Brownstone Energy Inc. Releases Results for the Year Ended June 30, 2012

Brownstone Energy Inc. (TSX VENTURE:BWN)(OTCQX:BWSOF) ("Brownstone" or the
"Company") today announces its results for the year ended June 30, 2012.


As at June 30, 2012, the Company had cash and cash equivalents of $18.2 million
as compared to $29.8 million as at June 30, 2011. Investments at fair value
totaled $2.8 million as at June 30, 2012 as compared to $12.4 million as at June
30, 2011. Also as at June 30, 2012, exploration and evaluation assets totaled
$45.1 million as compared to $42.1 million as at June 30, 2011.




Financial Highlights for the year ending June 30, 2012 with comparatives:   
                                                                            
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                                                      Year ended            
 Operating Results                                      June 30,            
                                            --------------------------------
                                                       2012            2011 
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 Net realized losses on disposal of                                         
  investments                                 $  (5,008,726)  $  (1,385,033)
 Net change in unrealized gains (losses) on                                 
  investments                                      (610,098)      5,050,138 
 Net investment gains (losses)                   (5,618,824)      3,665,105 
 Total expenses                                  21,570,378       6,236,774 
 Loss for the year                              (27,053,898)     (1,581,297)
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 Basic and diluted loss per common share              (0.21)          (0.02)
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 Consolidated statements of financial                                       
  position                                                                  
 Highlights                                    June 30, 2012   June 30, 2011
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 Cash and cash equivalents                    $  18,197,006   $  29,833,806 
 Investments, at fair value                       2,771,469      12,350,483 
 Exploration and evaluation assets               45,141,148      42,053,011 
 Total assets                                    67,650,272      90,591,353 
 Total liabilities                                1,150,868       1,497,064 
 Share capital, warrants and broker                                         
  warrants, contributed surplus                 120,550,480     118,327,742 
 Foreign currency translation reserve              (928,739)     (3,165,014)
 Deficit                                        (53,122,337)    (26,068,439)
 Working Capital                                 20,793,675      46,507,056 
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During the year ended June 30, 2012, the Company spent net cash of $16,717,003
on exploration and evaluation assets as compared to $12,772,103 during the year
ended June 30, 2011. During the year ended June 30, 2012, the Company recorded
an impairment of $16,292,799 (2011 - nil) on its exploration and evaluation
assets. 


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


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 investment alternative. For additional
information, please see Brownstone's website: www.brownstoneenergy.com.