CALGARY, Oct. 12 /CNW/ - Solana Resources Limited (TSX-V: SOR; AIM: SORL) announced that it has granted stock options to purchase 200,000 shares to each of Keith Jackson, a non-executive director of the Company and Ricardo Montes, the acting Chief Financial Officer of the Company, as well as an additional 375,000 common shares to various employees and consultants of the Corporation and its subsidiary. The options were granted with an exercise price of $1.15 per share, being a price greater than the closing price of the Company's shares on the TSX Venture Exchange on October 11, 2006. All options will expire on October 12, 2011. One-third of the options vest after one year, another one-third after two years and the remaining one-third after the third year. The stock option grant is subject to regulatory approval. The Company has determined that exemptions from the various requirements of TSX Venture Exchange Policy 5.9 are available for the grant of options. The award of options to a Non-Executive Director represents a departure from the guidelines set out in the QCA Corporate Governance Guidelines for AIM companies. However, the options so granted are not subject to performance criteria. In the opinion of the directors, the options granted to Keith Jackson are not considered to be material enough to either the Company or to Keith Jackson to impair his independence. These arrangements have been approved by Solana's Board of Directors as being in the best interests of the Company and its shareholders, reflecting the need to attract, retain and incentivize top quality directors, officers, employees and consultants in present market circumstances. 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 and Paraguay, South America and are primarily 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.