Vancouver, B.C. August 10, 2010. Confederation Minerals Ltd. (“Confederation; CFM: TSX.V”) 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; MNA: CNSX”) has signed a letter of intent with American Passport Inc. (“Passport”) (“PPI: TSX.V”) whereby American Potash will grant Passport an option to acquire the rights to nine exploration permits held by American Potash in Arizona. The permits consist of Arizona State Land Department exploration leases (“the ASLD leases”) covering more than 5,800 acres and are 100% whollyowned by American Potash.

The terms of the option agreement are as follows:

  1. American Potash will assign the ASLD leases to Passport upon signing of the option agreement ;
  2. Passport will have the right to acquire 100% interest by performing the following:
    1. Issuing 500,000 shares upon the signing of the option agreement, that each share certificate shall have imprinted thereon a legend restricting transfer in Canada for four months plus one day from the date of issuance of the shares;
    2. Paying CDN $30,000.00 cash within 6 months of the signing of the option agreement;
    3. Paying CDN $30,000.00 cash within 12 months of the signing of the option agreement;
    4. Paying CDN $30,000.00 cash within 24 months of the signing of the option agreement;
    5. Meeting the minimum exploration expenditures as required by the ASLD.
    6. Exploration expenditures on the leases will be paid for by Passport on a 100% basis.
  3. The agreement is subject to a 2% NSR royalty with Passport retaining the option to purchase the royalty at the price of US $150,000 per 1% or US $300,000 for 2%.

Confederation’s share of the proceeds upon completion of the agreement will be 250,000 shares and CDN$45,000.

About the Holbrook Potash Project
The Holbrook Basin is known to contain a 600 square mile potash bed in the Permian Supai Formation as documented by the Arizona Geological Survey (AGS) Open File Report 08-07. The potash bed was drilled and delineated in the 1960s and 1970s by Duvall Corporation and Arkla Exploration. Due to low potash prices in the 1970’s the Holbrook Basin potash bed was not developed after discovery. Below is a link to the AGS report summary:

Lawrence A. Dick, Ph.D., P.Geo is the Qualified Person as defined in National Instrument 43-101, who has reviewed and approved the content of this news release.

On behalf of the Board of Directors

Signed: “Lawrence A. Dick”
Lawrence A. Dick, President

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.

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