Mr. Mike Ferguson reports

GENSOURCE ANNOUNCES NON-BROKERED PRIVATE PLACEMENT

Gensource Potash Corp. has arranged a non-brokered private placement that it will use to advance the development of the Lazlo project.

To complete a resource confirmation program, comprising drilling and 3-D seismic over the planned Lazlo mining area, Gensource will require $3-million, to be expended on Canadian exploration expense (CEE) activities (drilling and 3-D seismic), plus an additional $500,000 to be expended on non-CEE expenses (expenses peripheral to the drilling and seismic, as well as general working capital) over the coming months. On that basis, a non-brokered private placement will be initiated for these amounts, made up of flow-through shares (FT shares) and non-flow-through shares (HD shares).

The shares will be sold in units. Each unit will consist of one common share and one-half common share purchase warrant. Each whole warrant will entitle the holder to acquire an additional common share at a price of 12 cents for a period of 24 months.

The proceeds from this private placement offering are expected to be up to $3-million in FT shares (37.5 million shares) issued at eight cents plus $500,000 (7,142,857 shares) in HD shares issued at seven cents.

Each FT share will be issued as a flow-through share as defined in Subsection 66 (15) of the Income Tax Act (Canada) and is not and will not be a prescribed share within the meaning of Section 6202.1 of the regulations to the Tax Act.

All securities issued in conjunction with the offering will be subject to a four-month statutory hold period in Canada. The company may pay finders' fees to certain finders consisting of: (a) a finder's fee payable in cash not to exceed 7 per cent of the aggregate gross proceeds from the offering and (b) compensation warrants equal to up to 7 per cent of the total number of units sold under the offering. Each broker warrant will entitle the holder thereof to purchase one unit at an exercise price of seven cents for a period of 24 months following the closing date.

We seek Safe Harbor.