Winston’s Growth Stock Report

Your Source for High Potential Stocks

Issue 48, November 22, 2010

Potash One (KCL, TSX) Friendly Takeover Announced @ $4.50 Per Share

This week has started off with a bang on the news earlier today that the German based fertilizer giant K+S Group struck a deal to buy our number one potash pick, Potash One for $434-million in cash, giving them the most prospective undeveloped potash deposit in Saskatchewan held by a junior.

As I’ve stated since day one, some entity would need to come along who had deep enough pockets to fund the cost of taking Potash One’s Legacy project into production. K+S Group has the capital and the expertise to do the job. The market value of K+S is about US $13 billion which is the kind of financial clout needed to fund the US $2.7 billion required to bring the mine into production.

The payoff should be very good for K+S. A recent feasibility study estimated 2.86 million tonnes of potassium chloride could be produced per year for the next 47 years. It seems the Legacy project is destined to be Saskatchewan’s next potash mine, the first new one in 40 years.

As one would expect KCL jumped today, up 25% closing at $4.53. However the entire junior potash market also rose sharply with speculation running high that more buyouts could be forthcoming. Mining giant BHP has made it clear that they want in on the potash market having recently failed to takeover Potash Corp. of Saskatchewan. Also the blue chip mining giant Vale SA has stated they are also looking hard at potash opportunities in Saskatchewan.

With takeover fever running high in Saskatchewan’s potash market, we turn our eyes to our speculative pick …

Encanto Potash (EPO, TSXV)

Earlier today Encanto released news on their second of four drill holes which will help define the resource at their Muskowekan project in Saskatchewan. So far economic grades have been found and the hope is that all four holes will confirm continuity over the project. Remember, only a few holes are needed to confirm a massive area of potash beds. An initial resource calculation is expected out in early Q1 of 2011.

Going forward a major goal for Encanto and other juniors will be to establish a 43-101 technical report of the resource. Once done, the speculative premium of this stock should firm up. And if we are really lucky, Encanto will be on a short list of prospective takeover candidates.

Encanto closed up 20% today to 26 cents.

Potash One Shareholder Information

“The transaction is to be effected by way of a takeover bid. Full details of the offer will be included in a formal offer and take-over bid circular which is expected to be mailed to the shareholders by mid-December 2010. A copy of the Support Agreement will be filed on www.sedar.comwithin 24 hours of this release. The transaction is expected to close in the first quarter of 2011. The offer will be open for acceptance for a period of not less than 35 days and will be subject to certain customary conditions, including there having been validly deposited and not withdrawn at the expiry time at least 66 2/3% of the outstanding common shares* of Potash One. The transaction is not subject to "net benefit to Canada" review under the Investment Canada Act.”

Also see www.potash1.ca

Stock Listing – most recent entry dates

Apoquindo (AQM) April 24, 2009 54 cents; holding

Catalyst Copper (CCY) Entered Jan 6/10 25 cents; accumulating

Donner (DON, TSXV) Dec 4/09 heads up alert 0.15 cents, Jan 17/10 doubles holding free shares

Edgewater Exploration (EDW, TSXV) Entered June 28/10 90 cents accumulating

Encanto Potash (EPO, TSXV) Entered July 31, 2009 .027 holding

Endeavour Mining (EDV, TSX) Entered Feb 4/10 $1.73; Profits taken Ap 9@ $2.42

Holding Free Shares

Hathor (HAT, TSXV) Top Uranium Pick

Entered March 28, 2006 $1.32; Ap 21/08 sold $2.64, Oct 21/10 sold $2.33 holding free shares

Nevsun (NSU, TSX) Feb 4/10 Buy Alert 2.19, profits Oct 20/10 $5.39 holding free shares

New Gold (NGD, TSXV) Dec 29/08 Best Speculative Pick $1.76 June 11/10 doubles holding free shares

Orsu Metals (OSU, TSXV) Bottom Fishing Pick July 23/10 @16 cents, Sell Oct 3 @32 cents and holding

Petroamerica (PTA, TSXV) Nov 6, 2009 Speculative at 70 cents, Jan 8 new pick accumulate slowly 71 cents; Oct 16/10 buy @0. 405 cents; accumulating

Petromanas (PMI, TSXV) Feb 24/10 30 cents. Profits taken Apr 9/10 @ 72 cents; holding free shares; May 2/10 re-accumulating at 33 cents

Potash One (KCL, TSX) Top Potash Pick Entered May 14, 2008@ $3.19 holding Nov 22/10 buyout announced at $4.50 per share

Uracan (URC, TSXV) Speculative Uranium Pick Apr 30, 2010 Alert 18 cents; holding

Ventana Gold (VEN, TSXV) Entered Mar 18/09 $1.33, holding free shares. Buyout bid Nov 17/10 @ $12.63

Wildcat Silver (WS, TSXV) Entered July 10th, 2009 0.485 holding

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