January 4, 2008 (for immediate release)

Sprague Energy Corp. announced today that President and Chief Executive officer John D. McClellan will resign, effective January 15, 2008, to pursue other opportunities.

"I would like to thank John for his many contributions to Sprague over the course of the last five years" said Michael D. Milligan, President and CEO of Axel Johnson Inc, Sprague's corporate parent. His unique combination of intellectual rigor and dedication to driving towards a "new Sprague" has yielded an organization with an unparalleled customer franchise, materially improved processes and systems, and a talented and dedicated cadre of personnel capable of carrying on his legacy."

Mr. David Glendon has been chosen to replace Mr. McClellan in the position of President and Chief Executive Officer. Mr. Glendon formerly served as the Senior Vice President of Oil and Materials Handling. Since joining Sprague in June, 2003, Mr. Glendon has been focused on driving the execution of Sprague's customer-centric approach across all elements of the company's operations. Prior to joining Sprague, he was a Partner and Global Account Manager at Monitor Group, a global consulting and merchant-banking firm. Mr. Glendon is a graduate of Williams College with an M.B.A. from the Stanford Graduate School of Business.

Additionally Mr. Gary Rinaldi has been promoted to the position of Chief Operating Officer in addition to his current responsibilities as Chief Financial Officer. Since joining Sprague in 2003, Mr. Rinaldi has been the principal architect of the reconfiguration of Sprague's internal organization and information and risk systems as well as engineering the transformation of Sprague's capital structure. Prior to joining Sprague, Gary was most recently a Partner and Director of SUN Group in Europe, and prior to that worked for Phibro Energy, a division of Salomon Inc, in various financial and operational management capacities for thirteen years. Mr. Rinaldi is a graduate of the Wharton School of the University of Pennsylvania.

"It is the combination of these two impressive executives that makes me particularly excited about Sprague's future," said Mr. Milligan in his announcement to the organization. "I am looking forward to working with both Dave and Gary as we continue to build a company of which we are all, justifiably, proud."