Eurogas Announces Update on Restructuring Plan of EurogasInternational

TORONTO, ONTARIO -- (MARKET WIRE) -- 08/05/08 --  Eurogas Corporation
("Eurogas" or the "Company") (TSX VENTURE: EUG) announces that, in
connection with its previously announced dividend-in-kind to holders
of Eurogas' common shares, it has, as at the close of business on
August 5, 2008, deposited certificates representing 31,143,635 common
shares of Eurogas International Inc. ("Eurogas International") with
Computershare Trust Company of Canada, as escrow agent.
 
In connection with the dividend-in-kind, Eurogas distributed one
common share of Eurogas International for each five Eurogas shares
held. Shareholders will not receive shares or cash in lieu of
fractional shares. Certificates representing the common shares of
Eurogas International will be held by Computershare until such time
as a receipt for a prospectus of Eurogas International has been
obtained. Shareholders will not be able to trade the Eurogas
International shares until such time. The distribution was completed
on a tax efficient basis for shareholders and the Company.
 
It is intended that a preliminary prospectus will be filed in
approximately four weeks and a final prospectus will be filed and
mailed to shareholders once a receipt has been issued by the
securities regulatory authorities. It is expected that the whole
process will take approximately two months. Further information about
the timing and exact dates will be issued in future news releases.
 
Eurogas Corporation is an independent oil and gas exploration company
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 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 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.
 
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
 
Contacts:
Eurogas Corporation
Jaffar Khan
President & CEO
(403) 264-4985
(403) 262-8299 (FAX)
 
Eurogas Corporation
Andrew Constantinidis
Vice President & CFO
(403) 264-4985
(403) 262-8299 (FAX)
Email: eurogas@eurogascorp.com
Website: www.eurogascorp.com