Allana Formalizes Mandate Letters With Prospective Lenders & Proceeds With Formal Due Diligence For Project Financing

Toronto, Ontario, August 26, 2013 -- Allana Potash Corp. (TSX: AAA)(OTCQX: ALLRF) ("Allana" or the "Company") announces progress in its project financing strategy with the signing of formal mandate letters with prospective lenders within a lender group representing loans in excess of the target amount of 60-65% debt contemplated to finance the initial construction of Allana's Danakhil potash project (the "Project"). Following receipt of renewed letters of interest from large Development Finance Institutions ("DFIs") and Export Credit Agencies ("ECAs"), formal mandate letters have been signed between Allana and members of the group of DFIs and ECAs. In parallel with the mandates, lenders have begun formal loan assessment preparations and a due diligence review of the Project. The group of lenders includes large multilateral and regional DFIs and ECAs from North America, Europe and Africa.

The next thing is that I sent Richard and email in early May asking if the Afreximbank debt financing was still being considered. He responded that yes, it was still on the table.

And then there's Farhad saying that they want to acheive mine financing with MINIMAL DILUTION to shareholders.

Now I know at the AGM Farhad said that they were still looking at 65% to 70% debt. And I heard that he had said that "that was the maximum a bank could lend". But maybe that is the maximum any single bank can lend? Maybe get 65% from one bank, another 15% from another and 10% from a third? Remember that there was also that $50 Million that was talked about from African Development Bank (AfDB).

So, to recap:

Point 1 : Afreximbank gives green light to 11 Billion BIRR loan

Point 2 : Allana NR says there are lending groups interested in MORE than 65% debt

Point 3 : Richard confirms in an email that Afreximbank loan still on the table

Point 4 : Farhad emphasises minimal dilution is the goal

Now just one last thing to remember: Neither Farhad nor Richard can divulge any information that may be used or construed as "insider info". So when asked about how much debt and other questions, they have to remain mum.

I bring this up because a while back, Sdomae (you all know who he is) was rather upset about that fact that he had asked Farhad personally (I think it was in 2012) if Allana was going to do a Private Placement or issue more shares to raise money (at the time they did not seem to need any monies as they had plenty in cash left), Farhad said that no, they were not doing that. And lo and behold, a couple of days later Allana announced they had done an issue at .80 cents.

Well of course Farhad couldn't have said yes, they were planning to issue sahres; that would have been insider info and he cauld have gotten in a lot of trouble.

Anyways, this is all just speculation. But the points do tend to line up, don't they?

Cheers everyone, have a nice weekend!