Brownstone Ventures Inc.
TSX VENTURE : BWN

Brownstone Ventures Inc.

February 27, 2008 15:40 ET

Brownstone Ventures Inc. Releases Unaudited Results for the Three and Six Months Ended December 31, 2007

Enters into new oil and gas projects in Brazil and continues to be well financed to further invest in oil & gas projects

TORONTO, ONTARIO--(Marketwire - Feb. 27, 2008) - Brownstone Ventures Inc. (TSX VENTURE:BWN) today announced its unaudited results for the three and six months ended December 31, 2007.

As at December 31, 2007, the Company had cash and cash equivalents of $38.8 million as compared to $35.9 million as at June 30, 2007. Investments at fair value totaled $14.6 million at December 31, 2007 as compared to $24.9 million at June 30, 2007. Also at December 31, 2007, oil & gas properties and related expenditures totaled $20.2 million as compared to $16.3 million as at June 30, 2007.

Financial Highlights for the three and six months ending December 31, 2007 with comparatives:



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Operating Results Three months ended Six months ended
(unaudited) December 31, December 31,
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2007 2006 2007 2006
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Realized gains on disposal
of investments, net $1,263,941 $4,485,499 $1,263,941 $23,157,706
Unrealized losses on
investments, net (1,250,572) (2,184,289) (279,172) (15,644,555)
Net investment gains 13,369 2,301,210 984,769 7,513,151
Total expenses 1,036,310 1,355,073 2,091,644 4,420,440
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Net comprehensive income
(loss) for the period (626,016) 1,414,147 402,875 4,267,631
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Basic earnings (loss)
per common share (0.01) 0.03 0.01 0.10
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Diluted earnings (loss)
per common share (0.01) 0.03 0.01 0.09
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(unaudited)
Balance Sheet Highlights December 31, 2007 June 30, 2007
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Cash and cash equivalents $ 38,833,653 $ 35,951,353
Investments, at fair value 14,563,645 24,902,453
Oil & gas properties and related
expenditures 20,198,071 16,333,500
Total assets 77,523,396 79,397,145
Total liabilities 303,813 3,778,613
Share capital, warrants and contributed
surplus 61,247,972 60,049,796
Retained earnings 15,971,611 15,568,736
Working Capital 55,670,745 57,332,027
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During the six months ended December 31, 2007, the Company entered into a consortium agreement with BrazAlta Resources Corp. ("BrazAlta"), Petro Latina do Brasil Exploracao e Producao de Petroleo e Gas Natural Ltda. ("PetroLatina") and W.Washington Empreendimentos E Participacoes Ltda. ("W.Washington") to co-operate on the ownership and development of Block REC-T-170 awarded in the recent Round 9 land auctions awarded by Agencia Nacional do Petroleo, Gas Natural e Biocombustiveis ("ANP"), Brazil's National Petroleum Agency. The parties have agreed to allocate the beneficial ownership of the Round 9 concessions obtained by the parties through a consortium structure with the following working interests: 56.25% to BrazAlta and W.Washington, 25% to PetroLatina and 18.75% to Brownstone. During the six months ended December 31, 2007, the Company paid $2,226,569 ($4,108,819 Brazilian real) for its working interest.

The Company has spent approximately $3.8 million on oil & gas properties and related expenditures during the first half of fiscal 2008 on exploration expenditures through its partners.

Brownstone is currently participating in five oil and gas exploration projects based in the United States (Colorado/Utah and Oregon), Argentina, Brazil and India.

"We are pleased to see our projects in Brazil and Piceance/Uinta Basin progressing to drilling stages and await further results on those projects," commented Sheldon Inwentash Chairman and CEO of Brownstone. "In addition, we are well funded to make additional investments in existing and new projects and continue to search for other compelling opportunities."

About Brownstone - Brownstone Ventures Inc. ("Brownstone") is a Canadian based, energy-focused investment company with direct interests in oil and gas exploration projects, investments in oil and gas lands and other equity investments. For additional information, please see Brownstone's website: www.brownstoneventures.com.

Forward-Looking Statements:

Certain statements contained in this press release constitute forward-looking statements, which are statements relating to future events or the Company's future performance and which are inherently uncertain. All 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 or phrases (including negative variations) suggesting future outcomes or statements regarding an outlook.

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: obtaining the necessary financing for operations, market fluctuations, investment performance, fluctuations in prices of commodities underlying our interests and equity investments, strength of the Canadian and US economy, foreign exchange fluctuations, political and economic conditions in the countries in which the Company's property interests are located and other risks included elsewhere in this press release under the heading "Risks" and in the Company's public disclosure documents filed with certain Canadian securities and available at www.sedar.com.

Readers are cautioned that the foregoing lists of factors are not exhaustive. Although the Company has attempted to identify important factors that could cause actual events and results to differ materially from those described in the forward-looking statements, there may be other factors that cause events or results to differ from those intended, anticipated or estimated. The forward-looking statements contained in this press release are made as of the date hereof and the Company 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 otherwise required by law. All of 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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