Passport Potash, Inc. (PPRTF: OTCQX International) | Corporate Update

Corporate Update – Regulatory Matter

Oct 19, 2013

OTC Disclosure News Service

Vancouver, BC, Canada

608, 1199 West Pender Street
Vancouver, BC  V6E 2R1

Tel:  (604)
687-0300  Fax:  (604) 687-0151
www.passportpotash.com

 

PASSPORT POTASH INC.
(TSX.V ? PPI)

 

 

NEWS RELEASE

 

Vancouver, B.C. – October 19, 2013.

 

Disclosure Clarification

 

As a result of a review
by the British Columbia Securities Commission (?BCSC?), we are issuing the
following news release to clarify our disclosure.

 

Clarifying Disclosure

 

Non-compliant
disclosure of Preliminary Economic Assessment (?PEA?)

 

In its news releases
and investor materials, the Company refers to the results of an economic
evaluation, including NPV, based in part on inferred resources.  This disclosure is contrary to NI 43-101, as
it does not include the proximate cautionary language required by section
2.3(3)(a) of NI 43-101.  The Company
would like to make the following clarifications:

 

1.      The Company?s March 13, 2013 news release announcement of a
PEA result is not compliant with section 2.3(3) of NI 43-101, and potentially
misleading, because it omits cautionary language required by section 2.3(3)(a)
of NI 43-101.  The Company would like to
clarify its statement by adding that
the
preliminary economic assessment is preliminary in nature, and includes inferred
mineral resources that are considered too speculative geologically to have the
economic considerations applied to them that would enable them to be
categorized as mineral reserves, and there is no certainty that the preliminary
economic assessment will be realized.

2.     
The
Company?s July 31, 2013 news release states that on the basis of the PEA, the
project ?would still be economically viable? with a decrease in prices by over
30%.  Due to the preliminary nature of a
PEA, it is misleading to disclose or imply economic viability, and at minimum a
pre-feasibility study (?PFS?) is necessary to confer economic viability.  Therefore, the Company retracts its statement
implying economic viability.

3.     
The
Company?s April 2013 presentation ?Cultivating Global Growth?, posted on its
website (the ?Corporate Presentation?), included disclosure issues similar to
those discussed above, and the presentation has been revised accordingly. 

 

Non-compliant
disclosure of potential exploration target.

 

The project section of
the company?s website discloses an exploration target from the November 1, 2011
SRK technical report. This disclosure is non-compliant because it omits the
grade range required by section 2.3(2) of NI 43-101.  The Company retracts this statement and has
removed references to the statements from the SRK technical report from its
website.

 

General
disclosure and filing issues

 

The projects section
of the Company?s website had become significantly out-of-date, and as a result may
have become misleading.  The Company has
updated the projects section of its website.

 

Tim Henneberry, P.Geol., Advisor, and a
Qualified Person as defined in National Instrument 43-101, has reviewed and
approved the technical content of this news release.

 

About the Holbrook Potash Project

Passport Potash Inc. is a publicly
traded corporation engaged in the exploration and development of advanced
potash properties with its major focus on a previously explored potash property
in Arizona. Passport has acquired a strategic position in the Holbrook Basin
with land holdings encompassing over 127,000 acres.  Passport has also entered into a
joint exploration agreement with the Hopi Indian Tribe to work toward
developing about 13,000 acres of contiguous privately held Hopi land.

On behalf of the Board of Directors

PASSPORT POTASH INC.

Joshua Bleak, President

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.


Contact:
Passport Potash Inc.
Peter J. Kletas
Manager of Corporate Development
866-999-6251-Toll Free
peter@passportpotash.com


Passport Potash Inc.
Clive Mostert
Corporate Communications
780-920-5044
cmostert@passportpotash.com

www.passportpotash.com

Safe Harbor Statement

THIS NEWS RELEASE CONTAINS
“FORWARD-LOOKING STATEMENTS”. STATEMENTS IN THIS NEWS RELEASE THAT
ARE NOT PURELY HISTORICAL ARE FORWARD-LOOKING STATEMENTS AND INCLUDE ANY
STATEMENTS REGARDING BELIEFS, PLANS, EXPECTATIONS OR INTENTIONS REGARDING THE
FUTURE.

