July 28th

Sabretooth Energy Ltd. Provides Update on New Strategic Direction: Focus on Unconventional Gas Exploration and Development

(\"Sabretooth\" or the \"Company\") (TSX:SAB) Sabretooth is pleased to provide an update on its progress on the strategic direction to focus on unconventional gas Exploration and Development, primarily in British Columbia. Recent activity includes:

- Entering agreements for the sale of West Central and Fireweed Conventional Assets for $22.5 million providing funding for unconventional gas exploration and development.

- Acquisition of 8 additional sections of Montney prospective land in British Columbia increasing total net undeveloped land on the Montney play to 60 sections.

- Drilling its Red Creek, British Columbia Montney Horizontal. - Participating in the drilling of 4 horizontal unconventional gas wells at Gunnell, British Columbia.

- Drilling a vertical well at Mica to evaluate the Montney which will be completed immediately and also resulted in an up-hole discovery.

- Drilling a farm-in well at Stoddart, British Columbia resulting in a multi zone discovery.

- Tie in of the Q1 oil discovery at Mica, British Columbia.

Sale of West Central and Fireweed Conventional Assets

Further to the Company\'s media release dated May 8, 2008, Sabretooth has agreed to sell its West Central conventional assets in Alberta and Saskatchewan as well as its Fireweed property in North East British Columbia for an aggregate purchase price of $22.5 million.

The proceeds of the sale will be used to reduce the working capital deficit of the Company by $22.5 million and allow the Company to focus on unconventional gas exploration and development. Current bank lines are being revised for the sale of the properties and new drilling results and are expected to be released with second quarter results in August. The Company anticipates cash flow from operations and available bank lines will fully fund its 2008/2009 unconventional gas focused drilling program.

Sabretooth will retain approximately 6.5 million boe of Proven and Probable reserves (4.2 million boe of Proven reserves) (December 31, 2007, GLJ Petroleum Consultants Ltd.) from the Gunnell, Mica, Sinclair, Peace River Arch and Oak areas based on forecast prices at January 1, 2008.

The Gunnell property is being retained because of its strategic fit as an unconventional gas asset, proximity to other assets in British Columbia, favourable reserve life index and cash flow, and upside potential.

Threshold bid values on the Peace River Arch property were not met during the sale and these assets are therefore being retained by the Company. An active farm-out campaign is being pursued.

Acquisition of Montney prospective lands in British Columbia

Sabretooth was successful in acquiring 8 additional net sections of prospective Montney lands at recent British Columbia land sales. Sabretooth now has approximately 60 net sections of Montney rights with 50 of those sections in North East British Columbia and 10 sections in Alberta.

Red Creek Montney Horizontal, British Columbia

The Company has reached total depth in its first horizontal Montney well at Red Creek. Completion is expected to take place in early August. The well encountered consistence and favourable reservoir throughout the horizontal section and liberated significant gas through the drilling process. Licensing is underway on future drilling locations at Red Creek.

Gunnell Jean Marie Horizontal, British Columbia

At Gunnell, the first two wells of the summer drilling program were tied in in June. Due to favourable results, the program was expanded from 4 wells to 5, and the fifth well is currently drilling. The remaining wells are expected to be tied in in August. Additionally 2 more wells have been proposed by the operator for Q4 2008.

Mica, British Columbia

At Mica, our Q1 oil discovery was tied-in in July and an offset well was drilled. The well encountered multiple prospective zones and completions are underway. The Company plans to drill a horizontal well for the Montney in 2008 at Mica.

Stoddart, British Columbia

Completions are underway on the well drilled at Stoddart in June. The well encountered multiple prospective pay zones and at least one follow up is anticipated for Q3.

Gordondale, Alberta

Sabretooth anticipates adding a horizontal well to the 2008 budget for the Gordondale area where the Company sees potential on its land directly adjacent to prolific development horizontal wells recently put on production by a major Operator in the area.

About Sabretooth Energy

Sabretooth Energy Ltd. is a public oil and gas exploration and development Company, located in Calgary, Alberta and carrying out operations in Western Canada. Sabretooth trades on the Toronto Stock Exchange (TSX) under the symbol \"SAB\".

This news release contains forward-looking statements relating to the Company\'s plans and other aspects of the Company\'s anticipated future operations, strategies, financial and operating results, cash flow from operations, production, reserves and business opportunities. Forward-looking statements typically use words such as \"anticipate\", \"believe\", \"project\", \"expect\", \"plan\", \"intend\" or similar words suggesting future outcomes, or consists of statements suggesting that actions, events or conditions \"may\", \"would\", \"could\" or \"will\" be taken or occur in the future, or statements regarding the outlook for petroleum prices, production, cash flow from operations, estimated amounts and timing of capital expenditures, the timing, location and extent of future drilling operations anticipated timing and results of construction projects and project tie-ins, estimates of future production, the ability to realize on investments in asset backed commercial paper (\"ABCP\"), the terms of loans to be received from National Bank of Canada, if any, operating costs or other expectations, beliefs, plans, objectives, assumptions or statements about future events or performance. Statements regarding reserves are also forward-looking statements, as they reflect estimates as to the expectation that the deposits can be economically exploited in the future.

These statements are based on certain factors and assumptions regarding expected growth, results of operations, performance, petroleum prices, business prospects and opportunities and the ability of the Company to realize on its investments in ABCP. While we consider these assumptions to be reasonable based on information currently available to us, they may prove to be incorrect.

By their nature, forward-looking statements involve numerous risk and uncertainties and other factors that contribute to the possibility that the predicted outcome will not occur, including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions, delays resulting from or inability to obtain required regulatory approvals, the ability to realize on investments in ABCP and ability to access sufficient capital from internal and external sources. Readers are cautioned that the foregoing list of factors is not exhaustive.

Although Sabretooth believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements and you should not unduly rely on forward-looking statements. The forward-looking statements contained in this news release are made as the date of this new release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

The term barrels of oil equivalent or boe may be misleading, particularly if used in isolation. A conversion ratio for gas of 6 mcf : 1 boe is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

SOURCE: Sabretooth Energy Ltd.

Sabretooth Energy Ltd. Joe McFarlane CFO (403) 806-4041 Email: This email address is being protected from spambots. You need JavaScript enabled to view it. Website: www.sabretooth.ca Brookline Public Relations, Inc. Shauna MacDonald Media and Investor Relations (403) 538-5645 Email: This email address is being protected from spambots. You need JavaScript enabled to view it.