Mr. Robert Dzisiak reports

ENCANTO POTASH CORP. ANNOUNCES PROPOSED CONSOLIDATION

Encanto Potash Corp. intends to consolidate its common shares in the capital of the company on the basis of one postconsolidation common share for five preconsolidation common shares.

The company currently has 90,091,899 common shares issued and outstanding, and following the consolidation, the company will have approximately 18,018,379 common shares issued and outstanding, prior to rounding for fractional shares.

The consolidation was approved by the board of directors of the company on Aug. 14, 2023, in accordance with the articles of the company, but remains subject to the approval of the NEX board of the TSX Venture Exchange. The company will issue a further news release upon receiving exchange approval, announcing the effective date of the consolidation.

Management and the board believe that the consolidation is in the best interests of the company and its shareholders. Management believes that the consolidation would allow the company important flexibility to complete future financings and transactions. The consolidation will not change a shareholder's proportionate ownership in the company or the rights of holders of the common shares. The proposed capital restructuring will allow the company to attract new capital, which will assist the company to meet the financial component of the listing requirements to move to the TSX Venture Exchange.

We seek Safe Harbor.