The Energy Report

Allana Potash Corp. TICKER: AAA:TSX; ALLRF:OTCQX Visit Company Website Allana Potash is a Canadian company exploring and developing the previously explored Dallol Potash Property in the Danakil Depression, Ethiopia. This depression had small-scale potash production in the 1920s and was extensively explored in the 1960s. The company has 43-101-compliant resources of more than 100 Mt.; a strong, experienced management team; and strategic investment from an offtake agreement with a Chinese mining group. Allana also has potash claims in Argentina adjacent to Vale's Rio Colorado project.

The information provided below is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.

Expert Analysis

Marc Robinson, Cormark Securities (2/6/12) "Allana Potash Corp. announced the offering of $20M of equity issued at $0.80 per share. . .on Jan. 26, 2012, Liberty Metals & Mining Holdings and International Finance Corporation exercised their participation rights by subscribing to a non-brokered private placement on the same terms, raising an incremental $5.4M. . .of all the MOP players, given its proximity to huge end-markets, we continue to believe Allana has the best chance of seeing production. . .Allana is now well financed through feasibility and into early construction."

The Energy Report Interview with Corey Dias (1/24/12) "When the market sees that Allana Potash Corp. is getting closer and closer to production, that's when the valuation will start to improve. I think that is something that could happen this year. . .as more news comes out that's favorable to the company, then you should start seeing the stock move back up. . .the Danakil project is interesting because it's a near-surface project, which means the capex should be low. I think that it will have a fast track to production, which is another positive. And the fact that it's probably selling to India, and perhaps China, is another positive because there is a quicker trade route to those countries compared to North American or South American potash producers. . .I think there could be a big opportunity for Allana, especially given its low operational cost base." More >

Jaret Anderson, Mackie Research (1/11/12) "Allana Potash Corp. announced a $20M bought deal financing at $0.80/share. The transaction is scheduled to close on February 2, 2012 and includes a provision for a 15% greenshoe, which could result in an upsized deal of $23M. . .this cash could allow the company to order long-lead-time items and/or provide flexibility to pursue various strategic alternatives. More cash on the balance sheet also strengthens the company's hand in the event it becomes involved in protracted negotiations with a potential strategic partner."

Deborah Sterescu, Proactive Investors (12/13/11) "Allana Potash Corp. said it is expediting additional studies on its Ethopian project for the feasibility study, following the successful completion of its preliminary economic assessment (PEA) in November. . .Currently, large bore drilling equipment is being mobilized to the site to conduct drilling for water resources and to facilitate the solution mining cavern work. . .Allana announced the "extremely positive" PEA results for its Danakhil potash project in Ethiopia, with the potential to expand production at the site to 2 Mt of muriate of potash product per year."

Richard Kelertas, Dundee Securities (12/5/11) "We maintain our Buy (Top Pick—Small Cap) recommendation for Allana Potash Corp. and reiterate that we believe Allana is sitting on one of the best greenfield potash opportunities in the world for many reasons: 1) the location is expected to interest potential Indian/Chinese offtakers given its proximity to Southeast Asia, 2) capital expenditure assumptions (total US$796M) are reasonable and much more manageable than the expected US$1.5 to US$2.5B it would cost a greenfield solution mining potash project in Saskatchewan, and 3) operating expediture/tonne estimates are firmly in the low end of the cost curve at US$100/mt (Dundee estimate)."

• Corporate Fact Sheet (9/6/11)
• Corporate Presentation (11/7/11)

(6/10/11) Interview with AAA CEO Farhad Abasov

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