Ausam announces further financing and postponement of consolidation



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

    Common Shares Outstanding: 149,041,754
    TSX Venture Exchange - symbol "AUZ"

    CALGARY, March 12 /CNW/ - Ausam Energy Corporation ("Ausam" or the
"Company") is pleased to announce that it has entered into an agreement with
T. R. Winston & Company, LLC, thereby expanding its existing selling dealer
group consisting of Research Capital Corporation, Northeast Securities Inc.
and Pembroke Capital LLC. The Company has extended its efforts to raise, on a
private placement, best-efforts basis, a minimum of US$5 million over a period
of approximately 45 days (the "Private Placement") through the issuance of
units (each a "Unit"). Each Unit will be priced at US$0.54 (CDN$0.63) and will
consist 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 "Warrant"),
with each whole Warrant entitling the holder thereof to purchase one Common
Share at a price of CDN$0.65 within 24 months of the date of closing of the
Private Placement. Proceeds of the Private Placement will be used to fund the
Company's drilling and exploration programs.
    As a result of the continuing interest of investors in the Private
Placement, Ausam also announces that its Board of Directors has decided to
postpone the proposed four to one share consolidation (the "Consolidation") as
described in Ausam's Information Circular dated November 28, 2006.
Shareholder's granted approval for the share consolidation at the Annual and
Special Meeting of Shareholders on December 28, 2006, and authorized the Board
of Directors to not proceed with the consolidation at the Board's discretion.
The Company anticipates seeking shareholder approval of the Consolidation at
its next Annual General Meeting.

    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, including approval and
completion of the Private Placement, 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. Athough 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 trading on the TSXV under the symbol AUZ and is
engaged in the business of oil and gas exploration. Ausam has acquired a
diverse portfolio of oil and gas leases in Texas, Louisiana, Mississippi,
Alabama and Arkansas and is pursuing exploration and development activities on
these leases. Ausam, through its Australian subsidiary Ausam Resources Pty
Ltd., is also applying proven North American drilling and completion
techniques that have not traditionally been used in the Australian energy
industry to targets in Queensland, Victoria and Western Australia. Ausam's
growth strategy includes the organic development of its current holdings and
selective corporate transactions.

    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 to be issued pursuant to the Private Placement by 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, Chairman, 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

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AUSAM ENERGY CORPORATION

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