Shelton Canada Corp.
TSX VENTURE : STO

Shelton Canada Corp.

April 30, 2008 19:33 ET

Shelton Canada Corp.- Restatement

Audited Financial Statements for the year ending November 30, 2006

CALGARY, ALBERTA--(Marketwire - April 30, 2008) - Shelton Canada Corp. ("Shelton" or the "Company") (TSX VENTURE:STO) today announced that it will be re-filing the Audited Financial Statements for the year ending November 30, 2006.

As a result of this announcement the release of the audited consolidated financial statements for the thirteen months ending December 31, 2007 has been delayed until an audited opinion of the restatement is provided.

The Company did not record a tax liability for the year ending November 30, 2006 that resulted from a Canada Revenue Agency ("CRA") flow-through share audit review of the 2002 calendar year expenses renounced under the flow-through share agreements that significantly impacted the statements. The financial statements originally filed for the year ending November 30, 2006 excluded Part 12.6 tax of $10,992, corporate renunciation shortfall interest and penalties of $131,254 and interest and penalties applicable to the shareholders individually of $241,725. The interest and penalties applicable to the shareholders also arose from the CRA flow-through share audit review of the 2002 flow-through share issuance. The Company intends to compensate the shareholders involved for the interest and penalties incurred from the flow through share renunciation shortfall. The Company has accrued the maximum penalty and interest payable. The Company intends to negotiate the matter further with CRA. A restatement of the following lines of the financial statements is as follows:



November 30, 2006 November 30, 2006
Restated Previously filed
$ $
----------------------------------------------------------------------------

Income tax payable 375,479 -
Income tax expense 10,992 -
Interest expense 367,604 3,117
Net loss and Comprehensive Loss (3,465,620) (3,090,141)
Change in non-cash working capital (61,679) (437,158)
Earnings per share (0.04) (0.02)


As such, the Company will be in default of complying with financial statement filing requirements of filing the audited consolidated financial statements and Management Discussion and Analysis ("MD&A") no later than 120 days after year end. The Company has requested the auditor of the 2006 financial statements to audit the restatement and expects to file the restated year ending November 30, 2006 and the corresponding restated MD&A for the year ending November 30, 2006, the audited consolidated financial statements for thirteen months ending December 31, 2007 and the corresponding MD&A for the thirteen months ending December 31, 2007, no later than May 5, 2008.

About Shelton Canada Corp.

Shelton Canada Corp. is an internationally focused junior oil and gas exploration and development company, headquartered in Calgary, Alberta and listed on the TSX Venture Exchange. Shelton's primary operations are in Ukraine. The company's five-year goal is to work strategically with its regional partners to become the leader in oil and gas production from Ukraine's resource-rich Azov and Black Sea hydrocarbon basins. A 50-percent Joint Investment Agreement (J.I.A.) with Chernomorneftegas, a leading Crimean oil and gas company, gives Shelton the opportunity to develop concessions in the offshore properties of Biryuchya and North Kerchenskaya. A strategic partnership with Ukrnafta, Ukraine's largest oil and gas company, provides Shelton with 45 per cent participation in the Kashtan Petroleum Joint Venture and operations in the Lelyaki oil field.

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.

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

Contact Information

  • Shelton Canada Corp.
    Mr. Zenon Potoczny
    President and CEO
    (416) 252-4104
    Email: info@sheltoncdn.com