Athabasca Potash Inc. Announces Second Quarter Results

SASKATOON, SASKATCHEWAN (August 17, 2009)

Athabasca Potash Inc. (“Athabasca” or the “Company”) announced that it has filed the results of Company’s operations for the three months ended June 30, 2009 all of which will be available at www.sedar.com or www.athabascapotash.ca.Highlights for the second quarter include:

. Updated Mineral Resource estimate for the Burr Project, including an estimated 425 million tonnes of Measured and Indicated Mineral resource

. Expenditures on mineral properties totalled $4,494,000 for the quarter

. Cash and cash equivalents of $22,909,138 at June 30, 2009

. Issued and outstanding shares of 37,340,867 at June 30, 2009

Burr Project

During the second quarter of 2009, API continued to focus on the Environmental Impact Statement (EIS) and the Pre-feasibility Study (PFS) for its 100% owned Burr Project. The Burr Project site is located 107 km (140 km by highway) east of the City of Saskatoon in the Province of Saskatchewan, Canada. The southern boundary of the project area is located 13.5 km north of the Lanigan Mine headframe (owned and operated by Potash Corporation of Saskatchewan) and 26 km northwest of the town site of Lanigan.

The PFS is expected to be completed in the third quarter of 2009. The EIS documents were submitted and received on August 5, 2009 by the Saskatchewan Department of Environment for review. From March 30 to April 2, 2009 API held a second round of open house consultation meetings as part of the EIS public consultation process. Open house consultation meetings were held in Burr, Humboldt, Lanigan, and Saskatoon. The Company believes there is positive public support for the development of a potash mine.

On May 29, 2009 the Company announced an updated National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) compliant potash resource estimate for the Burr Project prepared by Lions Gate Geological Consulting Inc. (“LGGC”). The targeted mining members, including both the Upper Patience Lake (“UPL”) and Lower Patience Lake (“LPL”) Sub-Members, contain estimated Measured Mineral Resources of 125,800,000 tonnes at a grade of 21.27% potassium oxide (“K2O”), Indicated Mineral Resources of 299,000,000 tonnes at a grade of 23.07 % K2O, and Inferred Mineral Resources of 186,900,000 tonnes at a grade of 23.55% K2O. The updated resource estimate has an effective date of May 22, 2009. Mineral resources that are not mineral reserves have no demonstrated economic viability. Susan Lomas, P.Geo. of LGGC, is the “Qualified Person” (as defined in NI 43-101) for having prepared the mineral resource estimates and scientific and technical information in this press release and has reviewed the results reported herein. For more scientific and technical information relating to the estimated mineral resources for the Burr Project, please refer to the Company’s press release dated May 29, 2009 and the technical report entitled “NI 43-101 Technical Report for a Resource Estimation on the Burr Project, Athabasca Potash Inc., Saskatchewan, Canada” with an effective date of September 18, 2008 (the “Technical Report”). The May 29, 2009 press release and the Technical Report are available at www.sedar.com or www.athabascapotash.ca.

Quarter End Results ($ 000’s)

As of June 30, 2009, API’s cash and cash equivalents balance decreased to $22,909 from $31,578 at December 31, 2008. At June 30, 2009, API’s working capital position decreased to $20,698 from $30,368 at December 31, 2008. During the six months ended June 30, 2009, the Company raised a total of $257 through the issuance of common shares, before issuance of costs, upon the exercise of the over-allotment and brokers warrants related to the IPO completed in December 2007.

API recorded a quarterly net loss of $699 or ($0.02) per share compared to a loss of $210 or $0.01 per share for the same period in 2008. Income for the quarter resulted from the Company’s investments of excess cash reserves in short-term deposits and rental of farm property. For the quarter ending June 30, 2009, the Company reported interest revenue of $49 and rental revenue of $73 compared to $534 and nil for the quarter ending June 30, 2008. Revenues decreased $257 to $122 for three months ended June 30, 2009 from $379 for 2008. This decrease was due to lower interest income resulting from lower cash deposits held during 2009 and reduced interest rates on the cash deposits held during 2009.

Total operating costs for the quarter ending June 30, 2009 equalled $1,459 compared to $686 in the second quarter of 2008. This represents an increase of $773 reflecting an increase in the majority of the Company’s categories of operations. Significant increases occurred for salaries and wages ($513), office and administration ($88) and professional fees ($239).

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