Eurogas International Inc.: News Release

Eurogas International Inc. (CNSX:EI) ("Eurogas International" or the
"Corporation") today confirmed the terms of the previously announced financial
commitment from its parent, Dundee Corporation, to provide the necessary
financial resources to the Corporation to enable it to complete its drilling
obligation, subject to certain conditions, pursuant to the terms of the Sfax
Permit. 


Dundee Corporation has agreed to extend and increase its revolving term credit
facility with the Corporation from its original $2.5 million provided in
February 2012 to $5 million. Borrowings under the facility bear interest at
prime plus 1.25%. In addition, the terms of the facility provide that Dundee
Corporation may, at its discretion, require Eurogas International to convert all
of the amounts outstanding pursuant to the credit facility into common shares of
Eurogas International, at a conversion price that is based on the fair value of
the common shares at the time of the conversion, subject to a minimum conversion
price of $0.05 per share. Any issuance of common shares by the Corporation will
be subject to regulatory and other approvals. 


While Eurogas International and Dundee Corporation are related parties, the
Corporation will not be required to obtain minority shareholder approval for the
potential issuance of common shares to Dundee Corporation under the credit
facility, based on an available financial hardship exemption under applicable
securities laws. In that connection, the Board of Directors of Eurogas
International, including its independent directors, have concluded that the
Corporation is in serious financial difficulty and would not be able to pursue
its drilling commitment without the credit facility, and the revised facility
improves the Corporation's financial situation and is provided on terms that are
reasonable in the circumstances. 


FORWARD LOOKING STATEMENTS 

Certain information set forth in these documents, including management's
assessment of the Corporation's future plans and operations, contains
forward-looking statements. Forward-looking statements are statements that are
predictive in nature, depend upon or refer to future events or conditions or
include words such as "expects", "anticipates", "intends", "plans", "believes",
"estimates" or similar expressions. 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,
risks associated with foreign operations, currency fluctuations, exploration and
development risks, reliance on key personnel and management, the ability to
access sufficient capital from internal and external sources, risks of not being
able to obtain or renew permits and licenses, environmental risks and
competition from other industry participants. 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. 


FOR FURTHER INFORMATION PLEASE CONTACT: 
Eurogas International Inc.
c/o Dundee Corporation
21st Floor, Dundee Place
1 Adelaide Street East
Toronto, ON  M5C 2V9


Eurogas International Inc.
Jaffar Khan
President & CEO
(403) 264-4985
(403) 262-8299 (FAX)
www.eurogasinternational.com
Eurogas (CSE:EI)
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