As a result of these actions, certain equipment previously forming part of the ALP has been removed. The related capital cost has been written off, as well as the costs relating to the original ALP pilot plant previously recorded in mineral property, for a total charge to income of $6.5 million. In addition, during the first nine months of the year, the Company incurred approximately $1.0 million relating to the commissioning of the ALP.

Owner mining

During the year, half of the mining operations were transitioned from contract mining to owner mining, incurring $1.3 million of non-operational costs in the process. These costs are presented separately on the statement of income as they are considered specific to these transitional activities and non-recurring.

Production Results

Selected operational information for Aguas Blancas mine for the three months and year ended December 31, 2011 compared to 2010 is set out in the following table:

	Three Months Ended December 31, 2011	Three Months Ended December 31, 2010	Year Ended December 31, 2011	Year Ended December 31, 2010
Tonnes Mined (000’s t)	1,311	1,033	4,488	3,804
Iodine Grade (ppm)	586	570	581	623
Iodine Produced (t)	277	345	1,122	1,256
Iodine Sold (t)	260	325	1,134	1,244

Compared to 2010, increased tonnes mined during the year helped offset the lower grade profile of portion of the deposits mined. Lower annual iodine production was also partially caused by the delays associated with the commissioning of the ALP. The higher volume of tonnes mined in the fourth quarter was directed to the heaps with the related production expected in 2012.

Improved operations from the heap leach and production from the ALP are expected to improve Aguas Blancas production profile in 2012. During the first quarter of 2012, iodine production was 344 tonnes, an improvement of 24% over the last quarter of 2011.


 

	Three Months Ended September 30, 2011	Three Months Ended September 30, 2010	Nine Months Ended September 30, 2011	Nine Months Ended September 30, 2010
Tonnes Mined (Mt)	1,008,276	976,395	3,177,001	2,770,687
Iodine Grade (ppm)	574	618	576	643
Total Iodine Produced (Mt)	191	322	844	912
Iodine Sold (Mt)	194	329	873	919

The tonnage and grade mined in the third quarter were consistent with the mine plan. Iodine production decreased substantially in the third quarter of 2011 due to the poor availability of crushing screening plant in the ALP and a cold winter which caused the precipitation of sulphates from the Heap Leach brine.

Salvador Potash Project - Brazil

The Salvador project is located near the city of Salvador, Bahia, on the north eastern coast of Brazil, and is within the large on-shore Reconcavo sedimentary basin with the potential to host a major new potash deposit. The Company holds exploration permits covering an area of 2,500 square kilometres over the southern on-shore portion of the Reconcavo sedimentary basin.

The Company is reviewing the status of this project.


 

Production Results

Selected operational information for Aguas Blancas mine for the three and six months ended June 30,2011 compared to 2010 is set out in the following table:

	Three Months	Three Months	Six Months	Six Months
	Ended June	Ended June	Ended June	Ended June
	30, 2011	30, 2010	30, 2011	30, 2010
Tonnes Mined (Mt)	1,116,836	865,165	2,168,725	1,794,292
Iodine Grade (ppm)	568	693	577	656
Total Iodine Produced (Mt)	286	275	653	591
Iodine Sold (Mt)	329	273	679	590

Consistent with the mine plan, the tonnage mined in the first half of 2011 was higher as compared to 2010. The lower grade mined is consistent with the 2011 mine plan. As a result of the higher tonnage and better plant efficiency production also increased in the first half of 2011. As the process is transitioned from heap leach to the ALP system, there are likely to be a few months of lower production due to the reduction in water available for application on the heaps as the ALP production gradually ramps up.

Salvador Potash Project - Brazil

The Salvador project is located near the city of Salvador, Bahia, on the north eastern coast of Brazil, and is within the large on-shore Reconcavo sedimentary basin with the potential to host a major new potash deposit. The Company holds exploration permits covering an area of 2,500 square kilometres over the southern on-shore portion of the Reconcavo sedimentary basin. Historical drilling records indicate the occurrence of potash beds at depths of approximately 1,000 metres, directly overlying the halite salt bed located in the evaporitic section of the lower Alianca Formation of upper Jurassic age. In 2010, studies and review of information provided by the drill holes, indicated that though the region near the north central part of the concession showed potash mineralization, the indications were that the grade-thickness of the mineralization was probably not sufficient for a stand alone potash project. Additional gravimetric studies indicate that the area south of this region, where large salt formations appear to be at a similar depth, may be more suitable for continued exploration. Studies are underway to identify locations for further exploration.

