AAA Presentation Jan 2011

8/8/2019 AAA Presentation Jan 2011

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Potash in Africa

www.allanapotash.com | TSX.V: AAA

Corporate Presentation Jan. 2011


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Forward Looking Statements

The information presented contains forward-looking statements, within the meaning of the United States Private Securities Litigation Reform Act of 1995, andforward-looking information under similar Canadian legislation, concerning the business, operations and financial performance and condition of the Company.

Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to 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; and limitations on insurance coverage.

Generally, forward-looking statements and 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 statements and forward-looking information are 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 achievementsof the Company to be materially different from those expressed or implied by such forward-looking statements or 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 statements or 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 statements wi ll prove to be accurate, as actual results and future events could dif fer material ly from those anticipated in such

statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company does not

undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except in accordance with

applicable securities laws.

Investors are advised that National Instrument 43-101 of the Canadian Securities Administrators requires that each category of mineral reserves and mineral

resources be reported separately. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated or Inferred Resources

The information presented uses the terms measured, indicated and inferred mineral resources. United States investors are advised that while such terms

are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize these terms. Inferred

mineral resources have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any

part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the

basis of feasibil ity or other economic studies. United States investors are cautioned not to assume that all or any part of measured or indicated mineral

resources will ever be converted into mineral reserves. United States investors are also cautioned not to assume that all or any part of an inferred mineral

resource exists, or is economically or legally mineable.

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Investment Highlights

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INVESTMENT HIGHLIGHTS

$12.3 million strategic investment by Liberty Metals and Mining Holdings, 17% ownership of Allana

$2 million strategic investment from a Chinese investment group

Entered into off-take/financing agreement talks with the same Chinese groupto cover 35% of the construction costs

Inferred Historical Resource: 105 million tonnes (20.8% composite gradeKCl)

Potential to become one of the lowest cost potash producers in the world

Ten exploration holes drilled all intersected potash


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Capital Structure

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Stock symbol: AAA TSX.V

Shareprice(14/01/11):

$0.90

Shares issued

(Basic):145 million

52-weekHigh/Low:

$0.92 $0.14

Market cap(FD):

C$ 155 million

Cash C$ 15 million


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Strong Management Team & Board

Farhad Abasov, MBA, President, CEO & DirectorOver 15 years of business management experience; Most recently served as Senior Vice President atPotash One and Vice President, Portfolio Management and Vertical Integration for Uranium One. Formermember of Energy Metals management team (Energy Metals was sold to Uranium One for $1.8 Billion in2007)

Peter MacLean, Ph.D., P.Geo, Senior Vice President, ExplorationOver 20 years experience in the mining & exploration industry with junior and senior mining companiesincluding Monarch Resources, Aur Resources and Newmont Mining.

Nejib Abba Biya, Senior Vice President, Corporate Development, EthiopiaOriginally from Ethiopia, over 20 years of experience conducting business in Ethiopia, excellent workingrelations with the federal and regional governments

Jason Wilkinson, Project Manager, Ethiopia

Over 15 years of exploration and development experience in Africa, Asia and Europe. Most recently headof exploration for Lydian and Aur Resources

Deborah Battiston, Chief Financial OfficerC.G.A. with over 20 years of accounting and financial management experience.

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BOARD OF DIRECTORS

Maj.-Gen. (Ret.) Lewis MacKenzie,DirectorFormer Canadian Armed ForcesGeneral; lead the U.N. Peacekeepingeffort in Sarajevo.

Dr. Mark Stauffer, DirectorFormer President of Potash andPhosphate Institute of Canada, over30 years of experience in potash andfertilizer business.

Richard Lacroix, DirectorFormer Senior Vice President , PotashCorp of Saskatchewan, former BoardMember of Canpotex, and formerChairman of Canpotex Bulk Terminals,30 years with PCS

Farhad Abasov, MBA,President, CEO & Director

TECHNICAL ADIVSORY BOARD

Stephen P. Halabura, Senior AdvisorPresident and CEO of North Rim Exploration, thepremiere potash expert company, over 25 yearsexperience consulting to BHP Billiton, AthabascaPotash and Potash One.

