Allana Potash Engages Tesla-IMC International Ltd. to Complete Danakhil Seismic Survey and Provides Update on Drilling

TORONTO, ONTARIO -- (Marketwire) -- 08/04/10 -- Allana Potash Corp. (TSX VENTURE: AAA) ('Allana' or the 'Company') is pleased to announce that it has engaged Tesla-IMC International Limited ('Tesla-IMC') to complete a down-hole and surface 2D seismic survey over the potash basin on its Ethiopian Potash Project. The seismic 2D survey covers approximately 45 km over four lines focused on the centre part of the basin. In addition, Vertical Seismic Profiling (VSP) will be completed on selected drill holes to identify the seismic signature of the potash horizons.

Farhad Abasov, President and CEO, commented: 'We are pleased to have engaged Tesla-IMC to complete down-hole and surface seismic surveys at our Ethiopia Potash Project. The seismic data will be valuable in correlating the potash horizons between drill holes and guiding additional drilling in the future. Tesla-IMC is a world leader in seismic data acquisition and interpretation and we are pleased that they have joined our efforts in the Danakhil Depression. We are also very pleased that Hole 4 has progressed to a depth of 701 metres and core recoveries have been excellent. The second drill rig is in the port clearing customs and management believes its addition will substantially accelerate our exploration program.'

Tesla-IMC is a multinational geophysical company based in the United Kingdom and Calgary specializing in seismic acquisition and interpretation for oil and gas companies and potash companies. Significant potash clients include Cleveland Potash, Iberpotash, Rio Tinto and Vale Exploration. Tesla-IMC currently has all necessary equipment in Ethiopia and has completed seismic surveys for a multinational oil and gas company in the southern part of the country.

In addition, Allana is very pleased to provide an update on drill hole DK-10-04 located in the centre part of the evaporite basin. This hole is currently at a depth of 701 metres and is located between Parsons drill holes 5 and 7. These Parsons drill holes reportedly intersected potash mineralization as determined by gamma-ray spectrometry. Upon completion of hole 4, the drill rig will move to hole DK-10-05, approximately 2 km south of hole 4.

A second drill rig has also arrived in Ethiopia and is scheduled to be on site in 8-10 days. This drill rig will continue in the centre part of the basin and start drilling hole 6, located approximately 2 km southwest of hole DK-10-05.

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 NI 43-101-compliant 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 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 Statement

Except 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 the engagement of Tesla-IMC, the proposed seismic survey, drilling and assay results on the Company, 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.

Contacts:

Allana Potash Corp.

Farhad Abasov

President and CEO

+1-416-309-2691
fabasov@allanapotash.com