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Eurogas to Distribute 100% of Its Oil and Gas Subsidiary by Way of Dividend to Shareholders

July 10, 2008

CALGARY, ALBERTA--(Marketwire - July 10, 2008) - Eurogas Corporation ("Eurogas" or the "Company") (TSX VENTURE:EUG) announces that its Board of Directors has today approved a restructuring plan that will allow 100% of the common shares of its wholly owned Barbados subsidiary - Eurogas International - to be distributed as a dividend to all shareholders on a pro rata basis of one Eurogas International common share for each five Eurogas Corporation common shares held. Eurogas International's sole assets will be cash of approximately $10 million and its 45% interest in the one million off-shore acreage (Sfax) oil and gas exploration venture in Tunisia, which is currently being funded by Delta Hydrocarbons B.V. (Delta). Delta has committed to spend US $125 million to earn a 50% interest in the Sfax permit. The current work program agreed to by the partners includes the drilling of up to four wells. The first well, which is an appraisal well on the Ras El Besh structure, is currently being drilled. To date, Delta has spent approximately US $30 million, including reimbursement of past expenditures and on current drilling. Subsequent to Delta fulfilling its commitment, Eurogas International's interest will be 22.5% and the Company will participate as to 22.5% of further expenditures on the Sfax permit. The objective of splitting Eurogas into two separate publicly traded companies is to enhance shareholder value. Eurogas International will have approximately 32 million shares outstanding. All required regulatory approvals for the restructuring and dividend plan, including a listing of the shares of Eurogas International, are being sought. Shareholders will receive a prospectus and further details as soon as they are available. It is the intention of Eurogas that this distribution will be done on a tax efficient basis for all shareholders and the Company. Eurogas Corporation is an independent oil and gas exploration company listed on the TSX Venture Exchange under the symbol EUG and is engaged in development of a major underground storage facility offshore the east coast of Spain, and the exploration and development of oil and gas in Tunisia's Gulf of Gabes. For more information on the Company, visit the website www.eurogascorp.com. Jaffar Khan, President & CEO Certain information set forth in this document, including management's assessment 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 there. 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.
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