July 9th

Potash North Completes Private Placement and Purchase of Permits

Potash North Resource Corporation (the \"Company\") (TSX VENTURE:PON) is pleased to announce that it has closed its private placement announced on June 10, 2008 and has issued 13,100,000 units at $2.50 per unit for gross proceeds of $32,750,000.

The syndicate of agents led by Canaccord Capital Corporation, and including GMP Securities L.P., National Bank Financial Inc., Wellington West Capital Markets Inc., Genuity Capital Markets Inc. and Salman Partners Inc. were paid a cash commission of 6% of the proceeds and 786,000 compensation options each exercisable to purchase one unit at $2.50 per unit until July 9, 2010. Peninsula Merchant Syndications Corp. (\"Peninsula\"), a company controlled by Sam Magid, was paid $600,000 for investment and consulting services related to the offering. Each unit sold in the offering and each unit which can be acquired on exercise of the compensation options comprises one common share and one common share purchase warrant with each warrant entitling the holder to acquire one common share of the Company at $4.00 per share until July 9, 2010. The common shares and any common shares issued pursuant to the exercise of the common share purchase warrants before November 10, 2008 are subject to a hold period expiring on and restricted from trading on the TSX Venture Exchange until November 10, 2008.

Of the 1,100,000 units sold pursuant to Potash One\'s participation rights, Potash One Inc. subscribed for 1,000,000 units, bringing the total number of securities of the Company owned by them to 7,538,850 common shares, 6,583,850 common share purchase warrants at an exercise price of $0.50 and 1,000,000 common share purchase warrants purchased in this offering at an exercise price of $4.00.

Net proceeds from the offering will be used to finance the exploration, evaluation and potential development the Company\'s KP 416 and KP 417 potash permits in Saskatchewan and for general corporate purposes. The exploration program outlining the program was announced on July 8, 2008.

Further, in accordance with the purchase and sale agreement under which the Company indirectly acquired permits KP416 and KP 417 and as a consequence of receiving TSX Venture Exchange acceptance of the Technical Report filed on Sedar on July 7, 2008 the Company has paid the balance of the purchase price for KP416 and KP417 to Peninsula by issuing a $1.75 million unsecured convertible debenture (the \"Debenture\") and paying Peninsula $825,000. The terms of the Debenture are set forth in the Company\'s news release of May 12, 2008 and the Debenture and any shares and warrants issuable thereunder are subject to a hold period expiring on November 10, 2008.

ON BEHALF OF THE BOARD

Craig A. Angus, President

SOURCE: Potash North Resource Corporation

Potash North Resource Corporation Arlen Hansen (604) 684-6730