Brownstone Energy Inc. to Sell Interest in Canaguaro Block

Brownstone Energy Inc. (TSX VENTURE:BWN)(OTCQX:BWSOF) ("Brownstone" or "the
Company") today announces that it has agreed to sell its 25% oil and gas
participating interest in the Canaguaro Block in the Llanos Basin in Colombia to
Petrominerales Ltd.


Petrominerales will pay Brownstone a total of US$6.0 million in cash for its 25%
private participating interest, subject to customary post-closing price
adjustments. The sale is expected to be completed in the next 30 days, subject
to the satisfaction of certain closing conditions, including receipt of
regulatory and other approvals.


Following the sale of its interest in the Canaguaro block, Brownstone will
continue to hold its private participating interests in two other blocks in the
Llanos basin of Colombia - LLA27 and LLA 36 - and its option on block LLA21.


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


Cautionary Statements

This news release contains forward-looking information and forward-looking
statements within the meaning of applicable securities laws (together,
"forward-looking information"). The use of any of the words "expect",
"anticipate", "continue", "estimate", "believe", "plans", "intends",
"confident", "may", "objective", "ongoing", "will", "should", "project",
"should" and similar expressions are intended to identify forward-looking
information.


The forward-looking information is based on certain key expectations and
assumptions made by the Company, including expectations and assumptions
concerning the operational results in the U.S.A. Although the Company believes
that the expectations and assumptions on which the forward-looking information
are based are reasonable, undue reliance should not be placed on the
forward-looking information because the Company can give no assurance that they
will prove to be correct.


Since forward-looking information addresses future events and conditions, by its
very nature it involves inherent risks and uncertainties. Actual results could
differ materially from those currently anticipated due to a number of factors
and risks. These include, but are not limited to, the inherent risks involved in
the exploration and development of oil and gas properties, the uncertainties
involved in interpreting drilling results and other geological data,
uncertainties relating to fluctuating oil and gas prices, the possibility of
cost overruns or unanticipated costs and expenses and other factors including
unforeseen delays. Anticipated exploration and development plans relating to the
Company's properties are subject to change.


The foregoing list of assumptions, risks and uncertainties is not exhaustive.
The forward-looking information contained in this press release is made as of
the date hereof and Brownstone undertakes no obligation to update publicly or
revise any forward-looking statements or information, whether as a result of new
information, future events or otherwise, unless so required by applicable
securities laws.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Brownstone Energy Inc.
Jonathan Schroeder, P. Geoph.
President and COO
[phone]
[e-mail]


Brownstone Energy Inc.
Gerry Feldman
CFO
[phone]
[e-mail]


Brownstone Energy Inc.
Richard Patricio
Vice-President Corporate and Legal Affairs
[phone]
[e-mail]
www.brownstoneenergy.com