Allana Potash Corp.
TSX VENTURE : AAA

Allana Potash Corp.

June 13, 2011 10:37 ET

Allana Potash Intersects New Zone of Potash Mineralization in Southwest With 61.26% KCl Over 0.9 Metres in Hole DK-11-19

- Hole 19 Intersects High Grade Potash Mineralization of 61.26% KCl Over 0.90 Metres Within 7.30 Metres of 37.74% KCl

- This Sylvite-Rich Horizon Represents A New Potash Zone in the Basin and Adds Resource Potential

- Kainitite Zone from Hole 12 Returns 6.83 Metres of 22.30% KCl

- Management Intends to Include Hole 19 Data in the Company's Upcoming NI 43-101 Technical Report

TORONTO, ONTARIO--(Marketwire - June 13, 2011) - Allana Potash Corp. (TSX VENTURE:AAA) ("Allana" or the "Company") is pleased to announce that it has intersected three zones of potash mineralization in Hole DK-11-19 ("Hole 19") in the southwest portion of Allana's land position. Hole 19 intersected a new zone of potash mineralization which returned 61.26% KCl over 0.90 metres within 7.30 metres 37.74% KCl and is referred to here as the Upper Sylvinite Zone, as well as the main Sylvinite Zone and the Kainitite Zone. The traditional Sylvinite Zone returned 3.04 metres of 30.85% KCl and the Kainitite Zone returned 22.09% KCl over 7.23 metres. The presence of strong potash mineralization in the southwestern part of the property suggests strong continuity of the potash horizon and the deposit remains open to the south and east which management believes increases the resource potential in this direction. Remaining analytical results from Hole 12 were also received and the Kainitite Zone returned 6.83 metres of 22.30% KCl. This work will be included in the upcoming update to Allana's National Instrument 43-101 ("NI 43-101") technical report.

Farhad Abasov, President and CEO, commented: "Allana is extremely encouraged by the new high grade zone of sylvinite intersected in Hole 19 which management believes adds additional resource potential to our project. Hole 19, with 61.26% KCl over 0.90 metres, returned the highest grade potash on the project to date. The combined thickness of potash intersected in Hole 19 is approximately 17.5 metres and the potash stratigraphy remains open to the south and east for expansion. In addition to strong results from Hole 19, management believes the remaining data from Hole 12 confirms the continuity of the Kainitite Zone throughout this part of the basin. Allana intends to incorporate Hole 19 and remaining Hole 12 data in the Company's upcoming NI 43-101 technical report."

Drill Hole 19 intersected three zones of potash mineralization comprised of two zones of sylvinite and one zone of kainitite mineralization. The Upper Sylvinite Zone was intersected at a depth of 263.50 metres and returned 37.74% KCl over 7.3 metres and includes a very high grade zone of 61.26% KCl over 0.90 metres. This is the highest grade potash intersected in the Dallol area to date. A second sylvinite zone, which corresponds to the Sylvinite Zone defined by Parsons in the 1960's, was intersected at a depth of 547.35 metres and returned 30.85% KCl over 3.05 metres. The third potash zone encountered correlates with the Kainitite Zone which was intersected at a depth of 625.47 metres and yielded 22.09% KCl over 7.23 metres.

In addition, the remaining results for Hole 12 have been received and the bottom portion of the hole intersected the Kainitite Zone at a depth of 419.42 metres. The Sylvinite Zone was intersected at 344.00 metres and these results have been reported previously (see June 6, 2011 News Release). The Kainitite Zone returned 22.30 % KCl over 6.83 metres and management believes this will add significant potential to increase the potash resource in this part of the project.

Hole 19 was collared approximately 1,600 metres east of Hole 11 and was drilled vertically (see attached figure). Hole 19 occurs in the southwestern portion of Allana's project area and the deposit remains open to the south and east as these areas have not been drilled. Strong potash mineralization in Hole 19 suggests that the potash stratigraphy extends to the southern margins of Allana's land position and east into the deeper parts of the basin. Additional drilling is planned to test these extensions and is expected to be completed in 2011. The mineralized area in this southwest region is now at least four kilometres long by five 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:

HOLE IDFROM (m)TO (m)WIDTH (m)*KCL (%)ZONE
DK-11-19263.50270.807.3037.74Upper
Including266.40267.300.9061.26Upper
547.35550.403.0530.85Sylvinite
625.47632.707.2322.09Kainitite
DK-11-12344.00359.2015.2026.171Sylvinite/Int.
Including349.00353.104.1037.841Sylvinite
418.42425.256.8322.30Kainitite
*Drilled width
1 Released previously

Exploration drilling is continuing in the far eastern part of the property at Hole 23 to test for potash mineralization in this unexplored region of the property and Hole 24 in the southwestern portion of the property. Remaining samples from Holes 14, 18, 20, 21 and 22 are undergoing analysis or are en route to the laboratory in Saskatoon, Canada.

As Allana reported on June 6, 2011, Ercosplan is making significant progress with the upcoming NI 43-101 report and resource estimate update. Recent discussions indicate that completion of the report is on schedule and is expected to be completed in 5-7 days.

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 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 192.4 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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