Potash mining | 200 million metric tons | Proposed

[Yoniii]

Yup, since 2009.. Let's keep it in the "family".

Allana Resources Inc. (TSX VENTURE:AAA - News; "Allana" or the "Company"), is pleased to announce Mr. Nejib Abba Biya has joined the Company as Senior Vice President, Business Development. Mr. Abba Biya is a graduate of the University of Toronto and holds a Bachelor of Commerce in Finance.

In addition to his recent work in the resource sector, Mr. Abba Biya founded and operated several technology companies in Canada. Mr. Abba Biya was born in Ethiopia and has over 20 years of management experience including senior positions with multinational companies.

Mr. Abba Biya has been very involved in the African community in Canada. He co-founded the Canadian African Newcomers Organization, and was chairman of the African Training and Employment Centre, a non-profit organization that provided training to new Canadians.

Smart move by the company..

[Yoniii]

delete

[abesha]

Oh Wow, that's awesome! I thought he was some gov official

[Ahadu]

Imagine a railway system stretching from Assab Port direct to the mining site.....

[Roha]

More information on Allana's exploration, production time line and so on....

http://research.dundeesecurities.com.../AAA111109.pdf

[Roha]

http://www.allanapotash.com/s/News.asp?ReportID=448892


Mar 24, 2011

ALLANA POTASH ANNOUNCES A STRATEGIC INVESTMENT BY INTERNATIONAL FINANCE CORPORATION

Not for dissemination in the United States or through U.S. newswires

For Immediate Release: March 24, 2011

ALLANA POTASH ANNOUNCES A STRATEGIC INVESTMENT BY INTERNATIONAL FINANCE CORPORATION

Toronto, Ontario, March 24, 2011 -- Allana Potash Corp. (TSX-V: AAA) ("Allana" or the "Company"), is pleased to announce a non-brokered private placement with International Finance Corporation, a member of the World Bank Group ("IFC") for 6,250,000 units (the "Units") at a price of $1.60 per Unit for gross proceeds of CAD$10 million. Each Unit shall consist of one common share in the capital of the Company and one-half of one common share purchase warrant, with each whole warrant exercisable for $2.08 for a period of three years from the date of the issue.

Farhad Abasov, President and CEO, commented: "I am very pleased to welcome IFC as a proposed strategic investor in Allana. This investment will be a strong testament to the merits of our potash project in Ethiopia. IFC is one of the largest multilateral financing organizations contributing to the development of key mining, infrastructure and industrial projects worldwide by investing $18 billion in fiscal 2010 alone. This is an important development not only for Allana but also for Ethiopia. Our Board and Senior Management Team have carefully evaluated the merits of an investment of this nature at this stage in Allana's growth and have unanimously decided that the support that IFC can provide to us in Ethiopia is significant. In addition, we believe that developing a strong relationship with IFC places Allana in a very solid position to secure possible future debt financing from IFC and other international organizations for the construction of a potash mine in Ethiopia."

IFC has done a thorough due diligence on Allana's potash project. As part of their due diligence process, IFC has completed a site visit and conducted technical, environmental, social, financial and market analyses. As part of IFC's proposed investment, Allana will be required to meet IFC's environmental, social and safety standards in the ongoing and future development of its project. Allana and IFC personnel have already begun to evaluate Allana's current programs to ensure that Allana has appropriate environmental and social management systems in place and that the Dallol potash projects will benefit local communities as well as Ethiopia in general. In connection with the Offering, IFC shall have certain rights, including without limitation, information, policy and pre-emptive rights.

The Company plans to use the net proceeds from the Offering to fund a drilling program and feasibility study for the Company's main asset, its Ethiopian potash property in the Danakhil evaporate basin, and for general corporate purposes.

Closing of the offering is anticipated to occur on or about May 1, 2011 (the "Closing Date") and is subject to the receipt of all required approvals, including without limitation approval of IFC's board of directors and the receipt of all applicable regulatory approvals, including approval of the TSX Venture Exchange. The Common Shares and the Common Shares issuable upon the exercise of the Warrants will be subject to a statutory hold period for four months and one day following the Closing Date

[Roha]

Source: Addis Fortune
http://addisfortune.com/news_radar.htm

Report Shows promise for Allana Potash in Ethiopia

A preliminary economic assessment (PEA) for the Danakil potash project of Allana Potash Corp., a Canadian company, has shown that the project has the potential to expand production at the site to two million tonnes of muriatic of potash (MOP) product a year.

The economic study conducted by Ercosplan, on an after-tax basis, yielded an internal rate of return (IRR) of 36.8pc and a net present value (NPV) of 1.85 billion dollars based on a 12pc discount rate. Allan has taken four concessions in Danakil, Afar Regional State.

The results have exceeded management's expectations and this makes the project one of the lowest capital expenditure (capex) and operating expenses (opex) in the world in the potash industry, according to Farhad Abasov, CEO of the company.

Estimated total capital expenditures, which include production, transportation and handling and port facilities in Djibouti are 796 million dollars, including 128 million dollars in contingency. Total operating expenses are estimated at 90.54 dollars per tonne of KCI - the composite grade of all four potash-bearing beds including sylvinite, upper and lower carnallite and kainitite - with a projected payback period of three and a half years.

