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Gold/Mining/Energy : Allana Potash Discussions

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From: blenderHEAD11/4/2014 9:53:54 AM
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Allana Potash Provides Update on Optimization Studies and Project Progress

Toronto, Ontario, November 4, 2014-- Allana Potash Corp. (TSX: AAA) ("Allana" or the "Company") is pleased to provide an update on optimization studies currently underway on its Danakhil Potash Project in Ethiopia and on additional project infrastructure activities. Optimization studies include additional solution mining at Well SW3 and an aquifer stress test (AST) on one of the alluvial fan complexes to assess the potential optimum production flowrates to supply water for future mining operations. In addition, significant progress has been made on port infrastructure construction at Tadjoura and road access to the port in Djibouti.

Farhad Abasov, President and CEO of Allana, commented, "Our optimization studies continue to progress and will provide additional important information on the mining methodology as well as long term water supply parameters for operations. Well SW3 is currently undercut leaching the Kainitite horizon and brine will be pumped to the ponds for crystal crop generation to assist in the ongoing SOP studies. Initial indications from the observation wells and the pumping wells point to high flow rates of greater than 100 cubic metres per hour as well as very low dissolved solids, indicating the water is likely suitable for solution mining and processing. Allana also continues to be encouraged by the progress at the port of Tadjoura and we encourage shareholders to visit the Allana website ( to view new photos of all these activities. We are also pleased that despite challenging conditions in the fertilizer sector a number of large European and US-based banks have started working with Allana to complement the debt financing mandate letters that have previously been signed with large international development financing institutions."

Solution mining at Well SW3 has begun with part of the undercut leaching operation in the Kainitite horizon below the Sylvinite horizon. Well SW3 will employ a hydrocarbon blanket and a double leach string to optimize solution mining, leaching and recoveries. The KCl-rich brine will be pumped into evaporation ponds to generate a crystal crop which will be utilized in process optimization work. In addition, a crystal crop will also be generated from the Kainitite-rich brine which will utilized to confirm the process testing and design in the Sulfate of Potash (SOP) Preliminary Economic Assessment (PEA) currently underway (see news release dated September 8, 2014). Brine production from leaching of the Sylvinite horizon is expected to commence in February, 2015.

The Aquifer Stress Test (AST) will be carried out on the western portion of the project area on one planned well field within an alluvial fan. In this program, nine additional observation wells have been drilled to monitor the reaction of the aquifer and three additional pumping wells have been completed. In total, five pumping wells will be drawing 100 cubic metres of water per hour from each well for a total production of 500 cubic metres per hour. This quantity of water matches the amount of water required from this well field for solution mining operations. The AST pumping will be run for 30-60 days and then recharge rates will be monitored in the observation wells to confirm regional recharge of 35 million to 55 million cubic metres of water per year (see news release dated January 7, 2013)). The long term pumping tests are scheduled to commence in mid-November 2014.

Port construction continues at Tadjoura and a recent tour given by the Djibouti Port Authority and the Owner's Engineer (Technital) last week indicates work is on schedule. Delivery of the piling materials has been completed with quay wall construction proceeding, buildings and structures to house port operations & administration and site utilities are well advanced, and perimeter fencing, road and water control structure construction are all well underway. Schedule for completion remains late 2016. Road infrastructure work within Djibouti between the new port site and the Ethiopian border is also progressing and this roadway is on schedule to be completed by the end of 2015.

The financing activity for the project construction is proceeding, with technical evaluation work under the lenders' due diligence program well-advanced and additional lender interest being confirmed. Potential commercial bank debt capacity is being developed to complement participation from development financing institution / export credit agency lenders under current mandate agreements. A number of major European and US-based banks have been working with Allana to complement the debt from the current development financing institutions. The project economics remain attractive and all lender mandates and indications of debt capacity have been sustained and supportive.

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 its potash property in Ethiopia. Allana has secured financial support from three significant strategic investors: ICL, one of the world's largest potash producers, IFC, a member of World Bank Group, and LMM, a member of Liberty Mutual Group. Allana has estimated measured Sylvinite mineral resources of 115.3 million tonnes of 27.8% KCl; indicated Sylvinite mineral resources of 212.1 million tonnes of 28.6% KCl, and an estimated inferred Sylvinite mineral resource of 90.8 million tonnes grading 27.8% KCl, In addition, the Project hosts measured Kainitite mineral resources of 552.3 million tonnes at 19.4% KCl, indicated Kainitite mineral resources of 598.2 million tonnes of 19.5% KCl and an estimated inferred Kainitite mineral resource of 481.8 million tonnes of 19.8% KCl; estimated measured Upper Carnallitite mineral resources of 121.5 million tonnes grading 17.5% KCl, estimated indicated Upper Carnallitite mineral resources of 289.8 million tonnes of 17.2% KCl and estimated inferred Upper Carnallitite mineral resources of 175.5 million tonnes of 16.5% KCl; estimated measured Lower Carnallitite mineral resources of 235.0 million tonnes of 9.7%KCl, estimated indicated Lower Carnallitite mineral resources of 322.2 million tonnes of 8.9% KCl and estimated inferred Lower Carnallitite mineral resources of 369.3 million tonnes grading 7.7% KCl. The foregoing mineral resource estimates are as at April 17, 2013. 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 "Resource Update for the Danakhil Potash Deposit, Danakhil Depression, Afar State, Ethiopia" dated effective April 17, 2013 filed under the Company's SEDAR profile at on August 7, 2013.Allana has approximately 325.2 million common shares outstanding. Allana trades on the Toronto Stock Exchange under the symbol "AAA". For more information, please visit the Company's website at

The mineral resource estimates disclosed herein were completed by ERCOSPLAN under the supervision of Dr. Henry Rauche, Ph.D., EurGeol, Managing Director, CEO ERCOSPLAN, Dr. Sebastiaan van der Klauw, Ph.D., EurGeol., Consulting Geologist, ERCOSPLAN and Euro Ingenieur Ralf Linsenbarth of ERCOSPLAN Ingenieurbüro Anlagentechnik GmbH who are each independent Qualified Persons for the purposes of National Instrument 43-101.

Dr. Peter J. MacLean, Ph.D., P. Geo., Allana's Senior VP Exploration, is the Company's designated Qualified Person and has reviewed and approved the technical information presented in this 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, assumptions 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. Such risks are discussed in the risk factors sections of our latest annual information form, our technical reports and other continuous disclosure documents filed from time to time at 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.

Richard Kelertas
Senior Vice President, Corporate Development
514 717 6256 or
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