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Press release from Marketwire

Allana Potash Announces Approval of Its Environmental, Social and Health Impact Assessment by Ethiopian Ministry of Mines

Wednesday, May 22, 2013

Allana Potash Announces Approval of Its Environmental, Social and Health Impact Assessment by Ethiopian Ministry of Mines

07:09 EDT Wednesday, May 22, 2013

TORONTO, ONTARIO--(Marketwired - May 22, 2013) - Allana Potash Corp. (TSX:AAA)(OTCQX:ALLRF) ("Allana" or the "Company") is pleased to announce that the Company has received approval of its Environmental, Social, and Health Impact Assessment ("ESHIA") from the Ethiopian Environmental Protection Authority ("EPA") and Ministry of Mines and Energy (the "Ministry"). The approval of the ESHIA, prepared by Environmental Resources Management ("ERM"), is an important milestone to the granting of the Mining License for Allana's Danakil Potash Project.

Farhad Abasov, President and CEO of Allana commented: "Allana is extremely pleased to receive approval from the Ethiopian Authorities for the project ESHIA. Allana wishes to express its gratitude to the Ministry and the EPA for recognizing the extensive ESHIA study undertaken by ERM over the past 18 months. This approval marks the culmination of numerous environmental and social studies, extensive stakeholder cooperation and reflects the strong commitment Allana has to Ethiopia and the Ministry has to foreign investment."

The groundwork was laid for Allana's ESHIA work some two years ago when the International Finance Corporation ("IFC") acquired approximately 4% of Allana pursuant to a private placement financing. Since that time, Allana and IFC have worked closely to implement management and action plans and to meet IFC Performance Standards.

Approval of the ESHIA is conditional on the fulfillment of several action plans, most of which are identified in the ESHIA and already in place. These include monitoring ground water in the region (ongoing), resettlement of two small villages (in progress) and a commitment to community development (part of Allana's Community Development Plan).

Approval of the Company's ESHIA is necessary for the granting of a Mining License in Ethiopia. The Ministry continues to review Allana's application for the Mining License and meetings last week in Ethiopia indicate significant progress has been made in the evaluation of the Company's Feasibility Study. While this work is ongoing, Allana is optimistic that the granting of the Mining License will occur in the next few months.

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. Allana has secured financial support from two significant strategic investors: IFC, a member of World Bank Group, and Liberty Metals and Mining, a member of Liberty Mutual Group. Allana has measured and indicated Sylvinite resources as at February 2, 2013 of 327.42 million tonnes of 28.31% KCl; and inferred Sylvinite resource of 90.76 million tonnes grading 27.80% KCl, (see Allana's Technical Report entitled "Summary of the Feasibility Study for a Solution Mine on the ALLANA Potash Project, Danakhil Depression, Afar State, Ethiopia" dated March 19, 2013, effective February 4, 2013). In addition, the Danakhil Projects hosts measured and indicated Kainitite resources of 701.55 million tonnes at 20.26% KCl, inferred Kainitite resource of 373.71 million tonnes of 20.35% KCl; measured and indicated Upper Carnallitite resources of 78.5 million tonnes grading 18.4% KCl, inferred Upper Carnallitite resource of 155.53 million tonnes of 16.95% KCl; measured and indicated Lower Carnallitite resources of 269.10 million tonnes of 10.86% KCl, inferred Lower Carnallitite resource of 130.7 million tonnes grading 11.7% KCl. The foregoing mineral resource estimates with respect to Kainitite and Carnallitite are as at April 27, 2012. For more information with respect to the data verification procedures undertaken and the key assumptions, parameters and risks associated with the foregoing estimates refer to Allana's Technical Report entitled "Updated Resource Report for the Danakhil Potash Deposit, Afar State/Ethiopia" dated June 13, 2012, effective April 30, 2012 and the Allana's Technical Report entitled "Summary of the Feasibility Study for a Solution Mine on the ALLANA Potash Project, Danakhil Depression, Afar State, Ethiopia" dated March 19, 2013, effective February 4, 2013. filed at www.sedar.com. Allana has approximately 276.5 million shares outstanding. Allana trades on the Toronto Stock 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 press release.

Forward-Looking Statement

Except for statements of historical fact relating to the Company, certain information contained herein constitutes "forward-looking information" under Canadian securities legislation. 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.

FOR FURTHER INFORMATION PLEASE CONTACT:

Contact Information:
Allana Potash Corp.
Richard Kelertas
Senior Vice President, Corporate Development
514 717 6256
rkelertas@allanapotash.com

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