Solara Exploration Ltd.
TSX VENTURE : SAA.A

Solara Exploration Ltd.

May 03, 2011 09:25 ET

Solara Announces Financial Results for Year Ended December 31, 2010 and Renewal of Normal Course Issuer Bid

CALGARY, ALBERTA--(Marketwire - May 3, 2011) - Solara Exploration Ltd. (TSX VENTURE:SAA.A) ("Solara" or the "Company") announces its audited consolidated financial and operating results for the twelve months ended December 31, 2010. The audited Consolidated Financial Statements and Management's Discussion and Analysis for the twelve months ended December 31, 2010 were filed on May 2, 2011 and are available for viewing on the System for Electronic Disclosure and Analysis ("SEDAR") at www.sedar.com.

In addition, the Company announces that pursuant to National Instrument 51-101, it has filed its Form 51-101F1 Statement of Reserves Data and Other Oil and Gas Information, Form 51-101F2 Statement of Reserves Data by Independent Qualified Reserves Evaluator and Form 51-101F3 Report of Management and Directors on Oil and Gas Disclosure, which statements are available for public viewing at www.sedar.com.

The Company also announces that, subject to regulatory and TSX Venture Exchange ("TSXV") approval, the Company intends to purchase certain of its Class A 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 3,826,745 Class A Shares, which represents 5% of the Company's current issued and outstanding Class A Shares. 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, 2012. The Company may purchase up to, but not more than 2%, of its issued and outstanding Class A Shares in any 30 day period during the term of the NCIB. As of the date of this news release, the Company has 76,534,902 Class A Shares issued and outstanding. Wolverton Securities Ltd. 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 price 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.

This news release may contain certain forward-looking statements, including management's assessment of future plans and operations, and capital expenditures and the timing thereof, that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Such risks and uncertainties include, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. The Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that the Company will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

76,534,902 Class A Shares

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

    Solara Exploration Ltd.
    1800, 444 - 5th Avenue S.W.
    Calgary, Alberta, Canada T2P 2T8