Stetson Provides Corporate Update

CALGARY, ALBERTA--(Marketwire - Nov. 1, 2011) - Stetson Oil & Gas Ltd. ("Stetson" or the "Company") (TSX VENTURE:SSN) is pleased to provide an update on its corporate initiatives and operations.

Share Consolidation

The Company is pleased to announce that after an internal strategic review, the Board of Directors has determined to proceed with a share consolidation of Stetson's common shares in an effort to refocus the Company for a new phase of growth and creating shareholder value. The Company has been evaluating potential exploration and development opportunities in emerging markets, and believes a share consolidation will strongly enhance its ability to access capital and expertise required for high impact, international opportunities.

The Company will call a special meeting of shareholders in January 2011 to seek shareholder approval for a proposed share consolidation of the Company's share capital on the basis of one (1) post-consolidated common share for every eleven (11) pre-consolidated common shares of the Company (the "Consolidation"). The exercise price and number of common shares issuable under any outstanding incentive stock options will be proportionately adjusted once the Consolidation is complete.

The completion of the Consolidation is subject to shareholder approval and TSX Venture Exchange approval.

Appointment of Interim CFO

The Company is pleased to announce the appointment of Ms. Deborah Battiston as interim Chief Financial Officer of the Company, effective November 1, 2011.

The appointment of Ms. Battiston follows the resignation of Mr. Darren Moulds as Chief Financial Officer of the Company. Stetson would like to thank Mr. Moulds for his service as Chief Financial Officer.

Ms. Battiston is a Certified General Accountant with over 23 years of accounting and financial management experience. At present, she is the Chief Financial Officer of a number of Canadian public companies. Ms. Battiston obtained a B.A. in Economics from the University of Guelph.

Litigation Update

With regard to its outstanding legal claim against Thomas Weisel Partners Canada Inc. ("Weisel") for damages arising in connection with the Company's incomplete bought deal financing of July 2008, the Company announces that the mediation previously scheduled for November 2011 has been tentatively re-scheduled for December 2011. The court case remains scheduled for February 2012 if Stetson and Weisel are unable to reach an acceptable settlement.

Operations Update - North Dakota – MHA #1-11H

The operator continues to await the ruling from the Oil and Gas Division of the North Dakota Industrial Commission on its application for non-standard spacing approval, after which the recompletion operations are expected to proceed.

Stetson is a junior oil and gas company with exploration assets in North Dakota, USA.

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 appointment or resignation of the chief financial officer; proposed share consolidation of the Company; the effect of the drilling program on the Company; reserve estimates; estimates regarding future production; the receipt of regulatory approvals; management and benefits therefrom; statements with respect to the conduct and the strategy of our claim against Weisel; the merits of our claim; the receipt of damages in connection with the claim, the anticipated timetable of the claim; 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; 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.