Full of the Over-Allotment Option

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TORONTO, ONTARIO--(Marketwire - March 1, 2011) -





NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRES





Allana Potash Corp. (TSX VENTURE:AAA) ("Allana" or "the Company"), is pleased to announce that it has closed its previously announced underwritten private placement financing of 20,700,000 common shares at $1.55 per share (the "Offering Price) for gross proceeds of $32,085,000 (the "Brokered Offering") and its previously announced non-brokered private placement of 4,022,748 common shares at the Offering Price with Liberty Metals & Mining Holdings, LLC ("LMM"), a subsidiary of Liberty Mutual Group and the Company's largest shareholder, who elected to exercise its participation rights for further gross proceeds of $6,235,259.40 (the "Non-Brokered Offering" and together with the Brokered Offering, the "Offering"). The Brokered Offering was led by Dundee Securities Ltd. as sole-bookrunner, together with Wellington West Capital Markets Inc. as co-lead underwriter and including Cormark Securities Inc. and Fraser Mackenzie Limited (the "Underwriters").


In connection with the Brokered Offering, the Company has paid the Underwriters a cash commission representing 6% of the gross proceeds raised and has issued the Underwriters that number of broker warrants representing 5.0% of the number of common shares sold. Each broker warrant shall entitle the holder thereof to acquire one common share of the Company at a price of $1.55 until September 1, 2012.


The net proceeds from the Offering will be used to fund continued exploration and development work, including a definitive feasibility study, at the Company's Ethiopian potash project as well as future potential strategic land acquisitions and general corporate purposes.


The securities issued pursuant to the Offering will be subject to a statutory hold or restricted period until July 2, 2011. The Offering remains subject to the receipt of applicable regulatory approvals including final approval of the TSX Venture Exchange.


This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from registration requirements.




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 Inferred Mineral Resources of 73.9 million tonnes of kainitite mineralization grading 61.7% kainite and 31.3 million tonnes of sylvinite resource grading 25.4 % sylvite (combined 105,200,000 tonnes with a composite grade of 20.8 % KCl (see News Release dated Sept. 17, 2008). After giving effect to the Offering, Allana has approximately 176.98 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.