Eurogas Corporation: Press Release

TORONTO, ONTARIO, Aug 17 (MARKET WIRE) --
Eurogas Corporation ("Eurogas" or the "Company") (TSX VENTURE: EUG)
announced today that, as the holder of 32.15 million Series A Preference
Shares ("Preferred Shares") of Eurogas International Inc. ("EII"), it 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.

Eurogas may, if requested by EII, reinvest such cash in common shares of
EII, subject to regulatory approval.

Eurogas Corporation is listed on the TSX Venture Exchange under the
symbol EUG and is engaged directly in the development of a major
underground gas storage facility off the east coast of Spain. For more
information on Eurogas, visit the website www.eurogascorp.com.

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.

Neither TSX Venture
Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.

Contacts:
Eurogas Corporation
Jaffar Khan
President and Chief Executive Officer
(403) 264-4985
(403) 262-8299 (FAX)
eurogas@eurogascorp.com
www.eurogascorp.com

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