Yangarra Resources Ltd.
TSX VENTURE : YAN

Yangarra Resources Ltd.

September 04, 2007 11:17 ET

Yangarra Amends Offerings

CALGARY, ALBERTA--(Marketwire - Sept. 4, 2007) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OF AMERICA

Yangarra Resources Ltd. ("Yangarra" or "the Company") (TSX VENTURE:YAN) announces that it intends to amend the terms of the non-brokered private placements previously announced on July 31, 2007.

As amended, the non-brokered private placement will consist of: (a) 14 million Common Share Units priced at $0.11 per unit. Each Common Share Unit will be comprised of one common share of the Company plus one half of a share purchase warrant, with each full warrant entitling the holder to purchase a common share of the Company at any time up to June 30, 2008 for $0.17 per share; and (b) 4 million Flow-Through Units priced at $0.14 per unit. Each Flow-Through Unit will be comprised of one share of the Company issued on a "flow-through" basis under the Income Tax Act (Canada) and one half of a share purchase warrant, with each full warrant entitling the holder to purchase a common share of the Company at any time up to June 30, 2008 for $0.17 per share. Certain directors, officers and other insiders of the Company have committed to subscribe for a minimum of 25% of both private placements. Closing of the private placements, as amended, remain subject to approval by the TSX Venture Exchange.

Yangarra intends to use a portion of the proceeds from the private placements to reduce its working capital deficiency, and a portion for development programs in its Medicine Hat area. Yangarra will use all the proceeds from the offering of Flow-Through Units to fund qualifying expenditures on the Company's natural gas properties.

Forward-Looking Statements: This news release contains statements about future events that are forward looking in nature and, as a result, are subject to certain risks and uncertainties such as changes in plans or the occurrence of unexpected events. Actual results may differ from the estimates provided by management.

All reference to dollar values are in Canadian funds.

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy and accuracy of this release.

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