Eurogas Announces Update on Restructuring Plan of Eurogas International

TORONTO, ONTARIO, Aug 05 (MARKET WIRE) --
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

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