Sauer Energy Inc. Secures $5M Equity Line Financing Agreement With St. George Investments, LLC

NEWBURY PARK, CA--(Marketwire - Aug 21, 2012) - Sauer Energy Inc. ("SEI") (OTCBB: SENY), developer of the patented WindCharger™ vertical-axis wind turbine (VAWT), announced today that that it has entered into a $5M Equity Line Agreement with the Illinois-based investment fund, St. George Investments, LLC (St. George) for the purchase of common stock.

The equity line financing, which will be available to SEI upon the effectiveness of an SEC S1 Registration Statement, will allow a 6% discount to market price. The amount and timing of each draw down is at the sole discretion of SEI and is based upon a 36 month term. SEI will use funds from the investment for production and manufacturing of its WindCharger VAWT for the residential market and its Helix Wind turbine models.

"We appreciate St. George for extending funding that will enable us to better implement our growth strategies to formally launch our WindCharger™ brand model and resume sales of Helix Wind turbines.

The favorable terms of the agreement, especially the low discount to market rate, will minimize dilution and enable us to better maximize value to our shareholders. Moreover, by having this equity mechanism available to us, we are aiming to maintain a debt free balance sheet," stated Dieter Sauer, CEO and President of SEI.

John Fife, Founder and President of St. George, commented, "We believe that Sauer Energy has created an excellent vertical axis wind platform and is well positioned for rapid growth. This financing will provide the expansion necessary for large scale manufacturing."

About St. George Investments, LLC

St. George Investments, LLC, is a Chicago-based company that specializes in making investments in growth-stage publicly traded companies. St. George invests with companies across a variety of sectors to provide the liquidity necessary to achieve their operational objectives.

About Sauer Energy

Sauer Energy is a technology developer and manufacturer focused on the emerging renewable energy market. We believe that because it requires few parts, SEI's technology, which provides a new direction for wind capture, will easily scale from residential to small community and up to large industrial scale. The market opportunity for a new, innovative technology is unlimited. SEI has created the WindCharger™ model to provide a better solution for the use of wind capture for residential or small building use.

The WindCharger™ is one of Sauer Energy's key innovation priorities. With several patents in place and many more pending, SEI is engaged in manufacturing and commercialization now, and plans to see a financial return on its investments. To learn more about Sauer Energy and this revolutionary wind turbine system, please visit:

www.SauerEnergy.com

Due to the recent acquisition of the assets of Helix Wind, SEI plans to be able to offer the Helix vertical axis wind turbine systems in the near future. They are specifically designed to be pole mounted and can respond to the demand for applications that do not require roof mounting.

Sauer Energy... the future of energy!™

Forward-Looking Statements

This news release includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. While these statements are made to convey Company progress, business opportunities and growth prospects, readers are cautioned that such forward-looking statements represent management's opinion. Whereas management believes such representations to be true and accurate based on information and data available to the Company at this time, actual results may differ materially and are subject to risk and uncertainties. Factors that may cause actual results to differ include without limitation: dependence on key personnel and suppliers; SEI's ability to commercialize its wind turbine technology; ability to defend intellectual property; wind turbine material and component costs; competition; economic conditions; consumer demand and product acceptance, and availability of growth capital.

Additional considerations and risk factors are set forth in reports filed on Form 8-K and 10-K with the SEC and other filings. Readers are cautioned not to place undue reliance upon these forward-looking statements; historical information is not an indicator of future performance. The Company undertakes no obligation to update publicly any forward-looking statements.