NORTH AMERICAN POTASH DEVELOPMENTS INC 
By February 27, 2012
VANCOUVER, BC. - North American Potash Developments Inc. (TSX.V:NPD; OTCQX: RNGTF; FSE: 3OZ) ("NA Potash" or the "Company") is pleased to announce that it has entered into an agreement with Sulfate Resources LLC. ("Sulfate") to acquire a 70% interest, and up to an additional 6% interest, in certain mineral rights located at the northern end of the Patagonia Mountains, Santa Cruz County, Arizona. This property is known as the Patagonia Alunite Property (the "Property"). The Property consists of 222 lode mineral claims in alunite deposits which carry substantial potassium sulfate values, and applications for potash prospecting permits covering a total of 5,680 acres. These mineral concessions are located in the western portion of the Red Mountain range in Arizona, and are located about 50 miles south-southeast of Tucson.
The Property was the subject an extensive program to identify potassium sulfate and alumina resources by Earth Sciences Inc ("Earth Sciences") in the 1970's. Earth Sciences drilled 100 exploration drill holes averaging 133 feet in depth, and conducted extensive bedrock sampling and metallurgical testing. Based on their data, Earth Sciences estimated some 303 million tons of mineralized material that averaged 30% alunite (91 million tons alunite), or 11.1% alumina (33 million tons Al2O3). The mineralize material is estimated to also contain 18 million tons of potassium sulfate (K2SO4). These historical estimates are not being treated by the Company as current mineral resources or mineral reserves as defined in NI 43-101, as a qualified person has not done sufficient work to classify these historical estimates as current mineral resources or mineral reserves, The Company notes this historical data as being subject to possible future validation and verification.
Undrilled parts of the Patagonia property include Red Mountain, Kunde Mountain and Saddle Mountain. These areas are geologically favorable for identifying further mineralization. Metallurgical test work and preliminary feasibility studies by Earth Sciences indicated that the potassium sulfate plus alunite deposit can be mined using the open cut method. Possible mill sites were not evaluated by Earth Sciences. Infrastructure for mining is excellent: Arizona is host to a favorable climate, has good highway access, has access to railroads, has electrical power and has a nearby mining-related labor force.
The Company plans to target the economic potential of producing potassium sulfate and alumina from the Property.
About Potassium Sulfate and Alumina Alunite is a volcanic rock that was mined in the 15th Century for alumina. Alunite contains 20% potassium sulfate (K2SO4) and 37% alumina (Al2O3). In the 1970's Earth Sciences identified large alunite deposits in Utah and Arizona and conducted extensive drilling, mineral resource, and metallurgical studies. Earth Sciences had planned to produce primarily alumina, but also potassium sulfate, from their Utah and Arizona deposits. The markets for alumina and potassium sulfate collapsed, and the properties have been idle since. Currently Potash Ridge Corporation (www.potashridge.com) is advancing the Earth Sciences' Utah alunite deposits. The Company is targeting to acquire and advance the Earth Sciences Patagonia Alunite Property.
Potassium Sulfate (SOP) is high grade potash product and sells at a 50% premium over standard muriate of potash (MOP) products. The market for SOP is currently robust and expected to increase 3% per annum. SOP is a preferred fertilizer for farming in saline and dry soils.
Alumina (Al2O3) is primarily used to manufacture aluminum metal, and has many secondary uses such as for abrasives, as fillers, in catalysts, and for gas filtration.
Acquisition Terms
The consideration for the acquisition of 70% interest in
the Property are cash payments totaling CDN$1,000,000,
incurring exploration expenditure of CDN$500,000 on the
property in the first year and the issuance of 4,000,000
common shares from the Company's treasury. The vendor
retains a 2% production royalty interest, up to 1% of which
may be purchased by the Company for CDN$1,000,000.
Cash payment schedule:
1) CDN$25,000 upon the execution of the Agreement;
2) CDN$25,000 upon satisfactory completion of the due
diligence;
3) CDN$450,000 within 5 business days of written approval
from the TSX Venture Exchange; and
4) CDN$500,000 within 30 days after the issuance of a
Arizona Potash prospecting permit in respect of the
Property by the Bureau of Land Management and receipt of
the permit by the Company.
Exploration expenditures:
1) CDN$500,000 on or before the first anniversary of
Exchange Approval.
Share payment schedule:
1) 2,000,000 shares within 5 business days of Exchange
Approval; and
2) 2,000,000 shares within 30 days after the issuance of a
Arizona Potash prospecting permit in respect of the
Property by the Bureau of Land Management and receipt of
the permit by the Company.
NA Potash can earn up to an additional 6% legal and beneficial interest in the Property, for an aggregate of 76% interest, by incurring an additional aggregate CDN$3,000,000 in work on the Property on or prior to the third anniversary of Exchange Approval. Upon each CDN$1,000,000 in work incurred by the Company after exercise of the Option, the Company shall be deemed to have acquired an additional 2% interest.
About North American Potash Developments Inc.
North American Potash Developments Inc. Lisbon Valley
project consists of nine state mineral leases totalling
6,421 acres and applications for potash prospecting
permits, totaling 24,640 acres. The project is located in
San Juan County, Utah, within the Paradox Basin, a large
sedimentary basin containing rocks of Pennsylvanian to
Cretaceous age. The salt and potash beds are in the
Pennsylvanian Paradox formation that is over 4,000 feet
thick, with 29 separate cycles of salt, potash and clastic
sediments. The potash beds are located near the top of the
evaporate sequence and occur at depths of 3,000 to 4,800
feet in the project area.
North American Potash Developments Inc has validated and cored two distinct potash beds in one corehole on a state mineral lease: bed 6 (K-6) from 2656 feet to 2675 feet (19ft) and bed 9 (K-9) from 3398.2-3412.2 (14ft). K-9 had the greater average potash concentration, with 5 feet of 13.5% K2O (21.3% KCl) located from 3,398 to 3,403 feet, and with a maximum K2O concentration of 24.5% (38.7% KCl). K-6 had a net 10 feet of significant potash across the 2,661 to 2,675 feet depth interval, which averaged 8.9% K2O (14.0% KCl).
Technical information in this news release has been reviewed by Stuart Havenstrite, P.Geo a qualified person as defined in NI 43-101.
For more information, please visit: www.napotash.com or contact Investor Relations Toll Free. 1(866) 944-8674
On behalf of the Board of Directors
"Simon Tam"
President & Director
Disclaimer and Cautionary Statement Regarding Forward-Looking Information
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this press release. This news
release shall not constitute an offer to sell or the
solicitation of an offer to buy securities in any
jurisdiction.
All statements, trend analysis and other information contained in this press release relative to markets about anticipated future events or results constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. Forward-looking statements are subject to business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those contained in the forward-looking statements. Forward-looking statements are based on estimates and opinions of management at the date the statements are made. The Company does not undertake any obligation to update forward looking statements even if circumstances or management's estimates or opinions should change. Investors should not place undue reliance on forward-looking statements. North American Potash Developments Inc. seeks safe harbor.
