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Mineral Resource Estimate Update 2012
Allana Potash Corp.
Management’s Discussion and Analysis
For the three months ended October 31, 2012
As previously discussed, Ercosplan completed a revised NI 43-101 compliant mineral resource estimate
update in April, 2012. The exploration drilling on the project area confirmed previous geological
interpretations of the potash horizons and the geology of the deposit. Four potash-bearing horizons are
confirmed in the basin: Sylvinite Member, Upper Carnallitite Member, Lower Carnallitite Member, and
Kainitite Member.
The updated mineral resource estimate includes all four potash bearing beds (sylvinite, upper and lower
carnallite and kainitite) in the project and is comprised of estimated Measured and Indicated Mineral
Resources totaling 1,298 million tonnes with an average grade 19.3% KCl (composite of all four potash
beds) and estimated Inferred Mineral Resources totaling 588 million tonnes with an average grade of
18.6% KCl (composite of all four potash beds). A summary of the resources is presented in Table 5.
Table 5. Summary of estimated Measured, Indicated and Inferred Mineral Resources as of April 30, 2012,
completed by Ercosplan.
CATEGORY POTASH MEMBER IN-SITU TONNAGE (MT) KCl (%) CONTAINED KCI (MT)
MEASURED Sylvinite 60.78 30.70 18.66
Upper Carnallitite 49.94 17.49 8.74
Lower Carnallitite 137.67 11.12 15.31
Kainitite 319.43 20.15 64.37
Total 567.82 18.86 107.08
INDICATED Sylvinite 110.58 31.05 34.34
Upper Carnallitite 105.60 16.70 17.62
Lower Carnallitite 131.42 10.58 13.90
Kainitite 382.12 20.36 77.79
Total 729.72 19.69 143.65
TOTAL MEASURED AND INDICATED
16
1,297.53 19.32 250.73
INFERRED Sylvinite 46.62 30.25 14.10
Upper Carnallitite 89.67 13.82 12.39
Lower Carnallitite 78.15 8.48 6.63
Kainitite 373.71 20.35 76.05
Total 588.15 18.56 109.17
TOTAL INFERRED
588.15 18.56 109.17
Notes:
1. MT=Million Tonnes, tonnage is for in-situ resource with no discount for recovery as mining method is to be determined.
2. The numbers for tonnage, average KCl per cent are rounded figures.
3. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Due to the uncertainty of measured,
indicated or inferred mineral resources, these mineral resources may never be upgraded to proven and probable mineral reserves.
4. Average densities used in resource calculations are 2.14, 1.81, 1.91, and 2.10 for the Sylvinite, UC, LC and Kainitite members
respectively.
The resource estimate is based on drilling conducted by Allana in 2010-2012 (45 holes) and the 16 historic
drill holes completed by the Ralph M. Parsons Company (“Parsons”) in the 1950’s and 1960’s.
Interpretation of the Allana data and drill core at the project by Ercosplan has refined the potash
stratigraphy originally defined by Parsons. The top of the potash sequence is identified by the Sylvinite
Member, followed by the Upper Carnallitite Member (“UC”), the Bischofitite Member, the Lower
Carnallitite Member (“LC”) and the Kainitite Member.