Western Potash Holdings Corp. receives second tranche of $17 million equity financing from Vantage Chance Limited

Western Resources Corp.

VANCOUVER, British Columbia, July 30, 2022 (GLOBE NEWSWIRE) — Western Resources Corp. (“Western” or the “Company”) (TSX: WRX) is pleased to announce that its subsidiary Western Potash Holding Corp. (“WPHC”) received the second tranche of the proceeds of its equity financing from Vantage Chance Limited (“Vantage”) in the amount of $17 million on July 29, 2022, as part of the previously announced investment (as set forth in a press release dated February 16, 2022), in exchange for the issuance to Vantage of 33,431,578 common shares of WPHC. At the time of issuance, Vantage will own approximately 42.32% of the issued and outstanding common shares of WPHC, which in turn owns 100% of Western Potash Corp. (which itself owns the Milestone Potash project (the “Project”).

The first tranche of Vantage’s $33 million equity investment in WPHC closed on May 25, 2022 and resulted in the issuance to Vantage of 64,896,592 shares of WPHC common stock. However, given the timing of the use of project construction and development funds, Vantage and WPHC have agreed to a second amended and restated subscription agreement dated July 28, 2022, allowing Vantage to purchase the 92,428,479 additional ordinary shares previously agreed in two tranches – the second tranche and the third tranche. The Second Trance, grossing $17 million, closed on July 29, 2022 this Friday. The remaining investment of $30 million is expected to close no later than September 30, 2022. Pursuant to the subscription agreement, Vantage has committed to make a strategic equity investment of CA$80,000,000 in WPHC.

About Western Resources Corp.

Western Resources Corp. and its subsidiary Western Potash Corp. are building one of the newest and most innovative, environmentally friendly and capital efficient potash mines in Canada. It is expected to be the first potash mine in the world to leave no salt residue on the surface, reducing water consumption by about half and significantly improving energy efficiency. The successful completion of the project will form the basis for further expansion.

ON BEHALF OF THE BOARD OF DIRECTORS

Bill Xue
President and CEO

Cautions Regarding Forward-Looking Statements

Certain statements contained in this press release constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by words such as “anticipate”, “continue”, “estimate”, “expect”, “expect to”, “intend”, “could”, “will”, “plan”, “plan”, “should”, “believe” and similar expressions (including negative variations), or that events or conditions “will”, “would”, “could”, “could” or “should” occur. Forward-looking statements are based on the beliefs and estimates of management as of the date such statements are made and are subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results to differ materially from those expressed or implied by such forward-looking statements or information. management of the Company has attempted to identify ile the important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be those anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information set forth herein except in accordance with applicable securities laws.

For further information on the contents of this release, please contact Simon Guo, Corporate Secretary, at 306-924-9378.

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