Forest Gate Energy Inc.
Symbol & Exchange: FGE-V
Forest Gate Energy Issues Shares for Debt Settlement
Montreal, Québec, June 2, 2010 - Forest Gate Energy Inc. reports that it has issued 1,504,962 shares to Blue Note Mining Inc., to settle debts related to office space and other general and administrative expenses. Forest Gate and Blue Note share an office.
The TSX Venture Exchange had previously accepted for filing the company's proposal to issue 1,504,962 common shares at a deemed issue price of 20 cents per share to settle outstanding debts of $300,992, as announced in the company's press release dated May 6, 2010.
In other news, and as more fully described in the table below, Forest Gate has agreed to issue a total of 4,228,290 common shares in settlement of unpaid salaries and fees, which had been deferred in order to preserve cash, payable to officers, directors and consultants of the company.
The consulting services provided by Dr. Easton Wren consisted of technical presentations in Canada and the United States, geophysical data interpretation and well location selection. The consulting services provided by Robert Therriault and Daniel Bortoluzzi consisted of accounting work. The following table details settlement for unpaid salaries and fees:
| Name |
Amount Owed |
Number of Shares |
Nature of Debt |
| Michael C. Judson | $198,510 | 1,527,000 | Salary |
| Don Vandergrift | $127,698 | 982,292 | Salary |
| Jean Mayer | $96,102 | 739,246 | Salary |
| Robert Kramberger | $22,260 | 171,230 | Salary |
| Dr. Easton Wren | $25,108 | 193,138 | Consulting Fees |
| Robert Therriault | $50,000 | 384,615 | Consulting Fees |
| Daniel Bortoluzzi | $30,000 | 230,769 | Consulting Fees |
| Total | $549,678 | 4,228,290 | - |
These common shares will be issued at a deemed price of $0.13 per share and be subject to a four-month hold period. Their issuance remains subject to the approval of the TSXV and, in the cases of Messrs. Judson, Vandergrift, Mayer, Kramberger and Wren, Forest Gate shareholders, as they are considered insiders or former insiders of the company.
About Forest Gate Energy
Forest Gate Energy Inc. is a publicly listed oil & gas exploration and production company trading on the TSX Venture Exchange under the symbol FGE with 28.2 million shares outstanding. The Company is seeking to increase shareholder value through participation and development of oil & gas exploration and production projects in Canada and internationally.
For more information please contact:
Robert Kramberger,
V-P, Investor Relations
1-866-666-3040
rkramberger@forestgate.ca
www.forestgate.ca
FORWARD-LOOKING STATEMENTS
Certain statements regarding Forest Gate, including management's assessments of future plans and operations and Forest Gate's anticipated financial performance, may constitute forward-looking statements under applicable securities laws and necessarily involve known and unknown risks and uncertainties, most of which are beyond Forest Gate's control. These risks may cause actual financial and operating results, performance, levels of activity and achievements to differ materially from those expressed in, or implied by, such forward-looking statements.
Such factors include, but are not limited to: the impact of general economic conditions in Canada and the United States; industry conditions including changes in laws and regulations including adoption of new environmental laws and regulations, and changes in how they are interpreted and enforced; competition; the lack of availability of qualified personnel; fluctuations in commodity prices; the results of exploration and development drilling and related activities; imprecision in reserve estimates; the production and growth potential of Forest Gate's various assets; fluctuations in foreign exchange or interest rates; the ability to access sufficient capital from internal and external sources; and obtaining required approvals of regulatory authorities.
Neither TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or the accuracy of this release.
