RE:RE:RE:RE:RE:Update from Muskowekwan
Message from Jim Walchuck. A message MANY of you have been asking for. This might not be an official press release, but if you wanted an update of all the things you already knew about, this is it. Message from Encanto Dear Members of the Muskowekwan First Nation: On Tuesday, April 15, 2014 the voters of the Muskowekwan First Nation (MFN) overwhelmingly supported a surface designation authorizing the leasing and future development of its reserve lands and pre-reserve lands for the construction of a potash solution mine. During the ensuing nine month interval the Encanto Potash Board Chairman and Directors have been working diligently with potential investors to resource the $3 billion project. This is no easy feat for an exploration company at a time when the potash sector is experiencing a downturn in market prices coupled with an aggressive competitive environment, however, we continue to believe that this project will succeed. During this period Chief Bellerose, the MFN elected Council and Muskowekwan Resources Limited have been working to ensure many key elements that are needed for the project to proceed are facilitated. These include the tailings management issue, establishing an environmental regulatory regime, securing water for the mine and looking to leverage new business opportunities for the community, jobs for its membership and growth for the local economy. It remains our mutual vision to realize and improve the lives and livelihood of the Muskowekwan men, women, and children for generations to come. Encanto Potash Corporation through its joint venture management entity of First Potash Ventures is committed to enhancing its efforts to build a joint venture potash solution mine on Muskowekwan reserve lands and most importantly, to sustain an enduring relationship with you the people. We are deeply appreciative of your past support and reiterate our thanks for all of the good will MFN and Canada North Camps Partnership During the past year, the Chief and Council of the Muskowekwan First Nation have been very busy meeting and talking to other business leaders from various types of business to explore all potential opportunities for the First Nation, especially business opportunities that can result in joint partnerships and ventures. The MFN leaders are particularly interested in opportunities that can create job opportunities for members of the First Nation and where skill development and upgrading is a key component of such a partnership or venture. Last fall one of those discussions led to reaching an agreement in the form of a 50-50 percent equal partnership. The Muskowekwan First Nation (MFN) and Canada North Camps (CNC) signed an agreement to build work camps in Saskatchewan that would provide camp and catering service to industry building heavy construction projects. The camps could be built on lands of the MFN and beyond. Such an agreement was of interest to the Muskowekwan leadership as they have a partnership with Encanto to build a potash on-reserve land of the Muskowekwan First Nation. Canada North Camps has operated open camps throughout Alberta for a number of years servicing industry. As well, Canada North Camps also operates contract camps for oil field and government agencies. Accommodation and food services along with other services are provided at the camps by Canada North Camps. Chief Reginald Bellerose and his council are excited about this camp and catering partnership, as it is the start of a mutually beneficial business collaboration(s) between MFN and the McCracken family, owners of Canada North Camps. With the signing of this partnership Muskowekwan First Nation will position itself to take full advantage of the eco- nomic opportunities that are emerging in Saskatchewan such as the construction of potash mines and the building of facilities related to industry, said Chief Bellerose. “This agreement has the potential to create job opportunities for our members 2 you have expressed at the polls and throughout our many consultations during the past five years. The potential economic returns to the community, region, and province are significant and will position the Muskowekwan First Nation as future business leaders in Saskatchewan and within Canada. We ask that you continue to provide support to your leadership and to our organization as we continue the necessary work to secure the financing and regulatory processes. Project Milestones The following are major milestones with respect to the project to develop the potash resource on Muskowekwan First Nation reserve lands: 2009: Muskowekwan First Nation (MFN) and Encanto Resources Ltd. (Encanto) announce that they will partner in exploring for potash at MFN, seismic studies begin; 2010: Joint Venture Agreement signed between MFN and Encanto; 2011: Preliminary Economic Assessment done, drilling begins for delineation of potash resources on Treaty Land Entitlement lands; 2012: Successful sub-surface minerals designation vote; Novopro Projects Inc. hired to complete pre-feasibility study, Stantec Consulting Ltd. hired to complete Environmental Assessment (EA); 2013: Pre-feasibility study complete, bankable feasibility study begins; Conditional sub-surface lease; MFN is accepted into the First Nation Commercial and Industrial Development Act (FNCIDA) 2014: Successful surface designation vote; FNCIDA work continues; draft surface lease.