Eurogas Corporation: Press Release

TORONTO, ONTARIO--(Marketwire - Aug. 18, 2009) - Eurogas Corporation ("Eurogas")(TSX VENTURE:EUG) announced that Escal UGS S.L. ("Escal") and its shareholders, ACS Servicios Comunicaciones, S.L. and Castor UGS Limited Partnership (the "Limited Partnership"), have engaged a group of banks, namely, Banco Espanol de Credito, S.A., Caja de Ahorros y Monte de Piedad de Madrid, Banco Santander, S.A. and Societe Generale, to lead a process to obtain a 10 year loan for up to a maximum EUR 1.379 billion to finance the construction and commissioning of the Castor underground gas storage facility on the development concession held by Escal. The mandate is an initial step in securing project financing and does not yet determine the final terms and conditions that will eventually be required if and when the banks formally complete the project financing.

As part of the arrangement, interim financing currently available to Escal will be replaced by way of a bridge loan to a maximum of EUR 250 million until December 30, 2009, subject to the fulfillment of certain conditions, including approval of the banks' credit committees. The bridge financing will be repaid on closing of the project financing.

Eurogas Corporation is listed on the TSX Venture Exchange under the symbol EUG and owns 73.7% of the Limited Partnership, which has a 33.3% ownership interest in Escal. Escal is the 100% owner of, and the operating entity responsible for the development of the Castor major underground gas storage facility off the east coast of Spain. For more information on Eurogas, visit the website www.eurogascorp.com.

Certain information set forth in this document, including management's assessment of each of the Corporation's future plans and operations, contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Corporation's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Corporation's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Corporation will derive from them. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.