Inspiration Mining Corporation ("Inspiration" or the "Company")
(TSX:ISM)(FRANKFURT:OI8) is pleased to announce that Potash Dragon Inc. ("Potash
Dragon") has completed the Transient Electromagnetic Survey ("TEM"), as reported
in its press release of August 14, 2012, at its Llamara project located in the
Atacama Desert, Chile. The project area comprises the western Llamara Project as
well as the eastern Solida Project. A total of 289 individual setups were
completed resulting in a total of 133 line-km of TEM survey. The data processing
has commenced ahead of schedule and the results will be included in a technical
report, which is scheduled for completion at the end of November 2012. 


"As stated in our communication in June, the project is proceeding as planned,"
stated Randy Miller, the President of the Company. "We are pleased to have
completed the next phase of our exploration program ahead of schedule and we
look forward receiving the analysis of the results of the geophysical surveys
and the brine volume study," commented Gordon Miller, President and CEO, Potash
Dragon.


About Potash Dragon Inc. 

Potash Dragon is a private company incorporated under the laws of Barbados.
Through its wholly owned subsidiary, Potash Dragon SpA, a private company
incorporated under the laws of Chile, Potash Dragon holds various potash
properties and applications covering an area of 4,133 Hectares in Region I of
Northern Chile some 160km south east of the town of Iquique and adjacent to the
Pan American (Ruta 5) highway. All the properties are located within the Pampa
del Tamarugal area on the Salar de Llamara, and some of the tenements are
situated adjacent to a brine extraction well field operated by Sociedad Quimica
y Minera de Chile S.A. ("SQM"). 


Sedimentary rocks in the Pampa del Tamarugal are fluvial, lacustrine and
evaporitic and include highly soluble residues such as halite and related
evaporite minerals such as potash. Interspersed in this succession are horizons
of volcanic tuff from eruptions in the Andes to the East. The sequence is
estimated to be up to 1,000 m thick (Saez et al., 1999). Alluvial fans incised
by ephemerally active canyons descend across the eastern Pampa from the
Precordillera and the talus of the median and distal fans locally masks the
underlying lake sediment accumulation. The Pampa can be considered to have an
upper, gradational altitudinal limit around 1,500 metres above sea level where
it merges into the proximal alluvial fans of the Precordillera front. 


Precipitation that occurs at higher elevations of the Andes Mountains reports to
fluvial braided fans which ultimately feed significant aquifers that flow
beneath the Pampa del Tamarugal. The individual rivulets within these fans are
referred to locally as Quebrada. Ground water flowing within the pampa interacts
with the evaporite sequences resulting in the dissolution of halite and other
soluble minerals contained within the sedimentary sequences of the Soledad
formation. The dissolution results in a karst topography within the soluble
formations that contain vast amounts of highly saline brines containing sodium,
magnesium, potassium, calcium, lithium, boron, sulphates, chlorine, iodine and
nitrates in varying quantities. 


The Llamara and Solida projects are situated at an elevation of approximately
750 metres above sea level in an area that has an exceptionally long geological
history of aridity in the Atacama Desert, particularly during the post Oligocene
period (since 34 Mya) when the region has been continuously the most arid region
on Earth with high evaporation and evapotranspiration rates. 


The location of the project, in close proximity to the ocean, which serves as an
abundant source of process water, combined with very high solar evaporation
rates creates an ideal opportunity for the implementation of low cost solution
mining and solar evaporation recovery techniques for the recovery of soluble
minerals such potash, other fertilizers and related minerals.


About the Deal 

As reported in its press release dated June 25, 2012, Inspiration acquired
1,250,000 common shares ("Potash Shares") (or 20% of the issued and outstanding
securities) in the capital of Potash Dragon. In addition, the Company was issued
an aggregate of 3,750,000 common share purchase warrants (the "Warrants"). Each
Warrant entitles the Company to acquire an additional Potash Share at an
exercise price of $0.80 per share at any time prior to 5:00 p.m. (Toronto time)
on the earlier of the date that is: (a) September 22, 2013, and (b) 45 days from
the date that Potash Dragon receives an executed geological report (the "43-101
Report") prepared in compliance with National Instrument 43-101 with respect to
Potash Dragon's brine resource in Chile. In the event that the Company exercises
all of the Warrants, the Company shall exercise control over 50% of the issued
and outstanding securities in the capital of Potash Dragon.


About TEM 

TEM uses electromagnetic impulse excitation to investigate the composition of
subsurface rock and water bearing horizons. It is a variation of the
electromagnetic geophysical method ("EM") in which transient pulses of
electrical current in coils and antennae are applied instead of a continuous
current induced magnetic field. TEM surveys have become the most popular surface
EM technique used in exploration for conductive minerals and groundwater, and
for environmental mapping. Prior experience of the application of TEM techniques
in the Llamara basin has proved this method accurate in the definition of brine
bearing horizons up to a depth of approximately 400m below surface.


Forward Looking Statements 

This news release contains "forward-looking statements" within the meaning of
the United States Private Securities Litigation Reform Act of 1995 and
applicable Canadian securities legislation. Generally, these forward-looking
statements can be identified by the use of forward-looking terminology such as
"plans", "anticipated", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not
anticipate", or "believes", or variations of such words and phrases or state
that certain actions, events or results "may", "could", "would", "might" or
"will be taken", "occur" or "be achieved". Inspiration is subject to significant
risks and uncertainties which may cause the actual results, performance or
achievements to be materially different from any future results, performance or
achievements expressed or implied by the forward looking statements contained in
this release. Inspiration cannot assure investors that actual results will be
consistent with these forward looking statements and Inspiration assumes no
obligation to update or revise the forward looking statements contained in this
release to reflect actual events or new circumstances.


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