Gastem Files Short Form Prospectus

   Gastem (TSX VENTURE: GMR) is pleased to announce that it has received a receipt for a preliminary short form prospectus filed in connection with a proposed offering in Units. Each Unit will consist of one (1) share of the Company plus one (1) warrant for two years.

Subject to receipt of all requisite regulatory approvals the offering is expected to close on or about July 31st . The offering will be made by a syndicate of agents led by Industrial Alliance Securities Inc., and will include Fraser Mackenzie Ltd. and Mackie Research Capital Corporation. The offering will be sold publicly in the provinces of British Columbia, Alberta and Ontario.

The Company proposes to use the net proceeds to fund the development of properties and projects in New York State, the potential acquisition of new properties and for general corporate purposes.

Gastem is an independent oil and gas exploration and development company based in Montreal. The company holds exploration permits and rights to 3,135 km(2) in the St. Lawrence Lowlands, the Gaspe Peninsula and the Magdalen Islands in Quebec as well as properties in New York State and rights or interests in Appalachia.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts: Gastem David Vincent or Raymond Savoie 514-875-9034 [e-mail]