Petrolia Inc.

Petrolia Inc.

June 06, 2008 15:37 ET

Petrolia Closes its $10,000,000 Financing

RIMOUSKI, QUEBEC--(Marketwire - June 6, 2008) - Petrolia Inc. (TSX VENTURE:PEA) today announced the closing of its financing announced on May 20, 2008 for a total amount of $10,000,000.

A private placement financing of Cdn $6,350,000 (the "Brokered Placement") was completed through Becher McMahon Capital Markets Inc. ("Becher"). In addition, Petrolia completed a concurrent financing of Cdn $3,650,000 (the "Non- Brokered Placement").

The net proceeds of the Brokered Placement and of the Non-Brokered Placement (collectively the "Private Placement") will be used for general working capital purposes and in connection with the commitments recently announced by Petrolia, namely Haldimand Property at Gaspe. Under the terms of the Private Placement, Petrolia issued 6,666,665 Units, at a price of $1.50 per Unit, pursuant to the applicable exemptions from the prospectus and registration requirements of the Canadian securities laws.

Each Unit is comprised of one common share and one-half of one common share purchase warrant. Each whole Warrant will entitle the holder thereof to purchase one common share at a price of $1.50 in the 18 months following the closing date of the Private Placement. Becher McMahon received a cash commission of 8% of the gross proceeds of the Brokered Placement and was granted agent's options to purchase, in the 18 months following the closing date, that number of common shares equal to 10% of the number of Units sold under the Brokered Placement, at a price of $1.50 per common share. No commission was paid shall be payable in the context of the Non-Brokered Placement. All securities issued under the Private Placement are subject to a four month and one day hold period under applicable Canadian securities laws.

The securities being offered have not, nor will they be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.

About Petrolia

Petrolia is a junior oil and gas exploration company that holds exploration rights on a total of 14 929 km2 (3.7 millions acres), an area which represents 21 % of the Quebec territory under licence. Mainly located in the Gaspe Peninsula and on Anticosti Island, these licences are considered as the most prospective lands, representing 70% of the Quebec petroleum onshore potential, Petrolia will now have a free hand to develop that potential with new partners and it intends to intensify its exploration program in the upcoming years. Following this financing, Petrolia now has approximately 40.8 M outstanding shares and owns 2.2% of the issued and outstanding shares of Gastem Inc. (TSX VENTURE:GMR).

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

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