Forest Gate Closes $62,600 Financing

CALGARY, June 29, 2011 /CNW/ -- 
SYMBOL & EXCHANGE: FGE-V


CALGARY, June 29, 2011 /CNW Telbec/ - Forest Gate Energy Inc. (TSXV:
 FGE) reports that it has completed its previously-announced private
 placement (see press release dated June 28, 2011) by issuing an
 aggregate of 782,500 oil flow through units (the "Units") at an issue
 price of eight cents ($0.08) per Unit for gross proceeds to Forest Gate
 of $62,600.


Each Unit comprised one "flow-through" common share in the share capital
 of the Corporation and one common share purchase warrant of the
 Corporation, with each warrant entitling the holder thereof to acquire
 one additional common share in the share capital of the Corporation at
 an issue price of $0.18 per share for a period of two years. The Units will be issued pursuant
 to applicable prospectus and registration exemptions and will be
 subject to a four-month hold period.


Forest Gate will use the proceeds from the issuance of the Units to
 incur eligible expenditures on Forest Gate's oil and gas properties
 situated in Canada.


As a result of this private placement, there are 65,468,964 common
 shares of Forest Gate issued and outstanding.


In connection with the closing of the private placement, Forest Gate
 paid a 9% cash commission of $5,634. Forest Gate also issued 70,425
 Broker Warrants representing 9% of the number of Units sold in the
 private placement. Each Broker Warrant is exercisable into one common
 share of the Corporation at a price of $0.08, until June 29, 2013.


All of the securities issued in connection with the private placement
 are subject to a four month hold period expiring on October 30, 2011.


In other news, shareholders approved by majority vote, at the annual
 general and special meeting of shareholders of the Company held June
 15, 2011, the re-election of Michael Judson, Nicholas Powell and Brian
 Weihs as directors of the company. Ron Goguen previously resigned and
 did not seek reinstatement as a director.


About Forest Gate
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 Company 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.


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.


To view this news release in HTML formatting, please use the following URL: http://www.cnw.ca/en/releases/archive/June2011/29/c2458.html



p align="justify" ROBERT KRAMBERGER, V-P, INVESTOR RELATIONSbr/ 1-866-666-3040br/ a cr="true" text-decoration="" href="mailto:[e-mail]"[e-mail]/abr/ a cr="true" href="http://www.forestgate.ca"WWW.FORESTGATE.CA/a /p 

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