Gensource Announces Final Closing of Private Placement Totalling $2,081,639.80 and General Update

Further to its news releases dated May 31, 2017 and June 12, 2017, Gensource Potash Corporation ("Gensource" or the "Company") (TSX.V: GSP) announces today it has completed the second tranche of its brokered and non-brokered private placement financing (the "Offering"). The Offering consisted of the non-brokered sale of 75,000 common shares at $0.18 per share for gross proceeds of $13,500.

As previously announced on May 31, 2017, the Company completed the first tranche of the Offering by placing 1,634,110 Common Shares and 8,870,000 Flow-Through Shares. When combined with the second tranche, aggregate gross proceeds of $2,081,639.80 have been received. On the second tranche, Industrial Alliance Securities Inc. received a cash commission of $540 and 3,000 compensation warrants. Each whole compensation warrant entitles the holder to purchase one common share for 18 months from the Closing Date at $0.18 per common share. The Company intends to use the proceeds from the Offering to begin resource confirmation and development work for a second project located in the general Vanguard area, as well as for general working capital purposes. The gross proceeds from the sale of the Flow-Through Share portion of the Offering will be used to fund "Canadian exploration expenses" within the meaning of the Tax Act related to the Company's projects in Saskatchewan. The securities issued pursuant to the Offering are subject to a four month and one day statutory hold period.

Mike Ferguson, President & CEO commented, "We are pleased with final amount raised given the context of the market and current summer season. Also on this raise, additional institutional funds have been added as shareholders which demonstrates further confidence in our business plan. With this news release, Gensource would also like to provide a general update on activities and next steps with regard to both Vanguard One (the first project) and a second project in the Vanguard area.

Gensource has a unique business plan to become a new and independent producer of potash. While the potash industry itself is undergoing significant change, it provides opportunities. Even in low potash price environments, it is better to be an "owner", obtaining product at the cost of production than it is to be a "buyer". Combining an expert project team with new selective solution mining approaches and surface processing innovations, Gensource has created an opportunity unique in the history of potash - to enter the industry as a producer at a small scale and at potentially the lowest operating costs of the global cost curve. The opportunity to implement this small facility fits well with an existing distributor or a large co-op that seeks independence and control over their potash supply chain.

For Gensource, the business plan is to implement several of these small operations in its Vanguard area, each plant being independently owned and operated by a joint venture and each directly shipping its product to the market identified by the joint venture partner. Each operation will utilize common infrastructure and will benefit from economies of scale as the number of small operations increase.

Vanguard One, the first project to reach the feasibility stage, is located near Tugaske, SK, on Gensource's KL 245 lease. Vanguard One sets the model for future projects in its design and engineering, essentially creating the cookie cutter from which the next projects will be designed and constructed.

The next project to be sited may l also be on the KL 245 lease but Gensource is looking ahead and will begin work to confirm the resource in its neighbouring KL 244 lease. From the drilling and seismic completed to date, the resource in the KL 245 and KL 244 areas appears consistent and rich. Gensource will move ahead with identifying project areas step by step as additional joint venture partners step up to participate.

With Vanguard One reaching the detailed feasibility stage and with the environmental permitting process underway, the timeline to production could be as little as 20 - 22 months subject to financing. Gensource is excited to move Vanguard One to the next stage of development.

The first joint venture created under Gensource's model is with Essel Group ME of Dubai, as previously announced. The Shareholder Agreement that governs the joint venture has been made public on SEDAR, and it provides for governance of the joint venture, as well as for the financing of the first facility. EGME is committed to provide financing in two tranches. The first tranche, $US 5M, is due by August 31, 2017 and is earmarked to cover costs for the feasibility study. The second tranche is the full estimated $US 210M cost to construct and commission the first facility.

In the meantime, Gensource continues to work with other significant players to create the second joint venture.

About Gensource
Gensource is based in Saskatoon, Saskatchewan and is focused on developing the next potash production facility in that province, using new and more efficient mining and processing methods and employing a new-to-the-potash-industry business model that connects the consumer of potash (agricultural producers) as directly as possible to the production of the product. Gensource's President and CEO, Mike Ferguson, P.Eng., has assembled a management and technical team with direct and specific expertise and experience in potash development in Saskatchewan.

Gensource operates under a business plan that has two key components: vertical integration with the market to ensure that all production capacity built is directed to a specific market, eliminating market-side risk, and technical innovation which will allow for a small and economic potash production facility, the output of which can then be directed to a single, specific market.

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.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

This news release may contain forward looking information and Gensource cautions readers that forward looking information is based on certain assumptions and risk factors that could cause actual results to differ materially from the expectations of Gensource included in this news release. This news release includes certain "forward-looking statements", which often, but not always, can be identified by the use of words such as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". These statements are based on information currently available to Gensource and Gensource provides no assurance that actual results will meet management's expectations. Forward-looking statements include estimates and statements with respect to Gensource's future plans, objectives or goals, to the effect that Gensource or management expects a stated condition or result to occur, including funding and development pursuant to the definitive joint venture agreement with the EGME, the ability to successfully implement the feasibility study for mineral production on a technical and economic basis, and the establishment of vertical integration partnerships and the sourcing of end use potash purchasers. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, funding and development pursuant to a definitive joint venture agreement with the EGME, results of exploration, the economics of processing methods, project development, reclamation and capital costs of Gensource's mineral properties, the ability to successfully implement the feasibility study for mineral production on a technical and economic basis, Gensource's financial condition and prospects, the ability to establish viable vertical integration partnerships and the sourcing of end use potash purchasers, could differ materially from those currently anticipated in such statements for many reasons such as: failure to obtain funding and undertake development pursuant to the definitive joint venture agreement with the EGME; an inability to successfully implement the feasibility study for mineral production on a technical and economic basis; changes in general economic conditions and conditions in the financial markets; the ability to find distributors and source off-take agreements; changes in demand and prices for potash; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with Gensource's activities; and other matters discussed in this news release and in filings made with securities regulators. This list is not exhaustive of the factors that may affect any of Gensource's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on Gensource's forward-looking statements. Gensource does not undertake to update any forward-looking statement that may be made from time to time by Gensource or on its behalf, except in accordance with applicable securities laws.

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