Sabretooth Energy Ltd. completes asset sale and acquires 71% of HFG Holdings Inc.

Sabretooth Energy Ltd. announce that, further to its press release of November 25, 2008, it has today completed the sale of certain assets to HFG Holdings Inc.

Sabretooth sold 59 net sections of Montney petroleum and natural gas rights, and certain wells and seismic access and interpretations to HFG in exchange for 156,546,590 common shares of HFG at a deemed price of $0.20 per share. The assets sold by Sabretooth include, inter alia, the Red Creek well at A15-01-86-22 W6M currently waiting on completion, an existing Oak Halfway/Montney producing well at 16-34-85-18W6M, an undrilled development well at Gordondale, the Montney reserves applicable to a previously drilled vertical well at Oak, the undeveloped Montney petroleum and natural gas rights at Mica, Oak/Stoddart, Sinclair, Nig/Birley, Red Creek and Two Rivers as well as access to certain seismic data and interpretations appurtenant to the assets being conveyed. The recently drilled and completed horizontal well at Gordondale (as previously announced on November 20, 2008) was not included in the transaction. Sabretooth also assumed a $1.0 million tie-in commitment and purchased 5,000,000 common shares of HFG for cash at a price of $0.20 per share.

Immediately following the closing of the transaction, HFG completed a private placement of 60,885,900 common shares issued at a price of $0.25 per share on a flow-through basis pursuant to the provisions of the Income Tax Act (Canada) for gross proceeds of $15,221,475. Dundee Securities Corporation, as lead agent, together with Tristone Capital Inc. and Research Capital Corporation, acted as agents for the private placement.

Sabretooth now owns approximately 71% of the outstanding common shares of HFG. All of the common shares of HFG held by Sabretooth have been placed in escrow in accordance the terms of a value securities escrow agreement pursuant to the policies of the TSX Venture Exchange.