The PEA report is based on an operation that produces one million tonnes per year of a standard MOP product, over an initial estimated mine life of 30 years. The company is planning to start production with one million tonnes at the initial stage, intended by year 2017, and then ramp up to two million tonnes after year three, which would coincide with the planned completion of rail capacity for potash transport in the region. Start of construction at the project is anticipated for the end of 2012-early 2013, with minimal output expected by the end of 2014.

[abnet]

I was thinking about the logistical issue of transporting 1,000,000 tons of potash by road. If we want to transport that by a 40 ton capacity truck we need 68 trucks a day on the road each way 365 days a year.And for that kind of trucking you need fuel stations ,garages, restaurants ,rest areas so on... to do that on one of the desolate and hot area on this planet will be very challenging and costy.
So we really need the train on this line otherwise its going to be a nightmare to handle it by trucks.Beside the Allana potash project there are four more companies on different level of progress, if each of them start mining 2 million tons of potash a year you can get the picture of how challenging these can be for transporting it to the port.

[Roha]

Originally Posted by abnet

I was thinking about the logistical issue of transporting 1,000,000 tons of potash by road. If we want to transport that by a 40 ton capacity truck we need 68 trucks a day on the road each way 365 days a year.And for that kind of trucking you need fuel stations ,garages, restaurants ,rest areas so on... to do that on one of the desolate and hot area on this planet will be very challenging and costy.
So we really need the train on this line otherwise its going to be a nightmare to handle it by trucks.Beside the Allana potash project there are four more companies on different level of progress, if each of them start mining 2 million tons of potash a year you can get the picture of how challenging these can be for transporting it to the port.

That is very true. I hope the goverment take this seriously and finish this rail line on the expected time.

[rasta55]

These are from the company's website...
http://www.allanapotash.com/s/Home.asp



It's interesting the next image shows a planned rail line from Dallol linking with the govt's proposed railway...

[abnet]

Mr Jack Scott Allana potash company vice president presenting on the Dallol potash project in Nairobi ,Kenya on the East Africa Mining Business Investment conference .
It seems like the deposit potential went up from 200 million tons to more than a billion tons

[abnet]

Allana receives significant indicative interest from prospective lenders for Dallol project financing.

Toronto, Ontario, March 5, 2012 -- Allana Potash Corp. (TSX: AAA) (OTCQX: ALLRF) ("Allana" or the "Company") is pleased to announce that further to its press release on October 3, 2011, as part of its overall project financing strategy, initial discussions with various prospective lenders have been very positive and thus far Allana has received, in aggregate, non-binding indications of interest totaling over $600 million, exceeding the amount of debt financing Allana was initially contemplating to utilize to finance construction of its Dallol potash project (the "Project"). As a result, management is pleased that its targeted capital structure for the Project has thus far been well-received by lenders. Allana intends to continue working with its project financing advisor BNP Paribas, technical consultant ERCOSPLAN and prospective lenders as the necessary elements of the Project's construction and operations are refined in the ongoing feasibility study, ESIA and pre-production work through 2012. Allana expects the technical and commercial commitments for the Project to be completed by late 2012, thereby allowing for the closing of the project debt financing and start of construction in early 2013.

Farhad Abasov, President and CEO, commented: "Allana is very encouraged by the formal expressions of interest from various propsective lenders consulted to date. We believe such indicative support underscores the technical merit of our project, their confidence in Ethiopia and the robust projected credit metrics of the Project which can support our targeted amount of project debt financing thereby increasing the potential returns to Allana shareholders. This is a significant development in our financing activities which, along with our current cash on hand, continued financial support from our existing strategic investors and demonstrated ability to access the equity capital markets even in the midst of challenging market conditions, gives us confidence that the Project will continue to be developed on schedule."

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 of 97.8 Million Tonnes of 30.0% KCl; Inferred Sylvinite Resource of 108.3 Million tonnes grading 31.3% KCl; Measured and 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 and 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 and 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 foregoing mineral resource estimates are as at June 13, 2011 and are set out in the Company's NI 43-101 compliant Technical Report entitled "Resource Report for the Danakhil Potash Deposit, Afar State/Ethiopia" dated June 24, 2011 filed on SEDAR. Allana has approximately 222,607,557 million shares outstanding and 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 release.

http://www.allanapotash.com/s/News.asp?ReportID=510806

[abnet]

Allana increases Ethiopia Dallol potash resource estimate

Thursday 3rd May 2012

Allana Potash Corp TSX:AAA announced an updated NI 43-101 mineral resource estimate for its Dallol Potash Project in the Danakil Depression, northeast Ethiopia. The project now has measured and indicated resources of 1.3 million (Billion ??) tonnes at an average grade of 19.32% KCI (potassium chloride), representing approximately 250 million tonnes of contained KCI. The project has inferred resources of 588.15 million tonnes grading 18.56% KCI, representing approximately 109.2 million tonnes KCI.

