Gastem Inc.
TSX VENTURE : GMR

Gastem Inc.

April 23, 2008 09:05 ET

Gastem Closes $10,158,750 Private Placement

MONTREAL, QUEBEC--(Marketwire - April 23, 2008) - NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Gastem (TSX VENTURE:GMR) is pleased to announce that it has today closed a private placement on a bought deal basis, led by Fraser Mackenzie Limited and including Wellington West Capital Markets Inc., National Bank Financial Inc. and Research Capital Corporation (collectively, the "Underwriters"), for 4,725,000 units at a price of $2.15 per unit for gross proceeds of up to $10,158,750. Each unit consists of one common share of Gastem and one-half of one share purchase warrant, with each whole warrant entitling the holder to purchase one common share of Gastem at a price of $3.00 per share for a period of eighteen months from the date of closing. There were no flow-through shares related to this financing. The private placement financing includes a 1,000,000 unit "greenshoe" option exercised by the Underwriters at the same conditions.

The offering was made to accredited investors, within the meaning of National Instrument 45-106. The closing is subject to the receipt of all the required regulatory approvals, including the approval of the TSX Venture Exchange. All the securities issued pursuant to this offering shall be subject to a hold period of four months from date of closing. A commission equal to 7% of the gross proceeds, as well as broker unit warrants equal to 7% of total units issued pursuant to this offering exercisable at $2.15 per unit, was paid by Gastem to the Underwriters.

Gastem will use the proceeds of the offering to fund the ongoing exploration and development of its Quebec and New York gas assets, including the Yamaska Shale Gas Project and the Utica Shale Project in New York State, and for general corporate purposes.

Gastem is an independent oil and gas exploration company based in Montreal. The company holds exploration and storage rights to over 1.1 million acres of land in the St. Lawrence Lowlands and the Gaspe Peninsula in Quebec. The company has also an option to acquire a 65% interest in properties situated in New York State and has revenues from a minority participation in the Amber Bank shale gas project in West Virginia.

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy and accuracy of this release.

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