TORONTO, ONTARIO -- (Marketwire) -- 02/10/09 -- Allana Resources Inc. (TSX VENTURE: AAA) ("Allana"), is pleased to announce that it has received final regulatory approval and closed its previously announced acquisition of three mineral concessions in Ethiopia's northeastern Danakil Depression totaling approximately 150 square kilometers. For more information, please refer to Allana's press releases dated September 17, 2008 and February 9, 2009.
Allana has agreed to acquire the properties from three private companies in consideration for an aggregate of $2.5 million in cash payments over 3 years and the issuance of 4 million shares. The shares issued will be subject to a four month regulatory hold period that shall expire on June 11, 2009. The property will also be subject to a 3% NSR of which 50% can be purchased for CDN $ 5,000,000.
Allana is also pleased to announce that it has granted 500,000 stock options to Mr. Farhad Abasov, President and C.E.O. under the Company's Stock Option Plan. The options are exercisable at $0.15 per option and expire on February 10, 2014. Such options shall vest quarterly in eight equal installments over a two year period subject to the four month regulatory hold period. The grant of options remains subject to regulatory approval.
Peter J. MacLean, Ph.D., P. Geo., Allana's 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.
About Allana Resources Inc.
Allana is a publicly traded corporation with a focus on the acquisition and development of potash assets internationally and recently optioned a previously explored potash property in Ethiopia with 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. Allana has approximately 49 million shares outstanding and trades on the TSX-Venture exchange under the symbol "AAA".
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 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.
