Allana Potash Corp.

Allana Potash Corp.

May 19, 2011 12:30 ET

Allana Potash Intersects Highest Grade Potash to Date With 52.40 % KCl Over 0.80 Metres

- Hole 15 Intersects Strong Potash Mineralization of 52.40% KCl Over 0.80 Metres

- Highest Grade Sylvinite and Kainitite Intersected at Dallol Project to Date

- Management Intends to Include Hole 15 Data in the Company's Upcoming NI 43-101 Technical Report

TORONTO, ONTARIO--(Marketwire - May 19, 2011) -Allana Potash Corp. (TSX VENTURE:AAA) ("Allana" or the "Company") is pleased to announce that it has further extended the potential of its Dallol deposit with the completion of additional drilling and assay activity in areas beyond those included in the original resource estimate completed in 2008. This work is part of the upcoming update to Allana's National Instrument 43-101 ("NI 43-101") technical report.

Drill hole DK-11-15 ("Hole 15") has intersected significant potash mineralization up to 52.40% KCl over 0.80 metres. Hole 15 intersected two strong zones of potash mineralization which appear to correlate with the Sylvinite Zone and Kainitite Zone. The Sylvinite Zone returned 2.70 metres of sylvinite which graded 39.38 % KCl and includes a 1.70 metre interval that returned 49.13% KCl and a further sylvite-rich zone that returned 0.80 metres of 52.40% KCl. Further down the hole, 6.80 metres of kainitite was intersected which returned 25.87% KCl.

Farhad Abasov, President and CEO, commented: "We are very pleased with the additional strong potash mineralization intersected in Hole 15. This area continues to return high potash grades and significant thicknesses. Each drill hole in this area yields higher grades and the 52.40% KCl over 0.80 metres is the highest grade intersected to date on the property. In addition to the impressive sylvinite zone, Hole 15 also intersected strong kainitite returning 25.87% KCl over 6.80 metres and this is also the highest grade kainite encountered to date on the property and bodes well for our studies on producing SOP, a premium potash product, from kainite. Management intends to incorporate Hole 15 data in the Company's upcoming NI 43-101 technical report."

Hole 15 was collared approximately 1000 metres northeast from Hole 13 and was drilled vertically (see attached figure). Hole 15 intersected the Sylvinite and Kainitite zones of potash mineralization as defined by the Parsons drilling in the 1950s and 1960s. The Sylvinite Zone returned 2.70 metres grading 39.38% KCl starting at a depth of 254.40 metres. A high grade core of 0.80 metres of predominantly sylvite returned 52.40% KCl and occurs within the larger Sylvinite Zone. A robust Kainitite Zone was intersected at a depth of 366.50 metres and returned 6.80 metres grading 25.87% KCl.

Recent drilling in this area, including holes 9, 10, and 13, confirm the extension of the Musley Deposit approximately 1200 metres east of previous work and the historic resource estimate. The mineralized area in this region is now approximately 6 kilometres long by 2 kilometres wide and has the potential to add significantly to the property resource. This area was not drilled previously and was not included in the original resource estimate completed in 2008. 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:

*Drilled width

Exploration drilling is continuing in the far eastern part of the property at Holes DK-11-21 and DK-11-22 to test for potash mineralization in this unexplored region of the property. Samples from DK-11-12, 14, 18, 19 and 20 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 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 189.5 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 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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