Strong Management Team & Board

Robert G. Connochie, Senior AdvisorPresident of Behre Dolbear Capital, Inc. andChartwell Ventures Inc., formerly served as thePresident and Chairman of the Potash Company ofAmerica. Also the Chairman of Canpotex Limited,The Potash and Phosphate Institute, the Foundationfor Agronomic Research and the Saskatchewan

Potash Producers Association.

Diana Walters, DirectorCurrent President/CEO of LibertyMining and Metals, over 20 years inmanagement positions with energy andmining companies.


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Ethiopia: Emerging Mining Country

Stable democratic government with acommitment to foreign investment

Revised mining laws to promote developmentof natural resources

Among the top 5 countries in the fastest GDPgrowth,

Ranks ahead of Russia, Brazil and India inDoing Business Survey

Ethiopia is a member of the MultilateralInvestment Guarantee Agency (MIGA) and

the Convention on the Settlement ofInvestment Disputes between States andNationals of Other States

Reasonably developed infrastructure: 18airports, hydro and geothermal power plants

Close relationship of Allana to government7

Allana

Potash

Ethiopia


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Large Evaporite Basin with knownpotash mineralization

Danakil Evaporite Basin has similar geologyand twice the size of the world class Urals Basin

The Saskatchewan & Urals Basins account for75% of world s reserves and 50% of globalproduction

Less than 10 % of the land package explored

Urals - RussiaDanakil-Ethiopia

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Project Location

160 km land package staked inDanakil Depression; Allana can earn100% interest

In a desert area in Northeast Ethiopia,approximately 100 km from the RedSea coast

Approx. 100km to Mersa Fatma Port,Eritrea

600km road to Djibouti port

No sensitive environmental issues

BHP Billiton and other players in theregion

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Local Infrastructure

Road access from Mekele and newroad under construction from Djibouti

Road access to former sea port ofMersa Fatma, 100 km to Red Sea

Abandoned rail line to Mersa Fatmaused to haul potash and sulphur.

Abundant fresh water in Parsonswater wells (up to 700 gal/min) inalluvial fans.

Additional fresh water sources atRegali River and Lake Afdera.

Geothermal power potential

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Historical Inferred Mineral Resource

ERCOSPLAN (Germany) has completed a technical report (ERCOSPLAN has extensive potashexperience in Russia, Central Asia, Africa and Saskatchewan)

Inferred Mineral Resource:

All of the above can be used for production of MOP and SOP

The report covered less than 10% of the Allanas property

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COMPANY DEPOSIT TONNAGE GRADE

ERCOSPLAN Musley Allana-Sylvinite 31,300.000 24.4% KCI

ERCOSPLAN Musley Allana-Kainitite 73,900,000 61.7% KMg(SO4) Cl(*2.75H2O


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Extensive historic exploration

Parsons exploration 1959-1967, 139drill holes (14,611 metres) at MusleyDeposit

Parsons reported 171,000,000tonnes of potash at 31-34% KCl

Drill logs, analytical data,engineering studies available atGeological Survey of Ethiopia inAddis Ababa

16 historic drill holes located onAllana ground

Kainitite Member and deep potashhorizon virtually unexplored

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Stratigraphic Column of Evaporite Sequence

As described inHolwerda & Hutchinson(1968, /14/), The Ralph M.Parsons Company (1966,

/22/), PEC EngineeringDivision Mine (1984, /17/and 1986, /17), Ayele et al.(2004, /2/)

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ALLANAS ETHIOPIANPOTASH PROJECT

POTASH PROJECTS INOTHER REGIONS

Unique near-surface potash deposit50-100 meters deep (Two drill holesintersect 45 meters of potash at thedepth of 680 meters)

Comparable deposits are 500 to 2,000meters deep

Amenable to open pit and solutionmining

Not amenable to open pit and highercost for solution mining

If solution mining method, solarevaporation ponds can be usedresulting in significant energy costssavings average temperature is about40C

Expensive underground methods;solution mining uses large quantities ofnatural gas to evaporate water (energyaccounts for over 40% of opex)

Significantly lower labor costs High labor costs (in SK especially as inaddition to developed world salaries,juniors have to compete against majorpotash producers attracting workers)

Fast track to production (shorterpermitting)

Long permitting process(18-24 months)

