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Allana Potash Corp. Starts Consolidating Ethiopian Potash Basin With Announcement of Strategic Acquisition and Provides Exploration Update

TORONTO, ONTARIO--(Marketwire - Nov. 9, 2010) - Allana Potash Corp. (TSX VENTURE:AAA - News; "Allana" or the "Company"), is pleased to announce that the Company has entered into an agreement to acquire a 100 % interest in a strategically located concession at its Ethiopian Potash Project in the Danakhil Depression, Allana has entered into this agreement with Haro Exploration Corporation, a private company operating in Ethiopia.Farhad Abasov, President and CEO of Allana Potash, stated: "We are very excited to have completed the acquisition of the strategic Haro concession adjacent to the Musley Potash Deposit. Management believes this concession gives Allana the opportunity to expand its potash resource in an area located between its two potash deposits. Allana plans to mobilize road building equipment and one drill rig in order to evaluate the extension of the potash horizons onto the Haro concession. The acquisition of the Haro concession complements our ongoing exploration efforts and confirms our commitment to developing the potash resources in the district through both exploration and consolidation."The Haro concession is approximately 11 km2 and is surrounded by the Allana concessions (see Fig. 1). The Haro concession has no historic drill holes but occupies a strategic location between the historic Musley Deposit and the Crescent Carnallite deposit. In addition, the concession is approximately 1 km from Allana drill holes DK-10-02 and DK-10-03 which returned 5.5 metres of 25.8 % KCl and 9.95 metres of 19.5 % KCl respectively (see Press Releases June 15, 2010 and July 7 2010). Management believes there is good potential that this mineralization, interpreted to be the extension of the Musley Deposit, extends on to the Haro concession. Allana plans to mobilize one of its drills to the Haro concession to test this potential extension.Allana can acquire a 100% interest in the Haro concessions by completing CAD $2,000,000 in option payments over 3 years and incurring CAD $2,000,000 in work expenditures over 3 years. The Company will pay a finder's fee to an arm's length party in connection with this acquisition. Closing of the acquisition remains subject to certain conditions, including without limitation, satisfactory confirmation of title, completion of the transfer and conveyance and any required approvals.Allana is also pleased to provide an update on its exploration activities at its Ethiopian Potash Project. Hole DK-10-06, located in the west-central part of the basin, was completed to a depth of 585 metres and logging and sampling have been completed. Samples are currently en route to Saskatoon and results are expected in 10-14 days. As outlined above, this drill rig has moved north to begin drilling near the newly acquired Haro concession at Hole DK-10-07 which is currently at a depth of 40 metres. Potash is expected to be intercepted at depths similar to hole DK-10-03, 150 metres to 175 metres, which is located approximately 800 m northwest of Hole 07. Drillhole DK-10-05, located in the centre of the basin, is currently at a depth of 677 metres and is expected to continue to a depth of 750 metres to 800 metres.The seismic work is now underway in the southern part of the evaporite basin. Preliminary interpretations show a number of good reflectors and the survey should be completed in 3-4 weeks.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 Resource of over 100 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.Forward-Looking StatementExcept 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 effect and estimated timeline of acquisition and the 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.To view "Fig. 1 Location of the Haro Concession, Ethiopia," please visit the following link:http://media3.marketwire.com/docs/allana_potash_fig1_nov9.pdfNEITHER 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