FGE Forest Gate Energy Inc.

SYMBOL & EXCHANGE: FGE-V CALGARY, Dec. 30, 2011 /CNW Telbec/ - Forest Gate Energy Inc. reports that its energy group has withdrawn its offer to acquire oil and gas assets from Sandbox Energy Corp. of Calgary. The decision follows due diligence. Forest Gate says it believes it can pursue a new deal with Sandbox, but likely on the basis of revised terms. "The original deal (see news release, Dec.13, 2011) was complicated," said Michael Judson, President and CEO of Forest Gate. "I think we can collectively come up with something that is much simpler." "We like Chris Tesarski and the Sandbox assets and welcome a revised proposal," said Judson. In the meantime, the company says it will continue to pursue financing to enable its mineral exploration group to advance the company's 100 percent-owned iron ore projects located in Abitibi, Quebec. 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. FOREST GATE ENERGY INC. CONTACT: MICHAEL JUDSON PRESIDENT & CEO1-866-666-3040MJUDSON@FORESTGATE.CAWWW.FORESTGATE.CA

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