Allana Potash Corp.

Allana Potash Corp.

September 15, 2011 11:56 ET

Allana Potash Infill Drilling Yields Additional Shallow Potash in Holes 24, 25 and 26

-- Hole 24 Intersects 35% KCl Over 2.81 Metres of Sylvinite and 21 % KCl Over 6.30 Metres of Kainitite

-- Hole 25 Intersects 29% KCl Over 5.5 Metres of Sylvinite and 19 % KCl Over 5.89 Metres of Kainitite

-- Hole 26 Intersects 20% KCl Over 1 Metre of Sylvinite and 19 % KCl Over 8.00 Metres of Kainitite

-- Potash Intersected as Shallow as 101 Metres from Surface

TORONTO, ONTARIO--(Marketwire - Sept. 15, 2011) - Allana Potash Corp. (TSX:AAA)(OTCQX:ALLRF)("Allana" or the "Company") is pleased to announce that it has intersected potash mineralization in Holes DK-11-24 ("Hole 24"), DK-11-25 ("Hole 25") and DK-11-26 "Hole 26"). All Holes intersected two zones of potash, Sylvinite and Kainitite, at shallow depths and are located in the southwestern portion of Allana's land position. Hole 24 yielded 35.12% KCl over 2.81 metres at a depth of 135.83 metres which corresponds with Sylvinite Zone, and 21.03% KCl over 6.30 metres from the Kainitite Zone. Hole 25 also intersected the Sylvinite Zone returning 29.33% KCl over 5.5 metres and the Kainitite Zone which returned 18.98% KCl over 5.89 metres. Hole 26 yielded 20.26% KCl over one metre of sylvinite at a depth of 105 metres and a robust Kainitite Zone which returned 18.54% KCl over 8.00 metres. The potash mineralization in Hole 25 was intersected at approximately 101 metres below surface and all holes are located in the southwestern portion of the property where holes 8, 11, 16, 17, and 19 also intersected shallow potash and management believes this area may be amenable to open pit mining.

Farhad Abasov, President and CEO, commented: "Allana is extremely encouraged by the zones of strong potash mineralization intersected in Holes 24, 25 and 26 and that the potash continues to occur at shallow levels. These holes, combined with previous holes completed by Allana, form a region of potash mineralization which occurs at depth between 75 and 200 metres below surface. Allana management believes that the potash in this region may be amenable to mining by open pit methods and future studies will focus on this potential."

Holes 24, 25 and 26 are part of an infill drilling program designed to provide additional information on the distribution of the potash mineralization in the southwest portion of Allana's property which may have potential to be mined via open pit methods. In addition, the new drilling in this area will reduce the drill hole spacing and allow more material to be included in the Measured and Indicated Resource categories. The results for Holes 24, 25 and 26 are presented in the table below. True widths of the potash zones are estimated to be very similar to drilled widths due to the flat-lying nature of the potash horizons. The zones of potash mineralization are outlined in the following table:

DK-11-24 135.84 138.64 2.81 35.12 Sylvinite
143.30 149.60 6.30 21.03 Kainitite
DK-11-25 101.23 106.65 5.52 29.33 Sylvinite
113.31 119.20 5.89 18.98 Kainitite
DK-11-26 105.00 106.00 1.00 20.26 Sylvinite
117.50 125.50 8.00 18.54 Kainitite
*Drilled width

Hole 24 was drilled vertically and was collared approximately 1500 metres west of Hole 6 (see attached figure). Hole 24 is located in the southwestern part of the Company property in a gap in the previous drill pattern that was done on two kilometre centres. Similarly, Hole 25 is located approximately 1000 metres northwest of Hole 11, was drilled vertically and is part of the infill drilling program. Hole 26 was also drilled vertically and is located approximately 1500 metres west-northwest of Hole 24. All holes intersected strong sylvinite mineralization as well as strong kainitite mineralization and supports continuity of the potash mineralization at shallow levels. Management believes that the continuity of the shallow potash mineralization indicates good potential for open pit mining in this part of the project.

Exploration drilling is continuing in western part of the property (Hole 35) as part of the infill drilling program that management has designed to add resources and increase confidence in current resources by reducing the spacing between holes allowing more material to qualify for Measured and Indicated categories. Samples from holes 27-34 are undergoing analysis or are en route to the laboratory in Saskatoon, Canada.

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 Group. Allana has Measured and Indicated Sylvinite Resources of 97.8 M Tonnes of 30.0% KCl; Inferred Sylvinite Resource of 108.3 M tonnes grading 31.3% KCl; Measured + Indicated Kainitite Resources of 284.2 M tonnes at 19.8% KCl, Inferred Kainitite Resource of 271.2 M tonnes of 20.3% KCl; Measured+Indicated Upper Carnallitite Resources of 78.5 M tonnes grading 18.4% KCl, Inferred Upper Carnallitite Resource of 85.6 M tonnes of 17.1% KCl; Measured+Indicated Lower Carnallitite Resources of 212.6 M tonnes of 12.0% KCl, Inferred Lower Carnallitite Resource of 130.7 M tonnes grading 11.7% KCl. Allana has approximately 196.8 million shares outstanding and trades on the TSX 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 insolubles. 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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