Brownstone Energy Inc.

Brownstone Energy Inc.

September 28, 2011 16:54 ET

Brownstone Energy Inc. Releases Audited Results for the Year Ended June 30, 2011

TORONTO, ONTARIO--(Marketwire - Sept. 28, 2011) - Brownstone Energy Inc. (TSX VENTURE:BWN)(OTCQX:BWSOF) ("Brownstone" or the "Company") today announces its audited results for the year ended June 30, 2011.

As at June 30, 2011, the Company had cash and cash equivalents of $29.8 million as compared to $1.8 million as at June 30, 2010. Investments at fair value totaled $12.4 million as at June 30, 2011 as compared to $17.2 million as at June 30, 2010. Also as at June 30, 2011, oil and gas properties and related expenditures totaled $49.1 million as compared to $36.2 million as at June 30, 2010.

Financial Highlights for the year ending June 30, 2011 with comparatives:

Operating Results Year ended June 30,
2011 2010
Realized gains (losses) on disposal of investments, net $ (1,385,033 ) $ 647,190
Unrealized gains on investments, net 5,050,138 3,949,027
Net investment gains 3,665,105 4,596,217
Total expenses 5,954,490 25,711,195
Net and comprehensive loss for the year (1,299,013 ) (22,069,004 )
Basic and diluted loss per common share (0.01 ) (0.31 )
As at June 30,
Balance Sheet Highlights 2011 2010
Cash and cash equivalents $ 29,833,806 $ 1,832,230
Investments, at fair value 12,350,483 17,174,119
Oil and gas properties and related expenditures 49,076,358 36,167,168
Total assets 97,614,700 63,961,793
Total liabilities 1,497,064 2,113,363
Share capital, warrants, broker warrants, and contributed surplus 117,622,500 82,054,281
Deficit (21,504,864 ) (20,205,851 )
Working Capital 46,507,056 20,394,295

During the year ended June 30, 2011, the Company spent net cash of $12,772,103 on oil and gas properties and related expenditures.

Brownstone is currently participating in several oil and gas exploration projects based in Colombia, Israel, United States (Colorado/Utah and Oregon), Argentina, Canada and Brazil.

About Brownstone

Brownstone Energy Inc. is a Canadian-based, energy focused company with direct interests in oil and gas exploration projects, including varying interests in three off-shore Israel concessions and in four Colombian blocks in the Llanos basin, as well as other oil and gas interests worldwide. By owning and managing a diversified portfolio of energy-based projects, Brownstone provides shareholders with a unique energy alternative. For additional information, please see Brownstone's website:

Neither 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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