"Shelton Petroleum’s exploration program in Bashkiria has been a success. We have found oil in our first two wells. Over the summer we have completed the RS#2 well, and we are now ready to bring up our first Russian oil. We plan to place the second exploration well RS#1 into production later this year. We are also carrying out field development projections and investments into infrastructure for the treatment, storage and transport of oil for a large-scale drilling program. It is gratifying that there is such large interest among investors to participate in the financing of the continued field development in Bashkiria," says Robert Karlsson, CEO of Shelton Petroleum.

On 22 June, the Board of Directors of Shelton Petroleum announced that the company had completed a private placement of 50 million shares. Demand was considerable, whereby the Board has today resolved to complete a private placement of an additional 15 million shares, corresponding to a dilution of approximately 3 per cent. Following the placement, the total number of B-shares in Shelton Petroleum increased to 436,840,442. Besides the B-shares, there are 9,028,593 A-shares. Following the private placement, the number of votes in Shelton Petroleum amounts to 527,126,372, and the total number of shares amounts to 445,869,035. The offering was priced at SEK 0.71 and raises approximately SEK 10.6 million before issue costs for the company. The shares are subscribed for via Carnegie Investment Bank AB.

The share offering is based on the authorization granted at the annual general meeting held on 17 May 2010. The new shares are expected to be distributed and tradable on the NGM Stock Exchange no later than September. Shelton Petroleum has applied for a listing of its share on NASDAQ OMX Nordic Main Market.

For more information, please contact:

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 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 applied for a listing of its share on

NASDAQ OMX Main Market.