Saha Petroleum Ltd. closes sale of assets

June 29, 2009 CANADA -- Saha Petroleum Ltd. confirmed that it has closed its previously announced sale with an arm's-length private company of its oil and natural gas interests in five heavy oil wells and two suspended wells, all located in western Saskatchewan (the "Asset Sale").

In connection with the Asset Sale, Saha obtained the written consent of shareholders holding in excess of 50 % of the outstanding common shares.

Exchange final acceptance is subject to Saha filing final materials therewith. Saha will retain heavy oil production from its four wells in the Maidstone area of western Saskatchewan and from Saha's Wildmere well, drilled in the 4th quarter of 2008 and located in the Lloyminster area of eastern Alberta. The Asset Sale has allowed Saha to reduce its total debt from over $2 million to $284,000.