Solara Exploration Ltd.

Solara Exploration Ltd.

January 16, 2006 12:17 ET

Solara Exploration Initial Public Offering and Shares Commence Trading

CALGARY, ALBERTA--(CCNMatthews - Jan. 16, 2006) - Solara Exploration Ltd. (TSX VENTURE:SAA.A) (TSX VENTURE:SAA.B) ("Solara" or the "Company") is pleased to announce that it successfully completed its initial public offering (the "Offering"). The Offering was fully subscribed with gross proceeds of $10,000,000 and an additional $2,000,000 on exercise of the over-allotment option. Blackmont Capital Inc. acted as agent for the Offering. A total of 12,000 Units (the "Units") were subscribed for at a price of $1,000 per Unit. Each Unit consists of 500 flow-through Class A Shares at a price of $0.26 per share and 87 flow-through Class B Shares at a price of $10.00 per share.

Closing documents for the initial public offering were filed with the TSX Venture Exchange (the "TSXV") and the TSXV issued a bulletin on January 13, 2006 to list all the securities of Solara for trading commencing tomorrow, January 17, 2006, under the symbols SAA.A and SAA.B for the Class A Shares and the Class B Shares, respectively.

Solara also announces that the Board of Directors approved the granting of stock options to officers, directors, employees and consultants of the Company. Options to purchase 1,476,661 Class A Shares of Solara were issued by the Company on December 22, 2005 with an exercise price of $0.35 per share. The options are for a term of five years with vesting provisions.

Solara Exploration Ltd. is an emerging junior oil and gas company focused on exploration, development and exploitation of oil and natural gas in western Canada.

ADVISORY: Certain information regarding Solara Exploration Ltd. including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve risks associated with oil and gas exploration, production, marketing and transportation such as loss of market, volatility of prices, currency fluctuations, imprecision of reserve estimates, environment risks, competition from other producers and ability to assess sufficient capital from internal and external source. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements.

14,766,612 Class A Shares

1,044,000 Class B Shares

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Solara Exploration Ltd.
    Donald R. Holding
    President and Chief Executive Officer
    (403) 398-8191
    (403) 668-7883 (FAX)
    Solara Exploration Ltd.
    1810, 444 - 5th Avenue S.W.
    Calgary, Alberta T2P 2T8