Solara to acquire oil and gas assets in Alberta

Solara Exploration Ltd., a junior oil and gas company focused on the exploration, development and acquisition of oil and natural gas in western Canada, has signed an agreement to acquire various interests in oil and natural gas properties located in Alberta.

The company has paid $2,100,000 to acquire these assets, subject to adjustments at closing. It is learnt that the company will add approximately 60 barrels of oil equivalent per day (BOE/d) net share of daily production from these properties.

Solara will also acquire interests in 2,205 net undeveloped acres (892 net hectares) in close proximity to the producing wells on the properties.

The effective date of the transaction is June 1, 2008, with closing scheduled to occur on August 1, 2008.

The purchase and sale is subject to various conditions customary for similar transactions. The Company will use cash on hand and bank operating lines to complete the transaction at closing.