Gastem Inc.

Gastem Inc.

March 25, 2010 17:50 ET

Gastem Closes $5,750,000 Financing

MONTREAL, QUEBEC--(Marketwire - March 25, 2010) - Gastem (TSX VENTURE:GMR) is pleased to announce that it has closed a private placement with a syndicate of agents led by Industrial Alliance Securities Inc. and Fraser Mackenzie Ltd. and included Mackie Research Capital Corporation (the "Agents"), previously announced on March 16, 2010. The overallotment was exercised.

A total of 6,764,706 flow-through units Gastem were sold at a price of $0.85 per Unit to raise $5,750,000, on a best-effort private placement basis. Each Unit consists of one flow-through share and one purchase warrant. Each warrant entitles its holder to acquire one additional common share of Gastem at a price of $1.05 for a period of 18 months following the closing of the private placement.

The Agents received a cash commission on the sale of the Units representing 7.5% of the gross proceeds raised. The proceeds from the private placement will be used to finance admissible exploration programs on Gastem's Quebec properties.


The Company is also pleased to announce that Mr. Bernard Hénault, an accountant with 25 years experience, has been named acting Chief Financial Officer. Mr Hénault has been responsible for Gastem's financial documents and accounting since 2002. His efficiency, dedication and thoroughness are well recognised. The Board wishes him well in his new functions and is confident that his continued participation will be one of the key elements in the company's development.

Gastem is an independent oil and gas exploration and development company based in Montreal. The company holds exploration permits and rights to 3,135 km² in the St. Lawrence Lowlands, the Gaspe Peninsula and the Magdalen Islands in Quebec as well as properties in New York State and rights or interests in Appalachia.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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