Southern Andes Energy Inc.

Southern Andes Energy Inc.

May 18, 2010 09:17 ET

Solex Doing Business as Southern Andes Energy Inc. Closes Transaction With Homeland Uranium

TORONTO, ONTARIO--(Marketwire - May 18, 2010) - Solex Resources Corp. now doing business as Southern Andes Energy Inc. (TSX VENTURE:SUR) ("Southern Andes") or the ("Company") is pleased to announce that it has closed the asset sale and purchase transaction with Homeland Uranium Inc. ("Homeland") announced on March 2, 2010. (See news releases dated March 2, 2010 and April 5, 2010).

Solex, doing business as Southern Andes, acquired C$4 million in cash and 7,619,047 common shares of Macusani Yellowcake Inc. ("Macusani") from Homeland. Southern Andes also acquired the right to purchase the shares issuable if Homeland exercises its warrants to purchase 4,571,428 Macusani shares, (collectively the "Homeland Assets"). As consideration for the Homeland Assets, Homeland acquired 81,654,442 common shares of Southern Andes.

As part of the transaction, Southern Andes has also agreed to consolidate its shares on a 1:3 basis, change its name to Southern Andes Energy Inc. and make changes to its management and board of directors.

Transaction Highlights
  • Name changed to Southern Andes Energy Inc. ("Southern Andes")
  • New symbol on TSXV – SUR
  • Shares consolidated 1:3 for 53,659,709 issued and outstanding.
  • Expanded board of directors consisting of Robert Boaz, Jonathan Challis, John Cook, Laurence Curtis, James Garcelon and Nick Tintor.
  • Robert Boaz appointed Chairman of the Board and Nick Tintor appointed President and CEO.
Corporate Highlights
  • Southern Andes is the largest landowner in the emerging Macusani uranium district in Peru controlling more than 900 km² of land.
  • 12.7% interest in Macusani Yellowcake Inc. (TSX VENTURE:YEL)
  • 100% owned mobile leach uranium test laboratory
  • Portfolio of advanced stage silver-lead-zinc projects in Peru
  • Strong balance sheet of more than $3.5 million cash and no debt.

The common shares of Southern Andes Energy Inc., formerly Solex, were acquired by Homeland for investment purposes. Homeland has no current intention to increase or decrease its holdings in Southern Andes Energy Inc.

About Southern Andes Energy Inc.

Southern Andes Energy Inc. ("Southern Andes") is the dominant landholder in southern Peru's Macusani Uranium District with concessions covering over 900 km2 where in excess of 55 uraniferous anomalies have been identified on Southern Andes properties. Southern Andes is exploring three properties in the Macusani region (Macusani East, Macusani West and Macusani South), in addition to the Picotani uranium project. NI 43-101 reports were filed during 2008 on the Princesa silver, lead and zinc property and on the Pilunani lead and zinc project.

This news release may contain forward-looking statements that are based on Southern Andes Energy Inc.'s expectations, estimates and projections regarding its business and the economic environment in which it operates. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements and readers should not place undue reliance on such statements. Statements speak only as of the date on which they are made, and the Company undertakes no obligation to update them publicly to reflect new information or the occurrence of future events or circumstances, unless otherwise required to do so by law.

Neither 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

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