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 NI-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

Andrea Rubakovic, Salman Partners (5/2/12) "Last night, Allana Potash Corp. announced its updated NI-43-101-compliant mineral resource estimate on its 100%-owned Danakil potash project. . .the total Measured and Indicated resource has doubled to 250 Mmt of contained KCl (~1.3 Bmt at an average grade of 19.3% KCl including sylvinite, carnallite and kainitite), with the grade also increasing 3%. The updated resource also includes 109 Mmt of Inferred resource (~588 Mmt at 18.6% KCl). . .the company's substantial resource will now allow it to proceed with a feasibility study expected late this year, and to realistically consider multiple million tonnes per annum production phases. . .it may serve to attract more attention from potential suitors."

Joyanta Acharjee, Proactive Investors (5/2/12) "Allana Potash Corp. said Tuesday it has received an updated NI 43-101-compliant mineral resource estimate from ERCOSPLAN on its Danakhil potash project in Ethiopia, increasing M&I resources by more than 90%; the M&I mineral resource estimate now totals 1.3 Bt with an average grade of 19.32% potassium chloride (KCl), representing approximately 250 Mmt of KCl."

Marc Robinson, Cormark Securities (5/2/12) "With 67 Mmt total sylvinite, Allana Potash Corp. can now justify close to a 25-year mine life on the sylvinite alone. . .we continue to view the company as the best positioned among its MOP peers considering its proximity to huge end-markets, its growing resource and its strong balance sheet. Ultimately, with increasing interest in the space and the involvement of deep-pocketed players, we see increasing likelihood of a takeout at levels close to our target as the project is derisked. . .we believe longer-term investors will ultimately be rewarded; we reiterate a Buy recommendation."

Steve Hansen, Raymond James (5/1/12) "Allana Potash Corp. released the results of an updated NI 43-101 resource estimate at its flagship Danakhil project in Northern Ethiopia. . .the updated resource estimate nearly doubles Danakhil's Measured and Indicated resource to 1,297.5 Mmt (vs. 673 Mmt previously) at an average 19.3% KCl grade, equating to a net KCl tonnage of 250.7 Mmt (vs. 125.7 Mmt previously). On a net KCl basis, Allana boasts one of the largest potash deposits amongst its junior developer peers. . .the deposit's size, shallow nature and compelling relative economics make it world class."

Philip Ker, Union Securities (5/1/12) "After aggressively drilling the Dallol project for the past 10 months, Allana Potash Corp. has confirmed our thesis and demonstrated considerable expansion to its total resources. Additionally, considerable growth to the kainitite horizon leaves significant upside to the project's production profile should the company target this for solution mining in the longer term. . .With considerable exploration, definition and expansion currently in progress at Dallol, we believe the potential life of mine could grow beyond our currently modeled 20 years; furthermore, we continue to believe Allana is on the right track in order to prove production at Dallol is viable."

• Corporate Fact Sheet (12/9/11)
• Corporate Presentation (2/16/12)

• Read About Allana's Ethiopia Property in a Resource Clips Interview with VP Jack Scott

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

Back to Top