TORONTO, ONTARIO--(Marketwire - March 24, 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 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.

Forward-Looking Statement

Except for statements of historical fact relating to the Company, certain information contained herein constitutes "forward-looking information" under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the statements with respect to the terms and use of proceeds of the Offering, the ability of the Company to complete the Offering, the impact of the Offering on the Company, the receipt of all required regulatory approvals, estimated production, the estimation of mineral reserves and mineral resources; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; capital expenditures; success of exploration activities; permitting time lines and permitting, mining or processing issues; government regulation of mining operations; environmental risks; unanticipated reclamation expenses; title disputes or claims; litigation liabilities; limitations on insurance coverage and the effect of terminating the investor relations contract. 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 statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are 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 statements or forward-looking information. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or 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 statements 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 statements and forward-looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except in accordance with applicable securities laws.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from registration requirements.

FOR FURTHER INFORMATION PLEASE CONTACT:

Farhad Abasov

Allana Potash Corp.

President and CEO

1-416-309-2691

fabasov@allanapotash.com

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE