Solana Resources Limited ("Solana" or the "Company") - "Bought Deal" Financing



    /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION
    IN THE UNITED STATES/

    CALGARY and LONDON, UK, Oct. 25 /CNW/ - Solana Resources Limited (TSX-V:
SOR; AIM: SORL) is pleased to announce that it has entered into an agreement
to sell to a syndicate of underwriters, on a "bought deal" basis, 19,800,000
common shares at a price of C$2.20 per common share for gross proceeds of
C$43,560,000. The syndicate will be lead by Tristone Capital Inc. and will
include Orion Securities Inc., Westwind Partners Inc., and Toll Cross
Securities Inc., collectively (the "Underwriters"). In addition, the Company
has granted the Underwriters an over-allotment option to acquire up to an
additional 2,970,000 common shares at a price of C$2.20 per common share at
any time within 30 days of the closing date. If the over-allotment option is
exercised in full, additional gross proceeds will be C$6,534,000 for total
gross proceeds of C$50,094,000. The offering will be made in the provinces of
British Columbia, Alberta, and Ontario by way of short form prospectus. The
offering is scheduled to close on or about November 14, 2007.
    Solana plans to use the net proceeds of this offering to fund exploration
and development of its Colombian oil and gas assets and for general corporate
purposes.
    This news release shall not constitute an offer to sell or the
solicitation of any offer to buy the securities in any jurisdiction. The
common shares may be offered or sold in other eligible foreign jurisdictions
and to U.S. buyers on a private placement basis pursuant to an applicable
exemption from registration requirements in Rule 144-A or Regulation D of the
United States Securities Act of 1933, as amended.

    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.

    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, Scott Price,
jsp@solanaresources.com, (403) 770-1822; Ricardo Montes,
rmontes@solanacolombia.com, (403) 668-6604; Nabarro Wells & Co. Limited
(Nominated Adviser), John Wilkes, solana@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

Organization Profile

SOLANA RESOURCES LIMITED

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