Senior VP Strategic Projects Jack Scott tells ResourceClips.com, “The region has been known as a potential potash production area since the early 1900s. The Italians first started developing it then, and over the years it’s been off and on. In the 1950s and 1960s the Ralph M Parsons Company did extensive exploration and brought some production into operation to serve the North American market at the same time as the Saskatchewan Basin came into extensive production. Parsons sort of packed up at that point—in the late 1960s—and various people have looked at it off and on. Ethiopia and that region has been stable for the last 15 years or so, so in the mid-2000s a number of companies went in to start development in the region.


We’re looking for strategic off-takers. That’s part of the work program through the summer this year. We’re in discussion with a number of players—Jack Scott

“Allana has been working in the region since 2008 on the option properties there and we’ve fulfilled the options and now the license is consolidated under our company. We began exploration in early 2010 after raising our first substantial amount of capital in the markets. We began a drilling program and came through with a first resource estimate in June of last year. We’ve continued drilling, both infill drilling and step-out drilling to confirm the resource and more so to move it from inferred to the indicated category. In the back half of 2011, we started a feasibility study. Basically, we knew the resource was good enough and shallow enough so rather than doing the prefeasibility we went straight to full feasibility and that’s ongoing right now.”

Scott notes that the new estimate represents a 90% increase to the measured and indicated resource, “And an overall expansion of the total resource as well. We want to move as much as possible into measured and indicated, so as we go through the feasibility study we can roll that into potential reserves. Our exploration has been predominantly in the shallow, western region of the property.

“We know that potash extends across the basin. We did seismic work early in our exploration just to get a profile of the basin, and we’ve done some drilling from the eastern to the western edge. The centre part of the basin is a bit deeper, so we know there is potash there, but that’s for later production. We’ll focus on the shallow regions—where, with this new resource estimate, we’ve proven we have a long-term resource—so that when the feasibility study comes out we’ll have an appreciation of the economics.

“Right now our timeline is focused on continuing the feasibility study and some pilot work. Pilot solution wells, pilot evaporation ponds—pre-production analysis due for completion at the end of this year. So the feasibility study, including all that pilot work, is due for completion at the end of this calendar year. We’re doing our environmental and social impact assessment work in concert with one of our major shareholders, the International Finance Corporation, and that’s proceeding and due for completion at the end of this year as well. In parallel with all that work, we’re working through BNP Paribas, our financial advisor, to bring our lenders along through that technical and environmental and social evaluation process so we’re ready to work towards an accelerated close on the project at the end of this year.”

Allana intends to take the Dallol Project to production. Scott adds, “We’re looking for strategic off-takers. That’s part of the work program through the summer this year. We’re in discussion with a number of players, people that bring access to market demand for potash. Those are our targets for strategic partners. People that, perhaps, can bring some operating expertise as well.

“Ethiopia is very stable and has been stable for quite a number of years,” he continues. “They’ve been focused since the early 1990s on creating and refining a well-understood, stable, legal and regulatory infrastructure for mine development. So the mining laws are well defined, and we know the financial implications of all of our developments [in terms of] royalty, tax, duty and customs access. All of those elements are clearly defined. From the perspective of infrastructure, the country sees this potash region as being strategic. They’ve been very progressive in terms of building infrastructure. When we first started our exploration the government built gravel access roads of very high quality so we could get truck access. They are now in the midst of upgrading the road infrastructure to paved highways sufficient for our production plans. That is ongoing and due for completion, likely in the middle to end of next year.”

Allana has raised approximately $75 million over the last two years. “We’ve got somewhere north of $60 million in the bank still, and we’ll need about half of that to complete all of our feasibility, environmental, pre-financial close work. So we’ll have some capital available to ramp up into construction, to fund deposits on long-lead equipments, to scale up some of our pilot work into pre-production, then move—on financial close—into the full construction process.

“We had a preliminary economic assessment done by our technical consultants back in November of last year that put a valuation on the project north of $1.5 billion dollars. Right now, our shares are trading at basically twice cash-value; we have a market cap of somewhere around $150 million with $60-plus million in the bank. So we’re getting a valuation on the project now somewhere around $90 million to $100 million when the thing is worth 10 times that.

“There is a high demand for potash. It’s the underused element of fertilizer applications. It’s critical for some of the larger cash-crops in the world. If you look at the growth in India and China and Southeast Asia—markets that our resource is close to geographically—the demand is increasing. You’ve got three major elements of fertilizer: nitrogen, phosphorous and potassium. The potassium element is growing at a bit faster rate than the other two because it has been traditionally underapplied in balance with the other two elements.”

Scott concludes, “The resource has been well-defined now. And with this most recent resource estimate, we clearly have something of extent and depth from a duration perspective. I think it validates that whole region as a very good global-potash asset. From our perspective, we’ve managed to move the technical side of things, now looking at the development of our production processes. We’ve been very successful in terms of securing infrastructure—port and road and looking now to accelerate the development of Ethiopian rail in support of the project. So I think, all in all, we see this as being a well-advanced project in a strategic part of the world, serving some strategic markets which are in very close proximity.”

View Company Profile

Contact:
Farhad Abasov
President/CEO
416.309.2691

http://resourceclips.com/2012/05/02/...urce-estimate/

[abnet]

Allana potash acquires Nova-Ethio potash company which locate at on the western part of Allana's property and on the process doubling its area.

