On 10 January 1943, "Sahib" departed Algiers to conduct another patrol, her seventh since her commissioning; she was to patrol the Gulf of Genoa. After patrolling for four days, "Sahib" torpedoed and sank the German merchant ship "Oued Tiflet" southwest of Savona, Italy. In the early morning of 20 January, "Sahib" bombarded an Italian seaplane hangar with her deck gun at Finale Ligure, Italy, but was forced to dive when coastal batteries opened fire upon "Sahib". The next day, "Sahib" torpedoed and sank the west of Bonifacio, Corsica, in position . According to "Sahib"s log the U-boat was first spotted proceeding on the surface early that morning at a distance of . "Sahib" closed to and into a more favourable position before firing a full salvo of six torpedoes at five second intervals. Three minutes later three explosions were heard, a large cloud of smoke was seen and it was noted that radio transmissions stopped. "Sahib" closed and recovered the only survivor from the 46 crew, 19-year-old "Fähnrich zur See" Wilhelm Rahn. Lieutenant Ian Edward Fraser was subsequently awarded the Distinguished Service Cross for his actions aboard "Sahib" during the sinking of "U-301". "Sahib" continued patrolling until 25 January, when she returned to Algiers.