Petrolia Announces $10,000,000 Financing

RIMOUSKI, QUEBEC, May 20 (MARKET WIRE) --
Petrolia Inc. (TSX VENTURE: PEA) today announced that it has entered
into a letter agreement with Becher McMahon Capital Markets Inc. ("Becher
McMahon") to complete a financing to meet its capital requirements for a
total of $10 000 000.

In its role as agent, Becher McMahon will conduct a private placement
financing of up to $6.35 million Cdn. (the "Brokered Placement").

In addition, Petrolia intends to complete a concurrent non-brokered
financing of up to Cdn.$3.65 million (the "Non-Brokered Placement).

The net proceeds of the Brokered Placement and of the Non-Brokered
Placement (collectively the "Private Placement") will be used for general
working capital purposes and in connection with the commitments recently
announced by Petrolia. Under the terms of the Private Placement, Petrolia
has agreed to sell up to 6,666,666 Units, at a price of $1.50 per Unit,
pursuant to the applicable exemptions from the prospectus and
registration requirements of the Canadian securities laws.

Each Unit will be comprised of one common share and one-half of one
common share purchase warrant. Each whole Warrant will entitle the holder
thereof to purchase one common share at a price of $1.50 in the 18 months
following the closing date of the Private Placement. Becher McMahon will
receive a cash commission of 8% of the gross proceeds of the Brokered
Placement and will be granted agent's options to purchase, in the 18
months following the closing date, that number of common shares equal to
10% of the number of Units sold under the Brokered Placement, at a price
of $1.50 per Unit.

No commission shall be payable in the context of the Non-Brokered
Placement.

Closing of the Private Placement is expected to occur on or around June
6, 2008 and is subject to the obtention of the usual required approvals,
including approval of the TSX Venture Exchange Inc.

All securities issued under the Private Placement will be subject to a
four month and one day hold period under applicable Canadian securities
laws.

The securities being offered have not, nor will they be registered under
the United States Securities Act of 1933, as amended, and may not be
offered or sold within the United States or to, or for the account or
benefit of, U.S. persons absent U.S. registration or an applicable
exemption from the U.S. registration requirements. This release does not
constitute an offer for sale of securities in the United States.

About Petrolia

Petrolia is a junior oil and gas exploration company that holds
exploration rights on a total of 14 929 km2 (3.7 millions acres), an area
which represents 21 % of the Quebec territory under licence. Mainly
located in the Gaspe Peninsula and on Anticosti Island, these licences
are considered as the most prospective lands, representing 70% of the
Quebec petroleum onshore potential, Petrolia will now have a free hand to
develop that potential with new partners and it intends to intensify its
exploration program in the upcoming years. The company has 34 M
outstanding shares and it owns 2.2% of the issued and outstanding shares
of Gastem Inc. (TSX VENUTRE: GMR).

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

Contacts:
Petrolia Inc.
Isabelle Proulx
Vice-President
Quebec: 418-657-1966
Rimouski: 418-724-0112
info@petroliagaz.com

Petrolia Inc.
Andre Proulx
President
418-724-0112
president@petroliagaz.com
www.petroliagaz.com

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