Potash North Update

VANCOUVER, BRITISH COLUMBIA, Aug 22, 2008 (Marketwire via COMTEX News Network) --

Potash North Resource Corporation (the "Company") (TSX VENTURE:PON) reports that the Company has reached an agreement with its investment banking syndicate to reverse a previous issue of 800,000 units in the private placement that closed on July 9, 2008 to correct an order error. The Company will return to treasury 800,000 common shares and cancel 800,000 share purchase warrants and 48,000 compensation options. The error resulted from a miscommunication between the syndicate and one subscriber as to the number of units agreed to be purchased by such subscriber. The subscriber did acquire 1,200,000 units in the private placement.

The correction results in the Company having raised aggregate gross proceeds of $30,750,000 in connection with the unit offering, with 12,300,000 units having been issued. The syndicate has adjusted the commission relating to the cancelled units.

After correcting this matter the Company will have $30.4 million in cash and 64,945,502 common shares outstanding.

Boyd Petro Search has informed the Company that it has submitted all data to the relevant Saskatchewan regulatory agency concerning the 2D Seismic Survey on the KP 416 and KP 417 permit areas and is awaiting government approvals of the program.

It is anticipated that the seismic program will commence during the month of September, to be followed by a drill program designed to verify historic drill results present on the permit areas and explore other areas in the vicinity of those historic holes.

Potash North Resource Corporation is a Vancouver based company engaged in the acquisition, exploration and potential development of two potash exploration permits (KP 416 and 417) located north of and adjacent to the producing Esterhazy Mine permits of Mosaic Corp. in southeastern Saskatchewan.

ON BEHALF OF THE BOARD

Craig A. Angus, President

SOURCE: Potash North Resource Corporation

Potash North Resource Corporation Arlen Hansen (604) 684-6730 Website: www.potashnorth.com

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