Sep 04, 2012

ALLANA POTASH CORP. CONTINUES CONSOLIDATION IN ETHIOPIA WITH STRATEGIC ACQUISITION OF NOVA-ETHIO POTASH CORPORATION

Toronto, Ontario, September 4, 2012--Allana Potash Corp. (TSX: AAA) (OTCQX: ALLRF) ("Allana" or the "Company") is pleased to announce that the Company has entered into a definitive agreement (the "Merger Agreement") to acquire all of the issued and outstanding common shares of Nova-Ethio Potash Corporation ("Nova"), a private company, which indirectly holds a 100% interest in a strategically located potash license adjacent to the Company's potash project in the Danakhil Depression in Ethiopia (the "Nova Property"). It is proposed that acquisition will be effected through the merger of a wholly-owned subsidiary of Allana and Nova, in accordance with the laws of the British Virgin Islands (the "Transaction").

The Nova exploration license is approximately 154 km2 and is located adjacent to the western and southern boundaries of the Allana license (see Fig. 1). The Nova license also incorporates extensions of the alluvial fans and potential aquifers present on the western portion of the Allana license. Coupled with Allana's land position in its adjacent claims, upon closing of the Transaction, Allana would control approximately 312km2 of the centre of the potash basin in the Dallol area.

Allana believes that the Transaction provides compelling strategic and operational value including:
•Increasing, through the addition of a large, adjacent potash concession, potential potash resources available for Allana's early stage output described in the November 2011 Preliminary Economic Assessment;
•Access to potential additional water resources to be utilized as Allana continues to assess long-term commercial operations and complete a feasibility study;
Farhad Abasov, President and CEO of Allana Potash, stated: "Allana's Board of Directors and its management are very excited to have entered into the agreement to acquire Nova and the Nova license. It is expected that this significant adjacent property will give Allana additional strategic ground to augment our current land position and add potential shallow potash resources. Allana will mobilize drilling immediately to evaluate the potential of extensions of the potash deposit identified by Allana on its main license block and to update our potash and water resource estimates. The completion of the acquisition of the Nova Property will complement our ongoing development plans and confirms our commitment to developing the potash resources in the district through both exploration and consolidation."

Drilling on the Nova license area by the Ralph M. Parsons Company ("Parsons") in the 1950s and 1960s included 22 potash holes which targeted the western extension of the Musley Deposit, the main deposit explored by Parsons. Nova has completed 21 drill holes in its western and southern sections and compilation of data from this drilling is in progress. In accordance with the terms of the Merger Agreement, Allana is required to make exploration expenditures up to $5 million over twelve months and drill a minimum of 20 holes with respect to the Nova Property. Allana and Nova have jointly defined a next phase drill program to evaluate and define the resources on the property, and under the terms of the Merger Agreement, will complete a National Instrument 43-101 compliant resource estimate on the Nova Property within twelve months of the closing of the Transaction (the "Nova Resource Estimate").

Pursuant to the terms of the Merger Agreement, Allana shall issue 12,716,667 common shares to the shareholders of Nova in exchange for all of the common shares of Nova (the "Merger Shares"). Further, Allana will issue an additional 35,610,000 common shares to be held in escrow (the "Allana Escrowed Shares"). The Allana Escrowed Shares shall be released to Nova shareholders in accordance with certain escrow release conditions, which shall be based upon the amount of contained potassium chloride within the sylvinite zone of the Nova Property as set out in the Nova Resource Estimate. In the event the Nova Resource Estimate contains an amount equal to or greater than 29.2 million tonnes of potassium chloride within the sylvinite zone, all of the Allana Escrowed Shares shall be released. In the event the Nova Resource Estimate contains an amount less than 29.2 million tonnes of potassium chloride, the Allana Escrowed Shares shall be released on a pro rata basis to the amount of defined potassium chloride supported by the Nova Resource Estimate.

In addition, prior to closing, the parties will enter into an agreement with BEMA Investment Holdings Corp. ("BEMA"), the largest shareholder of Nova, pursuant to which, in the event the Nova Resource Estimate exceeds 45 million tonnes of potassium chloride within the sylvinite zone, Allana shall pay BEMA an additional fee of $7.5 million, payable at the sole discretion of Allana in cash or shares at the then current market price (the "Bonus Fee Shares"). In no event, however, shall the Merger Shares, the Allana Escrowed Shares or the Bonus Fee Shares exceed 25% of the issued and outstanding common shares of Allana.

The closing of the Transaction is expected to occur on or before October 17, 2012 and shall be conditional, among other things, upon the approval of the Transaction by Nova shareholders and Nova delivering to Allana a balance sheet indicating no less than $1.3 million in cash and cash equivalents at the time of closing, each Nova shareholder entering into an escrow agreement with Allana in respect of the Allan Escrowed Shares, and the confirmation from Nova to Allana, in writing that the licence underlying the Nova Property has been renewed with the Ethiopian Ministry of Mines.

The Transaction has been approved by the Board of Directors of Allana and the Board of Directors of Nova. Closing of the Transaction remains subject to the receipt of all required regulatory approvals, including the approval of the TSX.

