Forest Gate Closes $199,200 Private Placement

    




 SYMBOL & EXCHANGE: FGE-V 

 CALGARY, Oct. 18, 2011 /CNW Telbec/ - Forest Gate Energy Inc.  reports that it has completed a private placement by issuing an  aggregate of 166 flow-through units at a price of $1,200 per unit to  for gross proceeds to Forest Gate of $199,200. 

 Each flow-through unit consists of twenty thousand (20,000) flow-through  common shares and twenty thousand (20,000) non-flow-through common  share purchase warrants. Each warrant will entitle the holder to  purchase one additional common share of Forest Gate at a price of $0.12  until October 17, 2013. 

 Forest Gate will use the proceeds from the issuance of the flow-through  units to explore its 100% owned Pershing Iron/Gold Property located in  the Abitibi Region of Québec. 

 As a result of the private placement, there are 83,275,630 common shares  of Forest Gate issued and outstanding. 

 Under applicable securities legislation and policies of the TSX Venture  Exchange, the securities issued in the private placement are subject to  a hold period expiring on February 18, 2012. 

 About Forest Gate Energy Forest Gate Energy Inc. is a publicly listed oil and gas exploration and  production, and non-energy resource company trading on the TSX Venture  Exchange under the symbol FGE. The Corporation is seeking to increase  shareholder value through participation and development of energy and  other resources in Canada and internationally. 

 FORWARD-LOOKING STATEMENTS Certain statements regarding Forest Gate, including management's  assessments of future plans and operations and Forest Gate's  anticipated financial performance, may constitute forward-looking  statements under applicable securities laws and necessarily involve  known and unknown risks and uncertainties, most of which are beyond  Forest Gate's control. These risks may cause actual financial and  operating results, performance, levels of activity and achievements to  differ materially from those expressed in, or implied by, such  forward-looking statements. 

 Such factors include, but are not limited to: the impact of general  economic conditions in Canada and the United States; industry  conditions including changes in laws and regulations including adoption  of new environmental laws and regulations, and changes in how they are  interpreted and enforced; competition; the lack of availability of  qualified personnel; fluctuations in commodity prices; the results of  exploration and development drilling and related activities;  imprecision in reserve estimates; the production and growth potential  of Forest Gate's various assets; fluctuations in foreign exchange or  interest rates; the ability to access sufficient capital from internal  and external sources; and obtaining required approvals of regulatory  authorities. 

 This news release does not constitute an offer to sell or a solicitation  of an offer to buy any of the securities in the United States. The  securities have not been and will not be registered under the United  States Securities Act of 1933, as amended (the "U.S. Securities Act"),  or any state securities laws and may not be offered or sold within the  United States or to United States Persons unless registered under the  U.S. Securities Act and applicable state securities laws or an  exemption from such registration is available. 

 This news release is not for distribution to United States newswire  services or for dissemination in the United States. Neither TSX Venture Exchange nor its Regulation Service Provider (as  that term is defined in the policies of the TSX Venture Exchange)  accepts responsibility for the adequacy or the accuracy of this  release.  

FOREST GATE ENERGY INC.


CONTACT:  ROBERT KRAMBERGER, V-P, INVESTOR [e-mail] 


    

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