Gastem Inc.
TSX VENTURE : GMR

Gastem Inc.

February 21, 2008 07:37 ET

Gastem Inc./Yamaska Project: Partner Elects to Proceed After Frac Completion

MONTREAL, QUEBEC--(Marketwire - Feb. 21, 2008) - Gastem (TSX VENTURE:GMR) is pleased to announce that its partner, a major US independent oil and gas public company, has notified Gastem of its election to exercise its Financial Commitment option on the Yamaska Property as per the January 2007 Agreement. According to the terms of the Agreement, the company may earn up to a 60% interest in the Yamaska Property by undertaking an earn-in program (see Feb. 26th 2007 press release).

The exercise of the option follows a hydraulic fracturing program undertaken in mid-December at the Gastem St-Francois-du-Lac #1 well. The frac stimulated an interval considered prospective within the Utica Shale sequence and identified during coring and logging operations in June 2007. Results to date have yielded new data with respect to frac design and potential gas flow rates. Further work is now anticipated in the coming months.

Gastem has contracted Sproule and Associates of Calgary to complete a Gastem resource assessment for the Yamaska Property. The report is scheduled to be completed during the Second Quarter of this year.

Gastem (48,516,492 shares outstanding) is an independent oil and gas exploration company based in Montreal. The company holds exploration and storage rights to over 1.1M acres of land in the St. Lawrence Lowlands and the Gaspe Peninsula in Quebec. 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 and accuracy of this release.

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