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



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

    CALGARY, AB and LONDON, UK, Oct. 25 /CNW/ - Solana Resources Limited
(TSX-V: SOR; AIM: SORL) is pleased to announce that further to its news
release issued earlier today, the size of the bought deal financing has been
increased from 19,800,000 common shares to 24,330,000 common shares at a price
of C$2.20 per common share for gross proceeds of C$53,526,000. The financing
is being led by Tristone Capital Inc. and includes 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$60,060,000.
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: Enquiries - 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

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890