Solana Resources Limited ("Solana" or the "Company") - $100 Million Credit Facility Agreement

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[{"type":"text","content":"\n\n\n\nCALGARY and LONDON, Dec. 21 /CNW/ - Solana Resources Limited (TSX-V: SOR;\nAIM: SORL) is pleased to announce that the Company, through its wholly owned\nsubsidiary, Solana Petroleum Exploration (Colombia) Limited, has secured a\nUSD$100 million senior first lien three year revolving secured credit facility\nwith BNP Paribas Bank. The initial amount available for drawdown under the\nfacility is USD$26 million and amounts drawn down bear an interest rate that\nvaries with the Company's net production ranging from 2.375% to 3.125% over\nLIBOR. The facility is secured against the Company's Colombian oil and gas\nreserves and the amount available for drawdown will be adjusted pursuant to\nsemi-annual reserve reports. Proceeds from the credit facility will be used to\nfund the Company's ongoing exploration and development projects. The Company\nhas no immediate plans to draw on the facility following the CDN$60 million\ngross financing the Company closed on November 26, 2007.\n\n\nForward Looking Statements\n\n\nCertain information regarding the Company, including management's\nassessment of future plans and operations, may constitute forward-looking\nstatements under applicable securities law and necessarily involve risks\nassociated with oil and gas exploration, production, marketing and\ntransportation such as loss of market, volatility of prices, currency\nfluctuations, imprecision of reserve estimates, mechanical problems, equipment\nlimitations, environmental risks, competition from other producers and ability\nto access sufficient capital from internal and external sources; as a\nconsequence, actual results may differ materially from those anticipated.\n\n\nSolana Resources Limited\n\n\nSolana (www.solanaresources.com) is an international resource company\nengaged in the acquisition, exploration, development and production of oil and\nnatural gas. The Company's properties are located in Colombia, South America\nand are held through its wholly owned subsidiary, Solana Petroleum Exploration\n(Colombia) Limited. The Company is headquartered in Calgary, Alberta, Canada.\n\n\nNO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE CONTENT OF THIS\n\n\nRELEASE. THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE\n\n\nADEQUACY OR ACCURACY OF THIS RELEASE\n\n\n","length":2361,"tagName":"div"}]

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