In November 2010, Shelton Petroleum (“Shelton”) and Baltic Oil Terminals PLC (“Baltic”) announced a share swap and strategic relationship. The purpose is to jointly explore opportunities vertically in the oil industry value chain, including exploration, production, refining, infrastructure and transport. Earlier today, Baltic announced the first deal under the strategic agreement. Baltic has conditionally agreed to acquire the entire issued share capital of PBI for a cash consideration of USD 10.8 million, payable upon completion.

PBI operates two heated fuel oil tanks, with a total capacity of 120,000 cubic meters, in Europoort Rotterdam, which it leases from Vopak. The leases expire in April 2014. However, management of Baltic is confident that lease extensions can be negotiated on equitable terms. PBI benefits from low operating costs and is currently net cash flow positive, with all storage fully let until mid-2011.

By acquiring PBI, Baltic Oil Terminals will gain access to an important new market, with opportunities to trade and trans-ship significant volumes of oil product out of a major global shipping hub. The addition of PBI to Baltic Oil Terminals’ existing operations will also provide an additional immediate source of free cash flow for Baltic Oil Terminals, estimated to be approximately USD 0.5 million per month.

“Shelton is fully supportive of the acquisition. Our two companies, through our strategic relationship, remain fully committed to evaluating the strategic opportunities in order to explore ways of developing and strengthening the relationship in the future”, says Robert Karlsson, CEO of Shelton Petroleum.

Baltic’s acquisition is to be funded through a directed equity placing and from Baltic’s own resources, including the proceeds of the sales of all of the 54 million B shares of Shelton Petroleum that Baltic received in the share swap.

For more information, please contact:

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

robert.karlsson@sheltonpetroleum.com

www.sheltonpetroleum.com

Baltic’s corporate website: www.balticpetroleum.com

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 commenced production from one of its two successful exploration wells in Russia. 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. Shelton Petroleum is a substantial shareholder in Tomsk Refining, a Swedish company that owns a brand new refinery in Tomsk in Western Siberia. Shelton Petroleum recently announced a share swap and strategic relationship with Baltic Oil Terminals PLC, an AIM listed company with a terminals and transshipment business in Kaliningrad on the coast of the Baltic Sea. The Shelton Petroleum share is traded on the NGM stock exchange under the under the symbol SHEL B. The company has applied for a listing of its share on NASDAQ OMX Main Market.