Allana Potash Corp.

Allana Potash Corp.

August 23, 2010 07:00 ET

Allana Potash Successfully Completes Drill Hole 4 in Centre of Potash Basin and Second Drill Rig on Site

TORONTO, ONTARIO--(Marketwire - Aug. 23, 2010) - Allana Potash Corp. (TSX VENTURE:AAA) ("Allana" or the "Company") is pleased to announce that it has completed drill hole DK-10-04 in the centre of the evaporite basin. In addition, Allana is pleased to announce that a second drill rig has arrived on the property and drilling is expected to begin next week.

Farhad Abasov, President and CEO, commented: "Allana is very pleased to have completed hole DK-10-04 in the centre of the potash basin and we are encouraged at the potential in this part of the property. The core samples are being prepared for shipment for chemical assay analysis. The arrival of the second drill rig will expedite our Phase II program of 10,000 metres of drilling and accelerate the exploration program going forward. In addition to the arrival of the second drill rig, Allana is proceeding with its 2D seismic survey of the southern part of the property. Tesla-IMC is mobilizing equipment in Dire Dawa and preparing for transport to the project site. Camp expansion to accommodate the seismic crew is also underway and is expected to increase camp capacity to about 60 people."

Drill hole DK-10-04 was collared in the centre of the evaporite basin just south of the Crescent carnallite deposit delineated by Parsons in the 1960s and was completed to a down hole depth of 848 metres (approximately 760 metres vertical). This hole was targeting potash mineralization intersected by Parsons holes 5 and 7 at a depth of 680 metres vertical. The core from DK-10-04 is currently undergoing logging and sampling which will be followed by shipping to the Saskatchewan Research Council for analysis. Analytical results are expected in approximately 2 weeks.

This drill rig has moved 2 km south of hole 4 and has begun drilling hole DK-10-05 also in the centre of the basin. Hole 5 is currently at a depth of 40 metres and is targeted to test the extension of the potash horizon intersected by Parsons onto the southern part of the property.

A second drill rig deployed by Meridian Drilling has arrived at the project site and will begin drilling next week. This rig will set up at hole DK-10-06, approximately 2 km west of DK-10-05, in an effort to intersect the extension of the potash horizon southwest of the Musley Deposit.

In addition, the Company announces that it has granted a total of 1,205,000 stock options pursuant to the Stock Option Plan of the Company to various officers, directors and consultants of the Company. The options will be exercisable for $0.40 per option and shall expire on August 23, 2015. Such options shall vest immediately subject to the applicable regulatory hold period. The grant of options remains subject to receipt of all required regulatory approvals.

About Allana Potash Corp.

Allana is a publicly traded corporation with a focus on the acquisition and development of potash assets internationally with its major focus on a previously explored potash property in Ethiopia with NI 43-101-compliant Inferred Mineral Resource of over 100 million tonnes of potash mineralization (Sylvite and Kainite) with a composite grade of 20.8 % KCl (see News Release Sept. 17, 2008). Allana has approximately 118.5 million shares outstanding and trades on the TSX-Venture Exchange under the symbol "AAA".

Peter J. MacLean, Ph.D., P. Geo., Allana's Senior VP Exploration, is a Qualified Person as defined under National Instrument 43-101 and has reviewed and approved the technical information presented in this release.

Forward-Looking Statement

Except for statements of historical fact relating to the Company, certain information contained herein constitutes ''forward-looking information'' under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the effect and estimated timeline of the drilling and assay results on the Company, the estimation of mineral reserves and mineral resources; the timing and amount of estimated future exploration; costs of exploration; capital expenditures; success of exploration activities; permitting time lines and permitting; government regulation of mining operations; environmental risks; unanticipated reclamation expenses; and title disputes or claims; Generally, forward-looking information can be identified by the use of forward-looking terminology such as ''plans'', ''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 statements that certain actions, events or results ''may'', ''could'', ''would'', ''might'' or ''will be taken'', ''occur'' or ''be achieved''. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except in accordance with applicable securities laws.


Contact Information