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Adulis Resources Inc (ADS)

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Friday 24 December, 2004

Adulis Resources Inc

Commencement of Drilling

Adulis Resources Inc.
24 December 2004

ADULIS RESOURCES INC.
NEWS RELEASE

December 24, 2004
Calgary, Alberta

ADULIS ANNOUNCES COMMENCEMENT OF JOINT ECOPETROL-RAMSHORN SOLANA/ADULIS DRILLING
PROGRAM AND EXTENSION OF SALINAS ASSOCIATION CONTRACT PROGRAM

Adulis Resources Inc. (Adulis) is pleased to announce that the first well of its
joint five well exploration program with Ecopetrol (the Colombian State Oil
Company), Ramshorn International (an affiliate of Nabors Drilling) and Adulis'
subsidiary, Solana Petroleum Exploration Colombia Limited has been spudded. The
well is part of five wells to be drilled pursuant to a Shared Risk Contract
between Ramshorn and Ecopetrol. This first well, Guayabillas 1, is expected to
be drilled to a total depth of 6400 ft. and is targeted at two separate
hydrocarbon objectives interpreted to exist between 4000 and 6300 ft. The cost
of this well is estimated at $US 4.5 MM ($US 2.1 MM Adulis share) on a completed
well basis.

Adulis also announces that it has received an extension of the term of the first
exploration phase of the Salinas Block from the current expiry date of December
28, 2004 to February 28, 2005. A rig has been contracted for Salinas Block
drilling and, based on current projections, the first well, Sirruma 1, will
commence drilling in late January 2005. This well is planned as a 6,800 ft test
of an interpreted turbidite objective. The second planned well on the block
(Molino de Viento 1) is located on an interpreted four way independent closure
and is expected to be drilled immediately after the conclusion of the Sirruma
well. Molino de Viento is expected to reach a total depth of
9200 ft. and test objectives in the Miocene and potentially fractured basement.

For further information please contact Raymond P. Antony, Chairman at (403)
266-7512 or Stephen Newton, President at (57 1) 629 1636.

This release may contain forward looking statements within the meaning of the
'safe harbor' provisions of US laws. These statements are based on management's
current expectations and beliefs and are subject to a number of risks and
uncertainties that could cause actual results to differ materially from those
described in the forward looking statements. Adulis does not assume any
obligation to update any forward looking information contained in this news
release.




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