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Allana Potash Encounters Two Significant Potash Zones at Evaporite Basin

Allana Potash Corp. (TSX VENTURE:AAA) has announced that drill hole DK-10-06, located in the southwestern centre of the evaporite basin, intersected two significant zones of potash mineralization.

Hole DK-10-06 intersected 30.9% KCl over 3 metres, and 24.5% KCl over 4.2 metres in two distinct intersections at relatively shallow depths beginning at 495 metres. The lower interval occurs within a thick potash sequence that returned 17.3% KCl over 17.7 metres.

Farhad Abasov, President and CEO, commented: "We are very pleased to have identified two robust zones of potash mineralization in hole DK-10-06 in a part of the evaporite basin that has no past exploration. We believe that this hole further demonstrates that Allana's potash project has the potential to become a significant potash deposit. Each drill hole from our basin-centre program has the potential to substantially expand our current inferred resource. Now that the seismic program is completed, we are awaiting the seismic interpretation that will assist us in determining the potential in our project."

Hole DK-10-06 was collared in the southwestern portion of the evaporite basin approximately three kilometres south west of drill hole DK-10-04. This area was not previously explored by Parsons and the potash zones remain open in all directions. As such, Allana believes that the potash mineralization intersected in DK-10-06 represents potential for a significant expansion of Allana's potash resource.

Geological logging of the hole suggests that the upper intersection correlates with the Sylvinite Zone defined by Parsons at the historic Musley Deposit. Similarly, the lowest intersection, 4.2 metres at 24.5% KCl, is dominated by kainite and appears to correspond to the Kainitite Zone in the Parsons stratigraphy. The drilling ended at 585 metres in kainitite and the zone remains open at depth. The hole was terminated at this depth due to mechanical difficulties with the drill rig. The middle intersection, 9.3 metres at 17.5 % KCl, is dominated by carnallite and appears to correspond with the Intermediate Member as defined by Parsons. XRD work is in progress at Saskatchewan Research Council to better define the potash mineralogy.

Exploration drilling is continuing with one drill rig working on the Haro concession (see news release dated November 9, 2010) and the second continuing in the southern part of the basin. Hole DK-10-07, located at the north end of the Haro concession and approximately 700 metres south east of hole 03, was completed to a depth of 236 metres. Logging and sampling of this hole are complete and samples are en route to SRC in Saskatoon for analysis which is expected to be completed in approximately 10-14 days. This northern drill rig has mobilized to drill hole DK-10-09, located in the centre part of the Haro concession, and is at a depth of 50 metres. Drill hole DK-10-05 was drilled to a depth of 680 metres where the drilling equipment experienced technical issues. A larger drilling rig is currently being sourced and this hole will be re-drilled in the future. The southern rig is currently drilling on hole DK-10-08 and is at a depth of 188 metres.

Allana has announced the completion of its 2D surface seismic survey. Approximately 45 km of 2D seismic was shot over the southern part of the evaporite basin. Preliminary data indicates a number of reflectors are present and display continuity. Data interpretation and reports are ongoing and final results are expected by the end of the year.

Source: Allana Potash Corp.

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