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For Immediate Release: March 2, 2010

ALLANA POTASH ANNOUNCES PRIVATE PLACEMENT

Toronto, Ontario, March 2, 2010 -- Allana Potash Corp. (TSX-V: AAA) ("Allana" or "the Company"), is pleased to announce that it has entered into an agreement with a syndicate of agents led by Wellington West Capital Markets Inc. (the "Agents") to sell units of the company (the "Units") at a price of $0.40 per Unit for gross proceeds of $4 million, on a private placement basis (the "Offering"). Each unit shall consist of one common share of the Company (the "Common Shares") and one-half of one common share purchase warrant of the Company (the "Warrants"). Each whole Warrant will be exercisable to purchase one Common Share of the Company (the "Warrant Shares") for a period of 18 months from issuance at a price of $0.50.

The proceeds of the Offering will be used to fund exploration and development efforts on the Company's potash property in Ethiopia and for general working capital purposes.

Closing of the offering is anticipated to occur on or about March 23, 2010 (the "Closing Date") and is subject to the receipt of applicable regulatory approvals including approval of the TSX Venture Exchange. The Common Shares, Warrants and Warrant Shares will be subject to a statutory hold or restricted period of four months and one day following the Closing Date.

In connection with the financing, the Company has agreed to pay to the Agents a cash commission of 6% of the gross proceeds raised and issue to the Agents that number of compensation options equal to 6% of the number of Units sold. Each compensation option shall entitle the holder to acquire one Common Share of the Company at a price of $0.40 for a period of twelve months from the date of closing of the Offering.

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 NI 43-101-compliant Inferred Mineral Resource of over 100 million tonnes of potash mineralization (Sylvite and Kainite) with a composite grade of 20.8 % KCl (for details regarding the resource estimate, see News Release Sept. 17, 2008). Allana has approximately 98.1 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 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, mineral resource estimates and the assumptions and parameters underlying mineral resource estimates. 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 information is 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 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 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 that is included herein, except in accordance with applicable securities laws.
For Further Information, please contact:
Farhad Abasov, President and CEO +1-416-309-2691
fabasov@allanapotash.com

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