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Allana Potash Corp.
Management’s Discussion and Analysis
For the three months ended October 31, 2012
Phase II drilling program designed to establish sufficient resource to support a feasibility study. A second
drill rig and equipment capable of drilling to a depth of 800 metres was mobilized out of the UK. The
exploration drilling program has ended with the completion of Hole DK-12-59. Drill hole location data are
shown in Table 3 and drill results for holes DK-10-01 to DK-12-59 shown in Table 4.
Drilling by the Company has confirmed the widespread presence of potash mineralization in the basin.
Geological interpretations based on core logging and down-hole geophysical testing indicates 4 potash
horizons are typically present. The most widespread of these is the Kainitite Zone, which is present in
almost every drill hole, averages approximately 7 metres in thickness and typically yields 20% KCl. The
Kainitite Zone forms the basal potash horizon and is overlain in some areas by a Lower Carnallitite Zone
and an Upper Carnallitite Zone. These two zones are locally prominent but are not as widespread as the
Kainitite Zone. Overlying the Upper Carnallitite Zone is the Sylvinite Zone which averages approximately
4 metres in thickness and grades about 30% KCl. This unit is fairly widespread and may reach grades of up
to 52% KCl.
Below is the terminology being used to describe mineral composition and grades in this MD&A:
Name Chemical Formula
Halite NaCl
Sylvite KCl
Carnallite KMgCl 3 x 6 H 2O
Bischofite MgCL 2 x 6 H 2O
Anhydrite CaSO 4
Kieserite MgSO 4 x H 2O
Dolomite CaMg(CO 3) 2
Kainite 4KMg(SO 4)Cl x 11H 2O
In June 2011, Ercosplan completed a mineral resource estimate update based on the first 23 drill holes
completed by the Company and historic drill results (see below). Drilling continued throughout 2011 and
2012 to expand the potash resources and to increase the confidence level of the mineral resources such that
Inferred resources can be re-classified as Measured and Indicated. In April 2012 Ercosplan completed an
updated mineral resource estimate based on 45 drill holes completed by Allana and 16 historic drill holes
(see below).
In August 2010, Allana engaged Tesla-IMC International Ltd. to complete approximately 48 kilometres of
surface 2D seismic surveys on the property. The 2D survey was completed on November 29, 2010 and
preliminary interpretative data was presented to Allana in March 2011. As drilling continued through the
spring interpretations were optimized and a final interpretation report was presented to the Company in July
2011. A follow-up report with updated interpretation based on additional drilling was presented to the
Company in February 2012.
Exploration work on the Nova exploration license was initiated in November, 2012. To date 6 holes have
been completed on the southern portion of the license. Geological logging and sampling of the core are in
progress and samples will be shipped to the SRC lab in Saskatoon for analysis.
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