NEW YORK, NY–(EMWNews – July 23, 2008) – EuroGas, Inc. (PINKSHEETS: EMWNews.com/mw/http://www.EMWNews.com/mw/http://finance.yahoo.com/q?s=EUGS”>EUGS) (FRANKFURT: EUG) (XETRA: EMWNews.com/mw/http://finance.yahoo.com/q?s=EUG”>EUG) (HAMB: EMWNews.com/mw/http://finance.yahoo.com/q?s=EUG”>EUG) (STUTTGART: EUG) today announced that it has

entered into a Memorandum of Understanding (MOU) with OJSC ZNVKIF New

Technologies (ZNT) of Kiev, Ukraine, a wholly owned subsidiary of one of

Ukraine’s largest Industrial Holding Groups (Holding Group), to form two

gas development Joint Ventures in which EuroGas and ZNT will be equal

partners.

One Joint Venture will explore and develop Holding Group’s large coalbed

methane (CBM) reserves in East and West Ukraine; the other Joint Venture

will apply modern gas extraction technology to approximately 2,000 Holding

Group wells, some of which are currently producing natural gas. EuroGas

and ZNT believe that currently available gas extraction technology will be

successful at rehabilitating a large number of these wells.

According to the Holding Group’s technical experts, the total in situ CBM

reserves in the Donetsk Basin in East Ukraine, where the majority of the

Holding Group’s coal mines are located, are estimated to be approximately

12 trillion cubic meters (427 TCF) of CBM gas trapped in coal deposits that

are 500-1800 meters deep.

EuroGas and its predecessor company and affiliated companies have been

pioneers in the exploration and development of CBM in the USA,

Poland, Wales and India. EuroGas was the first foreign company to drill for

CBM in Ukraine in 1998. This Joint Venture is a continuation of EuroGas’

efforts to establish CBM production in Ukraine through the application of

modern CBM production techniques.

The Holding Group has committed to contribute approximately 2,000 natural

gas wells (with associated condensate) currently under its control to the

second Joint Venture. These wells are either plugged or were abandoned due

to either technical, economic or both reasons. EuroGas will provide to the

Joint Venture modern natural gas reserve management technology in an effort

to bring these wells back on stream.

At a recent technical meeting attended by experts of EuroGas and ZNT in

Kiev, both parties agreed to immediately incorporate the Joint Venture

companies and to commence the rework programs on the natural gas wells. As

for the CBM Joint Venture company, EuroGas has undertaken to prepare a work

proposal for the commencement of the CBM activities on the Holding Group’s

coal mines.

The Holding Group’s core assets are in the Ukrainian coal industry, as well

as in road construction and transport services throughout Ukraine where it

is a market leader. Through its subsidiaries, the Holding Group also

controls a large number of companies in the Donetsk and Lugansk region of

Ukraine, as well as substantial industrial mineral enterprises with

concessions for the exploitation of sand, talc and gypsum in Western

Ukraine and the Donetsk region. In addition, the Holding Group also

controls Ukrainian entities involved in the development and application of

new innovative technologies in energy and energy saving enterprises and

owns a bank.

About EuroGas, Inc.

EuroGas is a publicly traded oil and gas company with assets in Ukraine and

Poland, as well as talc mining interests in the Slovak Republic. The

company’s common stock trades on the Frankfurt and Hamburg Stock Exchanges

and Xetra in Germany under the symbol EUG and on the Other OTC (Pink

Sheets) in the United States under the symbol EUGS.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act

of 1995:

This press release includes forward-looking statements intended to qualify

for the safe harbor from liability established by the Private Securities

Litigation Reform Act of 1995.

You can identify forward-looking statements by their use of the

forward-looking words “anticipate,” “estimate,” “project,” “likely,”

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information. When considering the forward-looking statements made in this

press release, you should keep in mind the risks noted and other cautionary

statements throughout this press release. You should also keep in mind that

all forward-looking statements are based on management’s existing beliefs

about present and future events outside of management’s control and on

assumptions that may prove to be incorrect. If one or more risks identified

in this press release or other filing materializes, or any other underlying

assumptions prove incorrect, our actual results may vary materially from

those anticipated, estimated, projected, or intended.