ENCANTO POTASH CORP. PROVIDES OPERATIONAL UPDATE

May 16, 2011 (Canada NewsWire Group) --

TRADING SYMBOL:  TSXV  EPO.V

VANCOUVER, May 16 /CNW/ - Encanto Potash Corp. ("Encanto" or the "Company") (TSXV: EPO) is pleased to provide an operational update and clarifications to our shareholders.

Muskowekwan Property Resource:
The Company is on track to fulfill its objective of nearly doubling the Muskowekwan Project's resource with further drilling anticipated to commence upon a successful designation vote of the Treaty Land Entitlement ("TLE") Reserve Land.

The current resource excluding the TLE Reserve lands, based on using the in-situ leach mining method, establishes a resource of 79.1 Mt Indicated KCl and 60.5 Mt Inferred KCl.  (See News Release dated March 18, 2011)

The Company confirms that all funding requirements for the next 12 months, including the Preliminary Economic Assessment, the TLE Reserve land designation vote, a two well drilling program, and updated 43-101 resource calculation are in hand.

First Nation's Public Meetings In Support of Designation (mineral surrender) Process:
Encanto President and CEO Jim Walchuck is encouraged by the efforts of newly re-elected Chief Reginald Bellerose and his Council to streamline and vigorously support the mineral rights designation process for the TLE Reserve lands.  The designation process is a simple majority referendum of the Muskowekwan membership to seek approval and consent to the surrender by them of the mineral rights on the TLE Reserve lands to Canada, which in turn, will enable those rights to be transferred to Muskowekwan Resources Ltd., by lease from Canada and enable North Rim Exploration Ltd., to include the minerals in a revised 43-101 Report.

The anticipated successful consent vote will result in a 90% increase in the project's land package for resource analysis, from 17,000 acres to 32,500 acres.  The mineral rights to these additional lands are included in the JVA between Muskowekwan and Encanto and, on conclusion of the referendum and surrender, the mineral rights are held in trust by Muskowekwan First Nation through Canada for the benefit of the JVA and its participants.

A series of public information meetings organized and supported by Muskowekwan and Encanto will be held in multiple Canadian cities to insure the off-Reserve membership are fully aware of the Project benefits to Muskowekwan Band members both on and off Reserve prior to the formal vote which is conducted under the authority of INAC for Canada and the First Nation.

Upcoming Near Term Milestones:
In the next 14 days, the Company anticipates to update shareholders on the TLE Reserve Land designation process, including an overview and projected time frames.

Preliminary Economic Assessment:
Encanto is pleased to confirm that work on the Preliminary Economic Assessment continues with Wardrop, a Tetra Tech company.  The report is on schedule for completion in Q3 of this year.  This report will provide NPV and capital expenditure estimates for both in-situ leach and conventional potash mining methods.

Cash Position:
With approximately $11.5 million in cash and marketable securities the Company has sufficient working capital to achieve the necessary steps outlined above which will result in an updated 43-101 resource calculation.  This includes 10,600,000 shares that the Company owns in Sundance Energy Inc., who are currently preparing to drill on the Ochapowace Project's property in their exploration for oil and gas assets.

Encanto recently presented to various institutional accounts in various cities including Toronto, Montreal, New York, Oslo, Madrid, Amsterdam, Munich and Zurich.  We continue to field calls from analysts, institutional and retail investors who see future value in the Company's potential.  Encanto wishes to thank our loyal shareholders and are committed to providing regular updates as we move down the path towards opening Saskatchewan's next potash mine.

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-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.

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 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 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.