Production Results

Selected operational information for Aguas Blancas mine for the three months ended March 31, 2011 compared to 2010 is set out in the following table:

	Three Months Ended March 31, 2011	Three Months Ended March 31, 2010
Tonnes Mined (Mt)	1,051,889	929,127
Iodine Grade (ppm)	586	621
Total Iodine Produced (Mt)	367	315
Iodine Sold (Mt)	350	317

Consistent with the mine plan, the tonnage mined in 2011 was higher as compared to 2010. As a result of the higher tonnage and better plant efficiency production also increased in 2011.

Salvador Potash Project - Brazil

The Salvador project is located near the city of Salvador, Bahia, on the north eastern coast of Brazil, and is located within the large on-shore Reconcavo sedimentary basin with the potential to host a major new potash deposit. The Company holds exploration permits covering an area of 2,500 square kilometres over the southern on-shore portion of the Reconcavo sedimentary basin. Historical drilling records indicate the occurrence of potash beds at depths of approximately 1,000 metres, directly overlying the halite salt bed located in the evaporitic section of the lower Alianca Formation of upper Jurassic age.

In 2010, attempts were made to complete the first hole of a three hole drill program designed to define the depth, thickness and grade of the potash beds within the central portion of its Salvador Potash Project. Due to various difficulties including encountering fractured, fragmented shales that the drilling rig could not penetrate and after trying three separate rigs on the first hole, it was determined that the hole should be abandoned and a new site selected. The second drill hole, which was 5 kilometres away from the first drill hole, was completed in 2010 and while containing potash salts, did not hit the massive salt zone.

Permitting of additional drill sites is continuing, and five permitted locations currently remain to be tested. Gravimetric studies were expanded to help locate additional targets. An independent engineering firm has been contracted to carry out an evaluation of the project potential and to recommend the path forward for continued exploration. Their draft report agrees with the Company's current approach to better define the region of interest through gravimetric studies to determine the optimum location for continued drilling.

Production Results

Selected operational information for Aguas Blancas mine for the three months and year ended December 31, 2010 compared to 2009 is set out in the following table:

	Three Months Ended December 31, 2010	Three Months Ended December 31, 2009	Year Ended December 31, 2010	Year Ended December 31, 2009
Tonnes Mined (Mt)	1,033,499	847,345	3,804,186	3,203,373
Iodine Grade (ppm)	570	633	623	570
Iodine Produced (Mt) (000's)	345	318	1,256	1,096
Iodine Sold (Mt) (000's)	325	338	1,244	1,086

Consistent with the mine plan, the tonnage mined in 2010 was higher as compared to 2009. Ore grade was substantially higher as a result of encountering higher grade remnant ores from previously mined areas. As a result of the higher tonnage, higher grades and improvements in leaching and water distribution, production also increased in 2010.

New Reserve/Resource Estimate

The new Reserve and Resource estimates as at December 31, 2010, as per independent 43-101 Technical Report, representing a 23% increase in measured and indicated iodine resource over the prior estimate, are as follows (Company's news release dated February 16, 2011):

Aguas Blancas Reserves and Resources* December 31, 2010
	Tonnes (millions)	Iodine (I2 in ppm)	Sulphate (SO4 in %)	Nitrate (NO3 in %)
Reserves
Proven	7,831	430	21.1	2.88
Probable	44,403	461	11.8	1.87
Total	52,237	456	13.2	2.02
Resources
Measured	7,931	478	24.3	3.31
Indicated	47,018	497	13.1	2.14
Total	54,948	494	14.8	2.31
Inferred	68,227	391	11.1	2.70

*The Measured and Indicated Resources are inclusive of the reported Proven and Probable Reserves, which represent those parts considered as being economically viable, according to CIM Definitions and Guidelines as required by National Instrument 43-101. Adam Wheeler, independent consultant and Qualified Person pursuant to NI 43-101, was commissioned to prepare a reserve and resource estimate (dated December, 2010) in accordance with NI 43-101 based on results of recent drilling and analytical results.

The Reserve estimation parameters were governed by estimated recoverable iodine and economic estimates which will be available in the Technical Report on the SEDAR website (www.sedar.com) as well as the Company's website (www.atacama.com). These include a calculated 260 ppm cutoff grade based on current and estimated costs going forward as well as assuming $28 per kg iodine price. Mining ore recovery is estimated at 95% with 16% dilution based on historical data. Process recovery is estimated at 56% overall for heap leach and 74% overall for agitated leach.

