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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 http://www.sedar.com/">www.sedar.com.




ON BEHALF OF THE BOARD OF DIRECTORS







"James Walchuck"