Petroamerica Receives Key Colombian Approval

Company Is Now Allowed Into June 2010 Bid

TSXV - PTA

CALGARY, June 21 /CNW/ - Petroamerica Oil Corp. (the 'Company') is pleased to announce its wholly owned subsidiary, Compound Hydrocarbons Inc. has been recognized by the ANH (National Hydrocarbon Agency) as a restricted operator for a Type 1 block in the 2010 Bid Round. The Bid Round is scheduled to occur in June, 2010.

Paul Kroshko, President and CEO commented, "We are very pleased with this acceptance by the ANH. It is a sign of our growing profile in the country, and this acceptance will help to attract more corporate development opportunities."

ANH's responsibility is to manage Colombia's Oil & Gas resources, representing the Colombian government and its citizens when designating exploration areas.

There are 228 blocks in 24 Colombian basins that are available in the bidding round.

Colombia continues to play a crucial role in oil & gas discovery on a global scale. In 2008, nearly $3.5 billion was invested in the Exploration & Production sector in Colombia from foreign sources.

In 2009, foreign investment grew 11 per cent to $3.89 billion. The expectation is the number will continue to increase in 2010. Additionally, nearly 50 percent of the blocks that were explored in 2008 and 2009 yielded positive results.

"We are also looking forward to producing from our first oil discovery shortly, and drilling the Playon well in the northern part of Colombia in Q3 this year," said Mr. Kroshko.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statement

This news release includes forward-looking statements. When used in this document, words such as "plan", "expect", "forsee", "see", "anticipate", "scheduled", and similar expressions identify forward-looking statements. The forward-looking statements, contained in this document, including assumptions, opinions and views of the Company or cited from third party sources are solely opinions and forecasts which are uncertain and subject to risks. A multitude of factors can cause actual events to differ significantly from any anticipated development and although the Company believes that the expectations represented by such a forward-looking statement are reasonable; there can be no assurance that such expectations will be realized. Neither the Company nor any of its subsidiaries nor any of its officers or employees guarantees that the assumptions underlying such forward-looking statements are free from errors nor does any of the foregoing accept any responsibility for the future accuracy of the opinions expressed in this document or the actual occurrence of the forecasted developments.

For further information: A. Paul Kroshko, President and CEO, Petroamerica Oil Corp., Tel: [phone], Email: [email protected]; or Colin Wagner, CFO Petroamerica Oil Corp., Tel: [phone], Email: [email protected]