Salvador Potash Project - Brazil

The Company holds exploration permits covering an area of 2,500 square kilometres over the southern on-shore portion of the Reconcavo sedimentary basin. Historical drilling records indicate the occurrence of potash beds at depths of approximately 1,000 metres, directly overlying the halite salt bed located in the evaporitic section of the lower Alianca Formation of upper Jurassic age.

The Salvador project is located near the city of Salvador, Bahia, on the northeastern coast of Brazil, and is located within the large on-shore Reconcavo sedimentary basin with the potential to host a major new potash deposit. In 2010, attempts were made to complete the first hole of a three hole drill program designed to define the depth, thickness and grade of the potash beds within the central portion of its Salvador Potash Project. Due to various difficulties including encountering fractured, fragmented shales that the drilling rig could not penetrate and after trying three separate rigs on the first hole, it was determined that the hole should be abandoned and a new site selected. The second drill hole was completed earlier in the year and while containing potash salts, did not hit the massive salt zone. Permitting of additional drill sites is continuing, and two permitted locations currently remain to be tested. Gravimetric studies were expanded to help locate additional targets. An independent engineering firm has been contracted to carry out an evaluation of the project potential and to recommend the path forward for continued exploration.

Production Results

Selected operational information for Aguas Blancas compared to 2009 is set out in the following table:

	Three Months Ended September 30, 2010	Three Months Ended September 30, 2009	Nine Months Ended September 30, 2010	Nine Months Ended September 30, 2009
Tonnes Mined (Mt)	976,395	707,664	2,770,687	2,356,028
Iodine Grade (ppm)	618	544	643	548
Iodine Produced (Mt) (000’s)	322	285	912	778
Iodine Sold (Mt) (000’s)	329	269	919	748

Tonnage mined in the third quarter of 2010 was higher compared to the same period in 2009. Ore grade was substantially higher due high grade material from previously mined areas. Year to date tonnage is also higher than the same period in 2009. Production also increased compared to the same period in 2009 as a result of higher grade returns from higher grade material placed on the leach pads earlier in the year.

Salvador Potash Project - Brazil

The Company holds exploration permits covering an area of 2,500 square kilometres over the southern on-shore portion of the Reconcavo sedimentary basin. Historical drilling records indicate the occurrence of potash beds at depths of approximately 1,000 metres, directly overlying the halite salt bed located in the evaporitic section of the lower Alianca Formation of upper Jurassic age.

The Salvador project is located near the city of Salvador, Bahia, on the northeastern coast of Brazil, and is located within the large on-shore Reconcavo sedimentary basin with the potential to host a major new potash deposit. In December 2009, the Company commenced the first phase of a drill program comprising of three holes, designed to define the depth, thickness and grade of the potash beds within the central portion of its Salvador Potash Project. Drilling on the first hole continued to be problematic during the third quarter, but was able to reach just over 1,000 meter depth by the end of September 2010. A larger drill rig is being brought to site in Q4 to complete the first hole to depth. Geological indicators continue to be positive and the Company is optimistic that the hole will be completed before year end. Drilling of the second hole was completed late in the third quarter, and while not encountering massive salt beds, did encounter the large anhydrite zones typical of evaporite deposition, as well as indications of carnelite and halite minerals. Core samples from the second hole have been prepared and sent to SGS Laboratories in Brazil for analysis, which are expected to be available prior to year end.

Production Results

Selected operational information for Aguas Blancas mine compared to 2009 is set out in the following table:

	Three Months Ended June 30, 2010	Three Months Ended June 30, 2009	Six Months Ended June 30, 2010	Six Months Ended June 30, 2009
Tonnes Mined (Mt)	865,165	581,038	1,794,292	1,618,528
Iodine Grade (ppm)	693	551	656	549
Iodine Produced (Mt) (000's)	275	247	591	493
Iodine Sold (Mt) (000's)	273	281	590	480

Tonnage mined in the second quarter of 2010 was higher compared to the same period in 2009. Ore grade was substantially higher due to the discovery of high grade material in previously mined areas.

Various optimization and modifications continued over the second quarter 2010. Larger pads built in the first half of 2010 had a negative effect on June's production, due to lag time between startup of new heaps. This should be a one-time experience. The cleaning process of the blow out towers continues as planned and the solution heater has helped maintain high throughout and recovery in the plant during the winter time.

