Petrolia Closes its Private Placements of $ 15.75 Million

RIMOUSKI, QUEBEC--(Marketwire - May 16, 2012) -

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Petrolia (TSX VENTURE:PEA) (the "Company") is pleased to confirm the closing of its private placements announced on April 17, 2012, for a total of $ 15,750,003. As a result, the private placement of Investissement Québec totals $10,000,000 and that of the underwriters, namely Laurentian Bank Securities Inc. and National Bank Financial Inc. (the "Underwriters") totals $5,750,003.

As of today, Investissement Québec has control or direction over 7,042,254 common shares of the Company, representing approximately 10.65 % of its issued and outstanding common shares. As long as Investissement Québec holds at least 5% of the issued and outstanding common shares of the Company, the Company will use its best efforts to: (i) have a candidate designated by Investissement Québec nominated to the board of directors of the Company and its main committees and (ii) refrain from moving the decision centre or the main office of the Company out of the Province of Québec without the prior consent of Investissement Québec.

The Company is particularly proud of this strategic financing by Investissement Québec.

In addition, the Company is pleased to announce the closing of its bought deal private placement with the Underwriters of 4,049,298 Units of the Company (including the Underwriters Option) on the terms and conditions as stated in the press release of April 17, 2012, for total gross proceeds of $5,750,003.

In consideration for their services, the Underwriters received underwriting fees equal to 6% of the gross proceeds of the offering and a total of 242,958 compensation options (the "Compensation Options"). Each Compensation Option entitles the Underwriters to acquire one common share in the capital of the Company at a price of $1.42 per common share for a period of 24 months from the closing date.

All securities issued pursuant to these private placements are subject to a hold period ending on September 17, 2012.

As a result of the issuance of the securities comprising the units, the Company has 66,148,250 common shares issued and outstanding and 71,936,984 common shares on a fully diluted basis.

Taking into consideration the net proceeds of these placements, the Company now has approximately $22 million in cash to fund its exploration program and working capital requirements.

About Pétrolia

Pétrolia is a junior oil and gas exploration company which owns interests in oil and gas licenses covering 14,000 km² (3.5 million acres), which represents about 17% of the Québec territory under lease. The leases, the majority of which are located on the Gaspé Peninsula and Anticosti Island, are considered to be very promising and represent almost 70% of the territory under lease for which there is land-based oil potential in Québec. Pétrolia has 66 148 250 shares issued and outstanding.

Forward-looking statements

Certain statements made herein may constitute forward-looking statements. These statements relate to future events or the future economic performance of Pétrolia and carry known and unknown risks, uncertainties and other factors that may appreciably affect their results, economic performance or accomplishments when considered in light of the content or implications o statements made by Pétrolia. Actual events or results could be significantly different. Accordingly, investors should not place undue reliance on forward-looking statements. Pétrolia does not intend and undertakes no obligation to update these forward-looking statements.