties to complete the investment. Northern has requested that the company provide relevant documents and records of the Brazilian assets for review; however, the company was unable to provide such documents as the company's tenements in Brazil was revoked by the DNPM due to the failure of the funds wired to Brazil to pay the tax. The company has retained a local attorney in Brazil to negotiate and discuss with the Brazilian authorities and tried to preserve control over the Brazilian assets. The company has been advised that the possibility of regaining control or ability to exercise influence over the Brazilian assets is very low. As a result, considering the current global market condition and the situation of the company, Northern informed the company that it had decided to temporarily suspend the execution of any subsequent strategic co-operation proposals with the company.

We seek Safe Harbor.