Ausam files for Chapter 11 bankruptcy protection

TSX Venture Exchange – Symbol “AZE”

OTC Bulletin Board – Symbol “ASMEF”

CALGARY, Dec. 31 /PRNewswire-FirstCall/ – Ausam Energy Corporation (“Ausam” or the “Company”) wishes to advise that on 30 December 2008, the Company and its wholly owned subsidiary, Noram Resources, Inc., filed voluntary Chapter 11 bankruptcy petitions with the United States Bankruptcy Court in Houston, Texas. The Company will continue its ordinary course of business operations and will operate as a debtor-in-possession within the bankruptcy proceeding. These bankruptcy filings were necessitated by the Company’s inability to secure new equity or debt financing on terms acceptable to the Company’s current primary lender. The Company hopes to use the protections provided by the Chapter 11 process to re-organize its capital structure and settle with its creditors. The Company believes that the Chapter 11 filing provides it with the best chance of preserving the value of its business assets and maximizing the return to all of the stakeholders of the Company.

Copies of Ausam’s continuous disclosure documents may be obtained at www.sedar.com or on our website at www.ausamenergy.com

About Ausam

Ausam is a public company engaged in the business of oil and gas exploration and development. Ausam, through its U.S. subsidiary Noram Resources, Inc., has a diverse portfolio of oil and gas leases and prospects in Texas, Louisiana, Mississippi, Alabama and Arkansas. The Company trades under the symbol “AZE” on the TSX Venture Exchange and the symbol “ASMEF” on the OTC Bulletin Board.

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 the inability to complete any financing or restructuring transaction and risks, uncertainties and other factors that are beyond the control of Ausam. In light of the risks and uncertainties associated with forward-looking statements, readers are cautioned not to place undue reliance upon forward-looking information. Although Ausam believes that the expectations reflected in the forward-looking statements set out in this press release 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.

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 of Ausam which have not been registered under the Securities Act of 1933, as amended (the “1933 Act”) 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.

SOURCE Ausam Energy Corporation