Allana Potash Clarifies Status of Its Economic Analysis
TORONTO, ONTARIO -- (Marketwire) -- 10/12/10 -- Allana Potash Corp. (TSX VENTURE: AAA) ('Allana' or the 'Company'), is issuing the following news release to clarify its disclosure.
The Company's September 2010 Corporate Presentation, available on Allana's website, previously referred to a 'preliminary assessment report' by ERCOSPLAN. This reference was to the ERCOSPLAN 'Preliminary Resource Assessment Study' dated October 30, 2008 (amended and restated December 10, 2008, December 22, 2008 and February 5, 2009) filed on SEDAR. The company clarifies that it has not completed a preliminary economic assessment on its potash resource (as defined in NI 43-101).
In addition, during Mr. Farhad Abasov's recently held interview, Mr. Abasov stated that the 'potential exists to increase the inferred resource by at least 5 to 10 times'. Allana wishes to clarify that the above disclosure of exploration potential is not compliant with NI 43-101 requirements for disclosure of a potential mineral deposit or exploration target, and retracts guidance about potential additional quantity ranges. Although Allana management believes that based on current and historical drilling there is potential to increase the mineral deposit, there can be no assurances that further drilling will result in delineation of additional potash resources.
Following completion of the 2010 drill program, the Company plans to update its mineral resource estimate and will announce any material changes to its resources when received.
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 an Inferred Mineral Resource of 105 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 118.5 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.
CAUTIONARY NOTES
The above disclosure of exploration potential is not compliant with NI 43-101 requirements for disclosure of potential exploration targets, and should not be relied on. It is uncertain if further drilling will result in any targets being delineated as mineral resources.
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 clarification on the Company, the effect and estimated timeline of the seismic survey and drill program on the Company, the receipt of all required regulatory approvals, 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.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Contacts:
Allana Potash Corp.
Farhad Abasov
President and CEO
416-309-2691
fabasov@allanapotash.com