Passport Potash Terminates Letter of Intent with NZ Legacy and Secures $6,975,000 CDN Financing

Passport Potash Terminates Letter of Intent with NZ Legacy and Secures $6,975,000 CDN Financing
VANCOUVER, BRITISH COLUMBIA–(Marketwire – Dec. 16, 2011) – Passport Potash, Inc. (“Passport” or the “Company”) (TSX VENTURE:PPI)(OTCQX:PPRTF) announces, further to its news releases of October 20, 2011 and October 31, 2011, that it has terminated its letter of intent (“LOI”) with NZ Legacy, LLC (“NZ”).

Passport also announces that it has arranged a fully subscribed non-brokered private placement of $6,975,000.00 which consists of 46,500,000 units at $0.15 cents, each unit consisting of one common share and one half warrant exercisable at $0.20 cents for a period of one year. The proceeds are to be used for general working capital and the current exploration program. A finder’s fee may be paid in certain circumstances.

Passport further announces that it will be re-pricing 5,777,000 options that were issued at $1.20 and 1,321,000 options that were issued at $0.83 cents. The options will be re-priced at $0.20 cents.

The private placement and re-pricing are subject to regulatory approval.

About Passport Potash, Inc.

Passport Potash Inc. is a publicly traded corporation engaged in the exploration and development of advanced potash properties with its major focus on a previously explored potash property in Arizona. Passport has acquired a strategic position in the Holbrook Basin with land holdings encompassing over 81,315 acres. For more information regarding the Holbrook Basin, please visit http://www.azgs.az.gov/arizona_geology/Summer%2008.pdf.

On behalf of the Board of Directors of Passport Potash Inc.

Joshua Bleak, 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.

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