Allana Potash fka AAA

[FlatEarthSoc]

NEWS - no big surprise.. Liberty knows a bargain when they see one.

Allana Potash Corp.: Liberty Metals & Mining Exercises Participation Rights in Connection With $27.9 Million Financing for Further Proceeds of Up to $6.2 Million

http://www.marketwire.com/press-release-canada/Allana-Potash-Corp-Liberty-Metals-Mining-Exercises-Participation-Rights-Connection-With-TSX-VENTURE-AAA-1391594.htm

TORONTO, ONTARIO--(Marketwire - Feb. 7, 2011) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRES

Allana Potash Corp. (TSX VENTURE:AAA) ("Allana" or "the Company"), is pleased to announce that Liberty Metals & Mining Holdings, LLC ("LMM"), a subsidiary of Liberty Mutual Group and the Company's largest shareholder, has elected to exercise its participation rights in connection with the Company's previously announced brokered private placement for proceeds of up to $32,085,000 (including exercise in full of the over-allotment option) (See Allana news release dated February 4, 2011).

In order to maintain its 16.27% ownership in the Company, LMM has agreed to purchase up to 4,022,748 common shares (the "Common Shares") of the Company on a non-brokered basis at a purchase price of $1.55 per Common Share for total gross proceeds $6,235,259.40 (the "Financing").

The net proceeds from the Financing will be used to fund continued exploration and development work, including a definitive feasibility study, at the Company's Ethiopian potash project as well as future potential strategic land acquisitions and general corporate purposes.

Closing of the Financing is anticipated to occur concurrently with the brokered private placement on or about March 1, 2011 (the "Closing Date") and is subject to the receipt of applicable regulatory approvals including approval of the TSX Venture Exchange. The Common Shares will be subject to a statutory hold or restricted period of four months and one day following the Closing Date.

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 Inferred Mineral Resources of 70.3 million tonnes of kainitite mineralization grading 61.7 % kainite and 30.3 million tonnes of sylvinite resource grading 25.4 % sylvite (combined 105,200,000 tonnes with a composite grade of 20.8 % KCl (see News Release dated Sept. 17, 2008). Allana has approximately 149.3 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.

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