Allana Potash Joins the Ceremony of Tadjourah Port Construction Start

TORONTO, ONTARIO -- (Marketwire) -- 12/18/12 -- Allana Potash Corp. (TSX: AAA)(OTCQX: ALLRF) ("Allana" or the "Company") wishes to express its congratulations to the Djibouti Ports and Free Zones Authority (DPFZA), the Governments of Djibouti and Ethiopia, and the people of Tadjourah Region in Djibouti, on the official completion of financing and start of construction of the new bulk port at Tadjourah, Djibouti. Attending the December 12, 2012 ceremony for the laying of the port cornerstone jointly by the President of Djibouti and the Prime Minister of Ethiopia, Allana and Allana representatives were acknowledged by the Chair of the DPFZA as an integral part of the port's successful start and its future. The port represents a significant investment in the economic growth of Tadjourah Region in the primarily Afar-populated north of Djibouti.

Speaking at the event at the new port site attended by invited local, national and international dignitaries, the President of Djibouti, Ismail Omar Guelleh and the Prime Minister of Ethiopia, Hailemariam Desalegn, both spoke of the new port and its related road and rail connections - now under upgrade, construction or contracting - as further steps in the strategic cooperation linking the Djibouti and Ethiopian economies and the strengthening of both countries' positions among the growing eastern African economies. The countries' leaders also noted that development of their natural resources and shared infrastructure is essential to sustaining the economic growth of the region. The new port is financed by the Arab Fund for Economic and Social Development for US$ 36 million and by the Saudi Fund for Development for US$ 25 million and constructed by Baoye Hubei Construction Group, who has already mobilized materials and staff in Djibouti.

Farhad Abasov, President and CEO, commented: "Allana congratulates the people and governments of Djibouti and the Tadjourah region on the start of this important port construction. We are also very pleased that the leaders of Djibouti and Ethiopia emphasized the role of potash in the economic development of the region and its importance for the new port, and that Allana was specifically recognized in the ceremony. With the confirmed start of construction, Allana can begin the detailed planning for construction and operation of our potash terminal at Tadjourah Port under our existing arrangement with the DPFZA, including plans for local employment and training for Allana's terminal and transport needs. The completion of the Allana potash terminal at Tadjourah will make our company one of the few potash companies in the world with its own dedicated potash port facility."

Port, Road and Rail Developments

The Tadjourah Port event was themed, "Un Port, Une Route, Une Ligne Ferroviaire = Une Realite Regionale" linking the new port, road and railway together. The completion of the highway to a new border crossing near Balho, Djibouti, as well as the construction of the new rail line linking Tadjourah to Ethiopia through the southern Danakhil and the Afar Region capital, Semara, to Mek'ele were highlighted by each of the President of Djibouti, the Prime Minister of Ethiopia and the Chair of the DPFZA as equally important components of the integration and growth of the two countries' resource and economic potentials and east African regional economies. The road and rail project were also highlighted in the materials provided at the event, with the new Balho route road upgrades and construction scheduled for completion in 2014, augmenting the existing highway connections to Tadjourah and to the existing ports at Djibouti / Doraleh.

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 of 171.36 Million Tonnes of 30.9% KCl; inferred Sylvinite resource of 46.62 million tonnes grading 30.25% KCl; 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 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 filed at www.sedar.com., Allana has approximately 275.7 million shares outstanding. Allana trades on the Toronto Stock 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 port construction, drilling and assay results on the Company, the estimation of mineral reserves and mineral resources; the timing and amount of estimated future exploration; the anticipated timing with respect to the preparation of the Feasibility Study; 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.

Contacts:

Allana Potash Corp.

Richard Kelertas

Senior Vice President, Corporate Development

514 717 6256
rkelertas@allanapotash.com