Western Potash awards contract for construction of milestone Phase I Project

Milestone Phase 1 Potash Project mine site. — Photo courtesy Western Resources Corp.

Western Resources Corp. (TSX: WRX) (FSE: WR0) (“Western” or “the Company”) is pleased to announce that its wholly owned subsidiary Western Potash Corp. has entered into a lump-sum agreement with Stuart Olson Prairie Construction to be the General Contractor for the construction of the Company’s Milestone Phase I Potash Project (“Phase I Project” or “Project”) located 35 km southeast of Regina, Saskatchewan.

Stuart Olson (TSX: SOX, SOX.DB.A) is one of the largest and most respected construction services companies in Canada. Their unique approach to doing business, as well as extensive construction and industrial services proved a perfect partner for the project. Founded over 100 years ago in Western Canada, Stuart Olson has offices across Canada and will be drawing a large proportion of their trades from the local area.

The Western Phase I Potash Project will be the newest and most innovative, environmentally friendly and capital efficient new potash mine in Canada. By utilizing advanced drilling techniques, the project will be able to initially target the high-grade potash bed, then by using selective dissolution, preferentially leach the potash to the surface. This means that any salt is left underground and there is no tailings pile at the surface, thereby reducing the water consumption by half. The potash is then crystalized naturally in a pond due to the temperature change, resulting in much lower energy consumption and a capital cost proportionally less than other solution mines. The project has already completed the early work to prepare the site including an access road, site clearing and piling foundations, water well, water pipeline and power infrastructure. The civil work of the crystallization pond has also been completed. The site is now ready for the start of full construction with Stuart Olson.

Stuart Olson’s general contractor scope will include the construction of all above ground facilities, including concrete, steel and pipework, installation of equipment, electrical and control system work, building work and site finishing. Stuart Olson will mobilize to the project site in June 2019, with an anticipated maximum workforce of around 100 people on site. With their heritage in Western Canada and diverse experience, they have the skills, experience and resources to complete the project safely on budget and schedule.

Mr. Bill Xue, Chairman of Western Potash, commented, “the management and Board of Directors are very excited to partner with Stuart Olson to build this innovative and efficient new mine in Saskatchewan. The project will benefit from the strength and experience of Stuart Olson, and we look forward to the next milestone, the start of production in mid 2020.”

Forward-looking statements apply.