EXCEPT FOR THE HISTORICAL
INFORMATION PRESENTED HEREIN, MATTERS DISCUSSED IN THIS NEWS RELEASE CONTAIN
FORWARD-LOOKING STATEMENTS THAT ARE SUBJECT TO CERTAIN RISKS AND UNCERTAINTIES
THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM ANY FUTURE RESULTS,
PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH STATEMENTS. STATEMENTS
THAT ARE NOT HISTORICAL FACTS, INCLUDING STATEMENTS THAT ARE PRECEDED BY,
FOLLOWED BY, OR THAT INCLUDE SUCH WORDS AS “ESTIMATE,”
“ANTICIPATE,” “BELIEVE,” “PLAN” OR
“EXPECT” OR SIMILAR STATEMENTS ARE FORWARD-LOOKING STATEMENTS. RISKS
AND UNCERTAINTIES FOR THE COMPANY INCLUDE, BUT ARE NOT LIMITED TO, THE RISKS
ASSOCIATED WITH MINERAL EXPLORATION AND FUNDING AS WELL AS THE RISKS SHOWN IN
THE COMPANY’S MOST RECENT ANNUAL AND QUARTERLY REPORTS ON FORM 10-K OR FORM
10-Q AND FROM TIME-TO-TIME IN OTHER PUBLICLY AVAILABLE INFORMATION REGARDING
THE COMPANY. OTHER RISKS INCLUDE RISKS ASSOCIATED WITH THE REGULATORY APPROVAL
PROCESS, COMPETITIVE COMPANIES, FUTURE CAPITAL REQUIREMENTS AND THE COMPANY’S
ABILITY AND LEVEL OF SUPPORT FOR ITS EXPLORATION AND DEVELOPMENT ACTIVITIES.
THERE CAN BE NO ASSURANCE THAT THE COMPANY’S EXPLORATION EFFORTS WILL SUCCEED
AND THE COMPANY WILL ULTIMATELY ACHIEVE COMMERCIAL SUCCESS. THESE
FORWARD-LOOKING STATEMENTS ARE MADE AS OF THE DATE OF THIS NEWS RELEASE, AND
THE COMPANY ASSUMES NO OBLIGATION TO UPDATE THE FORWARD-LOOKING STATEMENTS, OR
TO UPDATE THE REASONS WHY ACTUAL RESULTS COULD DIFFER FROM THOSE PROJECTED IN
THE FORWARD-LOOKING STATEMENTS. ALTHOUGH THE COMPANY BELIEVES THAT THE BELIEFS,
PLANS, EXPECTATIONS AND INTENTIONS CONTAINED IN THIS NEWS RELEASE ARE
REASONABLE, THERE CAN BE NO ASSURANCE THOSE BELIEFS, PLANS, EXPECTATIONS OR
INTENTIONS WILL PROVE TO BE ACCURATE. INVESTORS SHOULD CONSIDER ALL OF THE INFORMATION
SET FORTH HEREIN AND SHOULD ALSO REFER TO THE RISK FACTORS DISCLOSED IN THE
COMPANY’S PERIODIC REPORTS FILED FROM TIME-TO-TIME WITH THE UNITED STATES
SECURITIES AND EXCHANGE COMMISSION.

THIS NEWS RELEASE HAS BEEN PREPARED
BY MANAGEMENT OF THE COMPANY WHO TAKES FULL RESPONSIBILITY FOR ITS CONTENTS.
NONE OF FINRA, THE SEC NOR THE BRITISH COLUMBIA SECURITIES COMMISSION HAS
APPROVED OR DISAPPROVED OF THE CONTENTS OF THIS NEWS RELEASE. THIS NEWS RELEASE
SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY
NOR SHALL THERE BE ANY SALE OF THESE SECURITIES IN ANY JURISDICTION IN WHICH
SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR TO REGISTRATION OR
QUALIFICATION UNDER THE SECURITIES LAWS OF ANY SUCH JURISDICTION.

The above news release has been provided by the above company via the OTC Disclosure and News Service. Issuers of news releases and not OTC Markets Group Inc. are solely responsible for the accuracy of such news releases.

Article source: http://www.otcmarkets.com/stock/PPRTF/news?id=70143

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