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Verde Potash Provides Update on Corporate Activities and FLSmidth Processing Run

 Verde Potash Provides Update on Corporate Activities and FLSmidth Processing
                                     Run

  PR Newswire

  TORONTO, December 4, 2012

TORONTO, December 4, 2012 /PRNewswire/ --

- Currency in Canadian dollars

Verde Potash (TSX: "NPK") ("Verde" or the "Company") is pleased to provide an
update with respect to corporate activities including results from the
processing run at FLSmidth's facility in Pennsylvania, the negotiation of
off-take agreements with Brazilian fertilizer buyers, and progress on the
Company's Bankable Feasibility Study ("BFS") for the Cerrado Verde potash
project.

Successful FLSmidth Four Week Processing Run

Verde conducted a four week test of its potash rock to KCl process at
FLSmidth's rotary kiln facility in Pennsylvania. FLSmidth is the largest
supplier of rotary kiln equipment in the world, with over 2,500 units
installed. Verde successfully processed 42 tonnes of feed material during this
period. The testing allowed for the optimization of variables in the KCl
production process, including the quantities of potash rock, salt and
limestone used, kiln temperature and kiln residence time. The tests at
FLSmidth also enabled the Company to confirm the results of Verde's own test
work at its facility located in Belo Horizonte, Brazil. Results from the
FLSmidth tests will be incorporated into the Company's BFS.

Off-Take Agreement Negotiations Initiated

The Company is currently engaged in negotiations with a number of potential
counterparties regarding an off-take agreement for the Company's granular KCl
product. Each of the entities the Company is engaged with is currently a buyer
of granular KCl in Brazil. The purpose of an off-take agreement would be to
assist potential lenders to the project in completing their due diligence and
to expedite the process of securing debt financing.

Lender Due Diligence Discussions Commence

Management has entered into discussions with key development agencies
regarding debt funding of the Cerrado Verde project. The Company has begun
providing these lending agencies with financial and technical data regarding
the project.

Bankable Feasibility Study on Track for H1 2013

The Company is on track to publish its BFS in the first half of 2013. A
consortium of top tier engineering companies have been engaged to produce a
BFS for the Cerrado Verde potash project, which will build on the PEA
published in February 2012, the test work completed at FLSmidth's facility and
the 2012 in-fill drilling results at the Cerrado Verde property.

Balance Sheet Update

As outlined in the Company's Q3 2012 financials, Verde had $21.1 million in
cash and cash equivalents on its balance sheet as at September 30, 2012.
Management is confident that the Company's liquidity position is sufficient to
fund the completion of the BFS in H1 2013 and to fund all other necessary
corporate activities through 2014.

About Verde Potash

Verde Potash, a Brazilian fertilizer exploration and development company, is
focused on advancing the Cerrado Verde Project located in the heart of
Brazil's largest agriculture market. Cerrado Verde is the source of a
potash-rich deposit from which the Company intends to produce potassium
chloride (KCl). In addition, the Company is developing its Calcario limestone
project, limestone being a key raw material in the production of KCl.

About the Cerrado Verde Potash Project

Cerrado Verde is a unique project: 1) its high grade potash rock outcrops and
is amenable to strip mining, allowing fast construction of a scalable
operation; 2) it is located in the midst of the world's third largest and
fastest growing fertilizer market; 3) it connects to Brazil's largest
fertilizer distribution districts via existing and high quality
infrastructure; 4) it has the potential to supply KCl to Brazil's local
agriculture market from its large potash-rich deposit.

Cautionary Language and Forward Looking Statements

NEITHER THE TSX EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS
DEFINED IN THE POLICIES OF THE TSX EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE
ADEQUACY OR ACCURACY OF THIS RELEASE. THIS PRESS RELEASE CONTAINS CERTAIN
"FORWARD LOOKING STATEMENTS", WHICH INCLUDE BUT IS NOT LIMITED TO, STATEMENTS
WITH RESPECT TO THE FUTURE FINANCIAL OR OPERATING PERFORMANCE OF THE COMPANY,
ITS SUBSIDIARIES AND ITS PROJECTS, AND STATEMENTS REGARDING USE OF PROCEEDS.
FORWARD LOOKING STATEMENTS CAN GENERALLY BE IDENTIFIED BY THE USE OF WORDS
SUCH AS "PLANS", "EXPECTS", OR "DOES NOT EXPECT" OR "IS EXPECTED",
"ANTICIPATES" OR "DOES NOT ANTICIPATE", OR "BELIEVES", "INTENDS", "FORECASTS",
"BUDGET", "SCHEDULED", "ESTIMATES" OR VARIATIONS OF SUCH WORDS OR PHRASES OR
STATE THAT CERTAIN ACTIONS, EVENT, OR RESULTS "MAY", "COULD", "WOULD",
"MIGHT", OR "WILL BE TAKEN", "OCCUR" OR "BE ACHIEVED". FORWARD LOOKING
STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS
WHICH MAY CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY
TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR
ACHIEVEMENTS EXPRESSED OR IMPLIED BY SAID STATEMENTS. THERE CAN BE NO
ASSURANCES THAT FORWARD-LOOKING STATEMENTS WILL PROVE TO BE ACCURATE, AS
ACTUAL RESULTS AND FUTURE EVENTS COULD DIFFER MATERIALLY FROM THOSE
ANTICIPATED IN SAID STATEMENTS. ACCORDINGLY, READERS SHOULD NOT PLACE UNDUE
RELIANCE ON FORWARD-LOOKING STATEMENTS. Readers are cautioned not to rely
solely on the summary of such information contained in this release and are
directed to the complete set of drill results posted on Verde's website (
http://www.verdepotash.com ) and filed on SEDAR ( http://www.sedar.com ) and
any future amendments to such. Readers are also directed to the cautionary
notices and disclaimers contained herein.

For further information: Cristiano Veloso , President & Chief Executive
Officer Tel: +1(416)866-2966; Fax: (416) 866-8829; Email: cv@verdepotash.com
http://www.verdepotash.com

Jaret Anderson, CFA , VP Corporate Development Tel: +1(416)866-2966; ext. 223;
Fax: (416) 866-8829; Email: ja@verdepotash.com (NPK.)
 
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