Eurogas International Announces Second Quarter 2012 Financial Results

Eurogas International Inc. (CNSX:EI) ("Eurogas International" or the
"Corporation") today announced its financial results for the three and six
months ended June 30, 2012. The Corporation's unaudited condensed interim
financial statements, along with the accompanying management's discussion and
analysis have been filed on the System for Electronic Document Analysis and
Retrieval ("SEDAR") and may be viewed by interested parties under the
Corporation's profile at www.sedar.com or the Corporation's website at
www.eurogasinternational.com.


Eurogas International is conducting exploration and evaluation programs for oil
and natural gas in the shallow Mediterranean waters offshore Tunisia, where it
holds a 45% working interest in the Sfax Permit. The Corporation has entered
into a joint operating agreement with Atlas Petroleum Exploration Worldwide Ltd.
("APEX"), a production sharing agreement with the Tunisian state oil company,
and an exploration permit with the Tunisian government. Pursuant to these
arrangements, the Corporation and APEX agreed to undertake exploration,
evaluation and production operations on the Sfax Permit. APEX is the operating
partner in the joint venture arrangement.


DECLARATION OF FORCE MAJEURE

As a result of political uncertainty and civil unrest in Tunisia, in January
2011, the Corporation announced that, together with APEX, it had declared a
condition of Force Majeure with respect to the Sfax Permit and Ras El Besh
development concession. The Corporation believes that the declaration of Force
Majeure allowed the Corporation and APEX to suspend their activities, while the
conditions resulting in the Force Majeure continued.


FINANCIAL RESULTS 

During the three and six months ended June 30, 2012, the Corporation incurred a
net loss of $0.5 million and $1.1 million respectively, representing a loss of
approximately $0.02 per share and $0.03 per share, respectively. This compares
with a net loss of $0.5 million and $1.2 million for the three and six months
ended June 30, 2011, respectively, representing a loss of $0.02 per share and
$0.04 per share, respectively. The decrease in the net loss reflects a decrease
in corporate activities as a result of the Force Majeure.


COMMITMENTS

On July 7, 2011, the Corporation received approval from the Tunisian government
to extend the term of the Sfax Permit to December 8, 2012. The joint venture
partners are committed to drilling an exploration well, with depth to a
specified geological zone, during the extension period. The actual cost for an
exploration well will depend on the selection of the prospect and the location
within the Sfax Permit. Based on current information, the Corporation estimates
that its share of the cost to meet this commitment ranges between US$6 million
and US$9 million.


Subsequent to June 30, 2012, the Corporation received a commitment from its
parent, Dundee Corporation, to provide the necessary financial resources to the
Corporation to enable it to complete its drilling obligation pursuant to the
terms of the Sfax Permit, subject to certain conditions, including obtaining the
consent of the Tunisian authorities as to an extension of the term of the Sfax
Permit.


In the event that its drilling commitment is not completed, a compensatory
payment of up to US$12 million will be payable to the Tunisian government by the
joint venture partners, less any amounts previously incurred by the joint
venture partners in respect of the completion of the Corporation's obligations
pursuant to the Sfax Permit. The Corporation continues to consider alternative
financing options including farmout arrangements, possible debt or equity
issuance, or the monetization of certain assets. There can be no assurance that
the Corporation will be successful in any of these initiatives.


FORWARD LOOKING STATEMENTS

Certain information set forth in these documents, including management's
assessment of the Corporation's future plans and operations, contains
forward-looking statements. Forward-looking statements are statements that are
predictive in nature, depend upon or refer to future events or conditions or
include words such as "expects", "anticipates", "intends", "plans", "believes",
"estimates" or similar expressions. By their nature, forward-looking statements
are subject to numerous risks and uncertainties, some of which are beyond the
Corporation's control, including the impact of general economic conditions,
risks associated with foreign operations, currency fluctuations, exploration and
development risks, reliance on key personnel and management, the ability to
access sufficient capital from internal and external sources, risks of not being
able to obtain or renew permits and licenses, environmental risks and
competition from other industry participants. Readers are cautioned that the
assumptions used in the preparation of such information, although considered
reasonable at the time of preparation, may prove to be imprecise and, as such,
undue reliance should not be placed on forward-looking statements. The
Corporation's actual results, performance or achievement could differ materially
from those expressed in, or implied by, these forward-looking statements and,
accordingly, no assurance can be given that any of the events anticipated by the
forward-looking statements will transpire or occur, or if any of them do so,
what benefits the Corporation will derive from them. The Corporation disclaims
any intention or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise, except as
required by law. 


ABOUT THE CORPORATION

Eurogas International Inc. is an independent oil and gas exploration company
listed on the Canadian National Stock Exchange under the symbol EI. 


All documentation in respect of the Corporation may be viewed under the
Corporation's profile on SEDAR (www.sedar.com) or under the Corporation's
website at www.eurogasinternational.com. For more information about Eurogas
International, please visit the Listings Disclosure Hall at www.cnsx.ca.