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Updated Drill Results on Danakil Project, Ethiopia

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TORONTO, ONTARIO -- (Marketwire) -- 02/12/13 -- Ethiopian Potash Corp. (the "Company" or "EPC") (TSX VENTURE: FED) is pleased to announce an updated compilation of drilling results from a drill programme completed in February 2011, from the Danakil Projects in Ethiopia. No further drilling has taken place on the property.

The Company has drilled 7,781m in 32 holes located along the Western margin of the Danakil Basin covering an area measuring approximately 15 kilometres by 5 kilometres, situated north of the property boundary and south of the village of Bada (see attached Schedule "A").

The following Table 1 summarises the borehole collars for all 32 boreholes drilled to date:

TABLE 1---------------------------------------------------------------------------- DIP AZIMUTHBOREHOLE EASTING NOTHING ELEVATION (degrees) (degrees) DEPTH (m)----------------------------------------------------------------------------DAL-001 626624 1582823 -115 -90 0 5.5----------------------------------------------------------------------------DAL-001A 626631 1582836 -115 -90 0 191.5----------------------------------------------------------------------------DAL-002 626415 1581973 -115 -90 0 131.5----------------------------------------------------------------------------DAL-002A 626422 1582026 -115 -90 0 131.5----------------------------------------------------------------------------DAL-003 626745 1583186 -115 -90 0 200.5----------------------------------------------------------------------------DAL-004 626503 1582366 -115 -90 0 164.5----------------------------------------------------------------------------DAL-005 626429 1583849 -115 -90 0 215.5----------------------------------------------------------------------------DAL-006 626307 1581625 -115 -90 0 140.5----------------------------------------------------------------------------DAL-007 626852 1583622 -115 -90 0 188.5----------------------------------------------------------------------------DAL-008 627320 1583958 -115 -90 0 203.5----------------------------------------------------------------------------DAL-009 627146 1583081 -115 -90 0 209.5----------------------------------------------------------------------------DAL-010 627667 1583381 -115 -90 0 221.5----------------------------------------------------------------------------DAL-011 628182 1583694 -115 -90 0 261.5----------------------------------------------------------------------------DAL-012A 625294 1587151 -115 -90 0 182.5----------------------------------------------------------------------------DAL-013 626922 1582273 -115 -90 0 185.5----------------------------------------------------------------------------DAL-014 628513 1583142 -115 -90 0 323.4----------------------------------------------------------------------------DAL-015 627461 1582578 -115 -90 0 188.5----------------------------------------------------------------------------DAL-016 627967 1528449 -115 -90 0 206.5----------------------------------------------------------------------------DAL-017 623442 1591071 -115 -90 0 182.5----------------------------------------------------------------------------DAL-018 622251 1595243 -115 -90 0 206.5----------------------------------------------------------------------------DAL-019 622366 1597337 -115 -90 0 152.5----------------------------------------------------------------------------DAL-020 624367 1591390 -115 -90 0 302.5----------------------------------------------------------------------------DAL-021 625413 1596273 -115 -90 0 212.5----------------------------------------------------------------------------DAL-022 626924 1592241 -115 -90 0 407.5----------------------------------------------------------------------------DAL-023 628188 1585385 -115 -90 0 413.5----------------------------------------------------------------------------DAL-024 630301 1583801 -115 -90 0 452.5----------------------------------------------------------------------------DAL-025 629262 1584533 -115 -90 0 419.5----------------------------------------------------------------------------DAL-026 626537 1587507 -115 -90 0 302.5----------------------------------------------------------------------------DAL-027 630452 1585583 -115 -90 0 524.5----------------------------------------------------------------------------DAL-028 625870 1586222 -115 -90 0 185.5----------------------------------------------------------------------------DAL-028A 625870 1586222 -115 -90 0 164.4----------------------------------------------------------------------------DAL-029 629017 1586658 -115 -90 0 503---------------------------------------------------------------------------- -------------------------------------- TOTAL METRES DRILLED: 7781.3 --------------------------------------COORDINATES: UTM 37N ADINDAN



The following Table 2 summarises the assay results received to date from the project:

