Allana Potash fka AAA

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We don't know the exact weather Parson's had. We know we encountered complicated ground conditions in the northwest where there was no previous drilling and they took more time to ensure sample integrity. We know rods got stuck in hole 4 and the core barrel twisted off. Chit happens.

For a re-read:

Hi Brian,

Drilling delays have occurred on the project primarily due to complicated ground conditions encountered in the northwest part of the concession. No past drilling had occurred in this area currently being drilled and the geology encountered has been different than outlined by previous drilling by Parsons albeit seemingly better.

Intercalated silt-sand horizons within the salt package have caused some minor problems with hole stability necessitating the use of additional casing and muds which is time consuming. In addition potash horizons have been intersected where no potash has been encountered in the past. While this is significant it also forces the company to monitor drilling brine chemistry diligently and this in turn is more time consuming. Use of brines with the wrong chemistry will lead to dissolution of both the salt and potash minerals. All efforts are being made to ensure core/sample integrity and while this takes more time, it produces more reliable results.

Also due to increasing heat conditions (45 C) in the project area most of the work is done in the evening time.

Despite these challenges the results have been excellent so far.

We have additional casing and that will help solve some of the problem. Also, Allana will be adding the second drill rig and possible a third to expedite the program and expansion to include another 10,000 metres. This should help us stay on track with our plans.

Overall we are very excited about the results, and looking forward to more drill results in coming weeks.

Cheers,
Farhad
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Brian,

Apologies for the confusion. Both statements were right.

We originally drilled to over 400 meters, however, the rods got stuck in the hole and core barrel twisted off. So we had to pull it out and start drilling again. The new drilling is going well and we are at about 400 meters again, and hopefully this time will not have any issues as we are using tri-cone drilling down to about 650 meters and then start getting core out.

Hope this clarifies it.

Thanks,
Farhad
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