Eurogas International Announces Settlement of Arbitration

Eurogas International Inc. (CNSX:EI) ("Eurogas International" or the "Company")
today announced that the settlement of the arbitration proceedings against
Seawolf Oilfield (Cyprus) Limited and Seawolf Oilfield Services Limited has now
been finalized. The arbitration proceedings had been commenced by Atlas
Petroleum Exploration Worldwide Ltd. (the "Operator"), the Company's joint
venture partner in the Sfax Exploration Permit. Eurogas International's interest
in the settlement proceeds is subject to final determination under its joint
venture agreement with the Operator, but will be no less than US$2.7 million and
may reach a maximum of US$5.4 million.


Eurogas International Inc. is an independent oil and gas exploration company
listed on the Canadian National Stock Exchange under the symbol EI. Further
information regarding the Company may be viewed under the Company's profile on
SEDAR (www.sedar.com), the Company's website (www.eurogasinternational.com) or
by contacting the Company. For more information about Eurogas International
please visit the Listings Disclosure Hall at www.cnsx.ca. 


Certain information set forth in these documents, including management's
assessment of each of the Company'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
Company's control, including the impact of general economic conditions, industry
conditions, volatility of commodity prices, currency fluctuations, imprecision
of reserve estimates, environmental risks, competition from other industry
participants, the lack of availability of qualified personnel or management,
stock market volatility and ability to access sufficient capital from internal
and external sources. 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 Company'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.