TABLE 2---------------------------------------------------------------------------- HOLE: COMPOSITE ASSAYS - 10% KCl CUT-OFF----------------------------------------------------------------------------DAL-001A From 120.00 m to 125.50 m: 5.50 m @ 22.02 % KCl incl. From 120.00 m to 122.50 m: 2.50 m @ 32.96 % KCl From 125.50 m to 127.00 m: 1.50 m @ 15.75 % KCl From 132.00 m to 137.00 m: 5.00 m @ 16.23 % KCl----------------------------------------------------------------------------DAL-002 From 81.50 m to 86.50 m: 5.00 m @ 32.13 % KCl incl. From 82.50 m to 85.00 m: 2.50 m @ 39.54 % KCl From 86.50 m to 89.00 m: 2.50 m @ 14.15 % KCl From 89.00 m to 104.00 m: 15.00 m @ 18.71 % KCl----------------------------------------------------------------------------DAL-003 From 121.00 m to 130.90 m: 9.90 m @ 28.35 % KCl incl. From 128.90 m to 130.90 m: 2.00 m @ 41.56 % KCl From 130.90 m to 132.40 m: 1.50 m @ 14.73 % KCl From 142.50 m to 145.00 m: 2.50 m @ 12.11 % KCl From 145.00 m to 153.50 m: 9.50 m @ 17.85 % KCl----------------------------------------------------------------------------DAL-004 From 90.50 m to 98.50 m: 8.00 m @ 27.41 % KCl incl. From 94.00 m to 95.50 m: 1.50 m @ 42.37 % KCl From 98.50 m to 103.00 m: 4.50 m @ 13.46 % KCl From 103.00 m to 114.00 m: 11.00 m @ 16.69 % KCl----------------------------------------------------------------------------DAL-006 From 86.00 m to 87.00 m: 2.00 m @ 13.13 % KCl----------------------------------------------------------------------------DAL-007 From 130.50 m to 137.50 m: 7.00 m @ 23.60 % KCl incl. From 136.00 m to 137.50 m: 1.50 m @ 38.78 % KCl From 137.50 m to 140.50 m: 3.00 m @ 18.81 % KCl From 152.50 m to 155.50 m: 3.00 m @ 14.29 % KCl From 155.50 m to 164.50 m: 9.00 m @ 19.86 % KCl----------------------------------------------------------------------------DAL-008 From 162.50 m to 167.00 m: 4.50 m @ 23.61 % KCl From 167.00 m to 176.50 m: 9.50 m @ 18.82 % KCl----------------------------------------------------------------------------DAL-009 From 133.50 m to 137.50 m: 4.00 m @ 33.13 % KCl From 137.50 m to 140.50 m: 3.00 m @ 14.95 % KCl From 155.50 m to 157.50 m: 2.00 m @ 11.34 % KCl From 157.50 m to 168.50 m: 11.00 m @ 18.05 % KCl----------------------------------------------------------------------------DAL-010 From 180.50 m to 191.50 m: 11.00 m @ 17.65 % KCl From 185.50 m to 189.50 m: 4.00 m @ 10.38 % KCl From 189.50 m to 199.50 m: 10.00 m @ 18.83 % KCl----------------------------------------------------------------------------DAL-011 From 213.50 m to 221.50 m: 8.00 m @ 21.07 % KCl From 221.50 m to 229.50 m: 8.00 m @ 21.25 % KCl----------------------------------------------------------------------------DAL-013 From 115.50 m to 121.50 m: 6.00 m @ 27.19 % KCl incl. From 115.50 m to 117.50 m: 2.00 m @ 34.83 % KCl From 143.50 m to 145.50 m: 2.00 m @ 10.72 % KCl From 145.50 m to 156.50 m: 11.00 m @ 17.98 % KCl----------------------------------------------------------------------------DAL-014 From 297.00 m to 300.40 m: 3.40 m @ 25.22 % KCl From 300.40 m to 303.40 m: 4.00 m @ 9.75 % KCl From 303.40 m to 308.40 m: 5.00 m @ 24.03 % KCl----------------------------------------------------------------------------DAL-015 From 140.50 m to 143.50 m: 3.00 m @ 16.49 % KCl From 143.50 m to 144.50 m: 1.00 m @ 14.41 % KCl From 149.50 m to 154.50 m: 5.00 m @ 13.01 % KCl From 154.50 m to 162.50 m: 8.00 m @ 19.09 % KCl----------------------------------------------------------------------------DAL-016 From 173.00 m to 178.00 m: 5.00 m @ 26.50 % KCl From 178.00 m to 179.00 m: 1.00 m @ 11.51 % KCl From 179.00 m to 189.50 m: 10.50 m @ 19.66 % KCl----------------------------------------------------------------------------DAL-020 From 195.00 m to 200.50 m: 5.50 m @ 19.73 % KCl incl. From 198.00 m to 200.50 m: 2.50 m @ 29.92 % KCl From 251.50 m to 256.50 m: 5.00 m @ 13.06 % KCl From 256.50 m to 267.50 m: 11.00 m @ 15.34 % KCl----------------------------------------------------------------------------DAL-022 From 309.50 m to 315.50 m: 6.00 m @ 20.90 % KCl From 315.50 m to 320.50 m: 5.00 m @ 18.33 % KCl From 371.50 m to 380.50 m: 9.00 m @ 15.43 % KCl From 380.50 m to 390.50 m: 10.00 m @ 20.85 % KCl----------------------------------------------------------------------------DAL-023 From 359.50 m to 364.50 m: 5.00 m @ 22.85 % KCl From 364.50 m to 367.50 m: 3.00 m @ 18.36 % KCl From 387.50 m to 393.50 m: 6.00 m @ 13.02 % KCl From 393.50 m to 401.50 m: 8.00 m @ 18.05 % KCl----------------------------------------------------------------------------DAL-024 From 359.50 m to 363.80 m: 4.30 m @ 16.39 % KCl From 441.70 m to 451.50 m: 9.80 m @ 20.28 % KCl----------------------------------------------------------------------------



Note: All widths are lineal core widths and are not true widths.

