Ausam announces close of securities issuance



    /NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE
    DISTRIBUTION SERVICES/

    TSX Venture Exchange - Symbol "AUZ"

    CALGARY, Sept. 10 /CNW/ - Ausam Energy Corporation ("Ausam" or the
"Company") is pleased to announce that it has closed a private placement
financing consisting of 1,256,852 units ("Units") at a price of US$0.54
(C$0.57) per Unit, each Unit consisting of one common share in the capital of
the Company (each a "Common Share") and one half of one Common Share purchase
warrant (each a "Unit Warrant"), each whole Unit Warrant entitling the holder
thereof to purchase one Common Share at a price of C$0.65 for a period of
24 months from the date of issuance, for aggregate gross proceeds of
US$678,700.
    These funds represent the remainder of the funds raised in connection
with the acquisition of assets from SKH Management L.P. and certain of its
affiliates that closed February 9, 2007 (the "Acquisition"). For various
reasons these funds were not included in the prior financing and were held in
escrow pending completion of the debt financing with The Huff Energy Fund that
closed July 5, 2007.
    The TSX Venture Exchange (the "TSXV") has conditionally approved the
listing of the Common Shares and the common shares issuable upon exercise of
the Unit Warrants, subject to receipt of certain final materials. The Company
will issue a further press release at the time of issuance of the TSXV
bulletin.
    The Company also issued 588,235 Common Shares to William M. Hitchcock, a
director of the Company, as payment of an acquisition fee relating to the
Acquisition, as previously disclosed in the Company's Information Circular
dated November 28, 2006.

    Cautions Regarding Forward-Looking Statements

    Forward-looking statements (often, but not always, identified by the use
of words such as "expect", "may", "could", "anticipate" or "will" and similar
expressions) may describe expectations, opinions or guidance that are not
statements of fact. Forward-looking statements are based upon the opinions,
expectations and estimates of management of Ausam as at the date the
statements are made and are subject to a variety of known and unknown risks
and uncertainties and other factors that could cause actual events or outcomes
to differ materially from those anticipated or implied by such forward-looking
statements. Those factors include, but are not limited to risks, uncertainties
and other factors that are beyond the control of Ausam, risks associated with
the oil and gas industry, commodity prices and exchange rate changes,
operational risks associated with exploration, development and production
operations, delays or changes in plans, risks associated with the uncertainty
of reserve estimates, health and safety risks and the uncertainty of estimates
and projections of production, costs and expenses. In light of the risks and
uncertainties associated with forward-looking statements, readers are
cautioned not to place undue reliance upon forward-looking information.
Assumptions relating to certain forward-looking information contained in this
press release are set out herein. Although Ausam believes that the
expectations reflected in the forward-looking statements set out in this press
release or incorporated herein by reference are reasonable, it can give no
assurance that such expectations will prove to have been correct. The
forward-looking statements of Ausam contained in this press release, or
incorporated herein by reference, are expressly qualified, in their entirety,
by this cautionary statement.

    About Ausam

    Ausam is a public company engaged in the business of oil and gas
exploration and development. Ausam, through its U.S. subsidiary Noram
Resources, Inc., has acquired a diverse portfolio of oil and gas leases and
prospects in Texas, Louisiana, Mississippi, Alabama and Arkansas. Ausam,
through its Australian subsidiary Ausam Resources Pty Ltd, is active in
Queensland, Victoria and Western Australia. Ausam's growth strategy includes
the organic development of its current holdings and selective corporate
transactions. The Company trades under the symbol "AUZ" on the TSX Venture
Exchange.

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

    This news release shall not constitute an offer to sell or the
solicitation of an offer to buy securities of Ausam in any jurisdiction. The
securities of Ausam have not and will not be registered under the United
States Securities Act of 1933, as amended (the "1933 Act"), or the securities
laws of any state of the United States, and may not be offered or sold in the
United States absent registration or an applicable exemption therefrom under
the 1933 Act and the securities laws of all applicable states.

    %SEDAR: 00008979E




For further information:

For further information: Mark G. Avery, President and CEO,
mavery@ausamenergy.com; Alastair J. Robertson, Chief Financial Officer,
arobertson@ausamenergy.com; Ausam Energy Corporation, 1430, 1122 - 4th Street
S.W., Calgary, Alberta, T2R 1M1, Tel: (403) 215-2380, Fax: (403) 206-1457, Web
site: www.ausamenergy.com

Organization Profile

AUSAM ENERGY CORPORATION

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