Mr. Mike Ferguson reports

GENSOURCE POTASH ANNOUNCES SHARES FOR DEBT TRANSACTION

Pursuant to debt settlement agreements between Gensource Potash Corp. and four directors of the company, the company has agreed to issue 9,866,668 common shares in the capital stock of the company at a deemed price of 15 cents per common share in payment of $1.48-million in outstanding unsecured, non-interest bearing promissory notes owing by the company to the creditors.

The issuance of the common shares to the creditors, insiders of the company, is considered a related party transaction within the meaning of Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. The company is exempt from the formal valuation and minority shareholder approval requirements under MI 61-101 in reliance on the exemptions set out in sections 5.5(a) and 5.7(1)(a), respectively, of MI 61-101 as the fair market value of the transaction is not more than 25 per cent of the company's market capitalization.

Mike Ferguson, president and chief executive officer, said: "This debt settlement is a meaningful and constructive step for Gensource and its shareholders. It reflects the confidence our directors have in the company's strategy and long-term potential, while also demonstrating strong alignment with shareholders through their continued support. Importantly, this shares for debt transaction enhances our balance sheet and helps position Gensource for its next stage of development, including the anticipated full execution of the upsized Tugaske project."

The common shares will be issued on a private placement basis and will be subject to a four-month hold period. The closing of the shares for debt transaction remains subject to the approval of the TSX Venture Exchange.

About Gensource Potash Crop.

Gensource is a fertilizer development company based in Saskatoon, Sask., and is on track to become the next fertilizer production company in that province. With a modular and environmentally leading approach to potash production, Gensource believes its technical and business model will be the future of the industry. Gensource operates under a business plan that has two key components: (1) vertical integration with the market to ensure that all production capacity built is directed, and presold, to a specific market, eliminating market-side risk; and (2) technical innovation which will allow for a modular and economic potash production facility, that demonstrates environmental leadership within the industry, producing no salt tailings, therefore eliminating decommissioning.

We seek Safe Harbor.