IVORY ENERGY INC.
Suite #1097 – 105, 150 Crowfoot Cr. N.W.
Calgary, Alberta T3G 3T2
Tel. (877) 602-1103 Fax. (877) 602-1105

NEWS RELEASE

Saskatchewan Operations Update

October 9, 2007.  Ivory Energy Inc. (IV: TSX.V) announces the following update on its operations.

Ivory currently has 3 service rigs working on re-completions and workovers on its Silverdale, Saskatchewan property.  To date, work on 32 wells has been completed and the services will continue on the Company’s re-completion and workover program.  Net average sales for the month of August was 680 boe/d.  Net average sales for the month of September was 690 boe/d.  These figures do not include oil produced into inventory.  Once all the re-completed wells have been equipped and placed on production, October production should increase significantly.

Ian Gallie, President and CEO of Ivory, commented, “We are pleased with the progress to date on our Saskatchewan properties.  As we enter into the winter months considerable production will be allocated to build inventory and this will not be reflected in our sales figures.  With production increases this quarter, we are on track to meet the target of 2,500 boe/d and add significantly to our existing 2.94 million boe of proved plus probable reserves within 12 months.”

Over 95% of Ivory’s production is now from the heavy oil project in Saskatchewan.  As such, the Company enjoys lower royalties on its heavy oil production and will be largely unaffected by the potential changes to government royalties in Alberta.

Other updates include:

• 22 new drilling locations have been surveyed and will be licensed as soon as leases are secured;
• Pipelining in two areas is progressing and will be completed in the fourth quarter.  This pipelining will substantially reduce operating costs by eliminating trucking costs from each of the individual oil wells;
• A 3D seismic survey in the Silverdale area is in the planning stages for the fourth quarter.

The Company has granted 400,000 stock options to an officer having a term of five years, vesting in equal quarterly installments, over the first 12 months, and having an exercise price of $0.80 per share.

Ivory Energy Inc. is a heavy oil producer in Saskatchewan that is rapidly increasing production, cash flow and reserves through low risk re-completions, workovers, infill drilling and water flooding its Saskatchewan properties.

For further information, please contact:

Ian E. Gallie, President & Chief Executive Officer
1 (877) 602-1103 or info@ivoryenergy.com
Website: www.ivoryenergy.com

Boe or Boe/d are barrels of oil equivalent or barrels of oil equivalent per day.  Boes may be misleading, particularly if used in isolation.  A Boe conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

This news release contains statements concerning anticipated development activities on Ivory’s properties.  Although the Company believes that these forward-looking statements are reasonable, undue reliance should not be placed on them.  The forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

The TSX Venture Exchange has not reviewed and does not take responsibility for the adequacy or accuracy of this release.