Forest Gate Closes $3 Million Non-Brokered Private Placement



    SHARES OUTSTANDING: 118 MILLION
    SYMBOL & EXCHANGE: FGT-V

    MONTREAL, Oct. 22 /CNW Telbec/ - Forest Gate Resources Inc. ("Forest
Gate" or the "Company") is pleased to announce that it has closed the second
and final tranche of its proposed $3 million non-brokered private placement
which was announced in a news release dated September 14, 2007. The total
proceeds raised from the first and second tranche amounted to $3 million.
Conditional consent to this private placement was issued by the TSX Venture
Exchange on September 27, 2007.
    In the second tranche, the Company has issued 18,385,414 units at a price
of $0.13 per unit, for total gross proceeds of $2,390,104. Each Unit is
comprised of one common share and one common share purchase warrant of the
Company, with a hold period expiring February 19, 2008. Each share purchase
warrant will entitle the holder to purchase one additional common share of the
Company at a price of $0.17 per share with an expiry date of October 18, 2009.

    
    At closing, the Company paid a finder's fee of the following:

    (i)  a cash finder's fee of $131,632.

    (ii) 1,012,557 finder's fee warrants. Each finder's fee warrant entitles
         the holder to purchase one Unit of the Corporation at a price of
         $0.13 until October 18, 2009.
    

    "The proceeds from this financing enables Forest Gate to meet all
financial obligations with respect to the 2007 Celtic Sea project, we are
fully up-to-date in meeting our cash calls," said Michael Judson, President
and CEO of Forest Gate. "It also opens the door to pursuing other compelling
projects."
    The Company intends to utilize the proceeds from the private placement
for general working capital purposes and to finance its commitment to its
working interest in the Celtic Sea Oil & Gas Exploration License pursuant to
the Joint Operating Agreement ("JOA") entered into with its Celtic Sea
consortium partners, as previously announced on July 5, 2007.
    Please visit www.forestgate.ca to view a new video featuring Michael
Judson, President and CEO of Forest Gate.

    About the Company

    Forest Gate Resources Inc. is an international oil & gas exploration
company. The company is seeking to increase shareholder value through
participation and development of oil & gas exploration and production projects
in Ireland and Canada. The Company's shares trade under the symbol FGT on the
TSX Venture Exchange.

    FORWARD-LOOKING STATEMENTS

    This news release contains certain forward-looking statements, including
statements regarding the business and anticipated financial performance of the
Company. These statements are subject to a number of risks and uncertainties.
Actual results may differ materially from results contemplated by the
forward-looking statements. When relying on forward-looking statements to make
decisions, investors and others should carefully consider the foregoing
factors and other uncertainties and should not place undue reliance on such
forward-looking statements. The Company does not undertake to update any
forward looking statements, oral or written, made by itself or on its behalf.

    The TSX Venture Exchange has not reviewed nor does it accept
    responsibility for the adequacy or accuracy of this news release.




For further information:

For further information: Robert Kramberger, V-P, Investor Relations,
1-866-666-3040, rkramberger@forestgate.ca, www.forestgate.ca

Organization Profile

Forest Gate Energy Inc.

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