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Allana Resources Closes Acquisition of Potash Assets in Argentina
Mon Jul 21, 12:11 PM

http://ca.news.finance.yahoo.com/s/21072008/28/link-finance-news-allana-resources-closes-acquisition-potash-assets-argentina.html

TORONTO, ONTARIO--(Marketwire - July 21, 2008) - Allana Resources Inc. (TSX VENTURE: AAA.V) ("Allana" or "The Company") is pleased to announce that it has closed its previously announced acquisition of 100% of Latin American Potash Corporation ("LAPC"), which holds potash-prospective assets in Argentina (the "Transaction").

LAPC holds 154,000 hectares of prospective properties in the potash rich Neuquen province of Argentina. Some of the properties adjoin Rio Tinto's Potasio Rio Colorado project. As a result of the acquisition, the Company holds one of the largest land positions in the Neuquen Basin.

In consideration of 100% of the outstanding shares of LAPC, the Company paid the shareholders of LAPC Cdn$130,000 and issued an aggregate of 3,000,000 Allana common shares.

The Transaction remains subject to receipt of applicable regulatory approvals. All of the securities issued are subject to resale restrictions for a period of four months and one day from the closing date.

Allana continues to search for significant, world-class Potash assets, with a focus on Latin America, Canada and Eastern Africa.

About Allana Resources Inc.

Allana is a publicly traded corporation with a focus on the acquisition and development of potash assets internationally. Allana has approximately 35 million shares outstanding and trades on the TSX-Venture exchange under the symbol "AAA".

Cautionary Note Regarding Forward-Looking Information. This press release contains "forward looking information" within the meaning of applicable Canadian securities legislation. Forward looking information includes, but is not limited to, statements with respect to the future financial or operating performance of the Company, the prospective mineralization of the properties acquired, the terms of the acquisition and the impact of the acquisition on the Company. 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 state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is 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 information, including but not limited to: financing not being available at desired prices; general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; timing and availability of external financing on acceptable terms; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of mineral prices; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; and, delays in obtaining governmental approvals or required financing or in the completion of activities. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in 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 information 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 information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contacts

Julian Bharti
Allana Resources Inc.
[phone]