Allana Resources Inc.
TSX VENTURE : AAA

Allana Resources Inc.

October 28, 2009 07:30 ET

Allana Resources Considering Multiple Unsolicited Offers for Its Ethiopian Potash Project

TORONTO, ONTARIO--(Marketwire - Oct. 28, 2009) - Allana Resources Inc. (TSX VENTURE:AAA) ("Allana" or the "Company"), is pleased to announce that it has received multiple unsolicited offers from various strategic counterparties (the "Other Offers") to participate in its potash project located in the Danakil Depression in northeastern Ethiopia (the "Project"). Allana's management is currently evaluating the Other Offers, all of which include terms and conditions which are presently believed by management to be more attractive than the previously announced memorandum of understanding ("MOU") with ChinaCo (See Allana News Release dated July 20, 2009). In light of its receipt of the Other Offers, Allana will assess the Other Offers relative to the MOU. Following that assessment, Allana will pursue the transaction for the Project that it believes offers the greatest value to Allana's shareholders and is in the best interest of the Company. Allana management firmly believes the Project represents a significant, unique potash asset and that the Other Offers are a testament to the scale, quality, value and scarcity of the Project.

Farhad Abasov, Allana's President and CEO, stated, "Allana is pleased to receive additional offers for its significant potash project in Ethiopia. There are currently a number of attractive proposals available to the Company, including the initially contemplated transaction with ChinaCo. Allana will evaluate each one and will pursue the proposal that maximizes shareholder value and is in the best interest of the Company."

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 Allana News Release Sept. 17, 2008). Allana has approximately 80.5 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 unsolicited offers and the likelihood of such offers being finalized on desirable terms to the Company, the 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.

NEITHER THE 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 Information