BERAL, INC.  
Andrew G. Racz  
Director of Research  
300 East 54 Street, Suite 26C  
New York, New York 10022  
Telephone: (212) 319-6949  
Fax: (212) 753-1944  

 E-mail: mlikar@aol.com   

May 12, 2008

Undoubtedly, many factors depend on management. Their knowledge of the industry and their contacts with the related fields cannot at this stage be measured. However, if their attitude towards the industry is constructive, then this small company, Western Potash, with less than $100 million market cap, in contrast to POT, whose market value is $60 billion, offers the most leveraged but positive participation for the fertilizer industry. I hope history will confirm that the judgment of this scenario is affirmative.

Western Potash (IPX.V) may turn out to be an unusual, highly speculative, but intriguing way to play the fertilizer industry.

Approximately 95% of all potash produced is used for agricultural fertilizer. Global population and income growth are driven by food demand and therefore fertilizer usage. Particularly in the developing world, increased consumption of meat requires large amounts of grain which require fertilizers. The world’s arable land per capita if anything declines.

The USDA report of May 10, 2008 is expected to show that, over all, the world grain supply/demand balance will remain in a deficit for 2008, which is bullish for future fertilizer demand.

Inventories of key crops are shrinking.

Sharply rising prices pose problems for many millions except farmers. For instance, dairy product prices have increased from $2000 for a metric ton in 2006 to $5000 a metric ton in 2008.

The 21st century has changed the profile of our lives. The world’s population and their respective prosperity created a world where the standard of living has changed with increased meat consumption.

These numbers represent basically our entire lifestyle except that the price of each agricultural commodity is growing every year.

At the heart of these problems are fertilizer prices, a commodity in limited supply and with limited potential for practical expansion for the next 10 years.

Western Potash’s Strengths

In addition to the favorable industry trends, Western Potash believes that the following strengths and factors will help achieve its business goals:

Mining Friendly Jurisdiction with Existing Infrastructure

Yearly production will be 9.7M tons in 2008, 12.7M for 2012, and 15.7M ton in 2015.

Western Potash (WPX) is the sole junior potash exploration company with a project located in Manitoba and one of only three companies, including BHP Billiton Limited and Agrium Inc., focused on the area. Mining is Manitoba’s second largest resource industry and as such, receives significant government support. In 2007, Manitoba was rated as having the best policy environment in the world for mining by the Fraser Institute. Centrally located, Manitoba is a key link in the mid-continent trade corridor. It has excellent access to Asia and Europe through its deep water port on Hudson’s Bay. The port of Churchill is nautically closer to ports in Northern Europe and Russia than any other port in Canada, and is a part of the closest shipping route between North America and Asia. Manitoba’s three rail connections to the U.S. Midwest provide ready access to one of the world’s largest potash markets.

Properties in Established Potash Producing Region

Western Potash’s property is located on the Devonian Prairie Evaporite, one of the world’s most prolific potash regions, which covers a significant portion of southern Saskatchewan and extends into the McAuley-Russell area of Western Manitoba.

Potash deposits in the prairie Evaporite are unique because they typically have very consistent thickness and grade across a wide lateral zone.

Due to the predictable and generally consistent nature of potash deposits in the Prairie Evaporite, it is possible to define a western Manitoba potash deposit with relatively few drill holes supplemented by seismic coverage to establish continuity between drill holes. For example, the production decision for Potash Corp.’s Lanigan mine was based on only 18 exploration drill holes and various seismic surveys.

Potash Corp.’s Rocanville potash mine, according to Potash Corp., one of the lowest-cost potash production facilities in the world, with a mineral reserve of 422 million tones grading 22.5% K2O, is located 25 km southwest from the centre of the Manitoba Potash Property (13 km from the edge of the Manitoba Potash Property). Historical drilling and seismic results on the Manitoba Potash Property show promising geological results—analysis of two drill holes, approximately 13 miles apart, has thus far revealed intersections of 13.5 feet at 18% K2O and 12.5 feet at 20% K2O. The Manitoba Potash Property is also adjacent to properties held by BHP Billiton Limited (164.67 million tones @ 24.5% K2O) and Agrium Inc. (750 million tones @ 21% K2O). See “The Manitoba Potash Property—Introduction.”

Well Financed, Potash-Focused Public Company

Before giving effect to the Offering, Western Potash has approximately $50M cash on its balance sheet, increasing to approximately $70M, after the exercise of warrants and options, subsequent to the closing of the Offering. The strong cash position will allow the Company to aggressively advance exploration of the Manitoba Potash Property on an accelerated time frame. Accordingly, the Company provides a unique opportunity to invest in a nimble junior public enterprise focused solely on exploring for potash in Manitoba.

Use of Proceeds

The net proceeds to the Company from the Offering, after the payment of all costs in respect of the Offering, are estimated to be $50M. The net proceeds of the Offering together with the proceeds from prior sales of Common Shares are expected to be used as follows:

Table B: Global Potash Fertilizer Use by Crop – 2006/2007    World Potash Reserves (Billions Tones K2O2, Percentage of Global Reserves)

The price of potash meanwhile is growing rapidly. Effective June 1, 2008, the price range will be between $150 to $175. A recently signed contract with India was priced at $355, and with China at $400. Current contracts for future delivery are priced at $725. In this potash-inflated world, when we take into account the world’s population grows, the conclusion must be reached that unless 50-100% increase in arable land can be achieved, the demand for current and future production can increase dramatically.

World population was 2.5 billion in 1950, 6 billion in the year 2000, projected to reach 7 billion in 2010, and 9 billion by 2050. The production forecast for major producers appears in Table C.

I, we accept the theory that Western Potash has arable potash-producing land, and we can assume that in 5 years time it will produce potash, then the stock is the depository of many positive—if hypothetical—factors.

There are various possibilities.

Undoubtedly, many factors depend on management. Their knowledge of the industry and their contacts with the related fields cannot at this stage be measured. However, if their attitude towards the industry is constructive, then this small company, with $100 million market cap, in contrast to potash corporations market value of $60 billion, offers the positive outlook the judgment of the prospect in the affirmative.