/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
UNITED STATES/

CALGARY, July 7 /CNW/ - Sabretooth Energy Ltd. ("Sabretooth" or the "Company") (TSX: SAB) announces that it filed a (final) short form prospectus on June 30, 2009 in connection with the Company's previously announced issuance of rights (the "Rights") to subscribe for up to 27,027,027 common shares (the "Common Shares") of the Company.

The Rights will be issued to holders of Common Shares of record on July 13, 2009. Each such holder will be entitled to one Right for each Common Share held. 1.423039 Rights will entitle a holder to purchase one Common Share at a price of $0.37 per Common Share commencing on July 17, 2009 and expiring at 4:00 p.m. Calgary time on August 14, 2009.

The Toronto Stock Exchange has advised the Company that the Rights will commence trading on the Toronto Stock Exchange beginning on July 9, 2009 and that the Shares will commence trading on an "ex-rights" basis at the same time. The Rights are expected to be posted for trading until 12:00 p.m. on August 14, 2009.

The (final) short form prospectus, along with the certificates representing the Rights, are expected to be mailed to eligible holders beginning on or around July 16, 2009. Further details regarding the Rights can be found in the (final) short form prospectus of the Corporation dated June 30, 2009 available on Sabretooth's SEDAR profile at www.sedar.com.

Sabretooth has also mailed to its shareholders an information circular with respect to Sabretooth's annual and special meeting (the "Meeting") to consider, among other things, the previously announced transactions contemplated by the Reorganization and Investment Agreement dated May 24, 2009, as amended, among Sabretooth, Cequence Energy Ltd. and certain other parties. The meeting is scheduled to be held on July 29, 2009 at 9:30 a.m. at The Metropolitan Conference Centre, 333 - Fourth Avenue S.W., Calgary, Alberta. Further details regarding the Meeting can be found in the management information circular of the Corporation dated June 26, 2009 available on Sabretooth's SEDAR profile at www.sedar.com.

Sabretooth also intends to file a preliminary short form prospectus qualifying the Common Shares issuable pursuant to the 53,590,000 outstanding subscription receipts (the "Subscription Receipts") of the Company which were issued and sold on a private placement basis on June 18, 2009. Further details with respect to the offering of Subscriptions Receipts can be found in Sabretooth's press releases dated May 27, 2009 and June 18, 2009 available on Sabretooth's SEDAR profile at www.sedar.com.

ADVISORY: This press release contains forward looking information concerning, without limitation, the issuance and terms of the Rights and the timing of the Meeting and the prospectus to qualify the distribution of the Common Shares issuable pursuant to the Subscription Receipts. Although Sabretooth believes that the expectations reflected in the forward looking information is reasonable, undue reliance should not be placed on such information because Sabretooth can give no assurance that it will prove to be correct. Since forward looking information addresses future events and conditions, by its very nature it involves inherent risks and uncertainties.

The forward looking information contained in this press release is provided as of the date hereof and Sabretooth undertakes no obligations to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

This news release is not for dissemination in the United States or to any United States news services. The Common Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold in the United States or to any U.S. person except in certain transactions exempt from the registration requirements of the U.S. Securities Act and applicable state securities laws.

The Toronto Stock Exchange has neither approved nor disapproved the
contents of this press release.