Dundee Securities Ltd. is acting as the exclusive financial advisor to Allana in connection with the Transaction. Salman Partners Inc. and Bellotti Goodman Capital Inc., have been retained by Nova to act as the exclusive financial advisors to Nova with respect to the Transaction.

http://www.allanapotash.com/s/News.asp?ReportID=545285

[abnet]

Allana potash drills more water wells ,provides feasibility study updates and exploration drilling results.

Allana Potash Drills More Water Wells, Provides Feasibility Study Update And Exploration Drilling Results

Toronto, Ontario, October 16, 2012 -- Allana Potash Corp. (TSX: AAA)(OTCQX: ALLRF)("Allana" or the "Company") is pleased to announce that all facets of its Feasibility Study led by ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergau ("ERCOSPLAN") are progressing. Trial solution mining, hydrogeological studies, rock mechanic testwork, processing optimization and the Environmental Social Impact Assessment (ESIA) at Allana's potash project in Ethiopia are moving ahead well.

Following the memorandum of understanding signed last month with the Djibouti Port and Free Zone Authority of the Djibouti government, work is proceeding on the integration of design and planning for the new Tadjourah port and for Allana's potash terminal. Within and in parallel to the Feasibility Study, operations planning and optimization is continuing with detailed route surveys for siting of transport operations support facilities and with development of project services contracting. The Company anticipates that work on the Feasibility Study will be completed by late Q4 2012. Discussions to define and conclude project funding and related offtake arrangements continue with current and prospective strategic counterparties.

In addition to the ongoing Feasibility Study, Allana is pleased to announce the drill results from its remaining exploration holes. Drilling continues to intersect strong potash mineralization on its Dallol potash project located in Ethiopia (the "Property"). Holes DK-12-50 to DK-12-59 are located throughout the western part of the Property and were designed to test the presence of potash in gaps in the current sylvinite mineral resource estimate released in April, 2012. Hole 59 marks the end of current exploration drilling on the project, as efforts are now focused on numerous pilot test operations in support of the ongoing Feasibility Study.

Farhad Abasov, President and CEO, commented: "Allana is pleased by the progress on its Feasibility Study. Technical work on site is advancing well and solution mining is now occurring at Allana's test well fed by water from Allana's license area. Processing studies, rock mechanic testwork, and the ESIA are all on schedule and being completed by our technical consultants at ERCOSPLAN. Allana is pleased with the results of the final exploration drill holes. The most recent drill results continue to show continuity of the potash mineralization and management believes this may allow Allana to continue to upgrade mineral resources from Inferred to Measured and Indicated categories, while adding to all mineral resource categories. We are also very pleased with the ongoing efforts to secure construction financing and long-term supply agreements for our future production. Allana is now advancing talks with large buyers of potash as it works toward finalizing the structure for construction financing."

Feasibility Study Update

Technical studies in support of the Feasibility Study are in progress including rock mechanic testwork, processing optimization, solution mining pilot operations, environmental baseline studies, and hydrogeological studies.

Rock mechanic testwork to optimize cavern spacing is being conducted by ERCOSPLAN and is approaching completion. Processing optimization, including multi-stage flotation testwork, is in progress and is also being conducted by ERCOSPLAN in Germany.

A trial solution well has been in operation since early September 2012. The sump leaching is complete and the sump is estimated to be 200 m3 in size, providing a suitable base for the undercut leaching. The undercut leach involves increased brine injection to 10 m3 per hour and has been in operation for the past week. The undercut leach will be followed by production leaching, which is estimated to begin in mid-November. The solution mining operation is utilizing water from a production well situated approximately 5 km west in alluvial fan material.

Hydrogeological studies are continuing on the western alluvial fan area. Fifteen holes have been drilled, all encountering water. Pump tests and drawn-down tests are underway and should be completed in the next 4-6 weeks. Preliminary pump tests at the main production well indicate approximate flow rates averaging almost 70 m3 but with intermittent rates of up to 150 m3 . This work continues to confirm the presence of a fresh water aquifer 30-35 metres thick in the alluvial fans along the western boundary of the Allana license area.

The Company's ESIA continues to focus on data compilation generated by baseline studies on flora, fauna, noise, dust, local water resources and stakeholder engagement meetings. Preparation of the final document is scheduled for the end of November.

Infrastructure and Financing Update

Allana continues its programs with the Djibouti Port and Free Zone Authority, the Ethiopian Roads Authority and Ethiopian Railway Corporation as well as the relevant ministries of government in Ethiopia and Djibouti, to maintain or accelerate schedules of availability for the infrastructure needed for both initial production and for longer term transportation efficiency improvements and expansions. All elements are progressing well toward Allana's expected construction start in the second half of 2013 and planned first production shipments after construction completion in late 2014.

In parallel with the Feasibility Study and infrastructure development programs, Allana continues work with prospective offtakers, current and prospective strategic investors and international development financing institutions and export credits agencies to optimize the structure for project financing and conclude conditional commitments for offtake and financing. Allana will provide further information on specific arrangements when such arrangements are formalized.

Exploration Drilling Results

Holes DK-12-50 to DK-12-59 are located throughout the western part of the Property and were designed to test the presence of potash in gaps in the current sylvinite mineral resource estimate released in April, 2012.

