Allana Potash Corp.
TSX : AAA

Allana Potash Corp.

January 14, 2015 07:00 ET

Allana Partner ICL Launches "Potash For Growth" Program in Ethiopia

TORONTO, ONTARIO--(Marketwired - Jan. 14, 2015) - Allana Potash Corp. (TSX:AAA) ("Allana" or the "Company") commends ICL (NYSE:ICL)(TASE:ICL) for its recent announcement initiating its "Potash for Growth" program in Ethiopia. The program is designed to unlock the potential of agriculture in Ethiopia by promoting balanced fertilization among Ethiopia's small and private farmers in order to increase their agricultural productivity and economic benefits from farming.

Allana was one of the first companies to realize the importance of various programs conducted by the Agriculture Transformation Agency of Ethiopia. The Company joined the ATA program in 2013 by making a significant financial contribution for its operating budget. Following ICL's s initial investment in Allana, they also made an important decision to support the ATA program as well. Allana and ICL have provided $US600,000 so far to support the various projects of the ATA.

Farhad Abasov, Allana's President & CEO commented, "The Potash for Growth program initiated by ICL in conjunction with its partners (including Allana) in Ethiopia is an important undertaking in advancing the rapid development of modern agriculture in the country. We are glad to see such a serious commitment from ICL to the development and growth of agriculture and fertilizer sectors in Ethiopia. Allana was one of the first companies to contribute to the Agricultural Transformation Agency two years ago, and Allana continued with its financial contribution to this program in 2014. Not only is this vital for the long-term expansion of Ethiopia's farming sector and the country's critical food security goals, but also for the health and welfare of all of Ethiopian citizens as it will improve crop quality and yields, as well as boost employment in the supporting agri-business and potash mining sectors. As Ethiopian and East African agriculture becomes more modernized and advanced, the use of fertilizers will increase and provide Allana's Danakhil potash project with natural market demand growth for its products. We are pleased to be a part of this agri- renaissance and plan to further support the education of the region's farmers in proper crop nutrient application methodologies."

The Potash for Growth program launched by ICL, in collaboration with its Ethiopian partners including Allana and the ATA (Agriculture Transformation Agency of Ethiopia), includes a range of activities to increase awareness by Ethiopian farmers of the benefits of potassium fertilizers.

The program's activities include:

  • Potash demonstration plots and outreach to farmers: During 2014, over 600 potash demonstration plots were developed on farms in the states of Tigray, Amhara, Oromiya and Southern regions to demonstrate that potassium fertilizers increase yields of major Ethiopian crops, such as teff, wheat, barley and sorghum. Several hundred additional plots will be established on farmers' fields and farmer training centers during 2015. Field days for farmers will also be organized at these demonstration plots.
  • Soil fertility mapping: Potash for Growth also supports a nation-wide soil fertility mapping program that is being conducted by the Ethiopian Agriculture Transformation Agency in collaboration with the country's Ministry of Agriculture and its regional partners. The mapping will enable Potash for Growth to recommend the most appropriate fertilizer applications at the district and PA (Peasant Association or Kebele) levels.
  • Research and validation: In collaboration with Ethiopia's national universities, ICL's Potash for Growth program supports research by graduate students in the areas of potassium in soil and plants in Ethiopia in order to increase knowledge of balanced fertilization on various crops and to assist in developing specialists in plant nutrition.

ICL launched a similar Potash for Life project in India last year, creating nearly 600 demonstration sites in nine Indian states to demonstrate the benefits of balanced fertilizer use. After only one farming season, the three-year project has already achieved major progress in providing farmers with science-based evidence of the benefits of using potash fertilizers in Indian agriculture, as well as the profitability of using potash, which has been tested on more than 20 various crops.

