Solana Resources Limited is pleased to announce final test results for the Costayaco-1 wildcat exploration well. Costayaco-1 is located in the Chaza Block, Putumayo Basin, southern Colombia. Solana holds a 50% working interest in the Chaza Block with Gran Tierra Energy Inc., the operator, holding the other 50% interest.

Costayaco-1 reached a total measured depth of 8,570 ft on May 10, 2007. A four formation, six zone cased hole testing program commenced on June 10, 2007 and has just recently been completed. This well tested an exceptional 5,906 bopd combined maximum flow rate from 155 ft of perforations.

The DST-1 interval, testing 8 ft in the lower Caballos, was selected to test a potential oil water contact. After initial swabbing, the well started to flow naturally, reaching a maximum flow rate of 206 bopd with only traces of water. A review of available data indicates no evidence of an oil water contact.

DST-2 tested a thick, 95 ft, Caballos interval and included the zone perforated for DST-1. After one swab the well started to flow naturally, reaching a maximum flow rate 2,655 bopd with only traces of water.

The DST-3 interval, testing 12 ft in the lower Villeta T, was selected to test a potential oil water contact. After swabbing, the well started to flow naturally, reaching a maximum flow rate 1,342 bopd with only traces of water. A review of available data also indicates no evidence of an oil water contact.

DST-4 tested a 40 ft Villeta T interval which included the zone perforated for DST-3. After swabbing, the well started to flow naturally, reaching a maximum flow rate of 2,212 bopd with only traces of water.

DST-5 tested 10 ft in the Villeta U sand. After swabbing, the well would not flow naturally and was tested with a jet pump. A maximum rate of 420 bopd with a final BS&W of 1% was achieved.

DST-6 tested a 10 ft interval in the Rumiyaco Kg sand. Without swabbing, the well started to flow naturally, reaching a maximum flow rate of 619 bopd with only traces of water. This zone is over pressured.

Detailed test results of the six DST’s are summarized in the following
tables.

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Test Number DST - 1 DST - 2 DST - 3
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Formation Lower Caballos Caballos Lower Villeta T
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Gross Interval (ft) 8,456 - 8,471 8,308 - 8,471 8,222 - 8,234
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Perforated
Interval (ft) 8 95 12
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Flow Type Natural Natural Natural
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Maximum Oil
Flow Rate (bopd) 206 2,655 1,342
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Final BS&W (%) 0 0 0
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Total Flow Time (hrs) 10.75 32.2 13
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Total Oil Produced
(bbls) 65 2,408 572
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Oil Quality (API) 30 31 31
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Test Number DST - 4 DST - 5 DST - 6
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Formation Villeta T Villeta U Rumiyaco Kg
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Gross Interval (ft) 8,180 - 8,234 8,014 - 8,024 7,256 - 7,266
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Perforated
Interval (ft) 40 10 10
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Flow Type Natural Pump Natural
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Maximum Oil
Flow Rate (bopd) 2,212 420 619
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Final BS&W (%) 0 1 0
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Total Flow Time (hrs) 25 13 43
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Total Oil Produced
(bbls) 1,906 217 907
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Oil Quality (API) 31 29 23
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The Pride-17 drilling rig, used to drill Costayaco-1, is expected to be available for additional drilling as of October of this year. Current plans include drilling two additional wells as soon as Pride-17 is available. The two well locations are based on the existing 2D seismic and will be step outs from Costayaco-1. One well is situated to penetrate the crest of the structure. To optimize further drilling locations, and to gain a more complete picture of the size and shape of the Costayaco structure, a near term seismic infill program is being planned.

Although Costayaco-1 is proximal to infrastructure, which will allow for early monetization of a portion of its production, the magnitude of this discovery will require dedicated facilities and a pipeline to fully exploit its potential. These plans are currently being fast tracked but will take some time to implement. The Chaza block is subject to a fiscally attractive Agencia Nacional de Hidrocarburos royalty/tax contract with no additional state participation.

Costayaco-1 is the Company’s second Putumayo Basin new field discovery in the last three months. The Juanambu-1 discovery, announced March 19, 2007, tested at a gross combined rate of 876 bopd from 88 ft of perforations over four separate zones. Juanambu-1 commercial production will commence as soon as regulatory approval is obtained.

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.