Allana Potash fka AAA

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The whole PR:

Allana Potash Corp. (TSX VENTURE:AAA) ("Allana" or the "Company"), is pleased to announce a non-brokered private placement with International Finance Corporation, a member of the World Bank Group ("IFC") for 6,250,000 units (the "Units") at a price of $1.60 per Unit for gross proceeds of CAD$10 million. Each Unit shall consist of one common share in the capital of the Company and one-half of one common share purchase warrant, with each whole warrant exercisable for $2.08 for a period of three years from the date of the issue.

Farhad Abasov, President and CEO, commented: "I am very pleased to welcome IFC as a proposed strategic investor in Allana. This investment will be a strong testament to the merits of our potash project in Ethiopia. IFC is one of the largest multilateral financing organizations contributing to the development of key mining, infrastructure and industrial projects worldwide by investing $18 billion in fiscal 2010 alone. This is an important development not only for Allana but also for Ethiopia. Our Board and Senior Management Team have carefully evaluated the merits of an investment of this nature at this stage in Allana's growth and have unanimously decided that the support that IFC can provide to us in Ethiopia is significant. In addition, we believe that developing a strong relationship with IFC places Allana in a very solid position to secure possible future debt financing from IFC and other international organizations for the construction of a potash mine in Ethiopia."

IFC has done a thorough due diligence on Allana's potash project. As part of their due diligence process, IFC has completed a site visit and conducted technical, environmental, social, financial and market analyses. As part of IFC's proposed investment, Allana will be required to meet IFC's environmental, social and safety standards in the ongoing and future development of its project. Allana and IFC personnel have already begun to evaluate Allana's current programs to ensure that Allana has appropriate environmental and social management systems in place and that the Dallol potash projects will benefit local communities as well as Ethiopia in general. In connection with the Offering, IFC shall have certain rights, including without limitation, information, policy and pre-emptive rights.

The Company plans to use the net proceeds from the Offering to fund a drilling program and feasibility study for the Company's main asset, its Ethiopian potash property in the Danakhil evaporate basin, and for general corporate purposes.

Closing of the offering is anticipated to occur on or about May 1, 2011 (the "Closing Date") and is subject to the receipt of all required approvals, including without limitation approval of IFC's board of directors and the receipt of all applicable regulatory approvals, including approval of the TSX Venture Exchange. The Common Shares and the Common Shares issuable upon the exercise of the Warrants will be subject to a statutory hold period for four months and one day following the Closing Date.

About IFC

IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. IFC creates opportunity for people to escape poverty and improve their lives. IFC does so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, IFC's new investments climbed to a record $18 billion in fiscal 2010. For more information, visit www.ifc.org.

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 177.3 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.