Holes 50, 53, 55 and 57 were designed to test the extension of the potash horizons in the northwestern part of the property. All holes intersected potash mineralization, highlighted by Hole 55 which returned 3.9 metres of Sylvinite Zone with39.7% KCl. Hole 55 terminated early for mechanical reasons but nearby holes 50 and 53 both intersected strong Kainitite Zones (see Table 1). The potash mineralization remains open to the north; Hole 57, Allana's northern most hole, intersected 5.7 metres of Sylvinite Zone which returned 16.9% KCl as well as 6.0 metres of Kainitite Zone which yielded 20 % KCl.

Holes 51, 52, 54 and 56 are located east of the historic Musley Deposit and were targeted to test sylvinite mineralization across a fault zone outline in the most recent technical report. All holes intersected Sylvinite Zone highlighted by Hole 54 which returned 39.7% KCl over 1.85 metres indicating that potash mineralization extends to the edge of the Allana license area in this region. Hole 52 did not reach the Kainitite Zone due to mechanical problems but nearby Hole 56 returned 7.2 metres of 21.9% KCl in the Kainitite Zone.

Holes 58 and 59 are located in the southwestern part of the license. Hole 58 was an in-fill hole while Hole 59 was targeted to test the extension of potash mineralization into the centre of basin. Both holes intersected weak sylvinite mineralization due to proximity to a northwest trending fault; however Hole 59 intersected a strong Kainitite Zone which yielded 23.8% KCl over 6 metres.

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 of 171.36 Million Tonnes of 30.9% KCl; inferred Sylvinite resource of 46.62 million tonnes grading 30.25% KCl; 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 are as at April 30, 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, filed under the Company's profile at www.sedar.com. Allana has approximately 228.5 million shares outstanding and trades on the Toronto Stock Exchange under the symbol "AAA".

Quality Control and Quality Assurance

Allana employees follow standard operating and quality assurance procedures intended to ensure that all sampling techniques and sample results meet international reporting standards. Procedures for handling core samples begin with securing the potash-bearing HQ-NQ-sized core at the drill site in plastic poly-tubing which is then thermally sealed. Core is placed in plastic core boxes and transported to Allana's camp for geological logging, geotechnical logging and photographing. Significant intervals are dry cut in half using a specially modified tungsten carbide bladed band-saw. Half core samples are then double bagged and thermally sealed prior to transporting to Addis Ababa by Allana personnel. In this initial phase, halite blanks are randomly inserted into the sample stream at a rate of 1 in 20 and sent for analysis with the core samples. The remaining core is re-sealed in plastic poly-tubing and the core boxes secured at Allana's exploration camp. Upon arrival in Addis Ababa core samples are stored at Allana's small warehouse facility and then taken to the Ethiopian Ministry of Mines & Energy where permission is obtained to export the samples. The bagged samples are then carefully packed into boxes and shipped via DHL to the Saskatchewan Research Council in Saskatoon. This sampling procedure was initiated by ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH, Allana's potash consulting firm, supervised by Allana's Ethiopian based Project Manager Jason Wilkinson, M.Sc., and periodically reviewed by Allana's Senior Vice President of Exploration, Peter J. MacLean, Ph.D., P. Geo.

Allana is utilizing SRC's Potash ICP Analysis package designed for multi-element analysis of potash samples. Upon arrival at SRC Geoanalytical Laboratories, core samples are jaw crushed to 60 % @ -2mm and 100 g sub sample is split out using a riffler and transferred to vials. The subsample is pulverized to 90 % @ -106 microns using a puck and ring grinding mill to create a pulp. The grinding mills are cleaned between groups using Quintus quartz. The pulp is then transferred to a labelled plastic snap top vial. An aliquot of pulp is placed in a test-tube with 15 ml of 30°C DI water. The sample is shaken. The soluble solution is then analyzed by ICP-OES. The method is suitable for the soluble analysis of commercial potash (Sylvite). The soluble solution is then analysed by ICP-MS. In addition, samples are analysed for FeO (wt%), Br and Cl by MS, plus insolubles. SRC Geoanalytical Laboratories has been certified by the Standards Council of Canada (SCC) to conform to the requirements of ISO/IEC 17025:2005 (CAN-P-4E).

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.

http://www.allanapotash.com/s/News.asp?ReportID=552814

[layman]

so they want the train ready by 2014. do u know how much foreign exchange it will generate per year? and how much the government is expected to make out of this? It is good news to have a secure market for the transport service beforehand.

[abnet]

Originally Posted by layman

so they want the train ready by 2014. do u know how much foreign exchange it will generate per year? and how much the government is expected to make out of this? It is good news to have a secure market for the transport service beforehand.

With their initial production of a Million ton per year and with today's price of potash being 467 Dollars/ton that is 467 million Dollar a year.Their production cost is going to be 91 Dollars/ton ,So their profit will be 376 Million Dollars a year.Unless they get a tax holiday for five years they have to pay 30 % of their profit a year to the government, which will be about 113 Million Dollars a year.

[abnet]

Allana Potash announces positive feasibility study at its danakil project.