Assay results for DAL-025, DAL-026, DAL-027, DAL-028 and DAL-029 are pending.

George Roach noted, "The assays have confirmed that on the Western side of the properties we have intersected shallow mineralisation with comparable grades to our competitors along the Western margin of the Basin. The drilling to date has defined the Basin margin and shown the mineralisation has good continuity with depth towards the centre of the Basin. We expect to have the balance of the assays over the next 6 weeks and look forward to releasing these as they become available. Over and above this, we plan to make arrangements to commence the next phase of our exploration program in the near future. We expect that future exploration will extend our drilling program into the Colluli area that has already shown good indications of significant shallow mineralisation in results announced by our Northern Neighbour, South Boulder Mines."

About Ethiopian Potash Corp.

Ethiopian Potash Corp. (TSX VENTURE: FED) is a Canadian company based in Toronto, Ontario and Addis Ababa, Ethiopia.

Disclosure

All borehole collars have been visited by the Qualified Person (as defined in National Instrument 43-101) and their location verified to within the limits of hand held GPS accuracy. Analytical results have been reviewed by the Qualified Person and found to be acceptable for the purposes of this disclosure. All summary geological logs and samples assays have been compiled in an Excel-based spread sheet. Composites are weighted to sample length and were calculated in Excel using a 10% KCl cut-off. Samples less than 10% KCl may be included in any composite interval provided that average of the sample above, below and including the sample less than 10% KCL, is greater than or equal to10% KCl.

Quality Control and Quality Assurance ("QA/QC")

The QA/QC methodology employed in the initial stages of the exploration program was revised by ERCOSPLAN Ingenieurgesellschaft Geotecknik und Bergbau mbH ("ERCOSPLAN") to ensure that all core handling and sampling meet international reporting standards.

The potash-bearing HQ-NQ sized core is secured at the drill site in plastic poly-tubing, the ends of the poly-tubing thermally sealed. The plastic core box in which the core is placed is transported to the field camp for geological logging in an air conditioned logging room and sampling. Once logging is completed, identified mineralised sections of the core are cut in half by a tungsten carbide bladed band saw. Sample lengths are determined by geology and geological contacts are respected. Halite blanks are randomly inserted into the sample stream at a frequency of 1 in 20 samples Half-cores are double bagged and sealed with uniquely numbered security seals.

Samples are transported under EPC custody by air charter from the field camp to the EPC office in Addis Ababa, where they are repacked into batches and prepared for dispatch. All sample dispatches are inspected and verified at the Ethiopian Ministry of Mines ("Ministry") for export purposes and then escorted by EPC and officials of the Ministry to the airport and the samples given over to the custody of DHL and transported to Saskatchewan Research Council laboratories ("SRC") in Canada.

At SRC, the samples are prepared and analysed as per the SRC standard potash analysis package. Details of the preparation methodology and analytical techniques can be viewed on the SRC website (http://www.src.sk.ca/Industries/Mining/Pages/Minerals-Analysis.aspx - Potash analysis). SRC Geoanalytical Laboratories have been certified by the Standards Council of Canada to conform to the requirements of ISO/IEC 17025:2005 (CAN-P-4E).

Qualified Person

Bruce Cumming holds a Bachelor of Science (Honours) in Geology from the University of Cape Town and is accredited to the South African Counsel for Natural Scientific Professionals (SACNASP). Mr. Cumming is a director and the Chief Operating Officer of G&B Central African Resources Ltd., the owner of the property in the Danakil Basin, Ethiopia. Mr. Cumming has sufficient geological experience (over 35 years) and is a Qualified Person as defined under National Instrument 43-101 and has reviewed and approved the scientific and technical information presented in this release.

FORWARD-LOOKING INFORMATION:

This news release contains certain "forward-looking statements". All statements, other than statements of historical fact that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future are forward looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Such forward-looking statements include, among other things, statements relating to the Company's drilling and exploration plans (including anticipated timing). Forward-looking statements are subject to significant risks and uncertainties and other factors that could cause the actual results to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, but are not limited to: risks related to the exploration stage of the Company's properties, the possibility that future exploration results will not be consistent with the Company's expectations, changes in potash commodity prices, changes in equity markets, political developments in Ethiopia, uncertainties relating to the availability and costs of financing needed in the future, changes to regulations affecting the Company's activities, delays in obtaining or failures to obtain required regulatory approvals, the uncertainties involved in interpreting drilling and exploration results and other geological data and other factors (including exploration, development and operating risks). Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

To view the map associated with this press release, please click on the following link: http://media3.marketwire.com/docs/FED-MapImage.pdf.

Neither the 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:
Ethiopian Potash Corp.
George Roach
Chief Executive Officer and Director
+44 779 626 3999
george@regentresources.co.za



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