Allana Resources Inc.
TSX VENTURE : AAA

Allana Resources Inc.

December 01, 2009 07:30 ET

Allana Resources Announces Drill Contract Awarded for Its Ethiopian Potash Project, Appointment of New Corporate Secretary and Grant of Options

TORONTO, ONTARIO--(Marketwire - Dec. 1, 2009) - Allana Resources Inc. (TSX VENTURE:AAA) ("Allana"or the "Company"), is pleased to announce that it has awarded a drilling contract to Emerson Moore Drilling Ltd. ("EMD") for its Ethiopian Potash Project. EMD has extensive drilling experience and has completed projects in Equatorial Guinea, Liberia, Georgia, Slovakia, Jamaica, Spain, Kenya, Sudan, Kosovo and UK. EMD has successfully completed geotechnical and exploration drilling projects for a number of clients including Alcoa, Inc., ArcelorMittal, Golder Associates and Scott Wilson Group plc.

Allana is planning a 6-hole 2,500 metre drill program designed to confirm historic drilling results, to confirm the accuracy of the previous resource and to potentially increase the resource. Drilling is expected to begin in late January following the road rehabilitation currently underway and camp construction. It is expected that drill holes will vary in depth from 250 metres to 800 metres and will test both potash horizons near the current resource as well as in the centre of the evaporite basin. This will be the first phase of Allana's exploration program. It is planned that the drill program will be followed by down-hole seismic studies (vertical seismic profiling) and a program of surface 2D seismic over the southern part of the basin.

Farhad Abasov, Allana's President and CEO, stated: "Allana is very excited to complete this contract with EMD. This is the first step in fast-tracking our exploration program. EMD has extensive experience throughout Africa and in remote locations. We are also very pleased that the Ethiopian government is currently rehabilitating one of the roads leading to our project, and camp construction is scheduled to be completed for mid-January. Allana is looking forward to completing the first potash drill holes in the Danakhil Depression evaporite basin in over 30 years."

In addition to the drilling contract, Allana is pleased to announce the appointment of Ms. Brianna Davies as Corporate Secretary. Ms Davies is a corporate lawyer who works as a legal consultant to several publicly traded and private companies in the resource sector. Brianna received a Juris Doctorate from the University of Toronto in 2005 and an Honours B.A in Economics from McMaster University in 2002. Ms. Davies replaces Mr. Pat Gleeson who has resigned as Corporate Secretary but will continue on as a consultant to the Company.

In addition, the Company announces that it has granted a total of 1,350,000 stock options to various officers, directors and consultants to the Company pursuant to the stock option plan. The options will be exercisable for $0.315 per option and shall expire on December 1, 2014. 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.

In its press release dated October 6, 2009 Allana erroneously reported that Calivia Global LLC (Calivia) was formerly Nova International. The Company wishes to clarify that Calivia is an independent company specializing in the construction of modular camps and is in no way affiliated with Nova International.

Peter J. MacLean, Ph.D., P. Geo., Allana's 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.

About Allana Resources Inc.

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 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 96.1 million shares outstanding and trades on the TSX-Venture exchange under the symbol "AAA".

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 impact of the drilling contract on the Company, the effect of the appointment on the Company, estimated production, the estimation of mineral reserves and mineral resources; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; capital expenditures; success of exploration activities; permitting time lines and permitting, mining or processing issues; government regulation of mining operations; environmental risks; unanticipated reclamation expenses; title disputes or claims; litigation liabilities; limitations on insurance coverage and the effect of terminating the investor relations contract. 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.

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