Brownstone Ventures Inc.
TSX VENTURE : BWN

Brownstone Ventures Inc.

June 06, 2008 13:45 ET

Brownstone Acquires Quebec Lowlands Gas Shale Applications

TORONTO, ONTARIO--(Marketwire - June 6, 2008) - Brownstone Ventures Inc. (TSX VENTURE:BWN) ("Brownstone") is pleased to announce that it has entered into a letter of intent (the "Agreement") with X-Terra Resources Corporation (TSX VENTURE:XT) ("X-Terra") whereby Brownstone will acquire a 50% interest in applications (and subsequent permits) for approximately 150,000 hectares of land in the Quebec Lowlands, prospective for gas shales. The land, recently staked by X-Terra (see X-Terra's press release dated June 2, 2008) is in close proximity to Junex Resources and Intragaz Exploration near Shawinigan city, and Squatex Resources in the Rimouski area in the heart of the Quebec Utica-Barnett-like shale natural gas play. Confirmation has been received by X-Terra that the permits have been granted.

Under the Agreement, Brownstone will issue 2,000,000 common shares and 2,000,000 common share purchase warrants (exercisable at a price of $2.00 for a period of 24 months) and Brownstone further agrees to purchase 850,000 units (to include a common share in X-Terra and a $2.50 common share purchase warrant for a term of 24 months) in a financing to be carried out by X-Terra.

Highlights of the transaction include an area of mutual interest agreement covering the Quebec Lowlands and Brownstone's ability to appoint the operator for the project.

The Agreement and the transactions contemplated are subject to a 30 day diligence period, completion of formal documentation, approval of the Board of Directors and approval of the TSX Venture Exchange.

About Brownstone

Brownstone Ventures Inc. is a well-financed Canadian-based, energy focused investment company with equity interests and direct interests in oil and gas exploration projects, including working interests in almost 300,000 acres in the Piceance/Uinta Basins of Colorado and Utah, 295km2 in the Assam/Arakan Basin, Northeast India and 253,000 acres in Rio Negro, Argentina. For additional information, please see Brownstone's website: www.brownstoneventures.com.

Certain statements contained in this press release constitute forward-looking statements. These statements relate to future events or the future performance of Brownstone. Statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "budget", "plan", "continue", "estimate", "expect", "forecast", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking statements in this press release include, but are not limited to, statements with respect to: completion by Brownstone of the acquisition of the participating interest in the Quebec Lowlands; the performance characteristics of the Brownstone's oil and natural gas properties; drilling plans and the timing and location thereof; plans for the exploration and development of the company's properties; production capacity and levels, and the timing of achieving such capacity and levels; the size of oil and natural gas reserves; projections of market prices and costs; supply and demand for oil and natural gas; expectations regarding the ability to raise capital and to continually add to reserves through acquisitions and development; and capital expenditure programs.

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Company believes the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and readers are cautioned not to place undue reliance on forward-looking statements contained in this press release. Some of the risks and other factors which could cause results to differ materially from those expressed in the forward-looking statements contained in this press release include, but are not limited to: volatility of and assumptions regarding oil and natural gas prices; liabilities inherent in oil and natural gas operations; uncertainties associated with estimating oil and natural gas reserves; competition for, among other things, capital, acquisitions of reserves, undeveloped lands and skilled personnel; geological, technical, drilling and processing problems; fluctuations in currency and interest rates; product supply and demand; and risks inherent in the company's foreign operations; changes in environmental and other regulations or the interpretation of such regulations; the possibility that the acquisition of the company's participating interest and/or completion of the private placement will not be completed and the other factors discussed in this press release and in Brownstone's filings with Canadian securities regulatory authorities which are available to the public at www.sedar.com.

Statements relating to "reserves" are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described can be profitably produced in the future. Readers are cautioned that the foregoing lists of factors are not exhaustive. The forward-looking statements contained in this press release are made as at the date hereof and Brownstone undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

The TSX Venture Exchange does not take responsibility for the adequacy or accuracy of this release.

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