Overview

SOUNDING LAKE, ALBERTA

The Company acquired a high operated interest in three sections of land in the Sounding Lake area of eastern Alberta in May 2006 through the acquisition of Dagur Resources Inc. Solara operates a number of producing oil wells on the lands. In late 2006, the Company operated the drilling of six wells on two of the sections of land, completing two of the wells prior to year end. Five of the wells are on production, two wells are awaiting further completion work and one well requires a tie-in. The oil is produced from the Cummings zone. The area is generally productive from the Dina, Cummings, Lloydminster and Sparky formations. There are additional drilling locations based on 3-D seismic which are planned for 2007. In early 2007, Solara acquired 1,000 gross (660 net) acres offsetting its lands for future development. The Sounding Lake project represents a core asset for the Company.

MAJORVILLE, ALBERTA

The Company has various interests in seven producing gas wells in the Majorville area of southeastern Alberta. The assets were part of the Dagur Resources Inc. corporate acquisition finalized in May 2006. In the fourth quarter 2006, Solara operated the drilling of three gas wells which were completed for production in early 2007. The three wells collectively tested gas rates of up to 750 Mcf/d from the Belly River zone. The Company has a 75% interest in these wells which it plans to tie-in for production by May 2007. There are additional drilling locations and recompletions which the Company has plans to pursue in 2007.

YOUNGSTOWN, ALBERTA

Solara acquired various interests in a producing oil well and undeveloped lands in the Youngstown area of southeastern Alberta as a result of its acquisition of Dyno Energy Ltd. on August 31, 2006. The Company drilled two 100% interest gas wells in late 2006. One of the gas wells will be tied in the third quarter 2007. Solara acquired an additional 1,280 net acres of undeveloped land offsetting the existing project in the fall 2006 and has plans to evaluate the two sections with seismic in 2007.

WILDWOOD, ALBERTA

The Company participated in the drilling of a test well in December 2006 and earned a 35% interest in a section of land. The well tested oil at rates of 195 bbls/d and gas at 150 Mcf/d from the Nordegg formation. Solara has an option to participate in a second well offsetting the earning lands on the same basis as the test well. The joint interest parties of the well acquired an additional two sections of land (1,280 gross hectares) in early 2007 adjoining section 18, and as well, trade 3-D seismic data over the lands. The operator of the 13-18 well has committed to tie-in the well for production in the second quarter 2007. Additional drilling locations have been identified on the lands based on the evaluation of the 3-D seismic. The operator plans to produce the test well for a period of time prior to proposing additional wells on the undeveloped lands. The Wildwood project is a core project for Solara.

PEMBINA, ALBERTA

Solara participated in the drilling of a test well in the fourth quarter 2006 which resulted in a potential gas well testing at rates of 1 MMcf/d from the Basal Quartz formation. The Company earned a 40% interest in the well and lands. The operator plans to tie-in the well for production by June 2007. The parties acquired additional section (640 gross acres) in early 2007 which has drilling potential.

CRYSTAL, ALBERTA

The Company participated in a well in December 2006 as to a 50% interest on a farmin basis. The well was completed in the Nordegg and Ostracod formations and tested at rates of up to 1.7 MMcf/d of gas from the two zones. Solara earned 35% in the lands comprising 640 gross acres. The operator plans to tie-in the well for production by June 2007. The parties acquired another section of land in 2007 with drilling potential.

MINIHIK BUCK LAKE, ALBERTA

The Company participated in the drilling of a test well in late 2006 on lands in the Minihik Buck Lake area of west central Alberta. The well tested economic rates of oil and gas from the Cardium formation. Solara earned 40% in two and one-quarter sections of land. The joint interest parties acquired an additional 480 gross acres as part of the project. The operator has plans to drill an additional well on the undeveloped lands in late 2007.

CRAIGEND, ALBERTA

Solara acquired interests in various producing and non-producing natural gas properties located in the Craigend area of northeastern Alberta in January, 2008. At the time of the acquisition, the properties were producing approximately 440 Mcf/d or 70 BOE/d of gas production net to the interests acquired by the Company. In addition, the Company acquired interests in 16,640 net acres of undeveloped lands (6,656 net hectares) in close proximity to the producing wells and infrastructure. The undeveloped lands offer multi-zone drilling opportunities for future development. The Craigend area will become a core area for Solara in terms of drilling and optimization activities in the future.

MINOR PROPERTIES

Solara owns various working and royalty interests in a number of operated and non-operated properties located in Alberta. Although these properties are not the focus of the Company’s major activities, they do contribute to Solara’s total daily production and offer optimization opportunities. These properties comprise interests located in the Hamilton Lake/Provost, Joffre and Rivercourse areas of central and east central Alberta.