Forest Gate Corporate Update

    




 Symbol & exchange: FGE-V 

 CALGARY, April 5, 2012 /CNW Telbec/ - Forest Gate  reports  that its mineral exploration group continues to work on the financing  required to develop its two 100 percent-owned iron ore properties  located in the Abitibi region of central Quebec. 

 Forest Gate reports that it is actively exploring the opportunity of a  joint venture with another iron ore exploration or steel company to  develop the opportunity. 

 "We are speaking with several potential partners and we expect to have a  deal done soon," said Michael Judson, Forest Gate's President. "We have  a drilling company ready to go and at a minimum we would like to have  the Pershing iron ore property advanced to a resource valuation stage  by year-end." 

 Forest Gate reported the discovery of iron ore on its Pershing property  on August 11, 2011 (FGE news release, 11/08/11). Drill hole FG11-03  intersected a banded iron formation with magnetite intervals containing  29.3 iron%. Most important, Pershing is 40 miles south of a CN-operated  rail line which runs east to a deepwater port and west to Canadian and  American steel mills. 

 Forest Gate also says that its energy group continues to look at  opportunities to acquire oil-producing assets in Alberta and  Saskatchewan. The company is currently producing approximately 40  barrels of oil equivalent per day. 

 In other news, a secured creditor, with which Forest Gate inherited a  credit facility, is demanding repayment of a loan in the value of  $120,572.  The loan, which originally was in the amount of $277,000 and  has been repaid in part, was incurred with the acquisition of a private  oil company (FGE news release, 23/12/10). The secured creditor says  that it plans to enforce its security over assets of the company. 

 "We are in discussions with the secured creditor and their counsel  regarding repayment and we expect a resolution to the matter will be  forthcoming soon," said Michael Judson. 

 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.  

FOREST GATE ENERGY INC.


CONTACT:  Michael Judson, President & [e-mail] 


    

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