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Americas Petrogas Inc. and Americas Potash Peru SA: Americas Petrogas Signs Surface Rights Agreement for Bayovar Potash Brine R

^{Published on 2009-06-02 14:37:16, Last Modified on 2009-06-02 14:38:17 - Market Wire}
 

CALGARY, ALBERTA--(Marketwire - June 2, 2009) - Americas Petrogas Inc. (TSX VENTURE:BOE) ("Americas" or the "Company") (TSXV: BOE) announced today that it has, through its wholly owned subsidiary, Americas Potash Peru SA ("Potash Peru"), signed an agreement (the "Surface Rights Agreement") with the Community Foundation of San Martin de Sechura (the "Foundation") that permits Americas the unconditional right of surface access in respect of the Company's Ramon and Zapayal potash brine reservoirs and evaporite deposit located on the Company's 82,195 hectare (approximately 203,000 acres or 821 sq.km.) Bayovar concession in the Sechura Desert in Northwest Peru. As part of the Surface Rights Agreement, Potash Peru has released to the Foundation a payment to be used for local community projects.

With the signing of the Surface Rights Agreement, all of the requirements contemplated in Americas' option agreement (the "Bayovar Agreement") with the Agency for Promotion of Private Investment of the government of Peru ("ProInversion") to be able to acquire the Bayovar potash brine concession have been satisfied. The Company is proceeding with the investments in the concession such as additional resource assessments, environmental assessments, exploration and other feasibility work. A summary of the main terms and conditions of the Bayovar Agreement were previously disclosed.

The signing of the Surface Rights Agreement occurred at a signing ceremony in the Sechura town community and was attended by a number of important local, regional and national dignitaries including:

- President Dr. Cesar Trelles Lara on behalf of the region of Piura;

- Mr. Paiva Dante Garcia, President on behalf of the Community Foundation of San Martin Sechura;

- Mr. Jorge Merino Tafur on behalf of ProInversion; and

- Ms. Rosa Marina Leon Flores, Peru's representative to the Andean Parliament.

Also in attendance were many individuals from the civil authorities and the community.

Mr. Carlos Lau, Chairman of Americas Petrogas Inc. commented that "The signing by Americas Potash Peru SA of the Surface Rights Agreement with the Community Foundation represents an historical and very pleasing day for the company because it has allowed us to secure the approval and support of the local community and the region of Piura which is essential to permit Americas Potash Peru SA to develop a future fertilizer and specialty chemicals project in a relatively short period of time." Mr. Lau went on to say, "We wish to thank the Community Foundation, President Dr. Cesar Trelles Lara and ProInversion for their hard work and ongoing dedication in securing this important agreement and we look forward to working with all of them in the future."

Certain statements in this Press Release constitute forward-looking statements under applicable securities legislation. Such forward-looking statements involve risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. This forward-looking information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels and timing of activity and achievements to differ materially from those expressed or implied by such information.

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 the release.