Stream Announces Equity Offering

CALGARY, ALBERTA--(Marketwire - June 22, 2011) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Stream Oil & Gas Ltd. (TSX VENTURE:SKO) ("Stream" or the "Company") is pleased to announce that it has filed a preliminary short form prospectus in Canada in connection with a public offering (the "Offering") of common shares of Stream (the "Common Shares"). The Offering is being led by Cormark Securities Inc. on behalf of a syndicate of underwriters (collectively the "Underwriters"). Pursuant to the terms of the Offering, the Company has agreed to grant the Underwriters an over-allotment option to purchase that number of additional Common Shares equal to up to 15% of the Common Shares sold pursuant to the Offering, exercisable at any time, in whole or in part, up to 30 days from the closing of the Offering.

The Offering will be priced in the context of the market with the final terms of the Offering to be determined at the time of pricing. The net proceeds of the Offering will be used to fund exploration and development of the Company's Albanian properties as well as for general corporate purposes.

The Common Shares will be sold publicly in British Columbia, Alberta and Ontario and on a private placement basis in the United States pursuant to exemptions from the registration requirements of the United States Securities Act of 1933, as amended (the "1933 Act") and such other jurisdictions as may be agreed to by the Company and the Underwriters. The Offering is scheduled to close on or about July 12, 2011 and is subject to certain customary conditions and regulatory approvals, including the approval of the TSX Venture Exchange.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States or any other jurisdiction outside of Canada, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The Common Shares offered have not been, and will not be, registered under the 1933 Act, or any state securities laws and may not be offered or sold in the United States or to or for the benefit of U.S. persons (as defined in Regulation S under the 1933 Act) absent registration or an applicable exemption from the registration requirements of the 1933 Act and applicable state securities laws.

Forward-Looking Statements

This news release includes forward-looking statements, including statements concerning details relating to the Offering such as the anticipated date for the closing of the Offering, the securities to be issued under the Offering, the size of the Offering and the use of proceeds from the Offering and expectations and assumptions concerning the obtaining of the necessary regulatory approvals, the satisfaction of applicable conditions to the closing of the Offering and expectations concerning the demand for the Offering. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. A number of factors can cause actual events to differ significantly from any anticipated developments and, although the Company believes that the expectations represented by such a forward-looking statements are reasonable, undue reliance should not be placed on the forward-looking statements as there can be no assurance that such expectations will be realized. The forward-looking statements contained in this document are made as of the date hereof and the Company disclaims any intention or obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless expressly required by applicable securities laws.

About Stream Oil & Gas Ltd.

Stream Oil & Gas Ltd. is a Canadian-based emerging oil and gas production, development and exploration company focused on the re-activation and re-development of three oilfields and a gas/condensate field in Albania. The Company's strategy is to use proven technology, incremental and enhanced oil recovery techniques to significantly increase production and reserves.