Eurogas Announces Update on Restructuring Plan of Eurogas International

TORONTO, ONTARIO -- (MARKET WIRE) -- 08/05/08 -- Eurogas Corporation ("Eurogas" or the "Company") (TSX VENTURE: EUG) announces 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. ("Eurogas International") 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. Eurogas Corporation is an independent oil and gas exploration company listed on the TSX Venture Exchange under the symbol EUG and is engaged directly in the development of a major underground storage facility off the east coast of Spain. For more information on the Company, visit the website Jaffar Khan, President & CEO Certain information set forth in this document, including management's assessment 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. THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. Contacts: Eurogas Corporation Jaffar Khan President & CEO (403) 264-4985 (403) 262-8299 (FAX) Eurogas Corporation Andrew Constantinidis Vice President & CFO (403) 264-4985 (403) 262-8299 (FAX) Email: Website: