Letter to Shareholders
Dear Shareholder,
Fiscal 2010 was a banner year for Western Potash in many ways. We filed our NI 43-101 Compliant Mineral Resource Estimate. This is basically a 3rd party confirmation of a very significant potash resource at our Milestone Potash Project in Saskatchewan. This confirms that we are now in control of a Tier 1 resource, which we believe will ultimately attract Tier 1 companies. This document formed the basis of our Preliminary Economic Assessment (aka “Scoping Study”). The Scoping Study confirmed the economic viability of the Milestone Potash Project. The study outlines that our potash resource can support solution mining for more than 40 years at a production rate of 2.5MTY.
In late December of this year, we successfully orchestrated and closed a bought deal private placement worth 20 million CAD, in order to advance our Milestone project. We are currently engaged in the Pre-Feasibility stage of that process. Western’s recent 2 well drill program ,completed in February 2011, will support the study with geological information and feed an updated NI 43-1010 Resource Calculation that will form the basis of the final Feasibility study.
Vision: Technical Excellence.
We believe Western Potash’s success is built on a foundation of strong exploration and development experience. Drawn from the ranks of Tier 1 companies like Rio Tinto our management team has marshaled several projects from grassroots through to final mine development. In 2010 we continued to add to our technical depth as the Milestone project unfolded. We brought on expertise in both the Environmental and Engineering spheres and continue to work alongside AMEC Ltd as we drive the Milestone project towards bankable Feasibility.
Balanced Strategy: Milestone Build Out & Partner Acquisition.
Our strategy is simple. Build the Milestone Potash Mine. The team we have assembled has begun to execute the detailed targets of our Feasibility Study Process. There is still much work to be done as we move forward and de-risk the Milestone project. Most recently establishing water supply options with the City of Regina which could significantly reduce our original Capex and/or Opex costs.
Now to help finance this we will require a partner. Projects of this size are rarely done by a singular entity. Therefore we have launched our Strategic Partner Acquisition program. We are emphasizing “Partnership”, and targeting some of the best global companies to participate in the establishment of Saskatchewan's newest and most efficient potash mine. We have engaged some of the brightest minds from the investment banking sector to advise us on the strategic path forward. Our upcoming trips to India with the Saskatchewan government and our return to China will allow us to present the terms our financial team has crafted for a truly equitable partnership in order to advance the Milestone project through to production.
Western Potash Corp.’s share performance in 2010 is even more outstanding as markets around the world recovered and the specter of the double dip receded. Our market cap grew to approximate 200 M CAD last year as our share price rose over 260 % from January through December. Our share price continues to reflect the value that the Western team has created at Milestone as it displays a steady upward growth pattern in 2011. As the potash and market fundamentals continue to improve we expect a continuation of this trajectory.
In closing, I would like to comment on the listing move from the TSX Venture Exchange to the Toronto Stock Exchange. This will greatly enhance our visibility and profile in global markets resulting in enhanced liquidity for existing and new investors.
I would like to personally thank all of Western Shareholders for their continued support as the management team continues to build a truly global value proposition at your Milestone Potash Project in Saskatchewan, Canada.
Yours Truly,
Patricio G. Varas P. Geo
CEO and President of Western Potash Corp.
