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CALGARY, ALBERTA--(Marketwire - March 16, 2011) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Americas Petrogas Inc. (the "Corporation") (TSX VENTURE:BOE) announces that it has closed its previously announced equity financing by way of a private placement on a bought-deal basis (the "Offering") by completing the sale of 20,162,000 common shares of the Corporation ("Common Shares") (including 4,032,000 Common Shares issued pursuant to the exercise, in full, of the over-allotment option granted to the Underwriters) at a price of $2.48 per common share, for gross proceeds of $50,001,760.00.

The Offering was completed through a syndicate of underwriters led by Mackie Research Capital Corporation and included Wellington West Capital Markets Inc. (collectively, the "Underwriters").

Net proceeds received from the Offering will be used by the Corporation for the ongoing exploration and development of its Argentinean oil and gas properties, including exploration and development of its unconventional shale oil, shale gas and tight sands oil and gas properties, for the advancement of the Bayovar potash project by the Corporation's subsidiary, GrowMax Agri Corp., as well as for general corporate purposes.

Barclay Hambrook, President and CEO, stated: "We are very pleased to close this financing as these additional funds will allow us to drill and potentially add value to our prospective unconventional and conventional resources on our 9 blocks in the Western "shale corridor" of the Neuquen Basin, and to continue to advance our Bayovar potash project."

The Underwriters were paid a cash commission equal to 6.0% of the gross proceeds of the Offering and also received warrants at an exercise price of $2.80 per share to purchase up to 1,209,720 Common Shares expiring at the earlier of: (A) November 16, 2011, and (B) the date of closing of an initial public offering (IPO) of any subsidiary or affiliate of the Corporation which holds the Corporation's interest in its potash brine project in Bayovar, Peru.

All securities issued in connection with the Offering are subject to a hold period of 4 months from closing.

The Common Shares offered have not been registered under the U.S. Securities Act of 1933 as amended or any state securities laws, and may not be offered or sold in the United States absent registration or an exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About 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 oil and gas interests in 16 blocks involving exploration, development and production. Americas Petrogas has proven conventional oil and gas reserves, as well as evolving unconventional resource plays including shale gas, shale oil, and tight sand oil and gas in Argentina's prolific Neuquen basin. For more information about Americas Petrogas, please visit [ www.americaspetrogas.com ]

About GrowMax Agri Corp.

GrowMax Agri Corp. ("GrowMax"), a subsidiary of Americas Petrogas Inc., is developing a surface potash (KCl or Muriate of Potash) brine reservoir and evaporite deposit at Bayovar in the Sechura Desert of Northwest Peru on GrowMax's 202,000 acre concession. Additional mineral potential includes phosphate, bromine and other minerals. Management, along with its investor IFFCO, intends to build GrowMax into a potash and specialty fertilizers company. For more information about GrowMax Agri Corp., please visit [ www.growmaxagricorp.com ].

Certain statements in this Press Release constitute forward-looking statements under applicable securities legislation. Such forward-looking statements, including the use of net proceeds of the offering, the oil and gas reserves, the development of a surface potash (and other minerals) brine reservoir and evaporite deposit, drilling for phosphates and the building of a potash and specialty fertilizers company, involve risks, uncertainties and other factors which may cause the actual use of proceeds and the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. In particular, there is no assurance that the net proceeds will be used as described, that a potash (and other minerals) brine reservoir and evaporite deposit will be developed, and that a potash and specialty fertilizers business will be built. This forward-looking information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels and timing of activity and achievements to differ materially from those expressed or implied by such information.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.