Sahara Energy Releases Second Quarter Results for Immediate Release

Gross revenue for the 3 month period totaled $526,772 , compared to $124,834 for the same period last year; an increase of $401,938.

As at June 30, 2007, the Company reported a bank overdraft of $608,655.00 and a working capital deficiency of $3,654,632. Included in the working capital deficiency are $605,004 in convertible debentures that are convertible at $0.57. Management is of the opinion that these debentures will be converted leaving a working capital deficiency of $3,049,628.

The company had a net loss of $683,964 for the three months ended June 30, 2007. Adjusting the net loss for non-cash items of depletion, depreciation, accretion and stock based compensation the company has a net loss of $397,847 for the three months ended June 30, 2007.

For the three month period ended June 30, 2007 the company had capital expenditures of $570,248 of which $170,180 was spent on drilling and completions, $279,793 on well equipment and facilities, and $126,275 on land and other costs.

Sahara's oil sales volumes during the first quarter averaged 150 boepd, up from 140 boepd in the first quarter of 2007. During the second quarter operational difficulties, delayed tie-ins and an early spring break-up caused several production delays.

During the second quarter of 2007, Sahara was involved in drilling two prospects at Provost, resulting in one oil well and one water disposal well. Management again decided to delay its drilling program due to excessively high drilling and service industry costs.

Sahara is currently producing 175 boepd which consists of 100 bpd of heavy oil, 45 bpd light oil and 200 mcfd gas. The reduced volume was due to an early spring break-up, and extended road bans during April that prevented trucking of tanked oil and movement of equipment to perform well work-overs, completions and pipeline installations. Sahara currently has behind pipe production capability of 120 boepd consisting of 20 bpd oil and 600 mcfd gas (100 boepd) for total production capability of 295 boepd.

During the next three months, depending on financing, Sahara will operate the drilling of 8 heavy oil test wells. In Alberta, 2 test well will be drilled at Hayter (50% interest), 2 test wells at Blackfoot (50% interest), 2 test wells at Lloydminster (50% interest) and 2 wells (50% interest) at Soda Lake, Saskatchewan. Sahara may also participate in the drilling of up to 3 non-operated wells (30% interest) in the Buzzard/Lashburn area of western Saskatchewan.

Additional Information

Sahara's unaudited consolidated financial statements and relating managements' discussion and analysis for the three months ended June 30, 2007 have been filed on SEDAR at www.sedar.com. For additional information on the Company, please go to the Company's profile at SEADAR.

Sahara is a junior oil and gas company focused on the exploration and development of oil and gas in western Canada.

BOE's may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 McF: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner top and does not represent a value equivalency at the wellhead.

Reader Advisory

Statements in this press release may contain forward-looking statement including expectations with respect to future events and the actions of third parties. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to: the underlying risks of the oil and gas industry (i.e. operational risks in development, exploration and production; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserves estimates; the uncertainty of estimates and projections relating to production, costs and expenses, adequate available financing and health, safety and environmental factors), commodity price and exchange rate fluctuation and uncertainties.

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