Forest Gate Closes $441,750 Financing


MONTREAL, April 11 /CNW Telbec/ - Forest Gate Energy Inc. (TSXV: FGE) reports that it has completed its previously-announced private placement (see press release dated March 29, 2011) by issuing an aggregate of 4,015,909 units (the "Units") at an issue price of eleven cents ($0.11) per Unit to two accredited investors resident in Ontario and Quebec, for gross proceeds to Forest Gate of $441,750.

Each Unit consists of one common share in the capital of Forest Gate issued on a "flow-through" basis with a deemed issue price per share of eleven cents ($0.11), and one common share purchase warrant entitling the holder to acquire one additional common share of Forest Gate at an exercise price of eighteen cents ($0.18) for a period of two years.

Part of the placement, namely 2,090,909 Units, was subscribed by one limited partnership associated with the MineralFields Group of Toronto, Ontario.

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

As a result of this private placement, there are 59,281,064 common shares of Forest Gate issued and outstanding.

In connection with the closing of the private placement, Forest Gate paid a cash finder's fee of $11,500 to Limited Market Dealer Inc., representing 5% of the gross proceeds raised from the MineralFields Group.  Forest Gate also issued compensation options to Limited Market Dealer Inc. to purchase up to 209,090 units representing 10 % of the number of Units sold to the MineralFields Group in the private placement.  The compensation options are exercisable at a price of $0.11 per unit until April 11, 2013.  The units to be issued under the compensation options will have the same terms as the Units issued in the private placement, except that none of the shares will be "flow-through" shares.

All of the securities issued in connection with the private placement are subject to a four month hold period expiring on August 12, 2011.

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.

About MineralFields, Pathway and First Canadian Securities ®
MineralFields Group (a division of Pathway Asset Management), based in Toronto, Vancouver, Montreal and Calgary, is a mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds (including the Pathway Multi Series Funds Inc. corporate-class mutual fund series). Information about MineralFields Group is available at First Canadian Securities ® (a division of Limited Market Dealer Inc.) is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, and offers investment banking, mergers and acquisitions, and mining industry consulting, services to resource companies. MineralFields and Pathway have financed several hundred mining and oil and gas exploration companies to date through First Canadian Securities ®.

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.


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