Brownstone Acquires Quebec Lowlands Gas Shale Applications

TORONTO, ONTARIO, Jun 06 (MARKET WIRE) --
Brownstone Ventures Inc. (TSX VENTURE: BWN) ("Brownstone") is pleased to
announce that it has entered into a letter of intent (the "Agreement")
with X-Terra Resources Corporation (TSX VENTURE: XT) ("X-Terra") whereby
Brownstone will acquire a 50% interest in applications (and subsequent
permits) for approximately 150,000 hectares of land in the Quebec
Lowlands, prospective for gas shales. The land, recently staked by
X-Terra (see X-Terra's press release dated June 2, 2008) is in close
proximity to Junex Resources and Intragaz Exploration near Shawinigan
city, and Squatex Resources in the Rimouski area in the heart of the
Quebec Utica-Barnett-like shale natural gas play. Confirmation has been
received by X-Terra that the permits have been granted.

Under the Agreement, Brownstone will issue 2,000,000 common shares and
2,000,000 common share purchase warrants (exercisable at a price of $2.00
for a period of 24 months) and Brownstone further agrees to purchase
850,000 units (to include a common share in X-Terra and a $2.50 common
share purchase warrant for a term of 24 months) in a financing to be
carried out by X-Terra.

Highlights of the transaction include an area of mutual interest
agreement covering the Quebec Lowlands and Brownstone's ability to
appoint the operator for the project.

The Agreement and the transactions contemplated are subject to a 30 day
diligence period, completion of formal documentation, approval of the
Board of Directors and approval of the TSX Venture Exchange.

About Brownstone

Brownstone Ventures Inc. is a well-financed Canadian-based, energy
focused investment company with equity interests and direct interests in
oil and gas exploration projects, including working interests in almost
300,000 acres in the Piceance/Uinta Basins of Colorado and Utah, 295km2
in the Assam/Arakan Basin, Northeast India and 253,000 acres in Rio
Negro, Argentina. For additional information, please see Brownstone's
website: www.brownstoneventures.com.

Certain statements contained in this press release constitute
forward-looking statements. These statements relate to future events or
the future performance of Brownstone. Statements other than statements of
historical fact may be forward-looking statements. Forward-looking
statements are often, but not always, identified by the use of words such
as "seek", "anticipate", "budget", "plan", "continue", "estimate",
"expect", "forecast", "may", "will", "project", "predict", "potential",
"targeting", "intend", "could", "might", "should", "believe" and similar
words suggesting future outcomes or statements regarding an outlook.
Forward-looking statements in this press release include, but are not
limited to, statements with respect to: completion by Brownstone of the
acquisition of the participating interest in the Quebec Lowlands; the
performance characteristics of the Brownstone's oil and natural gas
properties; drilling plans and the timing and location thereof; plans for
the exploration and development of the company's properties; production
capacity and levels, and the timing of achieving such capacity and
levels; the size of oil and natural gas reserves; projections of market
prices and costs; supply and demand for oil and natural gas; expectations
regarding the ability to raise capital and to continually add to reserves
through acquisitions and development; and capital expenditure programs.

Forward-looking statements involve known and unknown risks, uncertainties
and other factors that may cause actual results or events to differ
materially from those anticipated in such forward-looking statements. The
Company believes the expectations reflected in those forward-looking
statements are reasonable but no assurance can be given that these
expectations will prove to be correct and readers are cautioned not to
place undue reliance on forward-looking statements contained in this
press release. Some of the risks and other factors which could cause
results to differ materially from those expressed in the forward-looking
statements contained in this press release include, but are not limited
to: volatility of and assumptions regarding oil and natural gas prices;
liabilities inherent in oil and natural gas operations; uncertainties
associated with estimating oil and natural gas reserves; competition for,
among other things, capital, acquisitions of reserves, undeveloped lands
and skilled personnel; geological, technical, drilling and processing
problems; fluctuations in currency and interest rates; product supply and
demand; and risks inherent in the company's foreign operations; changes
in environmental and other regulations or the interpretation of such
regulations; the possibility that the acquisition of the company's
participating interest and/or completion of the private placement will
not be completed and the other factors discussed in this press release
and in Brownstone's filings with Canadian securities regulatory
authorities which are available to the public at www.sedar.com.

Statements relating to "reserves" are deemed to be forward-looking
statements, as they involve the implied assessment, based on certain
estimates and assumptions, that the reserves described can be profitably
produced in the future. Readers are cautioned that the foregoing lists of
factors are not exhaustive. The forward-looking statements contained in
this press release are made as at the date hereof and Brownstone
undertakes no obligation to update publicly or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise, except as required by applicable securities laws. The
forward-looking statements contained in this press release are expressly
qualified by this cautionary statement.

TSX Venture Exchange does not take
responsibility for the adequacy or accuracy of this release.

Contacts:
Brownstone Ventures Inc.
Richard Patricio
Vice-President Corporate and Legal Affairs
(416) 941-8900
Email: info@brownstoneventures.com
Website: www.brownstoneventures.com

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