Arrangement Involving Alberta Oilsands Inc. and Marquee Energy Ltd. Conditionally Approved by TSX Venture Exchange

Calgary - Alberta Oilsands Inc. ("Alberta Oilsands" or the "Company") (TSXV:AOS) announces that the TSX Venture Exchange (the "TSXV") has provided its conditional approval of the proposed acquisition of Marquee Energy Ltd. ("Marquee") by Alberta Oilsands through a plan of arrangement involving Marquee, its shareholders and Alberta Oilsands (the "Arrangement"). For more information on the Arrangement, please see the Company's press release dated August 19, 2016 and the arrangement agreement between the Company and Marquee dated August 19, 2016, as amended on October 11, 2016, each of which are available on the Company's SEDAR profile at www.sedar.com.

"Receiving conditional approval from the TSXV is an important milestone as we proceed towards completing this compelling Arrangement," said Binh Vu, Interim CEO & President. "While it's unfortunate that a dissident, self-interested shareholder has created delays and imposed unnecessary costs on both Alberta Oilsands and Marquee, we are moving towards a point where our combined companies will be well positioned to create long term value for all shareholders."

The TSXV provided its conditional approval of the Arrangement following the November 14, 2016 ruling from the Court of Appeal of Alberta, which was announced by the Company by press release dated the same date, a copy of which can be viewed at www.aboilsands.ca or on the Company's SEDAR profile at www.sedar.com. The TSXV's final approval of the Arrangement is conditional upon the satisfactory receipt and review by the TSXV of customary documents and confirmations related to the closing of the Arrangement.

As previously disclosed, Alberta Oilsands and Marquee have agreed to a plan of arrangement transaction that will create a well-capitalized, combined company positioned for future value creation. Upon closing, the Arrangement will provide Alberta Oilsands shareholders with exposure to a dominant land position in the Michichi oil fairway and sustainable growth opportunities at current commodity prices. The combined company will have the liquidity to act upon organic and strategic opportunities, and a balance sheet in line with the best companies in its peer group.

ABOUT ALBERTA OILSANDS

Alberta Oilsands holds bitumen leases in the Athabasca oil sands region of northeast Alberta. The company's head office is located in Calgary, Alberta, Canada and its common shares are traded on the TSX Venture Exchange under the trading symbol "AOS".



For further information please contact:

Binh Vu, Interim CEO & President
+1 416 951 8800
bvu@aboilsands.ca



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.

Certain statements included in this press release constitute forward-looking statements or information ("forward-looking statements") under applicable securities legislation. Forward-looking statements or information typically contain statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "potential", "propose", or similar words suggesting future outcomes or statements regarding an outlook. Specific forward-looking statements in this press release include statements with respect to closing of the Arrangement, final TSXV approval of the Arrangement, the capitalization and position of the company resulting from the completion of the Arrangement, the land position, growth opportunities, liquidity and balance sheet characteristics of the company resulting from the completion of the Arrangement and the anticipated benefits to the Company's shareholders in connection with the completion of the Arrangement.

Forward looking statements involve significant known and unknown risks and uncertainties, some of which are beyond the control of Alberta Oilsands, which could cause actual results to differ materially from those anticipated. Risks and uncertainties affecting Alberta Oilsands and its business and affairs are described in further detail in its management's discussion and analysis of financial condition and results of operations for the period ended June 30, 2016, which is available under Alberta Oilsands' issuer profile on SEDAR at www.sedar.com.

Although Alberta Oilsands believes that the expectations in such forward-looking statements are reasonable, they are based on factors and assumptions concerning future events which may prove to be inaccurate.  Those factors and assumptions are based upon currently available information.  Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking statements.  As such, readers are cautioned not to place undue reliance on the forward-looking statements, as no assurance can be provided as to future results, levels of activity or achievements.   The forward looking information included herein is made as of the date of this press release and Alberta Oilsands assumes no obligation to update or revise any forward looking information to reflect new events or circumstances, except as required by law.  The forward-looking statements contained herein are expressly qualified by this cautionary statement.