2009 News Releases

Confederation Receives Arizona Holbrook Basin Potash Mineral Exploration Permits

Vancouver, British Columbia, July 21, 2009; Confederation Minerals Ltd. (“Confederation; CFM”) is pleased to report that American Potash LLC (“American Potash”), a Nevada limited liability corporation owned 50% by Confederation, and 50% by Magna Resources Ltd. (“Magna”) has received from the Arizona State Land Department the approval of five mineral exploration permits totaling 3,200 acres and the request for plan of operations for eight additional mineral exploration permits totaling 3,222.93 acres. These, together with the pending Bureau of Land Management (“BLM”) potassium prospecting permits total 9,690 acres of land available to American Potash for drill testing in Arizona. Relative to the BLM potassium prospecting permits, American Potash has received a letter of request from the BLM for exploration program proposals, the precursor to final permit approval.

American Potash’s exploration permits are located 30 kilometers southeast of Holbrook, Arizona, in the SW portion of the Holbrook Basin. Land status consists of checkerboard Arizona State land and BLM lands. American Potash permits cover both Arizona State lands and BLM lands where the Arizona Geologic Survey indicates potash thicknesses of 3 to 6 meters.

The Holbrook Basin is a sedimentary basin located in east-central Arizona comprised of extensive salt deposits localized in the Permian-aged Supai formation. Potash underlies approximately 1,500 square kilometers of the Basin. Previous drilling by Arkla Exploration Company, Duval Corporation, and others drilled a total of 135 potash exploration holes in the 1960’s and 1970’s. They reported the presence of potassium minerals in the main potash “pay zone”, with grades of 6% to 20% potash at depths of 300 to 440 meters. Thus, Potash deposits of the Holbrook basin may be favorable to conventional underground or solution mining as faulting and layer disruption from diapir affects common to salt deposits are minimal. Conventional mining at depths of 300 to 450 meters may be profitable at current potash prices. The potential grades are conceptual in nature, there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource. Confirmation for remaining permits for Arizona State and BLM acreage is expected soon.

American Potash also has 31 BLM potassium prospecting permit applications covering approximately 63,000 acres (25,500 hectares) of BLM land within the Paradox Sedimentary Basin in southeast Utah, USA. The potash prospects are located approximately 30 miles (48 km) west of Moab, Utah and 20 miles (32 km) from Intrepid Resources’ Cane Creek solution potash mine. The BLM potassium prospecting permits, if and when granted, will provide American Potash with exclusive rights to explore potash deposits within the permit area. A detailed description of the Utah potash prospects are provided in Confederation’s June 3, 2009 news release.

With the exception of permits already issued in Arizona, all references to the Utah and Arizona permits are references only to permits that have been applied for but are yet to be issued. There is no assurance that Arizona State Land mineral exploration permits and BLM potassium prospecting permits will be issued or that those issued will be contiguous. All interest in the permits and applications held by American Potash are subject to further obligations under the option agreement described in the June 3, 2009 news release.

This announcement has been prepared under the supervision of Lawrence A Dick, Ph.D., P.Geo., the Qualified Person for the purposes of NI 43-101 with respect to the technical information in this news release.


On behalf of the Board of Confederation Minerals Ltd.
Lawrence A. Dick, Ph.D., P. Geo., President and CEO
For more information contact:
Lawrence Dick, Ph.D., P.Geo.
President and CEO
604-688-9588