About ICL

ICL is a global manufacturer of products based on specialty minerals that fulfil humanity's essential needs primarily in three markets: agriculture, food and engineered materials. The agricultural products that ICL produces help to feed the world's growing population. The potash and phosphates that it mines and manufactures are used as ingredients in fertilizers and serve as an essential component in the pharmaceutical and food additives industries. The food additives that ICL produces enable people to have greater access to more varied and higher quality food. ICL's water treatment products supply clean water to millions of people, as well as to industry around the world. Other substances, based on bromine and phosphates help to create energy that is more efficient and environmentally friendly, prevent the spread of forest fires and allow the safe and widespread use of a variety of products and materials.

ICL benefits from a broad presence throughout the world and proximity to large markets, including in emerging regions. ICL operates within a strategic framework of sustainability that includes a commitment to the environment, support of communities in which ICL's manufacturing operations are located and where its employees live, and a commitment to all its employees, customers, suppliers and other stakeholders.

ICL is a public company whose shares are traded on the New York Stock Exchange and the Tel Aviv Stock Exchange (NYSE:ICL)(TASE:ICL). 45% of ICL's Shares are held by Israel Corporation Ltd, 13.9% by PotashCorp and the remainder by the public. The company employs approximately 12,000 people worldwide, and its sales in 2013 totaled US$6.3 billion. For more information, visit the company's website at www.icl-group.com

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 its potash property in Ethiopia. Allana has secured financial support from three significant strategic investors: ICL, one of the world's largest potash producers, IFC, a member of World Bank Group, and LMM, a member of Liberty Mutual Group. Allana has estimated measured Sylvinite mineral resources of 115.3 million tonnes of 27.8% KCl; indicated Sylvinite mineral resources of 212.1 million tonnes of 28.6% KCl, and an estimated inferred Sylvinite mineral resource of 90.8 million tonnes grading 27.8% KCl, In addition, the Project hosts measured Kainitite mineral resources of 552.3 million tonnes at 19.4% KCl, indicated Kainitite mineral resources of 598.2 million tonnes of 19.5% KCl and an estimated inferred Kainitite mineral resource of 481.8 million tonnes of 19.8% KCl; estimated measured Upper Carnallitite mineral resources of 121.5 million tonnes grading 17.5% KCl, estimated indicated Upper Carnallitite mineral resources of 289.8 million tonnes of 17.2% KCl and estimated inferred Upper Carnallitite mineral resources of 175.5 million tonnes of 16.5% KCl; estimated measured Lower Carnallitite mineral resources of 235.0 million tonnes of 9.7%KCl, estimated indicated Lower Carnallitite mineral resources of 322.2 million tonnes of 8.9% KCl and estimated inferred Lower Carnallitite mineral resources of 369.3 million tonnes grading 7.7% KCl. The foregoing mineral resource estimates are as at April 17, 2013. For more information with respect to the data verification procedures undertaken and the key assumptions, parameters and risks associated with the foregoing estimates, refer to Allana's Technical Report entitled "Resource Update for the Danakhil Potash Deposit, Danakhil Depression, Afar State, Ethiopia" dated effective April 17, 2013 filed under the Company's SEDAR profile at www.sedar.com on August 7, 2013.Allana has approximately 325.2 million common shares outstanding. Allana trades on the Toronto Stock Exchange under the symbol "AAA". For more information, please visit the Company's website at www.allanapotash.com.

The mineral resource estimates disclosed herein were completed by ERCOSPLAN under the supervision of Dr. Henry Rauche, Ph.D., EurGeol, Managing Director, CEO ERCOSPLAN, Dr. Sebastiaan van der Klauw, Ph.D., EurGeol., Consulting Geologist, ERCOSPLAN and Euro Ingenieur Ralf Linsenbarth of ERCOSPLAN Ingenieurbüro Anlagentechnik GmbH who are each independent Qualified Persons for the purposes of National Instrument 43-101.

Dr. Peter J. MacLean, Ph.D., P. Geo., Allana's Senior VP Exploration, is the Company's designated Qualified Person 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. 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, assumptions 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. Such risks are discussed in the risk factors sections of our latest annual information form, our technical reports and other continuous disclosure documents filed from time to time at www.sedar.com. 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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