Saxon Extends Terms of Warrants and Exercises Put Option

Saxon Oil Company has applied to the TSX Venture Exchange for acceptance to extend the term of 10,462,500 common share purchase warrants issued pursuant to a brokered private placement that closed on May 10, 2007.

The Warrants are exercisable into common shares of the Company at an exercise price of $0.46 per share at any time until November 10, 2008. The Company is seeking acceptance from the Exchange to extend the term of the Warrants for an additional six months to May 10, 2009.

The Company also wishes to announce the exercise in full of a put option which was granted by the Company to Steven D. Saxon and members of his family (collectively, the "Saxon Shareholders") pursuant to the Company's acquisition of Saxon Oil Company, now the Company's wholly-owned subsidiary, in April 2006.

Pursuant to the exercise of the put option, the Company has purchased all of the 16,873,375 shares of Class B stock of Saxon Oil held by the Saxon Shareholders in consideration for the issuance of a corresponding number of common shares of the Company. An aggregate of 5,062,013 of these common shares will remain in escrow pursuant to a surplus security escrow agreement among the Saxon Shareholders, the Company and Pacific Corporate Trust Company dated April 12, 2006, and will be released over time in accordance with the terms of the escrow agreement.