Forest Gate Energy Inc.
Symbol & Exchange: FGE-V
Forest Gate Closes Brokered Private Placement
Montreal, QC - June 27, 2008 - Forest Gate Resources Inc. (the "Company") announced today that it has completed its second closing of the amended brokered private placement announced May 29, 2008 and has issued 1,378,112 Flow-Through Units at a price of $0.09 per Flow-Through Unit, and 850,000 Units at a price of $0.07 per Unit, for total gross proceeds of $183,530.08. Conditional Acceptance to this private placement was issued by the TSX Venture Exchange on May 29, 2008.
Northern Securities Inc. ("Northern") acted as lead underwriter for this private placement, with a bought deal commitment provided by Northern Financial Corporation. The revised terms of this private placement replaced the terms of the brokered private placement previously announced on May 1, 2008.
Under the revised terms, each Flow-Through Unit consists of one common share of the Company and one-half of one common share purchase warrant. Each such whole warrant is exercisable into one common share for a period of two years from closing at an exercise price of $0.10 per share. Each Unit consists of one common share of the Company and one common share purchase warrant. Each such warrant is exercisable into one common share for a period of two years from closing at an exercise price of $0.10 per share.
The Flow-Through Units and Units were issued pursuant to applicable prospectus and registration exemptions and the underlying common shares and warrants are subject to a four-month hold period.
In connection with the offering Northern received a commission of 8% of the aggregate gross proceeds of the Offering, payable at closing. In addition, Northern received a work fee of $20,000 and was issued broker warrants equal to 10% of the number of Units and Flow-Through Units sold pursuant to the offering. Each broker warrant is exercisable into one Unit at the Unit issue price at any time prior to the date that is 24 months from closing.
The Company intends to utilize the proceeds from the private placement for general working capital purposes and its ongoing projects in Canada.
In other news, the company wishes to announce the departure of Jacques Arsenault, its V-P, Finance. «Although Jacques has elected to move on to other opportunities, he will continue to offer his astute services to Forest Gate in the interim,» says Michael Judson, President of Forest Gate Resources. «His dedication and commitment to the success of the company has been truly appreciated. We wish him well in his future endeavors.»
About the Company
Forest Gate Resources Inc. is an international oil & gas exploration company. The company is seeking to
increase shareholder value through participation and development of oil & gas exploration and production
projects in Ireland and Canada. The Company's shares trade under the symbol FGT on the TSX Venture
Exchange.
For more information please contact:
Robert Kramberger,
V-P, Investor Relations
1-866-666-3040
rkramberger@forestgate.ca
www.forestgate.ca
About Forward-Looking Information and Statements
This news release contains forward-looking statements, within the meaning of applicable securities laws, that address
goals, expectations or projections about the future. The use of any of the words «expect,» «anticipate,» «continue,»
«estimate,» «objective,» «ongoing,» «may,» «will,» «project,» «should,» «believe,» «plans,» «intends,» «might,» and
similar expressions are intended to identify forward-looking information or statements. In particular, but without
limiting the foregoing, this news release contains forward-looking statements with regard to cash flow, capital
spending, debt and debt repayment, strategic alternatives, drilling opportunities and business plans. The forwardlooking
information and statements included in this news release are not guarantees of future performance and should
not be unduly relied upon.
The forward-looking statements contained in this news release are based on Forest Gate's current goals, expectations, estimates, assumptions and projections and involve a number of risks and uncertainties that could cause actual results to differ materially from those anticipated and described in the forward-looking statements. Such risks and uncertainties include, without limitation: volatility in market prices for oil and natural gas; volatility or fluctuation in oil and natural gas production levels; volatility in currency exchange rates; liabilities and risks inherent in oil and natural gas operations, including geological, technical, drilling and processing problems; uncertainties associated with estimating reserves; competition for, among other things, capital, acquisitions, reserves, undeveloped land and skilled personnel; incorrect assessments of the value of acquisitions; Forest Gate's success at the acquisition, exploration and development of reserves; changes in market, economic and business conditions; and actions by governmental or regulatory authorities including changes in tax laws or incentive programs. The foregoing list of assumptions, risks and uncertainties is not exhaustive. Additional information on these and other factors which could affect operations or financial results are included under the heading «Risk Factors» in Forest Gate's Annual Information Form as filed under Forest Gate's profile on www.sedar.com. Additional information may also be found in Forest Gate's other reports on file with Canadian securities regulatory authorities.
The forward-looking statements included in this news release speak only as of the date of this news release, and Forest Gate assumes no obligation to publicly update or revise them to reflect news events or circumstances, except as may be required pursuant to applicable laws.
