Ausam announces satisfaction of financing condition

    Common Shares Outstanding: 54,697,769

    TSX Venture Exchange - symbol "AUZ"


    CALGARY, Jan. 31 /CNW/ - Ausam Energy Corporation ("Ausam" or the
"Company") is pleased to announce that it has received subscriptions for
equity totaling approximately US$43 million (CAN$51 million) and convertible
debt totaling approximately US$3 million (CAN$4 million) and has satisfied the
financing condition in connection with the acquisition as described in the
information circular dated November 28, 2006 and as approved by shareholders
on December 28, 2006 (the "Transaction").
    The Company anticipates that it will receive all subscription funds,
issue the related securities and close the Transaction on or before
February 8, 2007.

    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, including approval and
completion of the Transaction, 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. Forward-looking information relating to the timing of certain critical
events associated with the Transaction are based upon covenants,
representations and warranties contained in the acquisition agreement relating
to the Transaction. 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 trading on the TSX Venture Exchange under the
symbol AUZ and is engaged in the business of oil and gas exploration. Ausam
plans to expand its scope of operations through the acquisition of certain oil
and gas leases in Texas, Louisiana, Mississippi, Alabama and Arkansas and the
planned exploration and development activities on these leases. Ausam, through
its Australian subsidiary Ausam Resources Pty Ltd., is also applying proven
North American drilling and completion techniques that have not traditionally
been used in the Australian energy industry to targets in Queensland, Victoria
and Western Australia. Ausam's growth strategy includes the organic
development of its current holdings and selective corporate transactions.

    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 to be issued pursuant to the Private Placement by Ausam have not
and will not be 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, Chairman, President and CEO,; Alastair J. Robertson, Chief Financial Officer,; Ausam Energy Corporation, 1430, 1122 - 4th Street
S.W., Calgary, Alberta, T2R 1M1, Tel: (403) 215-2380, Fax: (403) 206-1457, Web

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