Sola Resource Corp.
TSX VENTURE : SL
PINK SHEETS : SORSF

Sola Resource Corp.

December 20, 2010 16:07 ET

Sola Signs Binding Agreement With High Grade Manganese Producer and Provides Updates on Projects and AGM

VICTORIA, BRITISH COLUMBIA--(Marketwire - Dec. 20, 2010) - Sola Resource Corp. (TSX VENTURE:SL) (PINK SHEETS:SORSF) (the "Company" or "Sola") is pleased to provide information on the Annual General Meeting and Special Meeting of the Shareholders as well as the Shareholder Update Meeting held on December 16th 2010 in Victoria, B.C.

The Annual and Special Meeting the Shareholders for Sola was successfully concluded on December 16th, 2010 with all items of business being favourably voted on by the shareholders. The items of business included; the setting of the size of the Board of Directors at 6 members; the election of the Directors which included William Pfaffenberger, Andrew Male, David Madill, Warren Boyd, David Tam and Christopher Morgan; the appointment of the Auditor was confirmed as James Stafford and Associates as Auditor; the adoption of a Stock Option Plan and approval for a name change of the Company (to be conducted by the Directors in the near future); as well as approval for the consolidation of the shares of the company and a Special Resolution allowing the Shareholder Meetings to be held at a location in Canada which is at the discretion of the Board. 

Chairman Dr. William Pfaffenberger remarks; "The Board of Directors wishes to thank those who voted favourably for the items of business at the Annual and Special Meeting of the Shareholders. This year has seen many positive changes for Sola and we are excited to see these items being recognized by our Shareholders. We are particularly excited to have Mr. Christopher Morgan, a qualified mining engineer with over 35 years of experience in mining, join our Board of Directors. Having worked all over the world and now as Managing Director of Amazon Resources Limited we see a number of very positive synergies with him on board. A special thank you is being extended to those shareholders who managed to attend the Shareholder meeting".

The Shareholder Meeting also provided a general update on corporate activities as well as a projects update which may also be reviewed at www.solaresourcecorp.com

Rio Madeira Update – Manganese Operations

On May 25th, 2010 Sola advised it had signed a non-binding MOU to purchase up to 50% of Rio Madeira Comercio Importacao E Exportacao De Minerios, ("Rio Madeira"). Since this MOU has been signed, Sola has been performing due diligence as well as completing negotiations. With these items successfully completed, Sola provided Rio Madeira with Notice that it wished to move ahead to Definitive Agreements. On December 16th, 2010, a Binding Heads of Agreement, ("HOA"), to purchase 50% of Rio Madeira was agreed and signed.

Sola and Rio Madeira will complete the Definitive Agreements in the coming weeks and the transaction is scheduled to close March 31, 2011, subject to financing.

Rio Madeira hold title to 14 claims totalling 36,110 hectares including 2 mining licenses known as Lavra's. To receive these Lavra's, Rio Madeira had to meet the conditions of "trial mining" licenses first including meeting the requirements of the Environmental Authority.

In order to complete the financing for this acquisition, Sola intends to complete an N.I. 43-101 Qualified Persons Report on the Rio Madeira properties. It is anticipated that this report will commence in early 2011 and will be filed in concert with the TSX Venture Exchange, (TSXV), and requirements for an acquisition of this nature.

Rio Madeira recently have suspended operations due to weather conditions and will be completing maintenance work while the rainy season prevents economic operations from continuing. During the last 2 months of operations, Rio Madeira processed 4,000 tonnes of ore per month with a consistent grade of over 52% manganese.

Tecnoweldco – Diamond and Manganese Claims

Sola has been seeking additional exploration properties to strengthen its land bank position. This has resulted in the signing of a binding HOA on December 16th, 2010 to purchase a set of 5 mineral claims totaling 27,000 plus hectares from Tecnoweldco Ltda., "Tecnoweldco". The claims being acquired are in the state of, Rondonia, and in some cases in close proximity as well as adjacent to the Rio Madeira licensed mining claims and Sola's Carolina diamond claims. Given the advantageous location of these claims and the thought that there could be a continuation of the mineralization between the properties, Sola felt comfortable in securing this opportunity.

At this time Sola is in the process of completing an acquisition of the claims and having them transferred into a wholly owned subsidiary. Tecnoweldco will retain a small interest in this process. Once the claims have been transferred, Sola will commence sampling and reporting works to validate the viability of these projects.

Amazon Resources Limited – Diamonds and Gold Operations

On October 12, 2010 Sola reported that it had completed a non binding Letter of Intent to acquire 30% of Amazon Resources Limited, (Amazon), and an Option to acquire a further 55% to 70%, totaling at least 85%.

On November 22, 2010 Amazon shareholders accepted the Share Exchange Agreement, ("SEA"), which enables Sola to acquire an initial 30% of Amazon. This transaction was presented to the TSXV as an Expedited Acquisition and conditional Approval was granted by the TSXV on December 14, 2010. Sola has 90 days from the date of the conditional approval to complete an updated N.I. 43-101 on the Parauna properties in compliance with the TSXV conditions. Sola intends to commence this in early 2011.

Amazon Managing Director and newly elected Sola Director, Christopher Morgan said; "We are looking forward to working with the Sola and their team to bring the Parauna project on stream. The joint efforts of our two companies make sense and as we are completing the commissioning and startup of the Parauna processing plant we hope to be able to report positive results in the coming months."

The Amazon assets are located in a a wholly owned subsidiary named DF-II Ltda., ("DF-II"), that carries out the Brazilian operations of Amazon. Paraúna comprises some 500 Hectares in aggregate, distributed over 4 claims and a further claim currently in process. The initial project has been licensed for mining and meets all environmental controls and approvals. The property sits within the Paraúna river valley, together with its flood plain and the elevated terraces from past river courses, which form an important part of the property package. These higher terraces provide potentially additional exploration and mining areas that are yet to be explored. The river has also changed its course over the years and as such there are several unexplored areas that need to be drilled and tested in order to quantify further potential.

For Reference;

Sola is a junior exploration company with assets in Canada and Brazil. The Company has primarily focused on Diamond, Manganese and Gold, resource properties since inception. All available resource reports and information on the Company's properties are located on the Company website.

Sola continues to provide shareholders with Investor Updates, please ensure that you have already registered on the company website, if not please visit www.solaresourcecorp.com and input your name and email address on the home page.

Issued on behalf of the Board of Directors of Sola Resource Corp.

Dr. William (Bill) Pfaffenberger, CEO and Director

The information in this news release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. When used in this release, words such as "estimate", "expect", "anticipate" and "believe" as well as similar expressions are intended to identify forward-looking statements. Such statements are used to describe management's future plans, objects, and goals for the Company and therefore involve inherent risks and uncertainties. The reader is cautioned that actual results, performance or achievements may be materially different from those implied or expressed in such statements, which speak only as of the date the statements were made. The Company does not update forward-looking statements continually as conditions change. We seek safe harbour.

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

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