TORONTO, ONTARIO--(Marketwire - April 23, 2012) - Allana Potash Corp. (TSX:AAA) ("Allana" or the "Company"), is pleased to announce that effective May 1, 2012, Richard Kelertas will be appointed Senior Vice President, Corporate Development, of the Company.
Mr. Kelertas has been one of the most prominent investment analysts in Canada, ranked a "Top Gun" equity analyst by Brendan Woods International (BWI) for the past seven years and in 2010 one of only 14 analysts in Canada to be named a "Super Leaguer Analyst" by BWI. He was most recently a Vice President and Senior Financial Analyst at Dundee Capital Markets. Over the past 35 years, he has held various positions in corporate Canada, encompassing sales, marketing, corporate development, corporate banking and equity capital markets. For the past 25 years, he has been a top ranked equity analyst and has worked for various national and international firms. Mr. Kelertas graduated from the University of Toronto with two science degrees, including a Masters of Science degree.
Richard had been covering the junior potash sector for Dundee over the past several years and was also one of the first analysts on Bay Street to launch research coverage on Allana three years ago.
Farhad Abasov, President and CEO of Allana Potash commented, "We are delighted that Richard has joined Allana Potash. There are only a few people in the sector that know the Allana story and our project as well as Richard does. He has visited our project in Ethiopia and has a keen understanding of the tremendous importance of the Allana project for this part of Africa as well as the potash supply dynamics for all of Asia. As Allana is in the midst of preparing its bankable feasibility study and securing project financing, Richard's contribution to our potash project will be significant and timely."
Commenting on his appointment, Mr. Kelertas stated, "I have been an admirer of the management team of Allana Potash and their Dallol potash project for some time now. They are both world class assets which, I believe will provide significant returns to shareholders as well as to all stakeholders in the region. I am very excited to join this first-class global junior potash developer as it transitions to a low-cost producer."
In addition, the Company announces that a total of 300,000 stock options shall be granted to Mr. Kelertas on his appointment to the Company, in connection with the provisions of the Stock Option Plan of the Company. The options to be granted shall vest in eight equal installments over a period of two years subject to the regulatory hold period and the grant of options remains subject to the receipt of all required.
Feasibility Study Update
Allana is pleased to report that the technical studies in support of Allana's ongoing Feasibility Study (FS) are underway. Currently, two diamond drill rigs are focused on exploration targets on eastern and northern portions of the licence area. Geotechnical drilling has been completed, and in particular, five large diameter (PQ) holes were completed to provide whole core sample material for dissolution testwork and creep tests to design solution caverns.
Pilot evaporation pond construction is approaching completion with liners being welded this past week and salt block basal layers being added to the ponds. It is anticipated that brine will added to the ponds by end of April. In addition, the water well drilling program is underway in western alluvial fans on the property, with two water drill rigs now on site.
A National Instrument 43-101 compliant updated mineral resource estimate is currently in progress and management expects the results of such mineral resource estimate by the end of April, 2012.
As part of the FS, the ESIA draft of Scoping Report has been finished. Baseline studies of flora, fauna, and climate are well underway. Allana has also initiated extensive social studies of the area, including comprehensive stakeholder engagement meetings with many local communities.
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. Allana has secured financial support from two significant strategic investors: IFC, a member of World Bank Group, and Liberty Metals and Mining, a member of Liberty Mutual Insurance. Allana has Measured and Indicated Sylvinite Resources of 97.8 Million Tonnes of 30.0% KCl; Inferred Sylvinite Resource of 108.3 Million tonnes grading 31.3% KCl; Measured and Indicated Kainitite Resources of 284.2 Million tonnes at 19.8% KCl, Inferred Kainitite Resource of 271.2 Million Tonnes of 20.3% KCl; Measured and Indicated Upper Carnallitite Resources of 78.5 Million Tonnes grading 18.4% KCl, Inferred Upper Carnallitite Resource of 85.6 Million Tonnes of 17.1% KCl; Measured and Indicated Lower Carnallitite Resources of 212.6 Million Tonnes of 12.0% KCl, Inferred Lower Carnallitite Resource of 130.7 Million Tonnes grading 11.7% KCl. The foregoing mineral resource estimates are as at June 13, 2011 and are set out in the Company's NI 43-101 compliant Technical Report entitled "Resource Report for the Danakhil Potash Deposit, Afar State/Ethiopia" dated June 24, 2011 filed on SEDAR. Allana has approximately 228.5 million shares outstanding and trades on the Toronto Stock 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.
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 anticipated timing and effect of the feasibility study and the completion of the updated mineral resource estimate, the anticipated impact of the appointment of Mr. Kelertas, the estimation of mineral reserves and mineral resources; the timing and amount of estimated future exploration; the anticipated timing with respect to the preparation of the Feasibility Study; 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. The reader is cautioned that quantity and grade of the results from Holes 35, 36 and 37 are conceptual in nature and that there is insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.