Utah Court Grants Passport Potash Motion for Preliminary Injunction

VANCOUVER, BRITISH COLUMBIA — (Marketwire) — 09/10/12 — Passport Potash Inc. (TSX VENTURE:PPI)(OTCQX:PPRTF) (“Passport” or the “Company”) is pleased to announce that it was successful in obtaining a preliminary injunction in the civil action in Salt Lake County, Utah. The action was initiated by North American Potash Developments (“NAPD”) and other parties (“Optionors”) to the March 28, 2011 Option Agreement (the “Agreement”) with Passport. The decision by the court enjoins Optionors from terminating the Agreement at this time.


In order to successfully obtain a preliminary injunction Passport had to meet the following requirements of Rule 65A of the Utah Rules of Civil Procedure:

 

1.  The applicant (Passport) must prove there is a substantial likelihood that it will prevail on the merits of the underlying claim, or the case presents serious issues on the merits which should be the subject of further litigation;

2.  The applicant will suffer irreparable harm unless the order or injunction issues;
3.  The threatened injury to the applicant outweighs whatever damage the proposed order or injunction may cause the party restrained or enjoined; and
4.  The order or injunction, if issued, would not be adverse to the public interest.

The court’s ruling confirms Passport’s position, which it has taken from the onset of this action, that Optionors cannot unilaterally terminate the Agreement. The Company feels that this ruling is a significant step forward and is confident that it will prevail should the action continue to trial.

“We are very pleased with the court’s decision,” said Passport’s President and CEO Joshua Bleak. “From the onset of this action our position has been that Optionors should abide by the terms of the Agreement. Hopefully this decision will help them to do so.”

About the Holbrook Potash Project

Passport Potash Inc. is a TSX-listed resource company engaged in the exploration and development of advanced potash properties. Passport has acquired a strategic position in the Holbrook Basin with land holdings encompassing over 122,000 acres. In addition, Passport has a cooperative agreement with the Hopi Tribe, allowing the company to access and conduct certain exploration activities on an additional 12,853 acres of privately held Hopi land (not reservation) while allowing the tribe to share in the study results. For more information regarding the Holbrook Basin, see or visit our website at www.passportpotash.com.

On behalf of the Board of Directors

PASSPORT POTASH INC.

Joshua Bleak, President

Forward-Looking Statement

This news release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts, including the likelihood of commercial mining and possible future financings are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include unsuccessful exploration results, changes in metals prices, changes in the availability of funding for mineral exploration, unanticipated changes in key management personnel and general economic conditions. Mining is an inherently risky business. Accordingly the actual events may differ materially from those projected in the forward-looking statements. For more information on the Company and the risks and challenges of its business, investors should review the Company’s annual filings that are available at www.sedar.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts:
Passport Potash Inc.
Peter J. Kletas
Manager of Corporate Development
866-999-6251-Toll Free
[email protected]

Passport Potash Inc.
Clive Mostert
Corporate Communications
780-920-5044
[email protected]
www.passportpotash.com

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