Western Potash and China Blue seal the deal

China BlueChemical and Benewood Holdings have completed their equity investment of $32 million into Western Potash, the company behind the giant Milestone project.

NEWS RELEASE: Vancouver, June 20th, 2013 РWestern Potash Corp. ("Western" or the "Company") is pleased to confirm that the previously announced strategic investment by China BlueChemical Ltd., ("China Blue") and Benewood Holdings Corporation ("Benewood"), through a joint venture company, CBC (Canada) Holding Corp. ("CBCHC"), has been completed (the "Transaction"). Western has issued to CBCHC approximately 45 million common shares at a price of $0.71 for proceeds of C$ 31,979,022, which represents a 19.9% ownership stake in the Company on a non-diluted basis. China Blue is a majority owned subsidiary of China National Offshore Oil Corporation ("CNOOC") and Benewood is a wholly owned subsidiary of GUOXIN International Investment Corporation Limited ("GUOXIN"), a financial investment company registered in Hong Kong.

Pursuant to the subscription agreement for the Transaction dated June 1, 2013, as amended June 20, 2013 (together, the "Subscription Agreement"), CBCHC received a right to appoint one Board of Directors nominee and consequently, Mr. Yang Yexin is welcomed to Western's Board of Directors (the "Board"). Mr. Yang has been an Executive Director & Chief Executive Officer & President of China Blue since 2006. He joined the CNOOC group in 1978 and served as a mechanical engineer and as the deputy head of the mechanics division of China Offshore Oil Southern Drilling Company, the deputy general manager of CNOOC Nanhai West CPEC (Shekou) Company; the general manager of CNOOC Shipping Company and other various positions in the CNOOC Group. Mr. Yang graduated from Wuhan Communication Technology University in 1978 with a major in Vessel Engineering and obtained a Master's degree in Business Management from China University of Petroleum (Beijing) in 2004.

 

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