Gastem Closes Final Tranche of Flow-Through Private Placement

Gastem has closed the final tranche of the $6,250,000 brokered flow-through private placement for an amount of $980,000.45 equal to 1,507,693 Units. This second tranche follows the initial closing of $5,269,999.15 announced on Friday, December 4.

The entire private placement (the Offering) consisted of 9,615,384 Flow-Through Units ("Flow-Through Unit") at a price of $0.65 per Flow-Through Unit. Each Flow-Through Unit consisted of one flow-through common share 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 until June 3, 2011.

The Offering was made to accredited investors, within the meaning of National Instrument 45-106, in the Provinces of British Columbia, Saskatchewan, Ontario and Quebec. Gastem retained Industrial Alliance Securities and Frazer Mackenzie Limited to act as the agents for the Offering and paid them a cash commission of 7.5%.

The proceeds from the Flow-Through Shares will be used to finance admissible exploration work in Quebec.