Mantis to acquire Saskatchewan potash permits

2008-07-28 14:55 ET - News Release

Mr. Robin Ross reports

MANTIS MINERAL CORP. ACQUIRES POTASH PERMITS IN SASKATCHEWAN

Mantis Mineral Corp. has entered into an agreement with an arm's-length third party to acquire potash exploration permits (KPs) which have been applied for in highly prospective potash areas of Saskatchewan. The KPs are approximately 60 kilometres to the north of the existing Lanigan mine held by Potash Corp. of Saskatchewan. Mantis's properties cover an area of 3,957 hectares.

Mantis's KPs are contiguous or regionally north of companies with potash landholdings currently being explored/developed or mined. These include BHP Billiton, Potash Corp. of Saskatchewan's Lanigan mine, Diamonds Inc., Canada Potash Corp., Prairie Potash Corp. and Athabasca Potash Corp.

The potash beds of Saskatchewan occur in the upper part of the Prairie evaporate formation. There are three main potash beds within the KPs: the Patience Lake member, the Belle Plaine member; and the Esterhazy member. The potash in this area occurs as sylvite, and is contained within the Devonian Prairie evaporite, with intercepts of potash (sylvite) occurring between 800 to 1,000 metres in depth. The potash beds in this area contain multiple layers of one-metre-thick to nine-metre-thick sylvite-rich potash beds.

Well log data, gamma ray response and physical examination of drill core from adjacent or regional properties obtained from the Saskatchewan government database and private sources have been used to correlate geometrically potash potential. An independent report prepared by Petrolane Consulting (2007) Ltd. on Mantis's KPs reviewed seven wells found regionally for the existence of the Prairie evaporate formations. Potash beds within the study area correlate to the existing Lanigan mine to the south. Identifiers within the well logs were gamma ray responses for the upper and lower Patience Lake formations and the Belle Plaine formations. Four wells within the study area around the boundaries of Mantis's KPs all showed consistent intersections of potash or equivalent gamma ray response. Based on the Petrolane report, a geometrical projection between the wells suggests there is a lateral extent for potash potential to exist within Mantis's KPs covering 39.57 square kilometres at an average thickness of four metres containing potentially 623 million tonnes.

While the drill log data or gamma ray response herein reported are of a historical nature and do not conform to National Instrument 43-101, they are generally considered reliable according to local industry standards.

Commented Robin Ross, chief executive officer, "We are very excited to be acquiring this land position in known proximity to potash deposits."

Terms of the transaction

Under the terms of the agreement, the company has agreed, subject to Canadian Trading and Quotation System acceptance, to acquire a 100-per-cent interest in the potash exploration permits from an arm's-length party for the consideration outlined below.

The payment of $50,000 immediately, and the issuance to the vendor of 500,000 common shares in the capital of the company upon issuance by the Saskatchewan government of the potash permits.

The technical contents of this release were approved by Walter Hanych, the qualified person as defined by National Instrument 43-101.