The Board of Directors of Shelton Petroleum is planning to issue 40-50 million shares. The shares will be issued to qualified investors and certain other selected investors. The minimum investment in the issue will be Euro 50,000. The terms and conditions for the new share issue as well as the allocation will be determined through a book-building process. The new shares are expected be distributed and tradable on the NGM stock exchange no later than mid-July.

The issue of shares will be based on the authorization resolved by the Annual General Meeting held on 17 May 2010.

Shelton Petroleum has recently completed a successful exploration program and encountered oil in two out of two wells in Bashkiria, Russia. The proceeds will be used to start pilot oil production from these wells. The first well is expected to come on production already during the summer of 2010. In addition, the company will take steps towards large-scale production by setting up for development drilling. This includes preparing the technical and regulatory project documentation as wells as investments into infrastructure for treating, storing and transporting oil. The Shelton Petroleum group already produces oil from the Lelyaki field near Poltava in Ukraine.

The company has engaged Carnegie Investment Bank AB as financial advisor.

For more information, please contact:

Robert Karlsson, CEO, Shelton Petroleum, tel +46 709 565 141

robert.karlsson@sheltonpetroleum.com

www.sheltonpetroleum.com

The information in this press release does not constitute or form part of any offer to purchase or subscribe for, or any solicitation of any offer to purchase or subscribe for, any securities of Shelton Petroleum. The information contained in this press release is not intended for publication, release or distribution in or into United States, Australia, Canada, South Africa, Japan, Hong Kong, New Zealand or any country under which laws and regulations there would exist an obligation to prepare, file, register or publish any information as a result hereof.

About Shelton Petroleum

Shelton Petroleum is a Swedish company focused on exploring and developing concessions in the Volga-Urals area in Russia and the resource-rich basins of Ukraine. Shelton Petroleum has built effective personal relationships, strategic regional partnerships and a portfolio of projects onshore and offshore. The company holds three licenses in the Russian republic of Bashkiria, located southwest of the Ural Mountains. The license blocks, which border one another, have an area of over 500 square kilometers and are surrounded by other producing oil fields. The company has found oil in its first two wells and measured commercial flow rates. In Ukraine, Shelton Petroleum’s wholly-owned subsidiary Zhoda 2001 has a strategic partnership with Ukrnafta, Ukraine's largest oil and gas company. It provides Shelton Petroleum with a stake in the oil producing Lelyaki field in Chernigov Region close to Poltava. Shelton Petroleum also has a Joint Investment Agreement with Chornomornaftogaz, the leading Ukrainian oil and gas company in offshore development, that gives it a fifty per-cent stake in three major license areas in the Azov and Black Sea regions. The Shelton Petroleum share is traded on the NGM stock exchange under the under the symbol SHEL B. The company has resolved to seek a listing of its share on

NASDAQ OMX Main Market.