TORONTO, ONTARIO--(Marketwire - March 21, 2011) - Allana Potash Corp. (TSX VENTURE:AAA) ("Allana"or the "Company"), is pleased to announce that it has awarded a resource update contract to ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau (ERCOSPLAN) for its Ethiopian Potash Project. ERCOSPLAN completed the previous technical report and resource estimate for the Ethiopian Potash Project and is a world-recognized leader in potash exploration techniques and potash mining. In addition to Allana, ERCOSPLAN's clients include some of the largest potash exploration and mining companies in the world.
As the successor to the former Kali-Ingenieurburo Erfurt, ERCOSPLAN is a specialist consulting and engineering group whose core activities include project management in all aspects of the extraction and processing of industrial potash and mineral salts.
Allana has completed a significant amount of drilling since the previous resource estimate. It is planned that the results from 14 drill holes, downhole geophysical surveys and 48 kilometers of 2D seismic will be utilized to calculate the resource estimate and work by ERCOSPLAN will commence immediately. Drilling is ongoing at the project and any additional holes that are completed will also be incorporated into the new resource estimate.
Farhad Abasov, Allana's President and CEO, stated: "Allana is very pleased to engage ERCOSPLAN to complete an updated resource estimate for our potash project. ERCOSPLAN has been participating in Allana's exploration programme throughout 2010 and they have intimate knowledge of the potash mineralization in the district. Significant amounts of new data has been generated this year from our drilling and seismic programs which management believes will provide a solid base for the calculation of a new resource estimate."
In addition, the Company announces that it has granted a total of 2,120,000 stock options pursuant to the Stock Option Plan of the Company to various officers, directors and consultants of the Company. The options will be exercisable for $1.64 per option and shall expire on March 21, 2016. Such options shall vest immediately subject to the applicable regulatory hold period. The grant of options remains subject to receipt of all required regulatory approvals.
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 177.3 million shares outstanding and trades on the TSX-Venture Exchange under the symbol "AAA".
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.
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 updated resource 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.NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
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