EI Eurogas International Inc

Eurogas International Inc. ("Eurogas International" or the "Corporation")
(CNSX:EI) today announced its financial results for the year ended December 31,
2012. The Corporation's annual audited financial statements, along with the
accompanying management's discussion and analysis have been filed on the System
for Electronic Document Analysis and Retrieval ("SEDAR") and may be viewed by
interested parties under the Corporation's profile at www.sedar.com or the
Corporation's website at www.eurogasinternational.com.


BUSINESS DEVELOPMENTS 

In November 2012, the Corporation announced that, together with its joint
venture partner, Atlas Petroleum Exploration Worldwide Ltd., it had received
approval from the Tunisian regulatory authorities for a renewal of the Sfax
offshore exploration permit (the "Sfax Permit") from December 9, 2012 to
December 8, 2015 (the "First Renewal Period"). As part of the granting of the
First Renewal Period, the joint venture partners were required to relinquish 807
square kilometres of land in the southwestern region of the Gulf of Gabes. The
Sfax Permit now encompasses approximately 800,000 acres, located within a
prolific hydrocarbon fairway extending from offshore Libya, through the Gulf of
Gabes, to onshore Tunisia. It is surrounded by producing oil and natural gas
fields to the west, north and east, including the Ashtart oil field that lies
along the southeast boundary.


The terms of the First Renewal Period include an obligation for the joint
venture partners to drill an exploration well (the "First Renewal Well
Obligation") of sufficient depth to enable an appropriate assessment of
potential reserves. The First Renewal Well Obligation is in addition to the
obligation of the joint venture partners to drill an exploration well under the
initial terms of the Sfax Permit (the "Initial Well Obligation"). With the
concurrence of the Tunisian authorities, and as a condition to the approval of
the First Renewal Period, the Initial Well Obligation has been transferred to
the First Renewal Period. The Initial Well Obligation must be drilled to
sufficient depth to reach the Bireno limestones of the Cretaceous age. 


The actual cost of drilling these two wells will depend on the selection of the
prospect and location within the Sfax Permit. Based on current information, the
Corporation estimates that its share of the cost to meet the Initial Well
Obligation ranges from between US$6 million and US$9 million. The Corporation
has not yet completed its assessment of the costs associated with the First
Renewal Well Obligation.


In the event that the Corporation's drilling commitments are not completed prior
to the expiry of the First Renewal Period, a compensatory payment of up to US$8
million per well will be payable to the Tunisian government by the joint venture
partners, less any amounts incurred by the joint venture partners in respect of
the completion of these obligations.


In support of its exploration and evaluation activities, the Corporation has
obtained a commitment from its parent company, Dundee Corporation, to provide
the Corporation with the necessary financial resources to enable it to complete
the Initial Well Obligation, subject to certain conditions. The Corporation is
also considering alternative financing options, including farmout arrangements,
possible debt or equity issuances or the monetization of certain assets in order
to meet its commitments. There can be no assurance that the Corporation will be
successful in any of these other alternatives.


FINANCIAL RESULTS

During 2012, the Corporation incurred a net loss of $2.1 million, or a loss of
approximately $0.07 per share. This compares with a net loss of $2.0 million or
a loss of approximately $0.06 per share in 2011. The Corporation continues to
incur geological and geophysical costs to permit an improved understanding of
the various prospective structures contained within the Sfax Permit, and in
order to determine the best locations for drilling to optimize the chances of
commercial production. 


FORWARD-LOOKING STATEMENTS

Certain information set forth in this document, 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 risks of not being able to obtain or renew
permits and licenses, the inability to access sufficient capital from internal
and external sources, risks associated with foreign operations, the impact of
general economic conditions, currency fluctuations, exploration and development
risks, reliance on key personnel and management, risks relating to the
abandonment of operations, 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. 


ABOUT EUROGAS INTERNATIONAL

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


All documentation in respect of the Corporation may be viewed under the
Corporation's profile on SEDAR (www.sedar.com) or under the Corporation's
website at www.eurogasinternational.com. For more information about Eurogas
International, please visit the Listings Disclosure Hall at www.cnsx.ca.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Eurogas International Inc.
Jaffar Khan
President & CEO
(403) 264-4985
(403) 262-8299 (FAX)
www.eurogasinternational.com


Eurogas International Inc.
c/o Dundee Corporation
21st Floor, Dundee Place
1 Adelaide Street East
Toronto, ON M5C 2V9

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