Petrolia Inc (C:PEA)
Shares Issued 50,720,008
Last Close 6/28/2011 $1.90
Wednesday June 29 2011 - News Release

Mr. Andre Proulx reports

PETROLIA: FIRST RESOURCE ASSESSMENT OF MACASTY SHALE, ANTICOSTI ISLAND, QUEBEC

Petrolia Inc. has provided results of an independent resource assessment of the Macasty shale by qualified reserves evaluator Sproule Associates Ltd. of Calgary. Based on data available at this time, Sproule's best estimate of the total petroleum initially in place is 30.9 billions barrels of oil for the Petrolia land interest holdings. The probability that the Total Petroleum Initially-In-Place exceeds 19.8 billions of barrels is 90% (low estimate) and the probability that the Total Petroleum Initially-In-Place exceeds 48.2 Bboe is 10% (high estimate). These estimates are reported as barrels of oil equivalent (Bboe).

Petrolia engaged Sproule to conduct a resource assessment of the Macasty shale across Anticosti Island where Petrolia hold interests on licenses covering more than 1.5 million acres (6000 km2). The report is preliminary, and is based on data available as at June 1, 2011.

Petrolia believe the significant positive factors relevant to the estimates are:

• The Macasty core from the Chaloupe well drilled in 2010 contained residual oil. This well is located on the high side of the Jupiter fault, where most of the Petrolia acreage is located, and where the shale is interpreted to have been within the oil window and to be oil prone;
• The Macasty shale is equivalent to the Utica shale of the Saint Lawrence Lowlands, which has produced oil and gas on test;
• Core analysis indicate that the Macasty rock has similar petrophysical and geochemical characteristics to analogous fields found in the North- East US;
• The Macasty shale is a prolific source rock which has not exceeded the oil generation window over approximately three quarters of the island (most of it located in the Petrolia land holding).

Significant negative factors relevant to the estimates are:

• The Macasty shale has not been tested on Anticosti Island.
• The resources are inferred to exist based on the interpretation and mapping of limited pyrolysis, petrophysical and seismic data.

Because of the limited information available, these resource estimates must be treated as scoping level estimates and used with caution. Use of these estimates outside the scope of this study is not appropriate.

The value in conducting this assessment lies purely in its use as a basis for determining whether it appears worthwhile for the Company to conduct further investigation into these resources. Petrolia is actively evaluating options regarding further exploration and determination of resource potential in order to ensure that optimal shareholder value is obtained from the ongoing programs. The Anticosti exploration program is at an early stage; further work is required to determine the potential for commercially viable resource recovery, prior to considering development.

National Instrument 51-101 disclosure requires that the resource estimates must be classified according to Canadian Oil and Gas Evaluation Handbook definitions and disclosed in the most specific category. The Total Petroleum Initially-In-Place is classified as Undiscovered Resources at this time. As a project for the evaluation of the recoverable volumes has not been defined due to the very early exploration nature of this unconventional resource they have not been classified as either recoverable or unrecoverable at this time. There is no certainty that any portion of the resources will be discovered. A recovery project cannot be defined for this volume of undiscovered petroleum initially-in-place at this time. There is no certainty that it will be commercially viable to produce any portion of the resources.

"From the company's prospective, the Macasty resource assessment shows the large upside potential of this shale over Petrolia exploration licenses. Further work, in terms of drilling and pilot testing, will be necessary to converts part of the extremely large volume of Total Petroleum Initially-In-Place into discovered resources and thereafter into reserves".

The following table shows a summary of the resource assessment.

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     Estimates of Total Petroleum Initially-In-Place(1) Macasty Shale,

                 Anticosti Island, Quebec As June 1, 2011

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Classification                  Low Estimate   Best Estimate High Estimate

                                    (P90)(3)        (P50)(4)      (P10)(5)

                   Company Net       Bboe(6)         Bboe(6)       Bboe(6)

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Undiscovered

Petroleum

Initially-

In-Place(2)              Gross          19.8            30.9          48.2

               -----------------------------------------------------------

                  Petrolia net           9,1            14,1          22,0

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1. Total Petroleum Initially-In-Place (PIIP) is that quantity of petroleum

that is estimated to exist originally in naturally occurring

accumulations. It includes that quantity of petroleum that is estimated,

as of a given date, to be contained in known accumulations, prior to

production, plus those estimated quantities in accumulations yet to be

discovered



2. Undiscovered Petroleum Initially-In-Place (equivalent to Undiscovered

Resources) are those quantities of petroleum that are estimated, on a

given date, to be contained in accumulations yet to be discovered. The

recoverable portion of undiscovered petroleum initially in place is

referred to as Prospective Resources, the remainder as Unrecoverable.

Undiscovered resources carry discovery risk. There is no certainty that

any portion of these resources will be discovered. A recovery project

cannot be defined for this volume of undiscovered petroleum initially-in-

place at this time. There is no certainty that it will be commercially

viable to produce any portion of the resources.



3 The probability that the quantity actually in place is equal to or

greater than the estimate is 90%.



4. The probability that the quantity actually in place is equal to or

greater than the estimate is 50%.



5. The probability that the quantity actually in place is equal to or

greater than the estimate is 10%.



6. Bboe - Billions of barrels of oil equivalent. Oil equivalent has been

used to reflect uncertainty in the type of hydrocarbons expected to be

encountered across the holdings.

This press release has been reviewed by Sproule.

We seek Safe Harbor.

� 2011 Canjex Publishing Ltd.