GMR

Gastem Inc. ("Gastem") (TSX VENTURE: GMR) has filed a final short-form prospectus in connection with a marketed offering of units for a total of up to 7,400,000 units, for an amount of $2,405,000. Each unit will consist of one common share at $0.325 and one common share purchase warrant at $0.45 valid for 2 years (the "Offering").

The Offering is conducted through a syndicate of agents led by Industrial Alliance Securities and including Fraser Mackenzie Limited and Mackie Research Capital Corporation (the "Agent"). Gastem has granted the Agents an option, exercisable at the issue price for a period of 30 days following the closing, to purchase units for up to an additional 15% of the issue size to cover over-allotments. A commission equal to 7.5% of the gross proceeds are payable by the Company to Industrial Alliance Securities on behalf of the Agents.

Proceeds of the financing will be used to finance exploration and development work in New York State, specifically on the conventional Oneida Sandstone Formation, and for general operating expenses.

The Offering will be made to investors, within the meaning of National Instrument 45-106, in the Provinces of British Columbia, Alberta and Ontario. The closing is expected to occur on or before August 12th 2010 and is subject to the receipt of all the required regulatory approvals, including the approval of the TSX Venture Exchange.

Gastem is an independent oil and gas exploration and development company based in Montreal. The company holds exploration and storage permits and rights in the St. Lawrence Lowlands, the Gaspe Peninsula and the Magdalen Islands in Quebec as well as rights and interests in New York State and Virginia.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts: Gastem David Vincent 514-875-9034 david.vincent@Gastem.ca