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TORONTO, ONTARIO, May 28, 2008: Allana Resources Inc. (TSX-V: AAA) ("Allana" or "The Company") is pleased to announce that it has acquired 100% of Latin American Potash Corporation ("LAPC"), which holds potash-prospective assets in Argentina (the "Transaction").

LAPC holds 154,000 hectares of prospective properties in the Potash rich Neuquen province of Argentina. Some of properties adjoin Rio Tinto's Potasio Rio Colorado project. The properties are in the same evaporitic basin and display the correct statigraphy to host Potash in an undisturbed structure. The properties are defined by insolubles at surface and limestone layers on top of the salt sequence. Upon completion of the transaction, Allana will have one of the largest land positions in the Neuquen Basin.

Tony Wonnacott, President & CEO of Allana Resources, said: "We are very excited about the potential of these assets. Being in a strong potash market, we are proud to have acquired such a significant land package in Argentina. We continue to search for assets in the potash space, and plan an aggressive exploration campaign in the coming months. We also continue to evaluate other potash acquisition opportunities."

Transaction Details
In consideration of 100% of the outstanding LPAC shares, Allana has agreed to pay the shareholders of LAPC CDN$130,000 and issue 3,000,000 Allana common shares. The Transaction is subject to the completion of confirmatory due diligence by Allana, the execution of a definitive agreement by June 13, 2008 and obtaining the necessary regulatory approvals, including approval of the TSX Venture Exchange.

Private Placement Financing
Allana is also pleased to announce a non-brokered private placement for gross proceeds of up to $2,000,000 (the "Financing"). The Company intends to sell units at a price of $0.20 per unit. Each unit will be comprised of one common share and one-half of one share purchase warrant. Each share purchase warrant will be exercisable for one Allana common share at a price of $0.25 per warrant exercised for a period of 24 months from the date of issue. Allana plans to use the net proceeds to complete the proposed acquisition, fund the development of the potash assets to be acquired, additional opportunities to acquire potash properties and for general corporate purposes. Closing of the financing is subject to the receipt of TSX Venture approval.

Phil Mulholland, P.Geo., who is a qualified person as defined by National Instrument 43- 101, has reviewed the scientific and technical disclosure in this press release.

About Allana Resources
Allana holds certain mineral claims known as the Marble Mountain property in Parkin Township near Sudbury, Ontario. Allana is actively seeking global acquisition opportunities of potash properties. Allana has approximately 35 million shares outstanding and trades on the TSX-Venture exchange under the symbol "AAA".

For Further Information, please contact:
Julian Bharti
416-930-8558

Cautionary Note Regarding Forward-Looking Information
This press release contains "forward looking information" within the meaning of applicable Canadian securities legislation. Forward looking information includes, but is not limited to, statements with respect to the future financial or operating performance of the Company and its projects, the terms of the acquisition, the financing and projected use of proceeds, exploration prospects, requirements for additional capital and regulatory approvals. 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 state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is 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 information, including but not limited to: financing not being available at desired prices; general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; timing and availability of external financing on acceptable terms; conclusions of economic evaluations; competition; future prices of mineral prices; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; and, delays in obtaining governmental approvals or required financing or in the completion of activities. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in 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 information 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 information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.