Sawtooth's Alberta Drilling Program on Track

Gary Waters, President of Sawtooth International Resources said the company has drilled, cased and drill stem tested several prospective gas zones in the first well of its current multi-well drilling program at Redwater, Alberta. The well will be production tested within the next few weeks. Sawtooth expects to commence drilling the next well within 2 days.

Sawtooth also announces that it has signed a letter agreement with Haywood Securities Inc. in which Haywood has agreed, on a partial bought deal basis, to place a common and flow-through share offering.

The private placement will consist of 750,000 common shares of Sawtooth and 1,500,000 flow-through Common Shares at $0.85 per share and $1.00 per share, respectively. If the Offering is fully subscribed, Sawtooth will receive gross proceeds of $2,137,500, which will be used to fund the current development and drilling program in the Redwater/Fort Saskatchewan area of Alberta. Haywood has an option to sell an additional $315,000 of flow- through shares and common shares subject to a maximum of $225,000 of flow- through shares. Insiders, friends and business associates may participate for up to 20% of the total offering.

On June 23, 2004 Sawtooth completed the purchase of all of the shares of Boom Investments Ltd. for the sum of $375,000 before adjustments. Boom owns properties at Fort Saskatchewan, Alberta an area in which Sawtooth already has a significant interest. The purchase gives Sawtooth a 76 % working interest in these properties which Sawtooth views as a core area.

The Company has completed pipeline construction and the tie-in of several wells in the Redwater area. Current Company production has doubled from year end to approximately 600 barrels of oil equivalent per day.