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Allana Potash Initiates Environmental and Social Impact Assessment on its Ethiopian Potash Project

TORONTO, ONTARIO--(Marketwire - Aug. 24, 2011) - Allana Potash Corp. (TSX VENTURE:AAA - News; "Allana" or the "Company"), is pleased to announce that it has awarded an Environmental and Social Impact Assessment Study ("ESIA") to Environmental Resources Management ("ERM"). The ESIA is scheduled for completion in Q3 2012 and will form an integral part of the Feasibility Study the Company plans to initiate shortly.ERM is a widely recognized world leader in environmental and social studies on a wide range of projects including mining projects throughout the world and for clients such as Anglo American and Northern Peru Copper Company. ERM has offices in 40 countries worldwide and Allana's project will be coordinated out of South Africa. In addition to ERM staff, Ethiopian environmental consulting firms, such as Beles Engineering, will be involved in the ESIA.Farhad Abasov, Allana's President and CEO, stated: "Allana is very pleased to engage ERM to complete an ESIA Study for our potash project. As a world leader in environmental and social studies, ERM will provide guidance on environmental and social programs in compliance with IFC and World Bank standards that will be important in advancing this project. The ESIA will begin immediately with a camp expansion well underway to accommodate additional staff. This is an important development for Allana and we look forward to working with ERM as our project advances to production."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, PLC, a subsidiary 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%, 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. Allana has approximately 196.5 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 impact and timing of the Environmental and Social Impact Assessment Study and Feasibility Study on the Company, the impact and estimated timeline of the drilling and assay results, the estimation of mineral reserves and mineral resources; the timing and amount of estimated future exploration; costs of exploration; capital expenditures; success of exploration activities; permitting time lines and permitting, ; government regulation of mining operations; environmental risks; unanticipated reclamation expenses; and title disputes or claims; 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.