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Western Potash Corp. Signs Lump-Sum Agreement with Stuart Olson for Milestone Phase I Potash Project

Western Resources Corp. takes pleasure in announcing that its fully owned subsidiary Western Potash Corp. has signed a flat-rate agreement with Stuart Olson Prairie Construction for being the General Contractor for the development of the Company’s Milestone Phase I Potash Project (“Phase I Project” or “Project”) situated 35 km southeast of Regina, Saskatchewan.

Milestone Phase 1 Potash Project Mine Site. Credit: Western Resources Corp.

Stuart Olson is one of the biggest and most esteemed construction service companies in Canada. Its unique business strategy and wide construction and industrial services confirmed it to be a perfect partner for the project. Established more than 100 years ago in Western Canada, Stuart Olson has offices throughout Canada and will be attracting a major proportion of its trades from the local area.

The Western Phase I Potash Project is going to be the newest and most advanced, eco-friendly, and cost-effective new potash mine in Canada. Using modern drilling methods, the project will be initially focusing on the high-grade potash bed, and later, it will preferably leach the potash to the surface through selective dissolution.

This implies that any salt that occurs is left underground and there are no tailings piled at the surface, thereby halving the water consumption. After that, as temperature changes, the potash is crystallized naturally in a pond, leading to considerably lower energy consumption and a capital cost proportionally less compared with other solution mines.

The project has previously finished the initial work to prepare the site, which includes an access road, water well, site clearing and piling foundations, water pipeline, and power infrastructure. The civil work of the crystallization pond has also been completed. The site is currently ready for the commencement of complete construction with Stuart Olson.

Stuart Olson’s general contractor range will include the construction of all aforementioned ground facilities, including steel and pipework, concrete, building work, installation of equipment, electrical and control system work, and site finishing.

Stuart Olson will prepare the project site in June 2019, with an estimated maximum workforce of about 100 people on site. With their heritage in Western Canada and extensive experience, Stuart Olson has the experience, skills, and resources to finish the project safe and sound as financially estimated and planned.

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.

Mr Bill Xue, Chairman, Western Potash

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