Gastem Inc.
TSX VENTURE : GMR

Gastem Inc.

December 09, 2009 11:25 ET

Gastem: Second and Final Closing for a Total of $6,250,000

MONTREAL, QUEBEC--(Marketwire - Dec. 9, 2009) - Gastem (TSX VENTURE:GMR) is pleased to announce that it has closed the final tranche of the $6,250,000 brokered flow-through private placement for an amount of $980,000.45 equal to 1,507,693 Units. This second tranche follows the initial closing of $5,269,999.15 announced on Friday the 4th of December.

The entire private placement (the Offering) consisted of 9,615,384 Flow-Through Units ("Flow-Through Unit") at a price of $0.65 per Flow-Through Unit. Each Flow-Through Unit consisted of one flow-through common share and one common share purchase warrant. Each whole warrant entitles the holder to acquire one non-flow-through common share at a price of $0.85 per share for a period of 18 months until June 3, 2011.

The Offering was made to accredited investors, within the meaning of National Instrument 45-106, in the Provinces of British Columbia, Saskatchewan, Ontario and Quebec. Gastem retained Industrial Alliance Securities and Frazer Mackenzie Limited to act as the agents for the Offering and paid them a cash commission of 7.5%.

The proceeds from the Flow-Through Shares will be used to finance admissible exploration work in Quebec.

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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