TSX-V: EPO

SAFE HARBOUR STATEMENT

This presentation contains forward-looking statements that involve risks and uncertainties, which
may cause actual results to differ materially from the statements made. For this purpose, any
statements that are contained herein that are not statements of historical fact may be deemed to
be forward-looking statements made pursuant to the safe harbour provisions of the applicable
securities laws. Without limiting the foregoing, the words “believes”, “anticipates”, “plans”,
“intends’, “will”, “should”, “expects”, “projects” and similar expressions are intended to identify
forward-looking statements. You are cautioned that such statements are subject to a multitude of
risks and uncertainties that could cause actual results to differ materially from those projected in
the forward-looking statements. These risks include, but are not limited to, those associated with
the success of research and development programs, the regulatory approval process,
competition, securing and maintaining corporate alliances, market acceptance of the Company’s
products, the availability of government and insurance reimbursements for the Company’s
products, the strength of intellectual property, financing capability, the potential dilutive effects of
any financing, reliance on subcontractors and key personnel. The forward-looking statements are
made as of the date hereof and the Company disclaims any intention and has no obligation or
responsibility, except as required by law, to update or revise any forward-looking statements,
whether as a result of new information, future events, or otherwise.

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 WHAT IS POTASH?

• Potassium is obtained from potash-bearing ores

such as sylvanite.

• Potash in mined from naturally occurring ore

bodies which were formed as sea water
evaporated.

• Potash, or carbonate of potash, is in fact a

mixture of potassium salt with impure form of
potassium carbonate (K2CO3). In other words, it
is the common term used for the fertilizer forms
of the element potassium (K).
Potassium occurs abundantly in nature, being
the 7th most common element in the earth's
crust. Some clay minerals which are associated
with heavy soils are rich sources of potassium.
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WHAT IS POTASH USED FOR?
• 95% of Potash is used for fertilizer

• Fertilizer (NPK) is a combination of Nitrogen (N),

Phosphate (P) and Potassium (K)

• Nitrogen, phosphorus, and potassium are three of

the most essential nutrients that a plant needs to
grow.

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 BENEFITS OF POTASH
• Slows growth of crop diseases
• Maintains cell resilience
• Reduces wilting
• Reduces water loss
• Increases the protein available to plants
• Assists in photosynthesis by activating more than 50
enzymes
• Improves drought resistance
• Builds cellulose
• INCREASED CROP YIELDS

Potash has no commercial substitute as a potassium

fertilizer source 55
 POTASH OR NOT

Visual Comparison of Impact of Potash

Without Potash With Potash

Source: International Plant Nutrition Institute

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POTASH OR NOT

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 POTASH OR NOT

Improved Farmer Economics with Optimal Potash Application

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 MAJOR POTASH PRODUCERS

Source: Fertecon

• Only 12 countries currently produce potash

• Canada accounts for 35% of world’s potash – 90% from
Saskatchewan 99
MAJOR POTASH CONSUMERS

Source: Fertecon

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 POTASH GENERAL

• Annual World Potash Production 50 million (tpy)

• Population 2010 6 Billion

• Projected Population 9 Billion

• Annual Increase in Population +75 million/year

• Projected Increase in Potash Production +3-4% year

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WORLD ECONOMIC GROWTH PROFILE

Annual % GDP Growth 2010-2014

Source: United Nations

• Approximately 75% of world’s population comes from countries with GDP growth >5%
• China, India and other Asia represent almost 60 percent of the world’s population.
• For most people in developing countries, the first priority when they have more money
is to improve their diet.
• For the first time in history, a majority of the world’s population is in the process of
attaining a greater ability to purchase higher-quality food.
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GLOBAL MEAT CONSUMPTION
kg/person

Source: FAO Statistics

• One tonne of BEEF requires feed corresponding to 7 tonnes of grain;

• One tonne of PORK requires feed corresponding to 4 tonnes of grain; and

• One tonne of POULTRY requires feed corresponding to 2 tonnes of grain.

