Category: Potash / Phosphate

Allana Potash Intersects Strong Potash Mineralization in Basin Centre With 37.8% KCl Over 4.10 Metres and Provides Update on NI 43-101 Report

- Hole 12 Intersects Strong Potash Mineralization of 37.80% KCl Over 4.10 Metres Within 15.20 Metres of 26.17% KCl - Results from Hole 12 Indicate Continuity of Potash Mineralization Into Centre of Basin - Management Intends to Include Hole 12 Data in the Company's Upcoming NI 43-101 Technical Report Due in Mid-June

Allana Potash Corp. (TSX VENTURE: AAA) ("Allana" or the "Company") is pleased to announce that it has intersected strong potash mineralization in the central portion of the evaporite basin and at relatively shallow depths. Hole DK-11-12 ("Hole 12") intersected 15.2 metres of 26.17% KCl including 37.84% KCl over 4.10 metres. The presence of strong potash in the central part of the property suggests strong continuity of the potash horizon and the deposit remains open to the east which management believes increases the resource potential in this direction. This work is part of the upcoming update to Allana's National Instrument 43-101 ("NI 43-101") technical report.

Farhad Abasov, President and CEO, commented: "We are very pleased with the strong potash mineralization intersected in Hole 12. This hole is important as it provides a strategic link between the historic Musley Deposit and the centre part of the evaporite basin intersected in Hole 4. We believe that the presence of strong potash mineralization in Hole 12 further indicates continuity of the potash horizon into the centre of our property and supports our geological model of potash mineralization throughout the southern portion of the basin. Management intends to incorporate Hole 12 data in the Company's upcoming NI 43-101 technical report. Our consultants are in the process of finalizing the NI 43-101 technical report and we expect to be able to release the resource numbers in 7-10 days."

Drill Hole 12 has intersected robust potash mineralization up to 26.17% KCl over 15.20 metres from 344.00 metres to 359.20 metres depth comprised primarily of sylvinite and carnallite. Included in this section is a high grade interval of 37.84% KCl over 4.10 metres of mostly sylvite which correlates to the Sylvinite Zone. The remainder of the intersection contains carnallite and is part of the upper part of the Intermediate Zone. The Kainitite Zone was intersected deeper in the hole and analytical results are still being processed by SRC.

Hole 12 was collared approximately 1500 metres east of Hole 8 and was drilled vertically (see attached figure). Hole 12 intersected the Sylvinite, Intermediate and Kainitite zones of potash mineralization as defined by the Parsons drilling in the 1950s and 1960s. The main Sylvinite Zone returned 4.10 metres grading 37.84% KCl starting at a depth of 349.00 metres within a zone of potash mineralization 15.20 metres thick with contains significant carnallite which preliminary interpretations indicate is the upper part of the Intermediate Zone. The Kainitite Zone was intersected in Hole 12 and analytical results for this zone are expected this week.

Hole 12 occupies a significant location in the evaporite basin and essentially links or indicates good continuity between the Musley Deposit and deeper parts of the basin first intersected in Hole 4. The mineralized area in this region is now at least 4 kilometres long by 5 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 ID       FROM (m)    TO (m)    WIDTH (m)(i)    KCL (%)             ZONE ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- DK-11-12        344.00    359.20           15.20      26.17   Sylvinite/Int. ---------------------------------------------------------------------------- Including       349.00    353.10            4.10      37.84        Sylvinite ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- (i)Drilled width  

 

 Exploration drilling is continuing in the far eastern part of the property at Holes 22 and 23 to test for potash mineralization in this unexplored region of the property. Remaining samples from Holes 11, 12, 14, 18, 19 and 20 are undergoing analysis or are en route to the laboratory in Saskatoon, Canada.

Allana is also pleased to report that Ercosplan has made significant progress with the upcoming NI 43-101 report and resource estimate update. Meetings with Ercosplan last week indicate that the report with resource figures should be completed by mid-June at which time they will be released.

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 189.8 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 degrees 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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Contacts: Investor Cubed Christian Scovenna 647 258 3311 This email address is being protected from spambots. You need JavaScript enabled to view it.

SOURCE: Allana Potash Corp.

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