Salvador Potash Project - Brazil

The Company holds exploration permits covering an area of 2,500 square kilometres over the southern on-shore portion of the Reconcavo sedimentary basin. Historical drilling records indicate the occurrence of potash beds at depths of approximately 1,000 metres, directly overlying the halite salt bed located in the evaporitic section of the lower Alianca Formation of upper Jurassic age.

The Salvador project is located near the city of Salvador, Bahia, on the northeastern coast of Brazil, and is located within the large on-shore Reconcavo sedimentary basin with the potential to host a major new potash deposit. In December 2009, the Company commenced the first phase of a drill program comprising of three holes, designed to define the depth, thickness and grade of the potash beds within the central portion of its Salvador Potash Project. Drilling on the first hole advanced very little during the second quarter 2010 due to technical problems. Geological indicators are still positive in this hole and the Company is optimistic about encountering the zone of interest. Drilling of the second hole has proceeded relatively well, and is currently at a depth of nearly 1,000 metres.

Production Results

Selected operational information for Aguas Blancas mine for the three months ended March 31, 2010 compared to 2009 is set out in the following table:

	Three Months Ended March 31, 2010	Three Months Ended March 31, 2009
Tonnes Mined (Mt)	929,127	1,037,490
Iodine Grade (ppm)	621	549
Iodine Produced (Mt) (000’s)	315	246
Iodine Sold (Mt) (000’s)	317	199

Tonnage mined in the first quarter of 2010 was slightly lower than the same period in 2009 due to lower productivity by one of the continuous mining machines. This was more than compensated for however by an increase in grade of ore mined.

The optimization and modifications implemented in the latter part of 2009 that positively affected production continued to favorably impact production in the first quarter of 2010, culminating in the second highest quarterly production and sales for the Company, nearly equaling fourth quarter 2009. Disciplined maintenance planning and execution are also an integral part of the increased production realized.

Salvador Potash Project -- Brazil

The Company holds exploration permits covering an area of 2,500 square kilometers over the southern on-shore portion of the Reconcavo sedimentary basin. Historical drilling records indicate the occurrence of potash beds at depths of approximately 1,000 meters, directly overlying the halite salt bed located in the evaporitic section of the lower Alianca Formation of upper Jurassic age.

0The Salvador project is located near the city of Salvador, Bahia, on the northeastern coast of Brazil, and is located within the large on-shore Reconcavo sedimentary basin with the potential to host a major new potash deposit. During 2009, the Company carried out geophysics and geological work for the selection and permitting of drill targets. In December 2009, the Company commenced the first phase of a drill program comprising of three holes, designed to define the depth, thickness and grade of the potash beds within the central portion of its Salvador Potash Project. Drilling on the first hole advanced slowly during the first quarter. Due to heavy rains and issues with the drill rig, the first hole is now expected to be completed in the third quarter of 2010. Geological indicators are still positive in this hole and the Company is optimistic about encountering the zone of interest in the coming 300 to 500 meters of drilling. Drilling of a second hole recently commenced and is currently at a depth of over 300 meters.

Agitated Leach Plant

During 2009, the Company continued to work with its independent consultant on analyzing various
possible solutions for the crushing/grinding circuit of the agitated leach plant. In March 2010, the
Company decided on a fine crushing and screening system, which are anticipated to rectify the problems
with the agitated leach plant. The cost of this system is estimated at $2.8 million and is expected to be
completed within twelve months. When fully operational, the agitated leach plant is expected to increase
iodine production capacity to 1,500 tonnes per year.

Production Results

Selected operational information for Aguas Blancas mine for the three months and year ended
December 31, 2009 compared to 2008 is set out in the following table:


Tonnage mined was increased in 2009 compared to 2008 in order to compensate for lower ore grades and to increase overall iodine production.

Iodine production for 2009 has improved from 2008 not only from increased tonnes mined but also due to heap leach optimization with increased solutions flows. It was also favorably impacted by the reactivation of leached pads by ripping and re-leaching. In the plant, a major focus on blow-out tower maintenance has improved recoveries and throughput to the plant. Optimization of the fusion plant through some minor modifications improved quality and utilization of the plant. During the colder months, the use of a heater to maintain temperatures of the brine also increased operating time and throughput at the blow-out towers.

