Allana Resources Inc.
TSX VENTURE : AAA

Allana Resources Inc.

June 16, 2008 16:30 ET

Allana Resources Closes Private Placement Financing and Continues to Assess Potash Assets Internationally

TORONTO, ONTARIO--(Marketwire - June 16, 2008) -

NOT FOR RELEASE IN THE UNITED STATES OR TO U.S. NEWS WIRE SERVICES

Allana Resources Inc. (TSX VENTURE:AAA) ("Allana" or "The Company") is pleased to announce that it has closed its previously announced non-brokered private placement offering of 10,000,000 units for gross proceeds of $2,000,000 at $0.20 per Unit on June 16, 2008. Each Unit is comprised of one common share and one half of one common share purchase warrant. Each whole common share purchase warrant will be exercisable for one Allana common share at a price of $0.30 per warrant exercised until June 16, 2010.

The funds will be used for the development of its recently acquired Potash assets in Argentina, exploration for additional Potash assets on a global scale, and general corporate expenses.

The financing remains subject to receipt of applicable regulatory approvals including final approval of the TSX Venture Exchange. All of the securities issued, including the shares issuable on exercise of the warrants, are subject to resale restrictions for a period of four months and one day from the closing date.

Allana continues to search for significant, world-class Potash assets, with a focus on Latin America, Canada and Eastern Africa.

About Allana Resources Inc.

Allana is a publicly traded corporation with a focus on the acquisition and development of potash assets internationally. Allana has approximately 35 million shares outstanding and trades on the TSX-Venture exchange under the symbol "AAA".

Cautionary Note Regarding Forward-Looking Information This press release contains "forward looking information" within the meaning of applicable Canadian securities legislation. Forward looking information includes, but is not limited to, statements with respect to the future financial or operating performance of the Company, its subsidiaries and its projects, statements regarding the terms of the financing and projected use of proceeds, statements regarding exploration prospects, and requirements for additional capital. 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 state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is 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 information, including but not limited to: financing not being available at desired prices; general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; timing and availability of external financing on acceptable terms; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of mineral prices; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; and, delays in obtaining governmental approvals or required financing or in the completion of activities. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in 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 information 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 information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • Allana Resources Inc.
    Julian Bharti
    (416) 861-5907