Solana Resources Limited ("Solana" or the "Company") - Exceptional Reserves Additions - Mid 2007 Reserves Update



    CALGARY, Aug. 13 /CNW/ - Solana Resources Limited (TSX-V: SOR; AIM: SORL)
is pleased to announce a mid-year 2007 third party reserves update of its
Colombian assets wherein total proved plus probable oil reserves have
increased by 3.6 mmbbls or 390%. This mid-year update follows Solana's
participation, during the first half of 2007, in the Costayaco and Juanambu
new field discoveries, Putumayo Basin, southern Colombia. This evaluation has
an effective date of June 30, 2007 and was completed by DeGolyer and
MacNaughton, Solana's independent reserves engineers. The reserves stated
herein are based on forecast prices and costs and reflect Solana's interest
net of all royalties. Degolyer and MacNaughton's reserve report evaluates
Solana's Guepajé, Yalea, Guayuyaco, Juanambu and Costayaco properties but does
not include any resources associated with the exploration properties in
Solana's 11 Colombian blocks.
    Highlights of the DeGolyer & MacNaughton report, with comparisons to the
December 31, 2006 reserves report, are:

    
    -  Total proved oil reserves increased by 180% to 2.0 million barrels.
    -  Total proved plus probable oil reserves increased by 390% to 4.5
       million barrels.
    -  Total proved, probable and possible oil reserves increased by 825% to
       8.6 million barrels.
    -  Total proved plus probable net present value ("NPV") at 10% discount
       (before taxes) of US$ 127 million, an increase of 500%.
    -  Total proved, probable and possible NPV10% (before taxes) of US$ 219
       million, an increase of over 900%.

    Company Net Reserves - June 30, 2007

    -------------------------------------------------------------------------
                                                                        Gas
                                         Oil (mbbls)                   (mcf)
                        -----------------------------------------------------
    Reserve Category    Yalea  Guayuyaco  Juanambu  Costayaco  TOTAL  Guepajé
    -------------------------------------------------------------------------

    Proved
      - Producing          58        145         -         -     203   1,938
      - Non Producing       -        319       231       811   1,361       -
      - Undeveloped         -        107         -       348     455       -
    -------------------------------------------------------------------------
    Total Proved           58        571       231     1,159   2,019   1,938

    Probable                8        156       331     2,007   2,502     253
    -------------------------------------------------------------------------
    Total Proved
     + Probable            66        727       562     3,166   4,521   2,191

    Possible                -          -       512     3,544   4,056       -
    -------------------------------------------------------------------------
    Total Proved
     + Probable
     + Possible            66        727     1,074     6,710   8,577   2,191
    -------------------------------------------------------------------------


    Company Net Present Value @ 10% (before tax) - June 30, 2007

    -------------------------------------------------------------------------
                                                mUS$
                        -----------------------------------------------------
    Reserve Category    Yalea  Guayuyaco  Juanambu  Costayaco  Guepajé  TOTAL
    -------------------------------------------------------------------------

    Proved
      - Producing       2,157     5,511         -         -    1,926    9,594
      - Non Producing       -     5,441     5,642    30,254        -   41,337
      - Undeveloped         -     2,325         -     9,631        -   11,956
    -------------------------------------------------------------------------
    Total Proved        2,157    13,277     5,642    39,885    1,926   62,887

    Probable              237     2,291     9,081    52,587      205   64,401
    -------------------------------------------------------------------------
    Total Proved
     + Probable         2,394    15,568    14,723    92,472    2,131  127,288

    Possible                -         -    12,354    79,552        -   91,906
    -------------------------------------------------------------------------
    Total Proved
     + Probable
     + Possible         2,394    15,568    27,077   172,024    2,131  219,194
    -------------------------------------------------------------------------


    Company Working Interest (before royalties)

    -------------------------------------------------------
                       Working Interest (%)
    -------------------------------------------------------
    Yalea      Guayuyaco    Juanambu   Costayaco   Guepajé
    -------------------------------------------------------

    60.9%         35%         35%(*)      50%       37.8%
    -------------------------------------------------------
    (*) Post assumed Ecopetrol back-in
    

    Significant Assumptions and Uncertainties

    The preceding information presents values that are estimated for proved,
probable and possible reserves (as defined in the Canadian Oil and Gas
Evaluation Handbook) using costs and prices in US$ obtained from sources
considered to be reasonable by the Corporation and the reserves evaluator,
DeGolyer and MacNaughton.
    The process of estimating reserves is complex requiring significant
judgments and decisions based on available geological, geophysical,
engineering and seismic data. Although every reasonable effort is made to
ensure that reserve estimates are accurate, reserve estimation is an
inferential science. As a result, the subjective decisions, new geological or
production information and a changing environment may impact these estimates
and the impact could be material.
    Mr. Glenn Van Doorne, Chief Operating Officer of Solana, a Petroleum
Geologist, is the qualified person who has reviewed the technical information
contained in this news release.

    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, +44 207 399 2486; 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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