Allana Potash Corp.

Allana Potash Corp.

June 15, 2010 07:30 ET

Allana Potash Confirms Shallow Potash Mineralization and Releases Drill Results

TORONTO, ONTARIO--(Marketwire - June 15, 2010) - Allana Potash Corp. (TSX VENTURE:AAA) ("Allana" or the "Company") is pleased to announce confirmation of shallow potash mineralization on its Ethiopian Potash Project. Analytical results have been received and evaluated for holes DK-10-01 and DK-10-02. The highlight of these results is hole DK-10-02 which intersected 25.8 % KCl over 5.50 metres including 34.8 % KCl over 2 metres. These two holes, along with hole DK-10-03, are situated in the northwestern portion of Allana's claim block and were targeted to confirm historic drill results and test the extension of the Musley Deposit to the northeast.

Hole DK-10-02 was drilled vertically and is collared east of Parsons holes 226 and 270. Hole DK-10-02 intersected strong potash mineralization yielding 25.8% KCl over 5.5 metres (drilled width) from 150.10 metres to 155.65 metres, including 34.8% KCl over 2 metres (drilled width) from 150.10 metres to 152.10 metres. This zone is interpreted to be the upper portion of the Houston Formation and additional X-Ray Diffraction (XRD) work is ongoing to determine the potash mineralogy. The confirmation of strong potash mineralization in this hole extends the Musley Deposit approximately 750 metres to the northeast and the deposit remains open to expansion in that direction. Other potash intervals returned lower values, typically less than 5% KCl.

Drill hole DK-10-01 was drilled vertically and is located between Parsons holes 236, 226, 159, and 232. Historic drilling in this northern extension of the Musley Deposit shows isolated zones of low grade potash mineralization surrounded by higher grade potash zones. The potash zone intersected in DK-10-01 returned low potash values, KCl values are less than 5% and it is interpreted that this hole also intersected a similar isolated zone of weak potash mineralization. Sand and silt intersected immediately below the potash zone suggests a localized influx of sediment into this part of the basin which may have eroded, or inhibited, potash mineralization.

Hole DK-10-03 has been logged, sampled and samples are in transit to the Saskatchewan Research Council Laboratory in Saskatoon. Drilling is continuing at hole DK-10-04 in the centre part of the basin south of the Crescent Carnallite Deposit. Additional sampling has been completed on other prospective horizons in hole DK-10-01 and these samples are also en route to Saskatoon. As mentioned above, mineral species identification is also in progress for holes 1 and 2 as selected samples have been chosen for XRD analysis to determine the mineralogy of the complex potash and evaporite minerals.

Farhad Abasov, President and CEO, commented: "We are very pleased with the confirmation of the shallow potash mineralization in this part of our property. Both holes confirm past drilling results done by Parsons in the 1950s and 1960s. It is encouraging to see very good potash grades in DK-10-02. With continuing drilling and planned seismic programs the management expects to determine targets for the Phase II 10,000-meter drilling campaign in the southern part of our potash project."

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

Quality Control and Quality Assurance

Allana employees follow standard operating and quality assurance procedures intended to ensure that all sampling techniques and sample results meet international reporting standards. Procedures for handling core samples begin with securing the potash-bearing HQ-NQ-sized core at the drill site in plastic poly-tubing which is then thermally sealed. Core is placed in plastic core boxes and transported to Allana's camp for geological logging, geotechnical logging and photographing. Significant intervals are dry cut in half using a specially modified tungsten carbide bladed band-saw. Half core samples are then double bagged and thermally sealed prior to transporting to Addis Ababa by Allana personnel. In this initial phase, halite blanks are randomly inserted into the sample stream at a rate of 1 in 20 and sent for analysis with the core samples. The remaining core is re-sealed in plastic poly-tubing and the core boxes secured at Allana's exploration camp. Upon arrival in Addis Ababa core samples are stored at Allana's small warehouse facility and then taken to the Ethiopian Ministry of Mines & Energy where permission is obtained to export the samples. The bagged samples are then carefully packed into boxes and shipped via DHL to the Saskatchewan Research Council in Saskatoon. This sampling procedure was initiated by ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH, Allana's potash consulting firm, supervised by Allana's Ethiopian based Project Manager Jason Wilkinson, M.Sc., and periodically reviewed by Allana's Senior Vice President of Exploration, Peter J. MacLean, Ph.D., P. Geo.

Allana is utilizing SRC's Potash ICP Analysis package designed for multi-element analysis of potash samples. Upon arrival at SRC Geoanalytical Laboratories core samples are jaw crushed to 60 % @ -2mm and 100 g sub sample is split out using a riffler and transferred to vials. The subsample is pulverized to 90 % @ -106 microns using a puck and ring grinding mill to create a pulp. The grinding mills are cleaned between groups using Quintus quartz. The pulp is then transferred to a labelled plastic snap top vial. An aliquot of pulp is placed in a test-tube with 15 ml of 30°C DI water. The sample is shaken. The soluble solution is then analyzed by ICP-OES. The method is suitable for the soluble analysis of commercial potash (Sylvite). The soluble solution is then analysed by ICP-MS. In addition samples are analysed for FeO (wt%), Br and Cl by MS, plus insoluables. SRC Geoanalytical Laboratories has been certified by the Standards Council of Canada (SCC) to conform to the requirements of ISO/IEC 17025:2005 (CAN-P-4E).

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.


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