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Eurogas Announces Update on Castor Project Financing

July 22, 2010

TORONTO, ONTARIO--(Marketwire - July 22, 2010) -

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On June 10, 2010 Eurogas Corporation (Eurogas) (TSX VENTURE:EUG) announced that Escal UGS S.L.(Escal), the owner of the Castor Underground Gas Storage Project (Castor UGS), had completed a conditional financing in excess of 1.2 billion euros provided by 19 banks for the construction and commissioning of Castor UGS.

Eurogas confirms that all conditions have now been satisfied and that the project financing, totalling approximately 1.3 billion euros is fully in place. Eurogas, through the Castor UGS Limited Partnership ("CLP"), indirectly owns an approximate 24% interest in Escal.

The overall development of Castor UGS is progressing on schedule. A major milestone was reached with the delivery of the Wellhead platform at the Port of Castellón, Spain. The Wellhead platform, the first of two permanent offshore platforms, will be utilized initially for the 12 well drilling program which is expected to commence at the end of August 2010.

Eurogas Corporation is 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 and in oil and gas operations in Ontario. For more information on Eurogas, visit the website www.eurogascorp.com.

Advisory Regarding Forward-Looking Statements

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, except as required by law.

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