Yangarra Resources Ltd.
TSX VENTURE : YAN

Yangarra Resources Ltd.

December 21, 2009 10:37 ET

Yangarra Issues Statement of Claim

CALGARY, ALBERTA--(Marketwire - Dec. 21, 2009) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OF AMERICA OR TO U.S. PERSONS.

Yangarra Resources Ltd. ("Yangarra" or the "Company") (TSX VENTURE:YAN) announces that it has terminated the Standstill Agreement that it had with an industry partner regarding a joint producing property and has served that industry partner with a Statement of Claim to the Court of Queen's Bench of Alberta, to which Yangarra claims breach of the agreements between the parties, gross negligence and default of operator. The Company seeks judgment for specified and such further damages to be determined by the court, as well as appointment as operator. The industry partner has indicated it plans to file a Statement of Defense and Counterclaim. Potential outcome of the lawsuit and claims are undetermined; however, they may be material.

The Company announces that it received TSX Venture Exchange Inc. approval for the issuance of common shares further to the Company's press release dated November 13, 2009, in which the Company announced that pursuant to its senior lender terms of the renewed credit facility, the Company had entered into an agreement with its senior executive to receive his monthly salary in common shares of the Company. The Company has issued 504,000 common shares to James Evaskevich pursuant to the agreement relating to October and November services. The common shares will be subject to a four month hold period.

ADVISORY REGARDING FORWARD-LOOKING STATEMENTS
Forward-Looking Statements: This news release contains statements about future events that are forward looking in nature and, as a result, are subject to certain risks and uncertainties such as changes in plans or the occurrence of unexpected events. Actual results may differ from the estimates provided by management.

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy and accuracy of this release.

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