Overview

Allana Potash 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 97.8 Million Tonnes of 30.0% KCl; Inferred Sylvinite Resource of 108.3 Million tonnes grading 31.3% KCl; Measured + Indicated Kainitite Resources of 284.2 Million tonnes at 19.8% KCl, Inferred Kainitite Resource of 271.2 Million Tonnes of 20.3% KCl; Measured+Indicated Upper Carnallitite Resources of 78.5 Million Tonnes grading 18.4% KCl, Inferred Upper Carnallitite Resource of 85.6 Million Tonnes of 17.1% KCl; Measured+Indicated Lower Carnallitite Resources of 212.6 Million Tonnes of 12.0% KCl, Inferred Lower Carnallitite Resource of 130.7 Million Tonnes grading 11.7% KCl. The unique environment at Dallol suggests low CAPEX and OPEX may be achievable using open pit mining or solution mining with solar evaporation and geothermal energy.

Investment Highlights

• Measured +Indicated Resources total 673 Million Tonnes containing 126 Million tonnes of KCl
• Strong strategic partners in Liberty Metals, a subsidiary of Liberty Mutual, and IFC
• Shallow depth (100-300 m) to potash, parts may be amenable to open pit mining
• Solution mining with solar evaporation and use of geothermal energy also possible
• 160 km² concession in Ethiopia, covering extensive evaporite basin
• Strategically located, only 100 km to Red Sea
• Significant exploration in 2010/2011 with 28 drill holes complete, over 13,000 m
• One of the largest known evaporite basins in the world with known potash mineralization
• Potential to become the lowest cost producer in the world

Chief 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.

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Allana's project has been previously explored. The US-based Ralph M. Parsons company drilled nearly 300 drill holes from 1958-1967 and even sank a shaft to conduct underground mining. Allana recently (June 2011) completed a NI 43-101 compliant resource update report for the four concessions highlighting unique advantages of this project:

• Measured+Indicated Resources of 673 Million tonnes with 126 Million tonnes of KCL
• Additional Inferred Resources of 596 Million tonnes with 119 Million tonnes of KCL
• Resources cover only 40% of the property, strong potential for expansion
• Near-surface (shallow-depth) potash mineralization (within 100 metres of surface)
• Potential for solution or open-pit potash mining
• Successful exploration program in 2010/2011 completed 28 drillholes, approx. 13,000 metres
• 2D seismic survey (45 km) indicates potash continuity in southern part of basin
• Unique environment that may provide for low-cost production utilizing solar evaporation and geothermal power
• MOP (muriate of potash) and SOP (sulphate of potash) production is feasible

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).

Allana has engaged potash specialists ERCOSPLAN to complete a Feasibility Study (FS) of the project and completion is expected in Q3, 2012. Environmental Resource Management has also been contracted to complete an Environmental and Social Impact Assessment (ESIA) for the project in conjunction with the FS. Exploration in-fill and resource expansion drilling is ongoing at the project and camp expansion will now accommodate over 100 people.

 

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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.

Nejib Abba Biya - Senior Vice President, Business Development 

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.

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.

Jason Wilkinson, M.Sc, Project Manager, Ethiopia

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