PEMBINA, CARDIUM

As part of its ongoing risk and capital management strategy in June 2010 Solara entered into a Farmout Agreement with the Pembina Cardium Limited Partnership (the “Pembina LP”) which provided for the farmout by the Corporation of certain interests in the Pembina area of Alberta. The Farmout provided for the Pembina LP to fund $1,000,000 of the capital program for the drilling of one horizontal Cardium well. Upon drilling and completion of the well, the LP will earn 20% interest in the well and the balance of the farmout lands. In addition, the officers and directors of the Corporation own 90 units or 9% of the total partnership units outstanding.

DEWBERRY, EASTERN ALBERTA

Solara owns various working interests in two and one-half sections (1,600 acres or 640 hectares) of lands located approximately 50 kilometers west of Lloydminster, Alberta. Since August, 2009, the Company has operated the drilling of 12 vertical wells, and two horizontal wells to evaluate the Sparky, Dina, Rex and Cummings oil zones underlying the lands. Solara owns a 42% interest in one section, and a 100% interest to the remaining lands. In May, 2010, the Energy Resources Conservation Board of Alberta (ERCB) approved a primary depletion plan which provided for the reduction in the size of the minimum well and production spacing from 160 acres down to 20 acres with respect to one of the sections of land. In January, 2011, the ERCB approved an amendment to the original primary depletion plan to include the remaining lands for reduction of spacing requirements. Effectively this regulatory approval enables Solara to drill up to 32 wells per section per formation. Note that the Company currently has oil wells producing from the Sparky, Dina, Rex and Cummings zones. In summary, Solara estimates that it has in excess of 70 potential drilling locations on its operated lands at Dewberry. In 2011, the Company has plans to drill up to eight vertical (conventional) wells and four horizontal wells to further optimize the oil field.

SOUNDING LAKE, ALBERTA

The Company operates approximately three and one-half sections (2,240 acres or 896 hectares) of land situated in eastern Alberta, with an average working interest of 87%. There are a number of oil wells producing from the Cummings and Dina formations underlying the lands. Over the past five years, Solara has drilled several wells on the lands with initial oil production rates of 30 bbls/d on an individual well basis, and declining to approximately 5 to 10 bbls/d after one year. The Company has previously undertaken two three dimensional geophysical programs over the lands to identify potential drilling locations. More recently, Solara drilled one well in 2009, and a well in 2010 on a portion of the lands. It has plans to drill two more wells in 2011 to follow up on its initial success from these producing oil wells. The oil field is currently generating approximately $225,000 in gross revenues per month.

Non-core Projects

CRAIGEND, ALBERTA

Solara owns lands and operates gas wells in the Craigend/Sugden area of northeastern Alberta. Generally, the gas wells are lower productivity in nature producing primarily from the Viking formation. The Company has a number of undeveloped sections of lands in the area which remain a potential resource for future development.

MAJORVILLE, ALBERTA

The Company operates several gas wells at Majorville which is situated southeast of Calgary, Alberta. These wells are shallow natural gas wells which produce at rates of less than 50 Mcf/d.