Solara Exploration Ltd.

Solara Exploration Ltd.

October 22, 2010 11:16 ET

Solara Exploration Completes $3.36 Million Financing

CALGARY, ALBERTA--(Marketwire - Oct. 22, 2010) - Solara Exploration Ltd. (TSX VENTURE:SAA.A) (TSX VENTURE:SAA.B) ("Solara" or the "Company") is pleased to advise that the Company raised aggregate proceeds of $3,359,653 through the issuance of Units comprising a total of 7,465,896 Flow-Through Class A Shares at $0.45 per share and 3,732,948 warrants (the "Private Placement"). One warrant plus $0.55 is exercisable into one Class A Share on or before June 30, 2011. As part of the Private Placement, the Company exercised its overallotment option for 765,896 Flow-Through Class A Shares and 382,948 warrants. The Company also paid a finders fee of $140,760 and issued 312,800 warrants exercisable at $0.45 until October 31, 2011 to an arm's length brokerage firm pursuant to an agreement with the Company. All securities issued pursuant to the Private Placement will be subject to a four (4) month hold in accordance with the applicable securities regulations. The proceeds of the financing will be used to fund the Company's share of four horizontal wells to be drilled in the fourth quarter of 2010. The Company anticipates commencing the first of two Cardium horizontal wells in early November.

Solara also advises that on September 1, 2010, the Company's Board of Directors approved the granting of 155,000 stock options to employees and consultants of Solara, subject to regulatory and TSX Venture Exchange approval. The options were issued with an exercise price of $0.25 per share and have a five year term with standard vesting provisions.

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.

61,849,205 Class A Shares

986,700 Class B 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)
    Solara Exploration Ltd.
    1800, 444 - 5th Avenue S.W.
    Calgary, Alberta, Canada T2P 2T8