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CHINA & INDIA GDP/CAPITA
US$

Source: IMF

• Over the next several years, China’s GDP is expected to grow by

more than 9%, while India and other Asian countries are
expected to grow at more than 7% annually.
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 ENCANTO POTASH
PROJECT LOCATIONS

In the Heart of Potash Country 15

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 INVESTMENT ANALYSIS

• Sovereign Component

• Management Component

• Permitting Component

• Resource Component

• Financial Component
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 BUSINESS FRIENDLY
JURISDICTION
• World’s established leading producers – Potash Corp,
Mosaic Co and Agrium – in the heart of
Saskatchewan potash country.
• Potash reserves are typically flat and consistent over
many kilometres
• Resources and infrastructure well developed and
highly accessible
• INAC Support (Federal)
• Federal Government wants economic benefits for
First Nations

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 GLOBAL POTASH RESERVES
SASKATCHEWAN IS POTASH CAPITAL

Saskatchewan is
the potash capital
of Canada with
more than 53% of
production coming
from this region

Source: Fertecon

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 PROVEN MANAGEMENT
• 30 Years in mining industry including diverse background in
James Walchuck
operations, feasibility, construction and finance
CEO
• Mine manager at Bulyanhulu Mine for Sutton/Barrick

Gordon Keep • Extensive background in corporate finance and investment

Chairman banking, and creating public natural resource companies

Rod Hope
Consultant & Director of • Significant legal experience with First Nations
Saskatchewan First Nations
Business Development

Ross Moulton • 35 years of oil and gas experience with various private and
VP Exploration public exploration and production companies

North Rim • Top potash geological consultant

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Exploration • Well respected in the potash industry
 FIRST NATIONS
PARTNERSHIP

Solid
Alliance

Fast Track
Development
Above: Muskowekwan Chief Reg Bellerose with Encanto
President James Walchuck
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PARTNERS WITH FIRST NATIONS

Permitting Advantage
• Two stake holders for permitting (INAC and the Chief &
Council)
Strong Community Support
• Jobs
• Training & Education
Mutual Interests
• Upon Production – 3% GORR
• 2 M tpy (tonne per year) mine ~ $24 million/yr for FN
(@$425/t FOB Vancouver)

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 FIRST NATIONS ADVANTAGE
CONTINUOUS LAND PACKAGE

Western Potash Leases Potash One Leases Encanto Muskowekwan Lease

40% Freehold 26% Freehold Owns 100% Continuous Mineral Rights

Freehold-Mineral rights owned by other parties

– secondary negotiation required
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 RESOURCE STEPS
MUSKOWEKWAN PROJECT

• 2D Seismic

• Drill Hole(s) ~ Grade

• 3D Seismic

• In – Fill Drill Holes

• Resource Calculation

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 2D SEISMIC PLAN VIEW
MUSKOWEKWAN PROJECT

• 1.5 km lines show good structure over large area

• 36,000 of the 43,000 acres appear continuous

• 2D results showed resource size potential

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• No large Collapse zones, Washouts or Leach zones
 DRILL HOLE(S)
MUSKOWEKWAN PROJECT

2009 Drill Hole

3.6 m of 25.2% K2O (39.9% KCl)

2.4 m of 25.5% K2O (40.4% KCl)

Also:
6 surrounding drill holes show all 3
potash beds present (Chapman
Report)

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 3D SEISMIC RESULTS
AUGUST 2010

• Tight spaced 3D allows widely spaced drill

holes (4 km)
• Low cost exploration
• 3D established geologic continuity (NI 43-
101)
• Significant de-risking of resource
exploration

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 3D SEISMIC
MUSKOWEKWAN PROJECT

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 3D ANOMOLY MAP – BOYD
PETROSEARCH REPORT AUG 2010

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MUSKOWEKWAN PROJECT
DRILL HOLES

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 LOW RESOURCE RISK
MUSKOWEKWAN PROJECT

