FGE Forest Gate Energy Inc.

MONTREAL, March 29 /CNW/ -- SYMBOL & EXCHANGE: FGE-V MONTREAL, March 29 /CNW Telbec/ - Forest Gate Energy Inc. (TSXV: FGE) reports that it is arranging a non-brokered private placement up to $600,000 by issuing an aggregate of up to 5,454,545 flow-through units at a price of $0.11 per unit. It is expected that one or more of the limited partnerships associated with the MineralFields Group of Toronto, Ontario will participate for a portion of at least 25% of this private placement. Each flow-through unit consists of one flow-through common share and one non-flow-through common share purchase warrant.  Each warrant will entitle the holder to purchase one additional common share of Forest Gate at a price of $0.18 until March 29, 2013. 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. The private placement is subject to regulatory approval including that of the TSX Venture Exchange. As previously announced (new release dated March 7, 2011), Forest Gate is continuing its drilling program at its Pershing Gold Property, which consists of 2736 hectares and 196 contiguous, unpatented mining claims. 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 Corporation 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 www.mineralfields.com. 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 ®. 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. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States.  The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States or to United States Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. This news release is not for distribution to United States newswire services or for dissemination in the United States. 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. To view this news release in HTML formatting, please use the following URL: http://www.cnw.ca/en/releases/archive/March2011/29/c7413.html p align="justify" ROBERT KRAMBERGER, V-P, INVESTOR RELATIONSbr/ 1-866-666-3040 br/ a href="mailto:rkramberger@forestgate.ca"RKRAMBERGER@FORESTGATE.CA/abr/ a href="http://www.forestgate.ca"WWW.FORESTGATE.CA/a /p

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