Athabasca Potash announces IPO

Saskatoon-Athabasca Potash Inc. announced Dec. 6 that it has entered into an underwriting agreement and has filed its final prospectus with the securities regulatory authorities in each of the provinces and territories of Canada, other than Quebec, in connection with an initial public offering of 10,140,000 common shares of Athabasca at a price of C$4.25 per share, for gross proceeds of C$43,095,000. Closing is scheduled to take place on Dec. 13, 2007. In addition, Athabasca has granted to the underwriters an option to purchase up to an additional 1,521,000 common shares on the same terms as set out above to cover over-allotments, if any, and for market stabilization purposes. Athabasca says it is a company actively engaged in the exploration of potash projects in Saskatchewan. Its objectives are to establish itself as the pre-eminent Canadian public company engaged solely in potash exploration and development, and to provide its shareholders with a unique investment opportunity focused entirely on potash. Athabasca is actively exploring its wholly-owned Burr Project and recently completed a 2D seismic survey of the project, as well as five new exploration drill holes. Following completion of its IPO, Athabasca will proceed with further seismic surveys, drilling, a scoping study, and, if results warrant, a preliminary feasibility study to assess the viability of underground potash mining on the Burr Project. Athabasca also plans to conduct exploration programs over some of the ten exploration permits it holds in Saskatchewan in addition to the Burr Project. The directors of Athabasca are Kenneth MacNeill, Dawn Zhou, Gary Billingsley, James Gardiner, Dr. Edward Schiller, and John King Burns. Dawn Zhou is the president and CEO, and Billingsley is CFO. Genuity Capital Markets and National Bank Financial Inc. are co-lead underwriters for the offering. The other members of the syndicate are TD Securities Inc., Wellington West Capital Markets Inc., and Research Capital Corp. Athabasca has received conditional approval for the listing of its common shares on the Toronto Stock Exchange under the symbol API. Listing is subject to Athabasca fulfilling all of the requirements of the TSE on or before March 4, 2008, including distribution of the common shares to a minimum number of public shareholders.