Salvador Potash Project - Brazil

The Salvador project is located near the city of Salvador, Bahia, on the northeastern coast of Brazil, and is located within the large on-shore Reconcavo sedimentary basin with the potential to host a major new potash deposit. During 2009, the Company carried out geophysics and geological work for the selection and permitting of drill targets. In December 2009, the Company commenced the first phase of a drill program comprising of three holes, designed to define the depth, thickness and grade of the potash beds within the central portion of its Salvador Potash Project. Drilling on the first hole started slowly with completion now expected in the second quarter of 2010. The first hole is expected to be drilled to a depth of 1,500 metres.

The Company holds exploration permits covering an area of 2,500 square kilometers over the southern on-shore portion of the Reconcavo sedimentary basin. Historical drilling records indicate the occurrence of potash beds at depths of approximately 1,000 meters, directly overlying the halite salt bed located in the evaporitic section of the lower Alianca Formation of upper Jurassic age.

Production Results

Selected operational information for Aguas Blancas mine for the three and nine months ended September 30, 2009 is set out in the following table:



Tonnes of ore mined improved during the third quarter of 2009 from the second quarter of 2009 as additional equipment was brought in to rectify production shortfalls due to mine contractor's equipment downtime and re-handling of ore due to pad problems in the second quarter. Consistent with the current mine plan, the iodine grade increased in the third quarter.

As expected, iodine production during the third quarter of 2009 has improved from the second quarter of 2009 due to warmer weather and heap leach optimization with increased solutions flows.

The Company expects iodine production to slightly increase for the remainder of the year due to heap leach optimization and delivery of more ore to the leach pads.

Salvador Potash Project -- Brazil

During the quarter ended September 30, 2009 the Company continued to pursue the environmental permits for drilling on its Salvador Potash Project. The Salvador project is located near the city of Salvador, Bahia, on the northeastern coast of Brazil. In late October the environmental permits were granted. The Company expects to commence the first phase of the drill program, designed to define the depth, thickness and grade of the potash beds within the central portion of the project area, in the latter part of November, 2009. The Salvador project is located within the large on-shore Reconcavo sedimentary basin with the potential to host a major new potash deposit in Brazil.

The Company holds exploration permits which have been recently expanded to cover an area of 2,500 square kilometers over the southern on-shore portion of the Reconcavo sedimentary basin. Historical drilling records indicate the occurrence of potash beds of various meters in thickness at depths of approximately 1,000 meters, directly overlying the halite salt bed located in the evaporitic section of the lower Alianca Formation of upper Jurassic age.

Production Results

Selected operational information for Aguas Blancas mine for the six months ended June 30, 2009 is set out in the following table:





Tonnes of ore mined during the second quarter of 2009 were lower than the first quarter of 2009 mainly as a result of re-handling of ore due to pad operation problems and mine contractor's equipment downtime. Measures are being taken to rectify production shortfalls due to equipment downtime by bringing in additional mining equipment. Consistent with the current mine plan, the iodine grade declined in the current quarter and is expected to increase again for the second half of 2009.

Iodine production during the second quarter of 2009 was comparable to the first quarter of 2009 but was affected by seasonal winter conditions and pad operation problems. In addition, during the first half of 2009, iodine production was favorably impacted by the reactivation of leached pads by ripping and releaching.

Nitrate Fertilizer Project

The Company has temporarily deferred the development of the nitrate fertilizer plant due to the global credit crisis, the need to preserve cash and to focus on resolving the technical issues on the agitated leach plant.

During the second quarter, the Company made other changes to the design and construction of the leach pads to improve iodine production. The Company expects iodine production to increase for the remainder of the year from heap leach optimization and as the warm weather arrives.

Salvador Potash Project -- Brazil

The Company expects to commence drilling upon receipt of environmental permits, which are anticipated to be received late in the third quarter or early fourth quarter of 2009. Drill sites have been selected based on historical drill results and studies of geophysical and geological data.

Production Results

Selected operational information for Aguas Blancas mine for the three months ended March 31, 2009 compared to 2008 is set out in the following table:



Tonnes of ore mined during the first quarter of 2009 were higher compared to the same period of 2008 in order to increase iodine production, noting that there is a delay of 3 to 4 months before ore to leach pads produces significant amounts of iodine. Iodine production during the first quarter of 2009 was impacted by operational downtime due to electrical power supply interruptions, solution pumps failure and heap leach solution system changes. These problems have been addressed and normal monthly production is expected to be achieved in the second quarter of 2009.

