Gastem: Private Placement Financing of $5,000,000

  Gastem (TSX VENTURE: GMR) announces that it has signed an engagement letter with Industrial Alliance Securities and Fraser Mackenzie Limited to act as co-lead agents for a private placement by Gastem for a flow through share financing of up to $5 million. Mackie Research Capital Corporation will also participate in the syndicate of agents for the private placement. Gastem will issue up to 5,882,353 units at a price of $0.85 per unit. Each unit will consist of one flow through share and one purchase warrant. Each warrant will entitle the holder to acquire one additional common share of Gastem at a price of $1.05 for a period of 18 months following the closing of the private placement. The private placement is expected to close on or about March 23rd 2010.

Gastem will grant the co-lead agents an option to increase the size of the private placement by up to $750,000, exercisable on not less than one day's notice. If the agent's option is exercised in full, Gastem will issue a total of 6,764,706 units for gross proceeds of $5.75 million.

The offering will be made to accredited investors within the meaning of National Instrument 45-106, in the Provinces of British Columbia, Alberta, Ontario and Quebec. The securities to be issued in the private placement will be subject to a four-month hold period under applicable securities legislation. The private placement is subject to regulatory approval, including that of the TSX Venture Exchange. In connection with the private placement, Gastem will pay the agents a cash commission equal to 7.5% of the gross proceeds from the sale of the units.

The proceeds from the private placement will be used to finance admissible exploration programs on Gastem's Quebec properties.

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 and 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 514-875-9034 [e-mail]