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Allana Potash Encounters Significant Potash Mineralization at Musley Deposit

Allana Potash Corp. (TSX VENTURE:AAA) has announced that drill holes DK-10-09 and 010 both intersected significant zones of potash mineralization.

Both holes are located east of the Musley Deposit and the results suggest strong continuity of potash mineralization throughout this area. Hole DK-10-10 intersected three robust potash intersections including 37.6 % KCl over 2.8 metres, within 12.4 metres of 23.7 % KCl, 21.3% KCl over 6.5 metres and 16.9% KCl over 19.4 metres. Hole DK-10-09 intersected strong potash mineralization which returned 28.0% KCl over 3.5 metres within a wider intersection of 7.1 metres of 22.8 % KCl.

Farhad Abasov, President and CEO, commented: "Allana continues to be very encouraged with our drill results across the entire property and as a result we have commenced another two drill holes. The results from holes 09 and 10 strongly support the interpretation of the extension of the Musley Deposit into this area. Particularly encouraging are the results from Hole 10 where high grade sylvinite, carnallite and kainite were intersected over good widths The combined width of significant potash mineralization, some 38 metres in total, is very positive for this region and management believes will add to the resource potential."

Hole DK-10-10 was collared approximately 3 km north from Hole 08. Hole 10 intersected three prominent zones of potash mineralization including 2.8 metres of 37.6% KCl in the core of the Sylvinite Zone within a wider intersection of 12.4 metres which returned 23.7% KCl. The Intermediate Zone is represented by carnallite and other salts and returned 19.4 metres of 16.9% KCl. The Kainitite Zone was also intersected in this drill hole and returned 6.5 metres of 21.3% KCl. The cumulative width of main potash mineralization in this hole is approximately 38 metres and represents the thickest section encountered to date by Allana.

Hole DK-10-09 was collared approximately 1,000 m southeast from DK-10-07. Hole 09 was drilled vertically and may represent an extension of the Musley Deposit further east towards MountDallol. The upper intersection, 28.0% KCl over 3.5 metres, within 7.1 metres of 22.8 % KCl; appears to correlate with the Sylvinite Zone in the stratigraphy established by Parsons for the project area. The lower intersection, 14.6% KCl over 4.0 metres, appears to correlate with the Intermediate Zone. Technical difficulties with this hole prevented drilling into the Kainitite Zone. This area has not been drilled previously and management believes it represents potential to add to the potash resource.

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.

Exploration drilling is continuing at the project and samples from hole DK-11-11 are in the laboratory in Saskatoon. Due to the encouraging results to date, including the strong potash mineralization encountered in holes 8, 9, and 10, a further two drill holes are in progress and the down hole seismic survey has been extended to incorporate these newer holes. This data will be valuable in the interpretation of the nature and continuity of the potash horizons.

Quality Control and Quality Assurance

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.


Allana Potash Corp.

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