Rally Confirms Mailing of Information Circular and Provides Pakistan Update



    "RAL" - TSX Exchange
    "RLE" - Frankfurt Stock Exchange
    www.rallyenergy.com

    CALGARY, Aug. 28 /CNW/ - Rally Energy Corp. ("Rally") is pleased to
confirm that it has now mailed a management information circular (the
"Circular") relating to the special meeting (the "Meeting") of Rally
securityholders scheduled for September 17, 2007. As previously announced, the
Meeting has been convened in connection with the proposed acquisition (the
"Transaction") by Logria Corporation, a subsidiary of National Petroleum
Company S.A.E. and an affiliate of Citadel Capital Company, of all of the
issued and outstanding common shares of Rally at a price of Cdn$7.30 per share
in cash and all of Rally's outstanding in-the-money options for their
in-the-money value pursuant to a plan of arrangement. The Circular is
available on Rally's website at www.rallyenergy.com or the Canadian SEDAR
website at www.sedar.com.
    Proxies for the Meeting are to be sent to Rally Energy Corp., c/o its
transfer agent, Valiant Trust Company, 310, 606 - 4th Street SW, Calgary,
Alberta T2P 1T1. Securityholders are hereby notified that the Notice of
Meeting, Circular and Letter of Transmittal are amended to allow Proxies to be
received by Rally's transfer agent until 9:30 a.m. (Calgary time) on
September 14, 2007 or, if the Meeting is adjourned, not less than 48 hours
(excluding Saturdays, Sundays and statutory holidays in the City of Calgary)
before the commencement of any adjourned Meeting. This paragraph has been
incorporated by reference into the Circular, and accordingly, the information
contained in the Circular is superseded to the extent it is inconsistent with
the information in this paragraph.

    Pakistan

    Rally Energy Corp. is pleased to announce that the Dewan 5-A development
well in the Salsabil Field spudded on August 27, 2007 utilizing a new drilling
rig, Z-40. Total target depth is 3,200 meters. It is expected that the well
will take 100 days to be drilled and tested.
    The Al-Baraka-1 exploration well (Zindapir Prospect) is currently
drilling at 1,262 meters and is expected to reach target depth of 2,100 meters
by mid-September. It will take several more weeks to complete testing of the
well.
    Current gas production from the existing two wells in the Salsabil Field
is 26.7 mmcf/d (8.0 mmcf/d or 1,333 boe/d, net).

    
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    Based in Calgary, Alberta, Canada, Rally Energy is an oil and gas
exploration, development and production company. The Corporation's primary
area of operations is in Egypt, where it has a 100% operating interest in the
Issaran Oilfield, a significant heavy oil development opportunity. In
Pakistan, the Corporation holds a 30% interest in the Safed Koh Block, where
it is participating in the development of a natural gas/condensate discovery.

    
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                                   ADVISORY
    

    Except for statements of historical fact, all statements in this news
release - including, without limitation, statements regarding the Transaction
and future plans and objectives of Rally - are forward-looking statements that
involve various risks and uncertainties. There can be no assurance that such
statements will prove to be accurate; actual results and future events could
differ materially from those anticipated in such statements. Important factors
that could cause actual results to differ materially from anticipated results
include risks and uncertainties most of which are beyond Rally's control such
as: risks relating to the Transaction; estimates of reserves and recoveries;
production rates and operating cost assumptions; development risks and costs;
the risk of commodity price and currency fluctuations; general economic and
industry conditions; political and regulatory risks; environmental risks;
stock market volatility; access to sufficient capital from internal and
external sources; and other risks and uncertainties as disclosed under the
heading "Risk Factors" and elsewhere in Rally's documents filed from
time-to-time with the Toronto Stock Exchange and other regulatory authorities.
The reader is cautioned that assumptions used in the preparation of such
information, while considered reasonable by Rally at the time, may prove to be
incorrect. Rally disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.
    In conformity with Canadian Securities Administrators National Instrument
51-101, natural gas volumes have been converted to equivalent barrels of oil
("boe") using a conversion ratio of six thousand cubic feet ("mcf") to one
boe. This ratio is based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value equivalency at the
wellhead. Readers are cautioned that boe's may be misleading, particularly if
used in isolation.

    
       The TSX has neither approved nor disapproved of the contents of this
                                news release.

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For further information:

For further information: Abby Badwi, President & CEO; Douglas Urch, Vice
President, Finance & CFO, Tel: (403) 538-0000, Fax: (403) 538-3705

Organization Profile

RALLY ENERGY CORP.

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