Julian Gray’s first goal in over two years couldn’t stop Walsall falling to a controversial defeat at Exeter.

The winger’s first goal for the Saddlers came minutes after Ryan Harley’s debatable penalty put the Grecians two up just before the hour.

Home skipper Matt Taylor had headed them into a fourth minute lead and, while the Saddlers pressed for a leveller, the killer touch deserted them.

Rhys Weston, Netan Sansara and Manny Smith all returned to the starting line up, with Matt Richards and Dwayne Mattis failing to recover from their respective ankle and Achilles injuries while Clayton McDonald started his three match ban.

For the Grecians, Rob Edwards started along with Wolves loanee George Friend.

The hosts opened well and were ahead after four minutes when they won a corner on the Saddlers’ right and Harley tossed in the flagkick for Taylor to bury a free header into the corner from six yards.

It was the worst possible start from the nervy Saddlers and aside from two long range efforts from Richard Taundry they were second best.

There was little cohesion to the Saddlers’ play but with 24 minutes they sprung to life, when Alex Nicholls found Steve Jones but the winger’s cross just evaded Troy Deeney.

Sansara was having a torrid time and it should have been two on 27 minutes, when Barry Corr somehow managed to turn Steve Tully’s cross wide from five yards.

Weston forced goalkeeper Paul Jones into a scrambling near post save as the Saddlers began to gather momentum, while Deeney was inches away from equalising when his header clipped bar three minutes before the break.

Exeter then missed a golden chance to double their lead in first half injury time when Harley broke the offside trap, rounded goalkeeper Rene Gilmartin but was denied by an amazing goalmouth clearance from Smith.

But the Saddlers did fall two down when referee Trevor Kettle awarded Exeter a dubious penalty in the 57th minute.

Jamie Vincent and Corr tangled on the edge of the box and when the pair fell into the area the linesman flagged for a foul and -  to the Saddlers’ disbelief – Kettle pointed to the spot.

The foul looked outside the box, but after the protests Harley stepped up and sent Gilmartin the wrong way.

But four minutes later the Saddlers were back in the game when Gray curled in from 15 yards, after Exeter failed to deal with Taundry’s long throw.

It gave the visitors hope and with the home side rattled the Saddlers pressed for a second, but couldn’t threaten Jones’ goal.

Harley chipped wide in a late Exeter attack, as they held on to claim a precious win in the fight against the drop.