.Trading Symbol: TSXV EPO.V

VANCOUVER, Nov. 16, 2011 /CNW/ - Encanto Potash Corp. ("Encanto" or the "Company") (TSXV:EPO) (OTCQX:ENCTF) is pleased to announce that the Muskowekwan First Nation ("MFN") through its development corporation Muskowekwan Resources Limited ("MRL") will be making up to a $3,000,000 Cdn equity investment into the Company. The First Nations and Métis Fund ("FNMF" see www.fnmf.ca) has approved and will be providing the financing to MRL, subject to the completion of the requisite legal documentation.

The equity investment will be effected by a non-brokered private placement of up to 13,043,479 Units (the "Units") at $0.23 per Unit to raise gross proceeds of approximately $3,000,000. Each Unit will consist of one common share and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to acquire one common share of the Company at an exercise price of $0.35 per common share for a period of three years from the date of closing. The private placement will be subject to TSX Venture Exchange approval and all securities issued in connection with the private placement will be subject to a four month hold period.

The FNMF is the first Aboriginal fund in Canada to make investments in Saskatchewan-based First Nations and Métis businesses. The mandate of the FNMF is to strengthen Aboriginal participation in Saskatchewan's diverse economy and to help create economic development opportunities and jobs for First Nations and Métis people.

The fund is administered and operated by First Nations and Métis Fund Inc., a corporation wholly owned by Crown Investments Corporation (CIC), a financial holding company for Saskatchewan's commercial Crown corporations. Westcap Mgt. Ltd. ("WML") provides professional fund management services and makes recommendations to FNMF on potential transactions. WML, Saskatchewan's largest venture capital and private equity fund manager with over $500 million under management, provides a wide range of investment banking activities to a diversified client base worldwide including institutions, retail investors, governments, and high net worth individuals.

MFN Chief Reginald Bellerose explains: "We approached the Company's management with the idea of MFN, through MRL making a direct investment into Encanto. As a First Nation, we're not only looking forward to the employment, royalties and education opportunities that the joint venture with Encanto offers our people, but feel that at this stage in Encanto's development, the direct investment offers the opportunity to strengthen the strategic partnership between MRL and Encanto as well as the opportunity for appreciation as Encanto moves toward building a solution mine on our lands."

Encanto President and CEO Jim Walchuck comments: "We're extremely pleased to welcome the MFN, through MRL, with a direct investment in the Company. I believe that this strategic investment by the MFN sends a strong reaffirmation of our joint commitment to see this great project through to production."

The technical content of this news release has been reviewed by Ross Moulton, VP of Exploration for Encanto, a qualified person as defined by NI 43-101.

About Encanto:
Encanto Potash Corp. is a TSX Venture Exchange and OTCQX listed Canadian resource company engaged in the exploration and development of potash properties in the Province of Saskatchewan, Canada, the largest producing region for potash in the world. The flagship Muskowekwan First Nation property has a recent NI 43-101 resource estimate containing 79.1 million tonnes of KCI grading 29.4% in the Indicated resources category along with 60.5 million tonnes grading 29.7% in the Inferred resource category (see the Company's news release dated March 18, 2011). These resources, based on the solution mining method, have the potential to substantially increase by adding additional acreage through a Treaty Land Entitlement process, currently underway. A Preliminary Economic Assessment (PEA), based solely on the Indicated Resource estimate, was released in August of 2011 (see the Company's news release of August 18, 2011) and a further release of an expanded resource estimate is scheduled in Q1 of 2012.

For additional information about Encanto Potash Corp., please visit the Company's website at www.encantopotash.com or review the Company's documents filed on www.sedar.com.

ON BEHALF OF THE BOARD OF DIRECTORS

NEITHER THE 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 NEWS RELEASE

THE FOREGOING INFORMATION MAY CONTAIN FORWARD-LOOKING INFORMATION RELATING TO THE FUTURE PERFORMANCE OF THE COMPANY. FORWARD LOOKING INFORMATION IS SUBJECT TO A NUMBER OF KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS THAT MAY CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE ANTICIPATED IN OUR FORWARD LOOKING STATEMENTS. SUCH RISKS AND OTHER FACTORS INCLUDE, AMONG OTHERS, THE ACTUAL RESULTS OF EXPLORATION ACTIVITIES, CHANGES IN WORLD COMMODITY MARKETS OR EQUITY MARKETS, THE RISKS OF THE MINING INDUSTRY INCLUDING, WITHOUT LIMITATION, THOSE ASSOCIATED WITH THE ENVIRONMENT, DELAYS IN OBTAINING GOVERNMENTAL APPROVALS, PERMITS OR FINANCING OR IN THE COMPLETION OF DEVELOPMENT OR CONSTRUCTION ACTIVITIES, TITLE DISPUTES, CHANGE IN GOVERNMENT AND CHANGES TO REGULATIONS AFFECTING THE MINING INDUSTRY, AND OTHER RISKS AND UNCERTAINTIES DETAILED FROM TIME TO TIME IN THE COMPANY'S FILINGS WITH THE CANADIAN SECURITIES ADMINISTRATORS (AVAILABLE AT WWW.SEDAR.COM). FORWARD-LOOKING STATEMENTS ARE MADE BASED ON VARIOUS ASSUMPTIONS AND ON MANAGEMENT'S BELIEFS, ESTIMATES AND OPINIONS ON THE DATE THE STATEMENTS ARE MADE. SHOULD ONE OR MORE OF THESE RISKS AND UNCERTAINTIES MATERIALIZE, OR SHOULD UNDERLYING ASSUMPTIONS PROVE INCORRECT, ACTUAL RESULTS MAY VARY MATERIALLY FROM THOSE DESCRIBED IN THE FORWARD-LOOKING INFORMATION CONTAINED HEREIN. THE COMPANY UNDERTAKES NO OBLIGATION TO UPDATE FORWARD-LOOKING STATEMENTS IF THESE ASSUMPTIONS, BELIEFS, ESTIMATES AND OPINIONS OR OTHER CIRCUMSTANCES SHOULD CHANGE, EXCEPT AS REQUIRED BY APPLICABLE LAW.