The Company will continue to focus on maintaining and increasing iodine production by optimizing heap leach operations while technical issues related to the conversion to the agitated leach plant are addressed.

Nitrate Fertilizer Project

The Company has temporarily deferred the development of the nitrate fertilizer plant due to the global credit crisis, the need to preserve cash and to focus on resolving the technical issues on the agitated leach plant.

Salvador Potash Project -- Brazil

Geophysics and geological work are underway for the selection and permitting of drill targets on the Salvador potash project. The Company expects to commence drilling in early third quarter of 2009.

RESULTS OF OPERATIONS

For the first quarter of 2009, the Company reported income from mining operations of $1.3 million

2008 HIGHLIGHTS

Agitated Leach Plant and Power Supply
During the second quarter of 2008, the Company initiated the commissioning of a new agitated leach plant designed to replace the existing heap leaching system. The agitated leach plant is expected to allow for a production increase to 1,500 metric tonnes ("Mt") per annum of prilled iodine from the current 1,000 Mt per annum level.

The Company encountered commissioning problems with the crushing/grinding section of the agitated leach plant, which was found to be inadequate for the caliche ore being processed. A modified scrubber designed to disaggregate and dissolve the ore while rejecting barren volcanic rocks without wasting energy on grinding was installed at an estimated cost of $1.5 million. The Company is currently commissioning the system.

It is expected that with some additional modifications to the scrubber, the agitated leach plant will be operational toward the end of the third quarter of 2009. Meanwhile, the Company has increased the amount of ore placed on the heap pads in order to increase iodine production until such time that the agitated leach plant is operational.

Projected total cost of the agitated leach plant, including the modifications to date and the additional scrubber system is currently estimated at $29.1 million of which $27.5 million has been spent to December 31, 2008.

In conjunction with the agitated leach plant, the Company completed a new powerline in April, 2008, connecting to the local power grid, replacing existing diesel generators. The total cost of the powerline was $7.8 million.

Production Results
Selected operational information for Aguas Blancas mine for the three and twelve months ended December 31, 2008 compared to 2007 is set out in the following table:

	Three Months	Three Months	Year Ended	Year Ended
	Ended December	Ended December	December	December
	31, 2008	31, 2007	31, 2008	31, 2007
Tonnes Mined (Mt)	1,050,299	975,148	2,592,083	4,097,838
Iodine Grade (ppm)	595	520	659	518
Iodine Produced (Mt)	203	253	844	1,075
Iodine Sold (Mt)	205	234	861	1,095

Tonnes of ore mined during the year ended December 31, 2008 were lower compared to the same period of 2007 as a result of a new mine plan implemented in 2008 in anticipation of the commencement of the new agitated leach system with higher expected recoveries. However, due to the commissioning problems with the agitated leach plant, iodine production decreased for 2008 compared to the same period of 2007. In the fourth quarter of 2008, the Company increased the tonnes of mined ore to the heap leach pads in order to increase iodine production until such time the agitated leach plant is fully operational.

Nitrate Fertilizer Project
During the third quarter of 2008, the Company commenced with engineering and design of the nitrate fertilizer plant and continued with the construction of the solar evaporation ponds to harvest the nitrates salts to feed the plant. The plant is estimated to require an investment of $60 million and take approximately 27 months to complete and is designed to produce 70,000 tonnes of specialty nitrate fertilizers per year. Amounts spent on the nitrates plant and the solar evaporation ponds during the year ended December 31, 2008 were $0.8 million and $1.5 million, respectively. As a result of the technical problems with the agitated leach plant and the recent unprecedented global credit crisis, the Company has decided to temporarily defer the development of the nitrate fertilizer plant.

Salvador Potash Project -- Brazil
During the year ended December 31, 2008, the Company acquired exploration permits for the "Salvador Potash Project", located along the Atlantic coast of northeastern Brazil. Application has been made for additional exploration permits covering a total of 1,700 square kilometers west of the port city of Salvador, Bahia. Geophysics and geological work are underway for the selection and permitting of drill targets. The Company expects to commence drilling in the second quarter of 2009. The exploration budget for 2009 on the Salvador Potash Project is approximately $1.6 million.

Financing
In August 2008, the Company completed a brokered and non-brokered private placement of 50 million common shares of the Company at a price of CDN$1.00 per common share of gross proceeds of CDN$50 million. Finder's fees and other share issuance expenses totalling CDN$1.7 million were paid on a portion of the private