Stetson Closes Sale of Domestic Assets

CALGARY, ALBERTA--(Marketwire - March 10, 2011) - STETSON OIL & GAS LTD. (TSX VENTURE:SSN) ("Stetson" or the "Company") is pleased to announce that it has closed its previously announced sale of all of its active Canadian oil and gas properties for total consideration of $5 million, subject to post closing adjustments, based on a December 1, 2010 effective date. (see Stetson News Release dated January 17, 2011).

As part of a strategic review process to refocus the company on near term, high impact international opportunities, Stetson engaged Sayer Energy Advisors to act as financial advisor to assist in identifying potential purchasers and marketing the properties, which include oil and gas assets in Alberta and Saskatchewan currently producing approximately 170 boe per day, along with the Canadian resource tax pools related thereto.

The proceeds of the sale will provide Stetson with funds to investigate, assess and pursue the acquisition of international oil and gas exploration and production opportunities on a go forward basis, which the company believes will provide opportunities to enhance shareholder value.

Disclaimers:

BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

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 effect and timing of the disposition on the Company; the use of proceeds; reserve estimates; estimates regarding future production; the receipt of regulatory approvals; expected management rationalization and benefits therefrom; and the future financial and operating performance of Stetson and its projects. 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 risks and uncertainties; risks relating to oil and gas exploration and exploitation activities; oil and gas prices; acquisition risks; risks relating to greater resources, time and attention will be spent on the Acquisition than anticipated; and delays in obtaining regulatory approvals. Although Stetson 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. Stetson does not undertake to update any forward-looking information, except in accordance with applicable securities laws.