• 2D Seismic – Completed
• 36,000 acres good structure
• Drill Hole(s) ~ Grade -- Completed
• High grade hole by Encanto
• Surrounding historical holes
• 3D Seismic -- Completed
• Significant de-risking August 2010
• In – Fill Drill Holes – Q4 2010
• Resource Calculation– Q1 2011
• Resource Q4 - Revaluation of Company

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POTASH FUNDAMENTALS
Growing World Population & Less Arable Land

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FERTILIZER DEMAND IS GROWING
3232
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Source: Ferticon
ESTIMATED POPULATION GROWTH BY
REGION (2050)

In Millions

Source: United Nations, Scotia Capital

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 MARKET VALUATION
COMPARABLES
COMPARABLE POTASH MINES AND DEPOSITS

Operator Encanto Encanto Encanto Potash Corp Potash Corp Athabasca Basin2 Agrium

Project/Mine Muskowekwan Muskowekwan Muskowekwan Rocanville Allan Burr Potash Vanscoy

Project Status Exploration Exploration Exploration Production Production Feasibility Production

Potash Member LPL LBP Esterhazy Esterhazy PL UPL UPL

Depth 1194 1203 1238 960 1040 930-950 1000-1100

Total Resource1 ? ? ? 1921 5090 463 437.7

Ore Zone Thickness 3.6 2.4 5.3 2.59 3.35 3.44 3.1

Ore Grade

% K20 25.2 25.5 12.4 23.5 27.6 23.2 24.7

% MGO 0.1 0.1 5.8 0.5 0 0.04-0.10 ?

% Insets 10.2 5.4 1.4 0.9 5.24 7.5 4.75

% Carnallite <1% <1% <5% 5.68 0 trace trace

Mining Technique ? ? ? Underground Underground Underground Underground

MOP Production per Year ? ? ? 10-2.8Mt 0.7-1.75Mt ? 1.3-1.8Mt

Note 1: Resources refer to current resources exclusive of historical production

Note 2: Athabasca Potash was acquired by BHP in January 2010

Sources: Corporate filings of the above listed companies and Industrial Alliance Securities

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 SHARE STRUCTURE

Issued & Outstanding 225,112,935

Options 19,400,000

Warrants 23,627,108

Fully Diluted 268,140,043

Symbol TSX-V: EPO

Cash $4.1m CDN

Warrants and Options $5.0m CDN

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STRONG SHAREHOLDER GROUPS

Lion Energy 46,000,000

Founders 40,000,000

Endeavor Group 26,000,000

Recent Financing Group 29,000,000

Hutton 6,000,000

Foreign Investors 11,600,000

Float 66,000,000
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MARKET VALUATION
COMPARABLES

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SUMMARY: THE ENCANTO
ADVANTAGE

Partnership
First Nations

Resource Time
Low Risk Near Term Milestone
Compliant Resource – Q4
High Potential Valuation
Significant Revaluation

Management
Strong Financial and Technical
Team

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 INVESTMENT HIGHLIGHTS

• Anticipated Large Resource In Q1/2011

• Low Downside Risk for High Value Asset
• High Grade Drill Hole
• 3D – Resource Continuity Demonstrated
• Strong Political Support
• Only 3 Saskatchewan Potash Juniors Remain

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 PROJECT PIPELINE
SPAR PROPERTY

• Compliant Resource
• Indicated resources of 12.49
million tonnes of K20
• Inferred resource of 12.24 million
tonnes of K20

• High Grade Intercepts

• Lower Patience Lake Member =
3.06m @ 31% K20 (50% KCI)

• Indication that Zone Thickens to East

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 PROJECT PIPELINE
OCHAPOWACE PROPERTY

• 2D Seismic Completed

• Large Contiguous Land Package

• Potential for Solution Mining

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 CORPORATE CONTACT

Vancouver Office www.encantopotash.com

380 - 580 Hornby Street info@encantopotash.com
Vancouver, British Columbia ir@vanguardsolutions.ca
Canada, V6C 3B6
Telephone: 604-683-2402
Corporate Communications: 866-918-0824

Regina Office
Suite 304, 2505-11th Ave
Regina, SK, S4P 0K6

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