Wednesday, February 29th, 2012 - Americas Petrogas Inc.
CALGARY, ALBERTA--(Marketwire) - NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Americas Petrogas Inc. (TSX VENTURE: BOE) (the "Company") is pleased to announce that it has closed its previously-announced equity private placement to Kisan International Trading FZE (a subsidiary of Indian Farmers Fertiliser Cooperative Limited ("IFFCO")) on a non-brokered basis (the "Non-Brokered Offering") through the sale of 3,057,000 common shares of the Company (the "Common Shares") at a price of $3.50 per Common Share for proceeds of $10,699,500.

Barclay Hambrook, President & CEO, stated, "We are thankful for the support that we have received from IFFCO over the past few years and welcome their continued long-term involvement with Americas Petrogas. With these additional funds, we can further advance both our unconventional and conventional blocks in the Neuquen Basin."

The proceeds of this Non-Brokered Offering, along with the net proceeds of the $60 million bought-deal offering which closed and was announced on February 23, 2012, will be used by the Company to fund accelerated exploration and development of the Company's shale oil, shale gas and condensate prospects and conventional oil & gas properties, and for general corporate purposes.

The securities issued under this Non-Brokered Offering are subject to a four-month hold period in accordance with applicable Canadian securities laws.

About Indian Farmers Fertiliser Cooperative Limited

Indian Farmers Fertiliser Cooperative Limited is the world's largest fertiliser cooperative federation. Based in India, IFFCO is registered as a Multistate Cooperative Society with approximately 40,000 member cooperatives involving over 50 million farmers. IFFCO has been ranked #37 in top companies in India in 2011 by Fortune India 500.

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Americas Petrogas Inc.


Americas Petrogas Inc. is a Canadian company whose shares trade on the TSX Venture Exchange under the symbol "BOE". Americas Petrogas has conventional and unconventional shale oil and gas and tight sands oil and gas interests in numerous blocks in the Neuquen Basin of Argentina. Americas Petrogas has joint venture partners, including ExxonMobil and Apache, on various blocks in the shale oil and gas corridor in the Neuquen Basin, Argentina. For more information about Americas Petrogas, please visit www.americaspetrogas.com

Certain statements contained in this press release constitute "forward-looking statements" as such term is used in applicable Canadian and US securities laws. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or are not statements of historical fact and should be viewed as "forward-looking statements". These statements relate to analyses and other information that are based upon forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

In particular, statements (express or implied) contained herein regarding use of proceeds should be viewed as forward looking statements.

There can be no assurance that such forward-looking statements will prove to be accurate as actual results and future events could vary or differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release. The forward-looking statements contained herein are expressly qualified by this cautionary statement.

Forward-looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and the Company undertakes no obligation to update forward-looking statements and if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Americas Petrogas Inc. Barclay Hambrook, P. Eng., MBA President and CEO
P: (403) 685-1888
W: www.americaspetrogas.com

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Indian Farmers Fertiliser Cooperative Limited

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