U.S. Markets open in 5 hrs 58 mins

Ethiopian Potash Corp.: Amendment to Original Option Agreement Lapses

TORONTO, ONTARIO--(Marketwire - Oct. 1, 2012) - Further to its news release dated July 11, 2012, Ethiopian Potash Corp. ("EPC") (FED.V) announces that the amending agreement dated July 10, 2012 (the "Amending Agreement") to the option agreement (the "Original Option Agreement") to acquire G&B Central African Resources Ltd. ("G&B"), the owner of the property in the Danakil Basin, Ethiopia, has expired as a result of conditions precedent to the amendments contemplated in the Amending Agreement not having been satisfied or waived on or before September 30, 2012.

As a result, the Original Option Agreement (and the terms contemplated therein) remain in full force and effect, and accordingly EPC retains its interest to acquire 100% of G&B subject to the fulfilment of certain conditions as set forth therein. A copy of the Original Option Agreement is available at www.sedar.com under the Company's profile.

EPC continues to review and evaluate all options in connection with EPC's development in order to increase shareholder value.

About Ethiopian Potash Corp.

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

On behalf of the Board of Directors

George Roach, CEO & Director

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.