TWIN BUTTES OPTION EXTENSION

608, 1199 West Pender Street

Vancouver, BC V6E 2R1

Tel: (604)
687-0300

Fax: (604) 687-0151

www.passportpotash.com

PASSPORT POTASH INC.

(TSX.V-PPI)

Passport Potash Extends Twin Buttes Ranch Option
Agreement to January 2016

VANCOUVER, BRITISH
COLUMBIA--(Marketwire ? August 22, 2013) - Passport Potash Inc. (?Passport? or
the ?Company?) (TSX.V: PPI)(OTCQX: PPRTF) is pleased to announce that it has
signed a further amendment (the ?Amendment?) to the option agreement (the
?Option Agreement?) with Twin Buttes Ranch, LLC (?Twin Buttes?) dated August
28, 2009, which was subsequently amended on December 4, 2009 and again on
September 7, 2010, whereby the option (the ?Option?) to acquire the Twin Buttes
Ranch has been extended to January 6, 2016.
The Twin Buttes Ranch, which was one of Passport?s first real property
option purchase agreements, is comprised of approximately 28,000 acres (11,332
hectares) of royalty free private land with intact surface, mineral and water
rights.

The key terms of the
Amendment include:

?
Option is extended until January 6,
2016;

?
A $250,000 payment to be paid on the
earlier of (i) within
thirty days of closing its next round of financing which is a minimum of five
million dollars, or (ii) December 1, 2013.
This $250,000 payment is not an elective payment and became an
obligation of Passport upon the signing of the Amendment;

?
A $250,000 payment to be paid by
August 28, 2014; and

?
A $250,000 payment to be paid by May
1, 2015.

In addition to the Amendment to the
Option Agreement, Passport and Twin Buttes have signed an amendment to the
mining lease (the ?Mining Lease?) dated December 4, 2009, whereby the term of
the lease will end on the expiration or earlier termination of the Option
Agreement, except in the event that Passport exercises its Option in which
event the term shall end on the closing date of the Option Agreement, and any
subsequent amendments;

?We are grateful to the Fitzgerald
family for their willingness to work with us on extending the term of the
option agreement?, commented Joshua Bleak, President and CEO. ?This Amendment will give us some necessary
flexibility, and will allow us to focus our resources on meeting our planned
timelines for the forthcoming Pre-feasibility study.?

About the Holbrook Potash Project

Passport Potash Inc. is a publicly
traded corporation engaged in the exploration and development of advanced
potash properties with its major focus on a previously explored potash property
in Arizona. Passport has acquired a strategic position in the Holbrook Basin
with land holdings encompassing over 127,000 acres (51,395 hectares).
Passport has also entered into a joint exploration agreement with the Hopi
Indian Tribe to work toward developing about 13,000 acres (5,261 hectares) of
contiguous privately held Hopi land.

On behalf of the Board of Directors

PASSPORT POTASH INC.

Joshua Bleak, President

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.

Contact:

Passport Potash Inc.

Peter J. Kletas

Manager of Corporate Development

866-999-6251-Toll Free

peter@passportpotash.com

Passport Potash Inc.

Clive Mostert

Corporate Communications

780-920-5044

cmostert@passportpotash.com

www.passportpotash.com

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