TORONTO, ONTARIO, Jun. 10, 2010 (Marketwire) -- Allana Potash Corp. (TSX VENTURE:AAA) ("Allana" or the "Company") would like to clarify certain elements of its press release from yesterday June 9, 2010 which it believes resulted in the unusual and unwarranted trading activity in the Company's common shares. Allana has engaged Meridian Drilling to complete 10,000 metres of additional drilling on its Ethiopian potash project. This drilling is in addition to the Phase I program (2500 m -3000 m) and has been part of the overall program announced by the company in its presentations and other public communications. The drilling will be done in conjunction with 2 D and down hole seismic surveys and is part of the Phase II drilling program designed to establish sufficient resource to support a feasibility study. A second drill rig and equipment capable of drilling to a depth of 800 metres are being mobilized out of the UK and the program will continue with two drill rigs to completion.
The Phase I drilling program is progressing on the project and hole DK-10-03 was recently completed to a depth of approximately 208 m. The drill rig is currently drilling hole DK-10-04 in the centre part of the basin. In this area, two Parsons drill holes intersected thick (approx. 45 m) zones of potash mineralization at a depth of approximately 650 metres. Hole DK-10-03 has been logged, sampled and the samples have been shipped to the lab for analyses.
In addition, Allana wishes to clarify the timing of the issuance of laboratory analyses for holes DK-10-01 and DK-10-02. The results of the analyses of DK-10-01 and DK-10-02 will be released as soon as the evaluations are completed which should be within a few days. Samples from DK-10-03 are only currently being shipped from Ethiopia to Saskatoon, and likely to arrive in the lab next week. The evaluation and analysis of DK-10-03 will take approximately two weeks from today and the Company will release the results as soon as they are available.
Farhad Abasov, President and CEO, commented: "Allana management has decided to issue this clarification in response to many inquiries received from our valued shareholders. We expect to release the assay results for Holes 1 and 2 early next week. The drill program is going full speed with the successful drilling of the fourth hole. We anticipate the samples from the third hole to arrive in the lab next week, and we will announce the results once they are received. The 10,000-meter program is a previously announced and planned phase II drilling program, and is a very positive development for the company as we are on track with our development program."
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 NI 43-101-compliant Inferred Mineral Resource of over 100 million tonnes of potash mineralization (Sylvite and Kainite) with a composite grade of 20.8 % KCl (see News Release Sept. 17, 2008). Allana has approximately 116.5 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 respect to the effect and estimated timeline of the drilling and assay results on the Company, estimated production, the estimation of mineral reserves and mineral resources; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; capital expenditures; success of exploration activities; permitting time lines and permitting, mining or processing issues; government regulation of mining operations; environmental risks; unanticipated reclamation expenses; title disputes or claims; litigation liabilities; limitations on insurance coverage and the effect of terminating the investor relations contract. 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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