Allana Potash Files Application for Mining License and Provides Project Update

TORONTO, ONTARIO -- (Marketwired) -- 04/18/13 -- Allana Potash Corp. (TSX: AAA)(OTCQX: ALLRF) ("Allana" or the "Company") is pleased to announce that the Company has filed its complete Feasibility Study with the Ministry of Mines in Ethiopia as the final condition for the application of a Mining License. In addition, the Environmental, Social and Health Impact Assessment (ESHIA) report, which forms part of the Mining License application, is in the final approval stages and a decision is expected by the end of April. Exploration drilling has been resumed on the Nova license targeting resource expansion in both the western and southern blocks. Additional pilot solution mining-solar evaporation testwork is ongoing to optimize operating conditions. Infrastructure progress for the project includes initiation of road construction at the new port of Tadjoura as well as civil work at the port.

Farhad Abasov, President and CEO of Allana commented: "Allana is extremely pleased to present to the Ministry of Mines of Ethiopia a very positive Feasibility Study of its Danakhil Potash Project, as prepared by ERCOSPLAN. The FS is the final document required to upgrade the Company's Exploration License to a Mining License and represents a significant milestone for the Company. In addition, the ESHIA evaluation is approaching completion and we are expecting a positive decision from the government by the end of April with respect to the ESHIA. Allana's FS places this project as one of the lowest CAPEX and OPEX opportunities in the potash sector and granting of the Mining License will be important as the project advances to construction."

On April 11th, Allana presented its full FS to the Ministry of Mines as part of the documentation required to upgrade its Exploration License to a Mining License. The Minister of Mines has assured Allana that the application will be evaluated in a timely manner and Allana anticipates that the Mining License will be granted in Q2, 2013. In addition, the ESHIA is in final approval stages, primarily focused on final stakeholder approval in the Danakhil Depression.

Exploration drilling has resumed on the Nova concession with 3 holes completed to date. Geological logging and sampling are in progress and results are expected in 4-6 weeks. Ten holes remain to be completed in this program targeting resource expansion with emphasis on outlining additional sylvinite zones. Pilot testwork continues at site including production leaching of sylvinite at one location and undercut leaching at a second location in an effort to optimize brine chemistry and operating conditions.

Infrastructure improvements for the project are ongoing. Recent meetings in Djibouti indicate that the port construction has commenced and supporting road networks are under construction and slated for completion in Q4, 2015.

Allana is pleased with its progress securing project debt financing to date and is advancing the process with lenders. The Company is also advancing ongoing talks on potential strategic partnership and offtake agreements.

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 as at February 2, 2013 of 327.42 million tonnes of 28.31% KCl; and inferred Sylvinite resource of 90.76 million tonnes grading 27.80% KCl, (see Allana's Technical Report entitled "Summary of the Feasibility Study for a Solution Mine on the ALLANA Potash Project, Danakhil Depression, Afar State, Ethiopia" dated March 19, 2013, effective February 4, 2013). In addition, the Danakhil Projects hosts 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 with respect to Kainitite and Carnallitite are as at April 27, 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, effective April 30, 2012 and the Allana's Technical Report entitled "Summary of the Feasibility Study for a Solution Mine on the ALLANA Potash Project, Danakhil Depression, Afar State, Ethiopia" dated March 19, 2013, effective February 4, 2013. filed at www.sedar.com. Allana has approximately 275.9 million shares outstanding. Allana trades on the Toronto Stock Exchange under the symbol "AAA".

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 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.

Contacts:

Allana Potash Corp.

Richard Kelertas

Senior Vice President, Corporate Development

514 717 6256
rkelertas@allanapotash.com