Mr. Mohammad Fazil reports

SABA ANNOUNCES CLOSING OF NON-BROKERED PRIVATE PLACEMENT

Saba Energy Ltd. has closed its non-brokered private placement offering with the issuance of four million units of the company at a price of five cents per unit for aggregate proceeds of $200,000, subject to requisite regulatory approvals including those of the TSX Venture Exchange.

Each unit consists of one common share in the share capital of the corporation and one common share purchase warrant. Each warrant will entitle the holder to purchase one additional common share at an exercise price of 7.5 cents for a period of two years from the date of issuance of the warrant.

The warrants are subject to an acceleration clause such that, if the volume-weighted average trading price of the common shares on the TSX Venture Exchange is at least 20 cents per common share for a period of 15 consecutive trading days, the expiry date of the warrants may be accelerated by the corporation to a date that is not fewer than 15 days after the date that notice of such acceleration is provided to the warrantholders by way of a press release.

The corporation paid no finders' fees in respect of the offering, and no new control person (as defined by the TSX Venture Exchange policies) was created as part of the offering.

Common shares and warrants issued pursuant to the offering are subject to a hold period expiring four months and one day following their respective date of issue. Net proceeds of the offering will be used for general working capital.

About Saba Energy Ltd.

The company is a publicly traded entity listed on the TSX-V under the symbol SABA with oil and natural gas assets in northeastern British Columbia and Alberta.

We seek Safe Harbor.