Allana Potash – Developing a World-Class Potash Project in Ethiopia

Overview

Allana Potash (TSX:AAA,OTCQX:ALLRF)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 controls 160 km² of the Danakhil Depression at Dallol, the site of extensive historic potash exploration.

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 of 171.4 Million Tonnes of 30.0% KCl grading 30.9 % KCl, Measured and Indicated Kainitite Resources of 701.6 Million Tonnes grading 20.3% KCl, Measured and Indicated Upper Carnallitite Resources of 155.5 Million Tonnes grading 16.9% KCl, and Measured and Indicated Lower Carnallitite Resources of 269.1 Million Tonnes grading 8.5 % KCl. In addition to these resources, the project contains additional Inferred Mineral Resources of 588 Million Tonnes grading 18.6 % KCl from all four potash horizons.

Investment Highlights

• Strategic investment from IFC (International Finance Corporation), the only potash project worldwide with IFC support
• Strategic investment from Liberty Metals and Mining, acquired 17 % of Allana in Nov. 2010
• ŸFeasibility Study and ESIA initiated, completion approximately Q4, 2012
• ŸNear surface (shallow-depth) potash mineralization (within 100 m of surface)
• ŸPotential for low cost solution mining of Sylvinite Zone
• ŸUnique environment that may facilitate low cost production through solar evaporation and geothermal power
• ŸMOP (Muriate of Potash) and SOP (Sulphate of Potash) production may be feasible
• Close Proximity to India, the second largest importer of potash
• Only 60% of property is explored, strong potential to increase resources

Key Property

Ethiopian Potash Project

Allana Potash has four potash concessions (Dallol Potash Project) located in Ethiopia’s northeastern Danakil Depression totaling about 160 square kilometers. The Dallol Potash Project area is approximately 100 km from the Red Sea coast. The potash mineralization in the Danakil Depression is well known with small-scale potash mining carried out intermittently from the early 1900s.

Potash occurs as sylvite (KCl), kainite (KMg(SO4)Cl*2.75H2O) and carnallite (KMgCl3*6H2O). Potash mineralization occurs in four horizons or zones. The Sylvinite Zone varies in width up to 9 metres (average approx. 4 metres) and grades up to 52 % KCl; The Upper Carnallitite Zone varies in width up to 11 metres (average approx. 6 metres); The Kainitite Zone varies in width up to 11 metres (average approx. 6 metres) and the Lower Carnallitite Zone which varies in width up to 35 metres (average approx. 9 metres). A preliminary economic assessment was completed in November 2011 at the project.

• Meas.+Ind. Sylvinite Resource – 171,357,000T, 30.9% KCl
• Meas.+Ind. Kainitite Resource – 701,545,000T, 20.3% KCl
• Inferred Sylvinite Resource – 46,618,000T, 30.3% KCl
• Inferred Kainitite Resource – 373,710,000T, 20.3% KCl

In addition to Sylvinite and Kainitite, two additional potash-bearing units (Upper Carnallitite and Lower Carnallitite) add significant resource to the project:

• Meas.+Ind. UC Resource – 155,532,000T, 16.9% KCl
• Inferred UC Resource – 89,672,000T, 13.8% KCl
• Meas.+Ind. LC Resource – 269,096,000T, 10.9% KCl
• Inferred LC Resource – 78,150,000T, 8.5% KCl

In addition to drilling, Allana completed approximately 45 km of 2D seismic surveys over the southern half of the evaporite basin. Interpretation of this information is ongoing and being updated as new drill hole information is generated. A final interpretation is expected in Q2, 2011. Additional exploration activity on the project includes downhole geophysical studies (gamma, density etc.), water drilling and environmental baseline studies.

Management

Farhad Abasov, MBA – President, CEO & Director

Over 15 years of business management experience; Most recently served as Senior Vice President at Potash One and Vice President, Portfolio Management and Vertical Integration for Uranium One. Former member of Energy Metals management team (Energy Metals was sold to Uranium One for $1.8 Billion in 2007).

Peter MacLean, P.Geo., PhD – Senior Vice President, Exploration

Over 20 years experience in the mining & exploration industry with junior and senior mining companies including Monarch Resources, Aur Resources and Newmont Mining.

Jack Scott, MBA, P. Eng., Senior Vice President, Strategic Projects

Over 25 years experience worldwide with resource, energy, infrastructure and technology industries in project development and financing, engineering and construction, risk valuation, strategic planning, acquisitions and divestments.

Rickard Kelertas – Senior Vice President, Corporate Development

Mr. Kelertas has been one of the most prominent investment analysts in Canada, ranked a “Top Gun” equity analyst by Brendan Woods International (BWI) for the past seven years and in 2010 one of only 14 analysts in Canada to be named a “Super Leaguer Analyst” by BWI. He was most recently a Vice President and Senior Financial Analyst at Dundee Capital Markets. Over the past 35 years, he has held various positions in corporate Canada, encompassing sales, marketing, corporate development, corporate banking and equity capital markets. For the past 25 years, he has been a top ranked equity analyst and has worked for various national and international firms. Mr. Kelertas graduated from the University of Toronto with two science degrees, including a Masters of Science degree.

Nejib Abba Biya – Senior Vice President, Corporate Development, Ethiopia 

Over 20 years of experience conducting business in Ethiopia, excellent working relations with the federal and regional governments.

Deborah Battiston – Chief Financial Officer

 C.G.A. with over 20 years of accounting and financial management experience.

Jason Wilkinson, M.Sc, Project Manager, Danakhill Operations, Ethiopia

Over 15 years of exploration and development experience in Africa, Asia and Europe. Most recently head of exploration for Lydian and Aur Resources