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Eurogas Corporation: Press Release

June 10, 2010

TORONTO, ONTARIO--(Marketwire - June 10, 2010) -


Eurogas Corporation (TSX VENTURE:EUG) ("Eurogas" or the "Corporation") today announced that Escal UGS S.L. ("Escal"), the owner of the Castor Underground Gas Storage Project ("Castor UGS"), has entered into conditional financing agreements for the construction and commissioning of the Castor UGS facilities. Eurogas, through the Castor UGS Limited Partnership ("CLP"), indirectly owns an approximate 24% interest in Escal.

A syndicate of 19 banks will provide financing in excess of EUR1.2 billion to meet the project costs. To provide security for the financing, CLP and the other shareholder of Escal have pledged their respective shares in Escal to the lending banks.

The financing is conditional upon the approval and publication of an amendment to the remuneration of gas underground storage facilities that is expected to take place during July 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. For more information on Eurogas, visit the website

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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