Forest Gate Energy Inc.
Symbol & Exchange: FGE-V
Forest Gate Announces $600,000 Private Placement
Montreal, QC – August 26, 2008 - Forest Gate Resources Inc. (the "Company") announces today that it will be undertaking a non-brokered private placement, whereby the Company intends to raise up to $600,000 in Units (the "Offering").
Each Unit, priced at $0.05 per Unit, will consist of one common share and one common share purchase warrant, (the "Units"). Each warrant will be exercisable into one common share for a period of two years from closing at an exercise price of $0.10 per share. The Units will be issued pursuant to applicable prospectus and registration exemptions and will be subject to a four-month hold period.
It is anticipated that the financing will be completed on or around the close of business on August 27, 2008. This financing is subject to the usual regulatory approvals.
The Company will pay, where appropriate, a cash finder's fee of 8% in connection with the placement and issue finder's fee warrants equal up to 8% of the total number of Units issued under the offering. Each finder's fee warrant will entitle the holder to subscribe for Units of the Company at an exercise price of $0.10 for a period of two years after issuance.
The Company intends to utilize the proceeds from the private placement to finance its commitment in acquiring the 7.5% working interest in the Celtic Sea Oil & Gas Exploration License pursuant to the Joint Operating Agreement ("JOA") entered into with its Celtic Sea consortium partners.
"With this financing, we will be able to pay the June 3, 2008 cash call and amend our current default status with the Celtic Sea partners", said Michael Judson, President and Chief Executive Officer of Forest Gate Resources Inc. "Once again, our investors have given us a strong vote of confidence to carry on with this important project."
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 certain forward-looking statements, including statements regarding the business and anticipated financial performance of the Company. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward looking statements, oral or written, made by itself or on its behalf. The TSX Venture Exchange has not reviewed nor does it accept responsibility for the adequacy or accuracy of this news release.