Feb 04, 2013
Allana Potash Announces Positive Feasibility Study at its Danakhil Potash Project
Investor Conference Call planned for February 4th, 2013 at 3:00 p.m. EST

After-tax Net Present Value of US $1.32 billion, based on lower price expectations in current potash markets
After-tax Internal Rate of Return of 33%
Production capital expenditures including mining and processing facilities ("Production CAPEX") of US$579 million
Port and logistics infrastructure ("Infrastructure CAPEX") of US $63 million
Total CAPEX Contingencies of US$64 million included in the Production and Infrastructure CAPEX estimates
Total production operating expenditures ("Production OPEX") of US$69.25/tonne
Total transportation expenditures ("Transportation OPEX") (including transportation/handling, port, loading costs) FOB on Vessel of US$29.50/tonne
Based on Annual Production of one million tonnes of MOP per year using solution mining from Proven and Probable Sylvinite Mineral Reserves only
Significant Carnallitite or Kainitite resources not included in the production plans in this Feasibility Study

Toronto, Ontario, February 4, 2013 -- Allana Potash Corp. (TSX: AAA) (OTCQX: ALLRF) ("Allana" or the "Company") announces the results of a positive independent Feasibility Study ("FS") prepared by Ercosplan Ingenieurgesellschaft Geotechnik und Bergbau ("ERCOSPLAN") on its Danakhil Potash Project in Ethiopia (the "Project"). Allana's Board of Directors is pleased to congratulate the people and government of the Federal Democratic Republic of Ethiopia on the receipt by Allana of the first NI 43-101-compliant feasibility study on a potash resource in Ethiopia's Danakhil potash basin that defines one of the few economically viable greenfield potash projects in the world.

The FS is based on commercial operations that produce one million tonnes per year ("MTPY") of a standard grade Muriate of Potash ("MOP") product over an initial estimated operating life of approximately 25 years from Sylvinite Reserves at Allana's Danakhil Project in Ethiopia. The FS yielded, on an unlevered basis, an after-tax Internal Rate of Return ("IRR") of 33 % and an after-tax Net Present Value ("NPV") of US$ 1.32 billion based on a 10% discount rate.

Farhad Abasov, President and CEO of Allana commented: "Allana is extremely pleased with the very positive Feasibility Study of its Danakhil Potash Project, as prepared by ERCOSPLAN. Even with current potash market realities driving the lower potash price forecast of USD $430/tonne used in the FS, the favourable total production CAPEX of about US$579 million and port and transport CAPEX of US$63 million, make this project one of the lowest cost and potentially highest return greenfield potash projects worldwide. Similarly, the very competitive production OPEX at US$69.25/tonne, within a total, loaded-on-ship, OPEX of US$98.75/tonne FOB, is one of the lowest among greenfield potash projects currently under development."

Mr. Abasov added, "ERCOSPLAN modeled the production of one million tonnes of MOP from just the Sylvinite Zone on the project, excluding future potential production from the extensive Carnallite and sulphate-based Kainite resources. The FS's extremely positive results give Allana great confidence in advancing its project to development and securing project finance and offtake."

The key economic highlights of the FS are outlined in the table below (all dollar amounts are stated in US$):

After-tax NPV@10% ----------------------------------- $1.32 billion
After-tax IRR (based on 35% income tax rate)----------- 33%
Estimated Total Capital Expenditures (including production, port and logistics and contingency)-------------------------------------- $642 million
Estimated Total Operating Expenditures (Production, transportation, port, FOB on vessel) ----------------------------------- $98.75/tonne MOP
Payback period------------------------------------ 3.1 years
Total MOP product from Proven and Probable Sylvinite Reserves----- 23.7 million tonnes

For the purpose of the FS, capital expenditures (CAPEX) were estimated for three main categories: Production using solution mining, solar evaporation and flotation (Production); Transportation and handling of product between the production site and the port (Transportation/Handling); and Port facilities in Djibouti (Port).

The Production CAPEX includes costs associated with cavern development, the solar evaporation ponds, brine processing, and infrastructure including power. Solar evaporation of the saturated brine solution is possible at the Danakhil Project due to the year-round hot temperatures averaging 34°C daylong with very little rainfall. Salts harvested from the ponds will be processed by standard flotation to create an MOP product of a standard grade sufficient for direct application as fertilizer or as feedstock for processed or blended fertilizers.

Transportation CAPEX costs are based on a company owned fleet of trucks and all support, such as maintenance. Port CAPEX costs are based on Allana constructing its own storage facility and conveyor system at the new port of Tadjourah in Djibouti. The main portion of the port, primarily the quay, ship loader and associated infrastructure, is commencing construction and will be completed by the Djibouti Port Authority. The table below outlines the estimated capital expenditures in US$ (2013$) for all categories, including indirects and allocated contingencies.

Total Estimated CAPEX--------------------------- $642 million
Estimated Production CAPEX---------------------- $579 million
Estimated Transportation/Handling CAPEX---------- $29 million
Estimated Port CAPEX----------------------------- $34 million

Estimated operating expenditures (OPEX) were also calculated for Production, Transportation/Handling, and Port. The OPEX costs in US$ per tonne (2013$), including G&A and contingencies, are outlined in the table below:

Total Estimated OPEX--------------------------------- $98.75/tonne
Estimated Production OPEX---------------------------- $69.25/tonne
Estimated Transportation/Handling/Port OPEX ----------- $29.50/tonne

Estimated sustaining capital during operations is estimated at US$ 24.3 million (2013$) per year once operations reach steady state full production at 1 MTPY.

