Stetson Oil & Gas Ltd.
TSX VENTURE : SSN

Stetson Oil & Gas Ltd.

January 09, 2008 17:30 ET

Stetson Closes $2.8 Million Private Placement

CALGARY, ALBERTA--(Marketwire - Jan. 9, 2008) -

NOT FOR RELEASE IN THE UNITED STATES OR TO U.S. NEWSWIRE SERVICES

STETSON OIL & GAS LTD. ("Stetson" or the "Company") (TSX VENTURE:SSN) completed its private placement offering of 14,390,000 units for gross proceeds of $2,878,000.00, consisting of 6,390,000 Flow Through Units and 8,000,000 Units, at $0.20 per Unit on December 21, 2007. Each Unit was comprised of one common share and one common share purchase warrant and each Flow Through Unit was comprised of one common share issued on a flow through basis and one common share purchase warrant. Each whole warrant is exercisable into one common share at an exercise price of $0.26 per share until December 21, 2009.

The gross proceeds from the sale of the Units will be used to repay outstanding notes and for general corporate purposes. The gross proceeds from the sale of the Flow-Through Units will be used for general exploration expenditures, which will constitute Canadian exploration expenses (as defined in the Income Tax Act (Canada)) and will be renounced for the 2007 taxation year.

The financing remains subject to receipt of applicable regulatory approvals including final approval of the TSX Venture Exchange. The Common Shares issuable upon exercise of the Warrants are subject to resale restrictions for a period of four months plus one day from the closing date.

Stetson is an emerging junior oil and gas company with exploration, development, and production programs in Alberta and Saskatchewan.

Cautionary Note Regarding Forward-Looking Information: This press release contains "forward-looking information", within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the future financial or operating performance of the Company and its projects, use of proceeds, receipt of regulatory approval, renunciation of flow-through expenditures and the timing and amount of, and expenses related to, estimated future production,. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, political and social uncertainties; or delays in obtaining governmental approvals. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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