Mr. Peter Boswell reports

SAHARA ENERGY LTD.: CONSOLIDATION OF COMMON SHARES

Sahara Energy Ltd., further to its news release in Stockwatch dated June 8, 2010, wherein it announced the memorandum of understanding (MOU) with King World International Holdings Ltd., which included the undertaking by the corporation to propose a share consolidation to its shareholders on a 1:6 basis, confirms it will be placing before its shareholders at a special meeting to be held Sept. 3, 2010, a special resolution authorizing the corporation to file articles of amendment to provide for the consolidation of the issued and outstanding common shares of the corporation on the basis of one postconsolidation common share for every six preconsolidation common shares.

The share consolidation resolution must be passed by not less than two-thirds of the votes cast by shareholders represented in person or by proxy at the special meeting. The share consolidation requires the acceptance of the TSX Venture Exchange.

If the share consolidation resolution is passed, the directors of the corporation will have the authority to revoke it before it is acted upon. The corporation currently has issued and outstanding 38,036,302 common shares, which would result in 6,339,384 common shares being issued and outstanding following the share consolidation.

In order to attract equity financing to meet the corporation's working capital requirements and in order to finance future acquisitions, and pursuant to the requirements of the MOU, the directors consider it advisable to consolidate the common shares as outlined above. Reference is made to the creditors proposal and proposed private placement referred to in the corporation's news release in Stockwatch dated June 8, 2010.

Following the completion of the share consolidation and creditors proposal and assuming 58 million common shares are issued pursuant to the private placement, the corporation will have approximately 73.3 million common shares outstanding.

The corporation does not propose to change its name in conjunction with the share consolidation.