Forest Gate Energy Confirms Shares for Debt Issued

Symbol & exchange: FGE-V

MONTREAL, July 30 /CNW Telbec/ - Forest Gate Energy Inc. reports that it has issued 4,228,290 common shares in settlement of unpaid salaries and fees, which had been deferred in order to preserve cash, payable to officers, directors and consultants of the company. With the delivery of the share certificates, this debt is now extinguished.

The TSX Venture Exchange had previously accepted for filing the company's proposal to issue 4,228,290 common shares at a deemed issue price of 13 cents per share as announced in the company's press release dated June 2, 2010. These shares are subject to a four-month hold period.

The seven creditors are: Michael C. Judson (1,527,000 Shares), Robert Kramberger (171,230 Shares), Donald Vandergrift (982,292 Shares), Dr. Easton Wren (193,138 Shares), Jean Mayer (739,246 Shares), Robert Therriault (384,615 shares), Daniel Bortoluzzi (230,769 shares).

About Forest Gate Energy

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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