Eurogas International Inc.: Press Release

TORONTO, ONTARIO, Aug 17 (MARKET WIRE) --
Eurogas International Inc. ("EII" or the "Company") (CNSX: EI) announced
today that Eurogas Corporation, the holder of 32.15 million Series A
Preference Shares ("Preferred Shares") of EII, has approved a request by
EII to defer entitlement to payment of the cumulative 4% cash dividends
payable on the Preferred Shares and entitlement to receive payment once
such dividends are declared, until December 31, 2011.

EII may, at or before the time of payment, and subject to regulatory
approval request that Eurogas reinvest such cash in common shares of EII.

Eurogas International is an independent oil and gas exploration company
listed on the Canadian National Stock Exchange under the symbol EI.

For more information please see the Company website at
www.eurogasinternational.com, or please visit the Listings Disclosure
Hall at www.cnsx.ca.

Certain information set forth in this document, including management's
assessment of each 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.

Contacts:
Eurogas International Inc.
Jaffar Khan
President and Chief Executive Officer
(403) 264-4985
(403) 262-8299 (FAX)

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