Not operating in the backyard ofCanpotex and no port capacityconstraints

SK-Juniors will have to compete withCanpotex for logistics

Potentially lowest CAPEX andOPEX Potash Mine

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Strategic Direction-Financial De-Risking

Recent closing of private placement for $12,300,000 ( 24,300,000 shares at $0.51 perCommon Share) with Liberty Mining and Metals, LLC, a subsidiary of Liberty MutualGroup. Liberty will hold approximately 17 % of Allana and is a long-term investor andhas committed to assisting Allana with financing when the mine construction stage isreached

Liberty will have the right to nominate one director to the board and to participate in any

future equity financings to maintain its current ownership in Allana

Allana is also negotiating an Off-Take Agreement to partner with China Mineral UnitedManagement (China Mineral) to help develop its Ethiopia Potash Project

China Mineral will receive up to 20 % of potash production from a 1 M tpy operationand will responsible for 35 % of all the capital costs including solution mine andprocessing plant construction costs

China Mineral made a strategic investment of C$2,000,000 through private placementat $0.25 CDN per share (25% premium at the time of signing)

New structure allows Allana to maintain control of the project, limit dilution, and de-risks

35 % of the Capex 15


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Roadmap to Production

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ACTIVITY Q4-2010 Q1-2011 2011 Q1-2012

DRILLING ~2500 metres Completed

SEISMIC SURVEYS VPS,2D-40 KM Completed

SEISMIC INTERPRETATION DATA INTERPRETATION In Progress

DRILLING 10,000 METRES In Progress

RESERVE ESTIMATE ERCOSPLAN

FEASIBILITY ERCOSPLAN

PRODUCTION DECISION


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Significant Technical Progress-2010

Modern camp and roads established in Q1, 2010 to support diamond drilling and geophysicalsurveys

Two diamond drill rigs completed 10 diamond drill holes totaling approximately 5,000 mcompleted with all holes intersecting potash mineralization

45 km of 2D seismic survey completed as well as down-hole seismic profiling

Borehole geophysical studies initiated

Water well drilling in progress, two holes completed and a rig is set up on third site, pumpingtests underway.

Environmental baseline studies initiated

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Drilling Highlights - 2010

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HOLE FROM (m) TO (m) WIDTH (m)* KCl (%)DK-10-01 110.80 117.35 6.55 17.65

including 114.15 116.15 2.00 19,94

DK-10-02 150.10 155.65 5.50 25.80

including 150.10 152.10 2.00 34.80

DK-10-03 151.25 161.20 9.95 19.52

including 152.35 154.35 2.00 28.90

DK-10-04 744.00 776.40 32.4 8.00

including 746.40 748.10 1.70 17.90

DK-10-06 495.30 498.30 3.00 30.87

567.30 585.00 17.70 17.25

Including 567.30 576.60 9.30 17.45

Including 580.80 585.00 4.20 24.51

DK-10-07 136.00 145.20 9.20 23.41

Including 142.00 144.00 2.00 37.75

214.14 220.80 6.66 22.04

DK-10-08 Results pending




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Positive drill results-program expansion

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Positive drill results from holes DK-10-

01,02,03,and 07 confirm Parsons data for theHouston Formation

Hole DK-10-07 returns high grade, 2 m of 37.8% KCl

Hole DK-10-04 intersects thick potash, approx.24.8 m at 8 % KCl including 1.3 m at 17.9% KClin centre of basin, virgin discovery

Hole DK-10-06 intersects thick potash with highgrade sylvinite of 3 m at 30.9 % KCl, area

virtually unexplored

45 km surface 2D seismic and down holeseismic completed

All


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Allana Best positioned potash play in the world

World-class

deposit

Potential tobecome

lowest costproducer

Reducedfinancing risk

Strategicpartners in place

Fast Track toProduction

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Analyst Coverage

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Analyst 12 Month Target Price

Wellington West $1.20

Loewen, Ondaatje, McCutcheon $1.15

Ubika Research $1.02

Dundee Capital Markets $1.45

Cormark Securities $0.95

Salman Partners $0.85

Fraser Mackenzie $0.90


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Potash in Africa


Contact Information:Farhad AbasovPresident and CEO

TELEPHONE:

416-309-2691EMAIL:

[email protected]


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AAA Presentation Jan 2011

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