AAA.V...ALERT

Allana Potash Announces Positive Potash Mineralization at 110 Metres in Drill Hole DK-10-01 

 




TORONTO, ONTARIO--(Marketwire - July 13, 2010) - Allana Potash Corp. (TSX VENTURE:AAA) ("Allana" or the "Company") is pleased to announce that the additional evaluation and sampling of drill hole DK-10-01 has identified shallow potash mineralization. This mineralized zone in DK-10-01 returned 6.55 metres, from 110.80 metres to 117.35 metres (drilled width), of 17.65 % KCl highlighted by two metres (drilled width) of 19.94 % KCl from 114.15 metres to 116.15 metres. 


Farhad Abasov, President and CEO, commented: "We are pleased to have identified potash mineralization in hole DK-10-01 and at even shallower depth than Holes 02 and 03. This was the first drill hole completed at Dallol in almost 40 years and the Allana team is gaining valuable information from this work. Preliminary study of the drill results from the first three holes indicates that the potash zone now covers an area approximately three km long by two km wide expanding the zone defined by Parsons drilling by approximately 20% and exceeds our expectations. I would like to thank our potash consultants and exploration team for their perseverance in identifying and additional sampling of Hole 1. Allana's management is very pleased with the progress of our exploration program so far. Drilling in the centre part of the basin is progressing and a second drill rig is due on site to expedite the additional 10,000 metre programme. The seismic program agreement is being finalized."


Previous sampling of prospective potash horizons in hole DK-10-01 returned low potash values. After further evaluation by the Allana geologists and consultants, a prospective potash horizon was identified at a depth of approximately 110 metres and sampled. This zone returned 6.55 metres of potash mineralization grading 17.65% KCl including a two metre section of 19.94% KCl and is interpreted to be the upper part of the Houston Formation. XRD analysis will need to be conducted in order to determine potash mineralogy of the horizon including magnesium content which currently ranges from 0.22 % to 17 %.