Gastem: First Closing for $5,269,999

MONTREAL, QUEBEC--(Marketwire - Dec. 4, 2009) - Gastem (TSX VENTURE: GMR.V) is pleased to announce that it has closed the first tranche of the $6,250,000 brokered flow-through private placement for an amount of $5,269,999.15 equal to 8,107,691 Units. The second tranche for the remaining $980,000.85 equal to 1,507,693 Units is expected to close next week on Tuesday the 8th of December.

The entire private placement (the Offering) consists of 9,615,384 Flow-Through Units ("Flow-Through Unit") at a price of $0.65 per Flow-Through Unit. Each Flow-Through Unit consists of one flow-through common share and one common share purchase warrant. Each whole warrant entitles the holder to acquire one non-flow-through common share at a price of $0.85 per share for a period of 18 months from the closing.

The Offering was made to accredited investors, within the meaning of National Instrument 45-106, in the Provinces of British Columbia, Alberta, Saskatchewan, Ontario and Quebec. The closing is subject to the completion of formal documentation and receipt of Regulatory approval including the conditional approval of the TSX-V. Gastem retained Industrial Alliance Securities and Frazer Mackenzie Limited to act as the agent for the Offering and receive a commission of 7.5%.

The proceeds from the Flow-Through Shares will be used to finance admissible exploration work in Quebec.