Gastem Undertakes $5MM Flow-Through Financing

Gastem is undertaking a brokered private placement for an amount up to $5,000,000. The private placement will consist of 7,692,308 flow-through units ("Flow-Through Unit") at a price of $0.65 per Flow-Through Unit. Each Flow-Through Unit will consist of one flow-through common share (the "Flow-Through Shares") and one common share purchase warrant. Each whole warrant entitles the holder to acquire one non-flow-through common share at a price of $0.85 per share for a period of 18 months from the closing (the "Offering").

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 closing of the Offering is expected to occur on or about November 30th 2009 and is subject to the completion of formal documentation and receipt of Board and Regulatory approval including the conditional approval of the TSX-V. Gastem has retained Industrial Alliance Securities and Frazer Mackenzie Limited to act as the agent for the Offering.

The proceeds from the Flow-Through Shares will be used to finance admissible exploration work in Quebec. Gastem will incur admissible "Canadian Exploration Expense" ("CEE") and Quebec Exploration Expense (QEE) or deemed CEE and QEE and renounce, for the 2009 taxation year, such CEE or QEE in favour of original holders of the Flow-Through Shares in an amount equal to the subscription price for each Flow-Through Share.

Gastem is an independent oil and gas exploration and development company based in Montreal. The company holds exploration permits and rights to 3,135 km2 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.


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