Forest Gate Closes $410,000 Financing

SYMBOL & EXCHANGE: FGE-V

MONTREAL, Dec. 17 /CNW Telbec/ - Forest Gate Energy Inc. reports that it has completed a non-brokered private placement by issuing Flow Through Units (the "Unit") comprising 4,100,000 Flow Through Common Shares for gross proceeds to Forest Gate of $410,000.

Each Unit consisted of one Flow Through Common Share with a deemed issue price per share of ten cents ($0.10), and one Common Share Purchase Warrant entitling the holder to acquire one additional common share at an exercise price of twenty-five cents ($0.25) for a period of two years. The Units will be subject to a four-month hold period.

Forest Gate will use the proceeds from the issuance of the flow-through units to explore its 100% owned Pershing Gold Property located near Val-d'Or, Québec.

As a result of this private placement, there are 47,629,982 common shares of Forest Gate issued and outstanding.

The TSX Venture Exchange provided conditional acceptance for this filing on December 15, 2010.

About Forest Gate
Forest Gate Energy Inc. is a publicly listed oil and gas exploration and production, and non-energy resource company trading on the TSX Venture Exchange under the symbol FGE. The Company is seeking to increase shareholder value through participation and development of energy and other resources in Canada and internationally.

FORWARD-LOOKING STATEMENTS
Certain statements regarding Forest Gate, including management's assessments of future plans and operations and Forest Gate's anticipated financial performance, may constitute forward-looking statements under applicable securities laws and necessarily involve known and unknown risks and uncertainties, most of which are beyond Forest Gate's control. These risks may cause actual financial and operating results, performance, levels of activity and achievements to differ materially from those expressed in, or implied by, such forward-looking statements.

Such factors include, but are not limited to: the impact of general economic conditions in Canada and the United States; industry conditions including changes in laws and regulations including adoption of new environmental laws and regulations, and changes in how they are interpreted and enforced; competition; the lack of availability of qualified personnel; fluctuations in commodity prices; the results of exploration and development drilling and related activities; imprecision in reserve estimates; the production and growth potential of Forest Gate's various assets; fluctuations in foreign exchange or interest rates; the ability to access sufficient capital from internal and external sources; and obtaining required approvals of regulatory authorities.

Neither TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or the accuracy of this release.

SOURCE Forest Gate Energy Inc.

For further information: For further information:

ROBERT KRAMBERGER, V-P, INVESTOR RELATIONS
1-866-666-3040
RKRAMBERGER@FORESTGATE.CA
WWW.FORESTGATE.CA

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Forest Gate Energy Inc.

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