Gastem Inc.

Gastem Inc.

January 31, 2006 08:30 ET

Gastem Completes Private Placement

MONTREAL, QUEBEC--(CCNMatthews - Jan. 31, 2006) - Gastem president Raymond Savoie (TSX VENTURE:GMR) announces that the company has completed a private financing of $146,250 with Questerre Energy Corporation (TSX:QEC) an oil and gas exploration and development company based in Calgary, Alberta.

Questerre has subscribed for 1,462,500 units of Gastem at $0.10 per unit. Each unit consists of one common share and one common share purchase warrant. Each warrant entitles Questerre to acquire an additional common share at a price of $0.10 (a Warrant Share) for a period of two years from the closing of the placement, subject to shareholder approval.

The securities issued under the private placement are subject to a 4-month hold period.

Proceeds from the financing will be used for on-going administrative expenses and project acquisitions. There were no fees or other expenses related to this financing.

In late 2005, Questerre and Gastem entered into a participation agreement for Gastem's acreage in the St. Lawrence Lowlands in Quebec of over 311,000 acres. Questerre and Gastem each hold a 50% interest in these lands. Questerre recently began an initial work program on this acreage and will fund 100% of required expenditures for the next two years.

Gastem is a public oil and gas exploration and development company (12 M shares) was listed in January 2004. The company owns properties and interests in Quebec (500,000 acres) and Alberta. The company also has a 10% participating interest in drilling projects with Petrolia on the Haldimand Property, presently being drilled, and with Junex on the St-Simon Property, the object of follow-up work following the fall drilling program. The company is presently developing new projects in Quebec, in Alberta and elsewhere in Canada.

The TSX Venture Exchange accepts no responsibility concerning the veracity or exactness of this press release.

Contact Information