Solara Exploration Ltd.
TSX VENTURE : SAA.A
TSX VENTURE : SAA.B

Solara Exploration Ltd.

May 05, 2010 16:49 ET

Solara Exploration Announces Normal Course Issuer Bid

CALGARY, ALBERTA--(Marketwire - May 5, 2010) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR TO US PERSONS.

Solara Exploration Ltd. ("Solara" or the "Company") (TSX VENTURE:SAA.A) (TSX VENTURE:SAA.B) announces that, subject to regulatory and TSX Venture Exchange ("TSXV") approval, the Company intends to purchase certain of its Class A Shares and Class B Shares by way of a normal course issuer bid (the "NCIB") through the facilities of the TSXV. Solara may purchase up to a maximum of 2,251,147 Class A Shares and 49,335 Class B Shares, which represents 5% of the Company's current issued and outstanding Class A Shares and Class B Shares, respectively. Solara will commence open market purchases of its shares immediately upon the approval of the NCIB by the TSXV and terminate any such purchases on or before April 30, 2011. The Company may purchase up to, but not more than 2%, of its issued and outstanding Class A Shares and Class B Shares in any 30 day period during the term of the NCIB. As of the date of this news release, the Company has 45,022,937 Class A Shares and 986,700 Class B Shares issued and outstanding. Canaccord Capital Corporation of Calgary, Alberta has been appointed by Solara as its broker to facilitate the open market purchases of its shares pursuant to the NCIB. All purchases of shares under the NCIB will be undertaken through the facilities of the TSXV at the prevailing current market price of the shares of the Company as traded on the TSXV.

The Directors of Solara are of the view that the current market prices of the Company's shares are lower than the net asset value per share based on internal management estimates. Accordingly, the Directors believe that the repurchase of the shares represents a sound business decision for the Company. All shares purchased under the NCIB will be returned to treasury and cancelled. Shareholders of Solara will be advised of the NCIB in the next quarterly report of the Company to be mailed to Shareholders and filed on SEDAR. Shareholders may obtain a copy of the Notice of Intention to Make a Normal Course Issuer Bid from Solara without charge.

About Solara Exploration

Solara Exploration is a publicly traded junior oil and gas company focused on the exploration, development and acquisition of oil and natural gas in Western Canada.

45,022,937 Class A Shares

986,700 Class B Shares

READER ADVISORY: Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Solara Exploration Ltd.
    Donald R. Holding
    President and Chief Executive Officer
    (403) 537-0458
    (403) 537-0462 (FAX)
    don_solaraexploration@shaw.ca
    or
    Solara Exploration Ltd.
    1800, 444 - 5th Avenue S.W.
    Calgary, Alberta, Canada T2P 2T8