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Canadan Allana Potash Finds Shallow Potash in a Previously Unexplored Area of Ethiopia

Tigrai Online
April. 27 2011

Tigrai Online - Ethiopian Potash Allana is pleased to announce that drill hole DK-11-16 intersected significant potash mineralization of 29.80% KCl over 4.00 metres starting at a depth of 125.20 metres. Hole 16 intersected two strong zones of potash mineralization which are interpreted to correlate with the Sylvinite Zone and Kainitite Zone in a previously unexplored part of the basin. The Sylvinite Zone returned 6.50 metres of sylvinite which graded 24.79 % KCl and includes a 4.00 metre interval that returned 29.80% KCl. Further down the hole, 5.00 metres of kainitite was intersected which returned 20.29% KCl.

Farhad Abasov, President and CEO, commented: "We are very pleased with the identification of new potash mineralization in the southwestern part of the property. This region was previously unexplored with no previous drilling. Management intends to incorporate data from Hole 16 in the Company's new National Instrument 43-101 technical report, expected to be issued on or about the end of May, 2011."

Hole 16 was collared approximately 1,000 metres southwest from Hole 8 and was drilled vertically (see attached figure). Hole 16 intersected the Sylvinite and Kainitite zones of potash mineralization as defined by the Parsons drilling in the 1950s and 1960s. The Sylvinite Zone returned 6.50 metres grading 24.79% KCl starting at a depth of 125.20 metres. A high grade core of 4.00 metres of sylvinite returned 29.80% KCl. A robust Kainitite Zone was intersected at a depth of 168.20 metres and returned 5.00 metres grading 20.29% KCl.