Shelton Canada Corp.

Shelton Canada Corp.

May 26, 2009 14:30 ET

Shelton Reports Record 2008 Year End Results

CALGARY, ALBERTA--(Marketwire - May 26, 2009) - Shelton Canada Corp. ("Shelton" or the "Company") (TSX VENTURE:STO) has filed its Audited Consolidated Financial Statements for the year ended December 31, 2008 and related Management's Discussion and Analysis ("MD&A"), which are available on SEDAR at

Shelton is pleased to announce consolidated revenue from continued operations of $9.789 million for year ending December 31, 2008 compared to $2.826 million from continued operations for the thirteen months ending December 31, 2007. In addition, net income for the year ended was $499,435 versus net (loss) of ($771,158) for the thirteen months ended December 31, 2007. The significant improvement in revenue and net income reflect Shelton's successful expansion into Ukraine.

Highlights for the year ended December 31, 2008:

- Revenue increased to $9.789 million compared to $2.826 million for the thirteen months ending December 31, 2007 from continued operations.

- The Company reported net income of $499,435 for the year ending December 31, 2008 as compared to a (loss) of ($771,158) for the thirteen months ending December 31, 2007.

- Cash flow from continuing operations was $988,944 for the year ending December 31, 2008 as compared to cash used for continuing operations was $393,057 for the thirteen months ending December 31, 2007 (1).

- The company established a strengthened balance sheet for the year ending December 31, 2008, with a working capital surplus of $2,204,722 as compared to a working capital surplus of $1,129,537 for the thirteen months ending December 31, 2007.

Zenon Potoczny, President, commented as follows:

"The Company has achieved good operating success in 2008, leading to a record year with respect to revenue, net income and working capital surplus. Looking ahead, we believe we have a unique opportunity to expand our portfolio of projects and enhance the interests of our shareholders in the coming fiscal year."


1. Funds flow from operations has been presented for information purposes only and should not be considered an alternative to, or more meaningful than, cash flow from operating activities as determined in accordance with Generally Accepted Accounting Principals ("GAAP"). The Company considers funds flow from operations to be a key measure as it demonstrates the Company's ability to generate the cash necessary to fund future growth through capital investment. The determination of Shelton's funds flow from operations may not be comparable to the same reported by other companies. The reconciliation of net earnings and funds flow from operations can be found in the statements of cash flow in the financial statements as cash flow from operations before any asset retirement obligation cash expenditures and is expressed before changes in non-cash working capital.

About Shelton Canada Corp.

Shelton Canada Corp. (, a Canadian-based junior oil and gas company, is focused on exploring and developing the resource-rich basins of Ukraine. The company has an internationally experienced board of directors and a long history of successful operations in Ukraine. These competitive advantages have helped Shelton to build effective personal relationships, strategic regional partnerships, a large land position and a portfolio of projects on and offshore in Ukraine. Shelton expects to become a leader in oil and gas production from the resource-rich Azov and Black Sea basins within the next five years.

Forward-Looking Information

Except for statements of historical fact relating to the company, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information in this news release is characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", and other similar words, or statements that certain events or conditions "may" "will" or "could" occur. There are uncertainties inherent in forward-looking information, including factors beyond Shelton Canada Corp.'s control, and no assurance can be given that such events will occur on time or at all. Shelton Canada Corp. undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change, except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. The risks and uncertainties set forth above are not exhaustive. BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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