Sahara Energy Ltd.

Sahara Energy Ltd.

November 13, 2006 19:58 ET

Sahara Energy Ltd. Announces Private Placement

CALGARY, ALBERTA--(CCNMatthews - Nov. 13, 2006) - Sahara Energy Ltd. (TSX VENTURE:SAH) ("Sahara" or the "Company") is pleased to announce that it has entered into an agreement with Leede Financial Markets Inc. and Blackmont Capital Inc. (collectively, the "Agents") to issue, on a best efforts basis, a minimum of 620,000 units ("Units") and a maximum of 820,000 Units at a price of $4.90 per Unit for minimum gross proceeds of $3,038,000 and maximum gross proceeds of up to $4,018,000 (the "Offering"). In addition, the Agents have been granted an option, exercisable in whole or in part, at any time up to 48 hours prior to closing, to increase the total Offering by up to 10%, or 82,000 Units at a price of $4.90 per Unit for additional proceeds of $401,800.

Each Unit consists of two (2) flow-through shares, each representing $1.60 of Canadian Development Expenses and one (1) flow through share representing $1.70 of Canadian Exploration Expenses.

The Agents will receive a fee equal to 6% of the proceeds of the Offering along with an option (the "Agents' Option") to acquire that number of common shares of the Company equal to 6% of the total number of flow-through shares sold under the Offering. Each Agent's Option shall entitle the Agents to purchase one common share of the Company at a price of $1.50 for a period of twelve months from the date of the closing of the Offering.

Proceeds of the Offering will be used to fund general expenditures related to Sahara's exploration and development activities.

The Offering is scheduled to close on or about November 28, 2006 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange.

The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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


FORWARD-LOOKING STATEMENTS Certain information set forth in this document, including management's assessment of Sahara's future plans and operations, contain forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond these parties' control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Sahara's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Sahara will derive therefrom. Sahara disclaims any intention or obligation to update or review any forward-looking statements, whether as a result of new information, future events or otherwise.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Sahara Energy Ltd.
    Peter Boswell
    President and Chief Executive Officer
    (403) 232-1359
    Sahara Energy Ltd.
    800- 510 5th Street SW
    Calgary, Alberta T2P 3S2
    (403) 232-1359
    (403) 232-1307 (FAX)