"These are very promising results from the auction sale under the new Ukrainian government. The move towards world market prices will increase our profitability for every barrel sold ", says Zenon Potoczny, President of Shelton Petroleum and responsible for the Ukrainian operations.

The Ukrainian government has resolved to change the local oil and condensate auction to be more in line with the world prices. The recently passed legislation, implemented for the first time at auctions held in May, boosted the auction price by 42 per cent.

Shelton Petroleum has a 45 per cent interest in the Lelyaki oil field through its wholly-owned subsidiary Zhoda 2001. At the latest auction held on 31 May, the joint venture sold over 19,000 barrels of oil (8,700 net to Shelton) at a price of USD 64 per barrel, compared to an average price during the first quarter 2010 of USD 45 per barrel.

For more information, please contact:

Zenon Potoczny, President Shelton Petroleum, tel. +1 416 566 7163

zenon.potoczny@sheltonpetroleum.com

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

robert.karlsson@sheltonpetroleum.com

www.sheltonpetroleum.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 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 45 per cent 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 symbol SHEL B. The company has resolved to seek a listing of its share on NASDAQ OMX Nordic Main Market.