The economic analysis performed in the FS was based on the following assumptions:

Production: --------- One million tonnes MOP per year from Sylvinite, with first product in 2015, and bulk shipments ramping up from 2016 to full 1 MTPY production rate by the end of 2017
Mine life:--------------- 25 years, based on currently defined reserves of Sylvinite only
Mining method: ----------- Solution mining
Processing:--------------- Solar evaporation and flotation
Transport:---------------- Trucking to Djibouti
Power:------------------- Power generation with fuel oil shipped to site
Potash Price:------------- US$ 430 per tonne (2013$)
Underlying NSR:------------ 1.5% (after partial buyout of royalty)

The economic analysis also included government tax and levies based on current Ethiopian published legislation and regulation, assuming:

Government Royalties:------------ 4% on revenue
Government free carried interest:------- 5%
Corporate taxes:------------------ 35%

The FS estimates include all infrastructure required to operate a potash solution mine and to bring the product to market including cavern and wellfield installation, three stage processing plant, product storage facilities, load out, trucking fleet and port storage facilities with all necessary infrastructure.

Summary of Mineral Reserve and Resource Estimates Update

The Company also announces that as a result of the proposed mine plan and favourable economic results developed in the FS, portions of the previously reported measured and indicated sylvinite mineral resource estimates have been upgraded to proven and probable sylvinite mineral reserves. Estimates of the updated mineral reserves and mineral resources were completed by ERCOSPLAN based on a Radius of Influence (ROI) as per industry standards. The following Tables outline the current estimated sylvinite mineral resources and proven and probable sylvinite mineral reserves. All Measured and Indicated Sylvinite Resources were converted to Reserves.

Summary of Mineral Resource Estimates effective as of February 2, 2013

RESOURCES -------------- TONNES (MT)
(in-situ) ------------------ KCL (%)--------------- KCL (MT)
Measured -- 115.31---------- 27.8 ---------- 32.0
Indicated--- 212.11 --------- 28.6------------- 60.7
Inferred ----- 90.76 ---------- 27.8-------------- 25.2
*ROI for measured, indicated and inferred Sylvinite mineral resource estimates are 350 metres, 750 metres and 1500 metres respectively. Cut-off grade is 15% KCl, minimum width is 1.5 metres, density average 2.15

Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimates of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.

The quantity and grade of reported inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category

Summary of Mineral Reserve Estimates effective as of February 2, 2013.

RESERVES------------ MINEABLE TONNES (MT)** -- KCL (%) -- MOP (M TONNES)
Proven --------------- 32.97 ---------------------- 28.0------ 8.2
Probable-------------- 60.81 ---------------------- 28.8------- 15.5
TOTAL -------------------------------------------------- ----- 23.7
** Accounts for losses in the caverns as well as in pillar material between caverns.

*ROI for Proven and Probable Sylvinite Mineral Reserves are 350 metres and 750 respectively. Cut-off grade is 15% KCl, minimum width is 1.5 metres, density average 2.15, potash price of $430/tonne and other key assumptions listed above.
The estimates of mineral reserves may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.

The Proven and Probable Reserves from Sylvinite zone alone are adequate to support production of 1 million tonnes per year of MOP for approximately 25 years. Pilot testwork continues on site as a second solution mining well is currently leaching the Upper Carnallitite unit to provide data on the production of MOP from a Carnallite-rich brine. The results of this study will be used for potential increase in production tonnage in the future.

The FS, with a cost estimate accuracy of +/- 15%, was completed by ERCOSPLAN, a widely recognized world leader in potash exploration techniques and potash mining and processing. In addition to Allana, ERCOSPLAN's clients include some of the largest potash exploration companies and potash producers in the world. An NI 43-101 technical report with respect to the FS (the "FS Technical Report") and the mineral resource and reserve estimates forming the basis of the FS report will be available under the Company's profile on SEDAR and Allana's website within 45 days of this news release.

The Feasibility Study and the mineral resource and reserve estimates were completed by ERCOSPLAN under the supervision of Dr. Henry Rauche, Ph.D., EurGeol, Managing Director, CEO ERCOSPLAN and Dr. Sebastiaan van der Klauw, Ph.D., EurGeol., Consulting Geologist, ERCOSPLAN who are both independent Qualified Persons for the purposes of National Instrument 43-101. Peter J. MacLean, Ph.D., P. Geo., Allana's Senior VP Exploration, is the Company's designated Qualified Person for the purposes of the Feasibility Study and has reviewed and approved the technical information presented in this release.


Contact Info:
Richard Kelertas
Senior Vice President, Corporate Development
514 717 6256
or
rkelertas@allanapotash.com

http://www.allanapotash.com/s/News.asp?ReportID=569007

[abnet]

Allana's CEO Farhad Abasov with Tracy of ProEdgewire.com give an update about his company's progress in Dallol.
If anybody is interested for stock market investment Allana is becoming very promising put your money on them ,you not gonna lose

[abnet]

Allana finished feasibility study and entering to pre-construction stage

http://www.allanapotash.com/i/pdf/pp..._2013_Roth.pdf