Eurogas Underscores Restructuring Plan of Eurogas International

Eurogas Corporation has announced that, in connection with its previously announced dividend-in-kind to holders of Eurogas' common shares, it has, as at the close of business on August 5, 2008, deposited certificates representing 31,143,635 common shares of Eurogas International Inc. with Computershare Trust Company of Canada, as escrow agent.

In connection with the dividend-in-kind, Eurogas distributed one common share of Eurogas International for each five Eurogas shares held. Shareholders will not receive shares or cash in lieu of fractional shares. Certificates representing the common shares of Eurogas International will be held by Computershare until such time as a receipt for a prospectus of Eurogas International has been obtained. Shareholders will not be able to trade the Eurogas International shares until such time. The distribution was completed on a tax efficient basis for shareholders and the Company.

It is intended that a preliminary prospectus will be filed in approximately four weeks and a final prospectus will be filed and mailed to shareholders once a receipt has been issued by the securities regulatory authorities. It is expected that the whole process will take approximately two months. Further information about the timing and exact dates will be issued in future news releases.