Solana Resources Limited ("Solana" or the "Company") - Accelerates Activity with Extensive 2008 Capital Program



    CALGARY and LONDON, Jan. 8 /CNW/ - Solana Resources Limited (TSX-V: SOR;
AIM: SORL) is pleased to announce a $92 million firm and contingent 2008
capital budget (inclusive of a number of Q4 2007 activities) for its Colombian
assets. Based on a highly successful 2007 exploration drilling program that
saw net production increase by 390% to a 2007 year end exit rate of
2,623 barrels of oil equivalent per day, 94% oil, and proved reserves increase
by 310% (based on June 30, 2007 reserves report), the 2008 program represents
a significant increase in activity and forms the foundation of an accelerated
growth plan in Colombia for the coming years.
    This increase in activity and corresponding budget is fully funded from
existing capital and forecasted operating cashflow. It is further underpinned
by the Company's recently acquired credit facility.
    Solana has interests in ten blocks in four different Colombian basins;
Putumayo (Chaza and Guayuyaco blocks), Llanos (Guachiria, Guachiria Sur,
Guachiria Norte, Colonia, San Pablo and Garibay blocks), Catatumbo (Catguas
block), and Lower Magdalena (Magangue block) comprising a net 798,000 acre
land position. Four of the ten blocks are currently producing.
    Of the overall 2008 budget, $57 million is firm and the remaining
$35 million is contingent. The firm budget allows for five exploration wells
(Primavera-1, Palmitas-2 and Topocho-1 on the Guachiria, Guachiria Sur and
Gaviotas blocks respectively, and one deep and one shallow well on the
Catuguas block), two step out wells (Costayaco-2 which is currently drilling
and Costayaco-3 which will follow immediately on the Chaza block), seismic and
infrastructure projects. The $35 million contingent budget is conditional on a
variety of operational and regulatory activities including prior drilling
success, governmental approvals and general industry conditions, and allows
for three additional exploration wells, four development wells, and additional
seismic and infrastructure projects.
    Solana's combined 14 well firm and contingent drilling program, inclusive
of eight exploration wells, will make it one of Colombia's more active
explorers.

    Drilling Equipment

    Access to drilling rigs is a continuous issue in Colombia. To ensure the
Company's ability to execute on its extensive 2008 drilling program, it has
secured a one plus one year contract on Pioneer Rig 52, a 1,000 horsepower top
drive drilling rig, with Pioneer de Colombia, Sdad. This rig is currently
being imported from the United States and will be capable of drilling all of
the wells in Solana's planned program.

    Forward Looking Statements

    Certain information regarding the Company, including management's
assessment of future plans and operations, may constitute forward-looking
statements under applicable securities law 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, mechanical problems, equipment
limitations, environmental risks, competition from other producers and ability
to access sufficient capital from internal and external sources; as a
consequence, actual results may differ materially from those anticipated.
    Barrels of oil equivalent (boe) may be misleading, particularly if used
in isolation. A boe conversion ratio of six thousand cubic feet of gas to one
barrel of oil is based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value equivalency at the
wellhead.

    Solana Resources Limited

    Solana (www.solanaresources.com) is an international resource company
engaged in the acquisition, exploration, development and production of oil and
natural gas. The Company's properties are located in Colombia, South America
and are held through its wholly owned subsidiary, Solana Petroleum Exploration
(Colombia) Limited. The Company is headquartered in Calgary, Alberta, Canada.

    NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE CONTENT OF THIS
    RELEASE. THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE
    ADEQUACY OR ACCURACY OF THIS RELEASE





For further information:

For further information: Solana Resources Limited, Scott Price,
jsp@solanaresources.com, (403) 770-1822; Ricardo Montes,
rmontes@solanacolombia.com, (403) 668-6604; Nabarro Wells & Co. Limited
(Nominated Adviser), Robert Lo, RobertLo@nabarro-wells.co.uk; Marc Cramsie,
MarcCramsie@nabarro-wells.co.uk, +44 20 7710 7400; Tristone Capital Limited
(UK Broker), Nick Morgan, nmorgan@tristonecapital.com, +44 207 355 5800;
Pelham Public Relations, Charles Vivian, charles.vivian@pelhampr.com, +44 207
743 6672; Philip Dennis, philip.dennis@pelhampr.com, +44 207 743 6363

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SOLANA RESOURCES LIMITED

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