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Allana Formalizes Mandate Letters With Prospective Lenders & Proceeds With Formal Due Diligence for Project Financing

Allana Potash Corp. (TSX:AAA)(OTCQX:ALLRF) ("Allana" or the "Company") announces
progress in its project financing strategy with the signing of formal mandate
letters with prospective lenders within a lender group representing loans in
excess of the target amount of 60-65% debt contemplated to finance the initial
construction of Allana's Danakhil potash project (the "Project"). Following
receipt of renewed letters of interest from large Development Finance
Institutions ("DFIs") and Export Credit Agencies ("ECAs"), formal mandate
letters have been signed between Allana and members of the group of DFIs and
ECAs. In parallel with the mandates, lenders have begun formal loan assessment
preparations and a due diligence review of the Project. The group of lenders
includes large multilateral and regional DFIs and ECAs from North America,
Europe and Africa.


Management is pleased that the capital structure for the Project has been
well-received and supported by the lenders' analysis of the Project Feasibility
Study. Allana continues to work with its project finance advisor, BNP Paribas
and representatives of the lenders, as well as with the specialized technical
advisors engaged on behalf of the lenders, with a view to de-risking the Project
as we move towards finalizing financing commitments. Allana expects the
technical and commercial evaluation of the Project to be completed by late 2013,
thereby allowing for the closing of the project debt financing and start of
construction in early 2014.


Farhad Abasov, President and CEO, commented: "Allana is very encouraged by this
major project financing milestone achieved. The company is very appreciative of
positive and strong support from the group of large, prestigious multilateral
DFIs and ECAs that we have engaged and are consulting. We will maintain our
efforts to ensure that the solid projected credit metrics of the Project support
our targeted amount of project debt financing, thereby increasing the potential
returns to Allana shareholders. The formal mandating of the lenders is a
significant development in our project financing activities which, along with
our current cash on hand and continued support from our existing strategic
investors in the face of challenging sector conditions, gives us confidence that
the Project will continue to be financed and developed according to schedule."


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. Allana has secured financial
support from two significant strategic investors: IFC, a member of World Bank
Group, and Liberty Metals and Mining, a member of Liberty Mutual Group. Allana
has estimated measured and indicated Sylvinitemineral resources of 327.4 million
tonnes of 28.3% KCl; and an estimated inferred Sylvinite mineral resource of
90.8 million tonnes grading 27.8% KCl, In addition, the Danakhil Project hosts
estimated measured and indicated Kainitite mineral resources of 1,150.5 million
tonnes at 19.4% KCl, an estimated inferred Kainitite mineral resource of 481.8
million tonnes of 19.8% KCl; estimated measured and indicated Upper Carnallitite
mineral resources of 411.3 million tonnes grading 17.3% KCl, estimated inferred
Upper Carnallitite mineral resources of 175.5 million tonnes of 16.5% KCl;
estimated measured and indicated Lower Carnallitite mineral resources of 557.2
million tonnes of 9.2%KCl, and estimated inferred Lower Carnallitite mineral
resources of 369.3 million tonnes grading 7.7% KCl. The foregoing mineral
resource estimates are as at April 17, 2013. For more information with respect
to the data verification procedures undertaken and the key assumptions,
parameters and risks associated with the foregoing estimates, refer to Allana's
Technical Report entitled "Resource Update for the Danakhil Potash Deposit,
Danakhil Depression, Afar State, Ethiopia" dated effective April 17, 2013 filed
under the Company's SEDAR profile at www.sedar.com on August 7, 2013. Allana has
approximately 276.9 million shares outstanding. Allana trades on the Toronto
Stock Exchange under the symbol "AAA".


Dr. Peter J. MacLean, Ph.D., P. Geo., Allana's Senior VP Exploration, is the
Company's designated Qualified Person and has reviewed and approved the
technical information presented in this release.