Allana Resources Inc.
TSX VENTURE : AAA

Allana Resources Inc.

April 06, 2009 07:30 ET

Allana Resources Completes Initial Reconnaissance Exploration at Ethiopian Potash Project

TORONTO, ONTARIO--(Marketwire - April 6, 2009) - Allana Resources Inc. (TSX VENTURE:AAA) ("Allana"), is pleased to announce that it has completed its initial reconnaissance exploration programme on its Ethiopian Potash Project located in the Danakil Depression. This programme focused on structural mapping of the salt domes in the centre of the basin, structural mapping of the west side of the Danakil Graben and sampling of geothermal hot springs to determine the chemistry of the brines. The reconnaissance programme was completed by the consulting firm ERCOSPLAN and Allana geologists.

Structural mapping of the salt domes concentrated on Dallol Mountain and Ashe Ale. Faults trending NW-SE dominate the salt domes and conjugate NE-trending faults occur locally. Data suggests that Dallol likely has an intrusive source at depth that may be generating the hydrothermal system and causing doming of the overlying salt layers. Ashe Ale is interpreted as a small diapir and may consist of salt from the lowest part of the stratigraphic section. Possible potash layers may have been dragged to the surface with the dome however more work including drilling is required to confirm this interpretation.

Structural mapping of the western flank of the Danakil Graben was completed to gain a better understanding of possible fault offsets in the potash horizon by the northeast trending faults. This mapping indicates that the stratigraphy on the flank is complex, the age of the known faults is unknown; however the faults that were identified showed only minor offset, typically less than 5 metres. Geophysical studies, including ground magnetic and seismic surveys, have been recommended by ERCOSPLAN to provide the additional data required to determine the detailed effects of these faults, if any, on the potash mineralization.

Sampling of brines from geothermal hot springs in the Dallol area indicated that the brines are rich in NaCl, with subordinate KCl and MgCl2. The brines at various hot springs reach temperatures of 105 degreesC and densities of 1.25 g/cm3. The relative abundances of the different components and the lack of MgSO4 suggest that the KCl and MgCl2 content of the brines is not due to partial dissolution of the potash horizon.

Farhad Abasov, President and CEO of Allana, commented "Allana has successfully completed a reconnaissance programme of structural and geological mapping as well as evaluation of hydrothermal brine geochemistry on its Danakil Potash Project. While more work is required, we have been encouraged that all studies to date indicate continuity of the potash horizon. It is also encouraging that the brine chemistry indicates that dissolution of the potash horizon by hot brines is not a major factor. Allana plans to move forward with approximately 1,500 metres of diamond drilling, down hole seismic studies and 2D-seismic surface studies in the remainder of 2009".

Peter J. MacLean, Ph.D., P. Geo., Allana's 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.

About Allana Resources Inc.

Allana is a publicly traded corporation with a focus on the acquisition and development of potash assets internationally and recently optioned a previously explored potash property in Ethiopia with NI 43-101-compliant Inferred Mineral Resource estimated at over 100 million tonnes of potash mineralization (Sylvite and Kainite) with a composite grade of 20.8 % KCl. Allana has approximately 61 million shares outstanding and trades on the TSX-Venture Exchange under the symbol "AAA".

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 estimation of mineral reserves and mineral resources; the realization of mineral reserve estimates; the timing and amount of estimated future exploration; results and costs of exploration; capital expenditures; success of exploration activities; permitting time lines and permitting, mining or processing issues; government regulation of mining operations; environmental risks; unanticipated reclamation expenses; title disputes or claims; litigation liabilities; limitations on insurance coverage. 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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