Ausam announces share consolidation



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

    TSX Venture Exchange - Current Symbol "AUZ"; New Symbol "AZE"

    CALGARY, Sept. 26 /CNW/ - Ausam Energy Corporation ("Ausam" or the
"Company") is pleased to announce that, as approved by the shareholders at the
Company's annual and special meeting held July 5, 2007, the proposed
consolidation (the "Consolidation") of all of the Company's issued and
outstanding common shares ("Common Shares") on the basis of one (1)
post-consolidation Common Share for every five (5) pre-consolidation Common
Shares has been accepted for filing by the TSX Venture Exchange (the
"Exchange").
    As of the opening of trading on Friday, September 28, the Common Shares
will trade on a consolidated basis under the new symbol "AZE". Prior to the
Consolidation, the Company had 151,841,677 Common Shares issued and
outstanding and, as a result of the Consolidation, the Company will have
30,368,336 Common Shares issued and outstanding. Further, the Consolidation
assists the Company's efforts to qualify for a potential dual listing on a US
exchange.
    The Consolidation affects all of the Company's Common Shares, stock
options, and warrants outstanding at the effective time. Fractional Common
Shares will not be issued and any shareholder who would otherwise be entitled
to receive a fraction of a Common Share as a result of the Consolidation shall
have such fractional interest rounded up to the nearest whole Common Share.
    Registered shareholders will shortly receive a Letter of Transmittal
providing a form and instructions for having their share certificates tendered
to the Company's registrar and transfer agent, Olympia Trust Company, and
exchanged for share certificates that reflect the Consolidation. Shareholders
who hold Common Shares through their broker or other intermediary and do not
have actual share certificates registered in their name will not be required
to complete and return a Letter of Transmittal. Any pre-consolidation Common
Shares owned by such shareholders will automatically be adjusted as a result
of the Consolidation to reflect the applicable number of post-consolidation
Common Shares owned by them and no further action is required to be taken by
such shareholders.
    The Company has voluntarily requested that the Exchange halt the trading
of its Common Shares on the Exchange for a period of 24 hours commencing on
Thursday, September 27, 2007, to allow for the orderly dissemination of
information relating to the Consolidation, the new number of Common Shares
outstanding and the new trading symbol to the Company's worldwide shareholder
base.

    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 "AZE" on the TSX Venture
Exchange.

    William M. Hitchcock
    Chairman

    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 been 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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