CALGARY, ALBERTA–(EMWNews – Aug. 5, 2008) –

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Grey Wolf Exploration Inc. (“Grey Wolf”) (TSX:GWE) is pleased to announce that its 100 percent owned Pouce Coupe 1-27-77-11 W6M well, located on the Peace River Arch north of Grande Prairie, Alberta, has tested at natural gas rates in excess of 10 million cubic feet per day (“MMcf/d”). The well was drilled to a total measured depth of 2,955 metres, including an 870 metre horizontal lateral in the Doig formation at a true vertical depth of approximately 1,941 metres. The completion of the well included the use of isolation packers and a five-stage poly carbon dioxide frac. The well continues to clean up frac fluid and is expected to be tied in to a gas sales line within two weeks. The well cost approximately $4.7 million to drill, complete and tie-in. Grey Wolf believes it has in excess of 50 net horizontal well locations on its Pouce Coupe lands with the presence of natural gas in the Doig and Montney formations highly probable due to the control provided by numerous vertical producing wells in these zones. A second horizontal well in the Pouce Coupe area, this one owned 50 percent by Grey Wolf and partner operated, is scheduled to commence drilling within the next several weeks. Grey Wolf owns firm capacity of 8 MMcf/d in a third party pipeline and processing plant, which is scheduled to increase to 12 MMcf/d of firm capacity upon completion of a scheduled plant expansion.

Commented Bob Watson, Chief Executive Officer, “although these are initial test rates of flush production, the stable flowing pressures would indicate this well to be one of the best to be announced so far in the horizontal Montney/Doig play. We expect to produce the well at a somewhat lower rate, while we monitor well performance”.

Grey Wolf also announced it has entered into a non-binding letter of intent to sell its Ladyfern and Widewater properties. Proceeds from which will be used to pay down debt and increase flexibility to accelerate its horizontal development activity.

Grey Wolf is an Alberta-based oil and natural gas company involved in the exploration, development and production of natural gas and crude oil in the Western Canadian Sedimentary Basin. Grey Wolf operates horizontal resource plays in the Doig and Montney of the Peace River Arch and the Horn River Shale at Petitot. Conventional operations include the gas reservoirs of the Slave Point at Petitot and the gas reservoirs in the Cardium, Viking and Mannville of Caroline. The Company’s common shares trade on the Toronto Stock Exchange under the symbol “GWE”.

Forward-Looking Statements – Certain statements contained in this Media Release constitute forward-looking statements. These statements relate to future events or our future performance. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe” and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. We believe the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this Media Release should not be unduly relied upon. These statements speak only as of the date of this Media Release. We assume no obligation to revise or update these statements except as required pursuant to applicable securities laws.