Allana Potash Corp.

Allana Potash Corp.

May 05, 2011 08:16 ET

Allana Potash Intersects More Shallow Potash

- Hole 17 Intersects Significant Potash Mineralization of 31.03% KCL Over 1.00 Metre at a Depth of 74.20 Metres

- Shallow Depth of Potash Mineralization in Hole 17 Is Encouraging for Evaluation of Open Pit Mining

- Management Intends to Include Hole 17 Data in the Company's Upcoming NI 43-101 Technical Report

TORONTO, ONTARIO--(Marketwire - May 5, 2011) - Allana Potash Corp. (TSX VENTURE:AAA) ("Allana" or the "Company") is pleased to announce that drill hole DK-11-17 intersected significant potash mineralization of 31.03% KCl over 1.00 metre starting at a depth of 74.20 metres. Hole 17 intersected two zones of potash mineralization which are interpreted to represent the Sylvinite Zone and Kainitite Zone. The Sylvinite Zone returned 2.00 metres of sylvinite which graded 19.38% KCl and includes a 1.00 metre interval that returned 31.03% KCl. Further down the hole, 7.50 metres of Kainitite was intersected which returned 17.68% KCl.

Farhad Abasov, President and CEO, commented: "I am very excited about the continued success of the drilling in this previously unexplored southwestern part of the property. The shallow depth of the potash mineralization intersected in Hole 17 remains encouraging for evaluation of open pit mining. Historically this region was unexplored with no previous drilling and Allana now has intersected potash in all five holes on this part of the property. Management intends to incorporate Hole 17 data in the Company's upcoming National Instrument 43-101 technical report."

Hole 17 was collared approximately 1500 metres southwest from Hole 11 and was drilled vertically (see attached figure). Hole 17 intersected the Sylvinite and Kainitite zones of potash mineralization as defined by the Parsons drilling in the 1950s and 1960s. The Sylvinite Zone returned 2.00 metres grading 19.38% KCl starting at a depth of 73.20 metres. A high grade core of 1.00 metre of sylvinite returned 31.03% KCl. The Kainitite Zone was also intersected at a shallow depth, approximately 78 metres below surface, and returned 7.50 metres grading 17.68% KCl.

Drill results from Hole 17 are similar to those of Holes 6, 8, 11 and 16 which indicate an area of potash mineralization approximately 5 kilometres long and 4 kilometres wide. Samples from Holes 12, 14, 18, and 19, en route or currently in the lab, will further define this zone which management believes could add significantly to the potash resource on the property. In addition, similar to Holes 8 and 16, Hole 17 intersected potash at relatively shallow depths (73.20 metres) and management will evaluate the possibility of open pit mining in its upcoming feasibility study. As mentioned previously, this area was not drilled in the past 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-11-20 and DK-11-21 to test for potash mineralization in this unexplored region of the property. Samples from DK-11-12, 14, 15, 18 and 19 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 178.1 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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