2009-09-25-2009-09-14

To earn 15% participating interest in 97,000-acre Gabriella petroleum license offshore Israel.

Brownstone Ventures Inc., Toronto, (Toronto Venture: BWN) has entered a letter of intent with Adira Energy Corp., a subsidiary of AMG Oil Ltd., Toronto, (OTCBB: AMGOF). Brownstone will have the right to earn a 15% participating interest in any existing or future oil and gas blocks acquired by AMG offshore Israel for a three-year period commencing July 15 and shall contribute 15% of all costs associated with such projects, in addition to its expertise and industry experience. The letter also provides Brownstone and AMG will work toward an agreement under which both parties are entitled to participate in certain new Israeli offshore oil and gas exploration and development blocks the other party may become involved. AMG is currently the owner of the Gabriella petroleum license offshore Israel covering approximately 390 square kilometers (97,000 acres). The Gabriella license area is centered approximately 10 kilometers off the Israeli coast and stretches from Netanya in the north to Ashdod in the south. The Gabriella license is in shallow water with a depth of between 80 and 120 meters, and includes the site of an oil well drilled in the early 1990's which had production in the 500 to 800 barrels per day, before technical problems and funding issues prevented commercial production. The letter does not apply to Adira Energy's existing Eitan license in the Hula Valley, which is onshore. The parties plan to evaluate the Gabriella license as their first joint exploration opportunity with a view to fulfilling the license obligations. AMG chief executive Ilan Diamond says, "We are very pleased to have Brownstone as our partner as we evaluate the Gabriella license area with a view toward moving the exploration program forward. Brownstone and its principals have extensive experience in the oil and gas industry and bring with them tremendous skill in the specialized area of offshore drilling as well as access to significant capital. We think AMG will benefit from the exciting opportunity in this prospective new frontier of oil and gas exploration in the Mediterranean." CEO Brownstone Sheldon Inwentash says, "This new partnership with AMG Oil/Adira Energy, provides us with the long-awaited opportunity of entering the oil and gas region offshore Israel to assist in the development of Israel's oil and gas resources. With the most recent discovery by the Noble/Delek Consortium less than 60 kilometers away from the Gabriella license, the possibility of significant hydrocarbon reserves exist, and together with our partners, Adira Energy, we believe we have the necessary access to financial and technical resources to maximize the opportunity."