Allana Potash Corp.

Allana Potash Corp.

February 14, 2011 10:35 ET

Allana Potash Intersects 38 Metres of Potash Including 37.6% KCl Over 2.8 Metres

TORONTO, ONTARIO--(Marketwire - Feb. 14, 2011) - Allana Potash Corp. (TSX VENTURE:AAA) ("Allana" or the "Company") is pleased to announce that drill holes DK-10-09 and 010 both intersected significant zones of potash mineralization. Both holes are located east of the Musley Deposit and the results suggest strong continuity of potash mineralization throughout this area. Hole DK-10-10 intersected three robust potash intersections including 37.6 % KCl over 2.8 metres, within 12.4 metres of 23.7 % KCl, 21.3% KCl over 6.5 metres and 16.9% KCl over 19.4 metres. Hole DK-10-09 intersected strong potash mineralization which returned 28.0% KCl over 3.5 metres within a wider intersection of 7.1 metres of 22.8 % KCl.

Farhad Abasov, President and CEO, commented: "Allana continues to be very encouraged with our drill results across the entire property and as a result we have commenced another two drill holes. The results from holes 09 and 10 strongly support the interpretation of the extension of the Musley Deposit into this area. Particularly encouraging are the results from Hole 10 where high grade sylvinite, carnallite and kainite were intersected over good widths The combined width of significant potash mineralization, some 38 metres in total, is very positive for this region and management believes will add to the resource potential."

Hole DK-10-10 was collared approximately 3 km north from Hole 08 (see attached figure). Hole 10 intersected three prominent zones of potash mineralization including 2.8 metres of 37.6% KCl in the core of the Sylvinite Zone within a wider intersection of 12.4 metres which returned 23.7% KCl. The Intermediate Zone is represented by carnallite and other salts and returned 19.4 metres of 16.9% KCl. The Kainitite Zone was also intersected in this drill hole and returned 6.5 metres of 21.3% KCl. The cumulative width of main potash mineralization in this hole is approximately 38 metres and represents the thickest section encountered to date by Allana.

Hole DK-10-09 was collared approximately 1,000 m southeast from DK-10-07 (see attached figure). Hole 09 was drilled vertically and may represent an extension of the Musley Deposit further east towards MountDallol. The upper intersection, 28.0% KCl over 3.5 metres, within 7.1 metres of 22.8 % KCl; appears to correlate with the Sylvinite Zone in the stratigraphy established by Parsons for the project area. The lower intersection, 14.6% KCl over 4.0 metres, appears to correlate with the Intermediate Zone. Technical difficulties with this hole prevented drilling into the Kainitite Zone. This area has not been drilled previously and management believes it represents potential to add to the potash resource.

Samples are currently being selected for XRD analysis to determine mineralogy. 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:

HOLE ID FROM (m) TO (m) WIDTH (m)* KCL (%)
DK-10-09 210.00 217.10 7.10 22.80
including 210.00 213.50 3.50 28.00
  224.30 228.30 4.00 14.56
DK-10-10 257.00 269.40 12.40 23.71
including 263.40 266.20 2.80 37.64
  303.40 322.80 19.40 16.90
  350.70 357.20 6.50 21.30
      *Drilled width

Exploration drilling is continuing at the project and samples from hole DK-11-11 are in the laboratory in Saskatoon. Due to the encouraging results to date, including the strong potash mineralization encountered in holes 8, 9, and 10, a further two drill holes are in progress and the down hole seismic survey has been extended to incorporate these newer holes. This data will be valuable in the interpretation of the nature and continuity of the potash horizons.

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 Inferred Mineral Resources of 73.9 million tonnes of kainitite mineralization grading 61.7 % kainite and 31.3 million tonnes of sylvinite resource grading 25.4 % sylvite (combined 105,200,000 tonnes with a composite grade of 20.8 % KCl (see News Release dated Sept. 17, 2008). Allana has approximately 150.9 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 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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