Mr. Glen Macdonald reports

ENCANTO POTASH ANNOUNCES MAILING OF RIGHTS OFFERING MATERIALS

Encanto Potash Corp. has completed the mailout of the materials for its previously announced rights offering to eligible shareholders. A copy of the documents is also available for download from the company's profile on SEDAR+.

Pursuant to the rights offering, holders of record of the company's common shares, as of the record date of Aug. 20, 2026, will receive rights to subscribe for securities of the company, as further described below. There are currently 19,098,379 common shares issued and outstanding. Each shareholder as of the record date will receive one right for each common share held. One point two five rights will permit the shareholder to purchase one unit at a price of two cents per unit. The rights will expire at 2 p.m. Vancouver Pacific Time on Sept. 10, 2026. Holders of rights who fully exercise their rights under the basic subscription privilege will also be entitled to subscribe, on a pro rata basis, for additional units, if available, that were not subscribed for by other holders of rights, subject to certain limitations as set out in the company's rights offering circular.

Each unit will consist of one common share and one transferable common share purchase warrant. Every four warrants will entitle the holder to purchase one additional common share at a price of seven cents per common share exercisable for one year from the expiry date. The rights will not be listed and will expire 2 p.m. Vancouver Pacific Time on the expiry date, after which time unexercised rights will be void and of no value.

A notice of rights offering and a rights subscription form will be mailed to each registered shareholder of the company resident in Canada as at the record date. Registered shareholders who wish to exercise their rights must complete the rights subscription form and deliver the rights subscription form, together with the applicable purchase funds, to the rights agent, Endeavor Trust Corp., before 2 p.m. Vancouver Pacific Time on the expiry date. Shareholders who own their common shares through an intermediary, such as a bank, trust company, securities dealer or broker, will receive materials and instructions from their intermediary.

The rights offering will be made only in applicable jurisdictions in Canada and is not and, under no circumstances, to be construed as an offering of any securities for sale in, or to a resident of any jurisdiction, other than Canada, or a solicitation therein or an offer to buy or sell securities. However, certain holders of common shares in jurisdictions outside of Canada may be able to participate in the rights offering where they can establish that the transaction is exempt under applicable laws. If you are a shareholder of the company and reside outside of Canada, please review the notice of rights offering and rights offering circular to determine your eligibility and the process and timing requirements to receive and/or exercise your rights. The company requests any ineligible holder interested in exercising their rights to contact the company at their earliest convenience.

The rights offering is subject to regulatory approval, including the approval of the TSX Venture Exchange. The company has obtained conditional approval from the exchange.

About Encanto Potash Corp.

Encanto is a publicly listed company trading on the TSX Venture Exchange as EPO.H. The company is engaged in the exploration and development of potash properties in the province of Saskatchewan. The focus is on the Muskowekan First Nation potash mineral deposits located on the reserve lands approximately 100 kilometres north of Regina, Sask. Encanto and Muskowekan continue to work toward developing Canada's first potash mine on a first nations reserve. The company is working to advance the spirit of truth and reconciliation with the first nations people of Canada.

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