ENCANTO POTASH CORP. ENTERS INTO JOINT VENTURE FOR THE EXLORATION OF OIL AND
GAS ASSETS ON FIRST NATIONS LANDS IN SASKATCHEWAN

Trading Symbol:  TSXV   EPO.V

VANCOUVER, Sept. 16 /CNW/ - Encanto Potash Corp. ("Encanto") is pleased to announce that its operating subsidiary, Encanto Resources Ltd. (the "Company"), has entered into a joint venture agreement (the "Sundance Agreement") with Sundance Energy Corporation ("Sundance") pursuant to which:

a.			the Company and five First Nations intend to grant Sundance a license on all of the seismic data (2D and 3D) owned by the Company and the First Nations with respect to the First Nations' lands in consideration for 10,000,000 shares of Sundance (5,000,000 for the Company and 1,000,000 to each of the First Nations), which will be replaced by an aggregate $2,000,000 in cash by June 15, 2011 if Sundance has not completed an IPO or an RTO to become a public company before April 1, 2011.
b.			the Company will enter into a joint venture agreement with each of the First Nations (the "JV Agreements") with respect to the exploration and development of oil and gas on the First Nations' lands on the terms set out in the JV Agreements, which the Company will then assign to Sundance in consideration for $100,000 and 2,800,000 shares of Sundance for each JV Agreement so assigned.

To date, JV Agreements, Seismic License Agreements and Farmout Agreements have been entered into with the Ochapowace and Muskowekwan First Nations, and in accordance with the Sundance Agreement the Company has, with the approvals of the two First Nations, assigned 100% of its rights, title, interests and obligations there under to Sundance.  The Company has received $200,000 from Sundance to date as well as an aggregate 5,600,000 additional shares of Sundance in due course.  After the acquisition of the 5,600,000 shares from Sundance Encanto's ownership in Sundance will total 10,600,000 common shares equaling 31% of the current issued and outstanding common shares of Sundance.  The JV, Seismic License and Farmout Agreements with the other three First Nations are pending various approvals and execution of documentation.

Sundance Energy Corporation is a private Company incorporated pursuant to the laws of the Province of Alberta.  Sundance's senior management consists of a group of multi disciplined professionals with extensive domestic and international industry experience along with extensive domestic First Nation experience. Sundance is also involved in exploration and development in the Samson (Wetaskiwin) area in Alberta.  It is Sundance's intention to become a publicly listed and traded company in due course by of way of a reverse takeover (RTO) of an existing public company or by way of an initial public offering (IPO).

Mr. James Walchuck, President of Encanto states, "We are very pleased to enter into this agreement with Sundance which will mutually benefit the Company and the First Nations while allowing Encanto to continue focusing on its core business of Potash exploration."

About Encanto:

Encanto Potash Corp. is a TSX Venture Exchange-listed Canadian resource company engaged in the exploration and development of potash properties in the Province of Saskatchewan, Canada, the largest producing region for potash in the world.

For additional information about Encanto Potash Corp., please visit the company website at www.encantopotash.com or review the documents filed on www.sedar.com.

ON BEHALF OF THE BOARD OF DIRECTORS

	"James Walchuck"
Per:
	James Walchuck President and CEO

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBLITIY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

The foregoing information may contain forward-looking information relating to the future performance of the Company.    Forward looking information is subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward looking statements.     Such risks and other factors include, among others, the actual results of exploration activities, changes in world commodity markets or equity markets, the  risks of the mining industry including, without limitation, those associated with the environment, delays in obtaining governmental approvals, permits or financing or in the completion of development or construction activities, title disputes, change in government and changes to regulations affecting the mining industry, and other risks and uncertainties detailed from time to time in the Company's filings with the Canadian securities administrators (available at www.SEDAR.com).  Forward-looking statements are made based on various assumptions and on management's beliefs, estimates and opinions on the date the statements are made.  Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward-looking information contained herein.  The Company undertakes no obligation to update forward-looking statements if these assumptions, beliefs, estimates and opinions or other circumstances should change, except as required by applicable law. 

For further information:

James Walchuck     President and CEO     Tel:  [phone]

Brian Martin Vanguard Shareholder Solutions Tel:  [phone]        Toll Free:  1-866-918-0824