Gastem Inc.

Gastem Inc.

December 14, 2007 18:36 ET

Gastem Closes Two Private Placements for $1,004,400

MONTREAL, QUEBEC--(Marketwire - Dec. 14, 2007) - Gastem (TSX VENTURE:GMR) today announced that it has closed two non-brokered private placements for gross proceeds of $1,004,400. The first financing was a non flow-through offering of 1,333,333 units at a price of $0.60 per unit, for gross proceeds of $800,000. Each unit consisted of one common share of the Company and one-half of one share purchase warrant ("Warrant"). Each whole Warrant entitles the holder to purchase one common share of the Company at an exercise price of $0.75 per share for a period of two years from the date of closing of the offering. The second financing was a flow-through offering of 292,000 common shares, at a price of $0.70 cents per share for gross proceeds of $204,400.There were no warrants attached to the flow-through financing.

These private placements were done on identical terms as the recent financing round that closed on November 6th 2007. The Company intends to use the net proceeds of the non flow-through private placement for general working capital purposes. The net proceeds of the flow-through private placement will be used for exploration, drilling and development of the Company's Quebec properties.

The offering was made to accredited investors, within the meaning of National Instrument 45-106, in the Provinces of British Columbia, Ontario and Quebec. The closing of the private placements is subject to the receipt of all the required regulatory approvals, including the approval of the TSX Venture Exchange. All the securities issued pursuant to this offering shall be subject to a hold period of four months from date of closing. There was a commission of $11,200 paid to Jones Gable and Company Ltd., in relation to one of the subscriptions. As a result of this financing, Gastem has 47,141,825 shares outstanding

Gastem is an independent oil and gas exploration company based in Montreal. The company holds exploration and storage rights to 3,135 km2 of land in the St. Lawrence Lowlands and the Gaspe Peninsula in Quebec as well as rights and interests in West Virginia. Gastem also collects revenues from a participation in the Amber Bank shale gas project with Epsilon Energy in West Virginia.

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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