Alberta Oilsands Inc: Provides Corporate Update

Calgary - Alberta Oilsands Inc. (“AOS” or the “Company”) (TSXV:AOS) AOS continues in pursuit and evaluation of opportunities under its strategic review process, and as a result of the current trend of recovering oil prices since January 2016, the Company remains optimistic.  The Board of Directors of the Company (the “Board”) initially estimated that the strategic review would be substantially completed by mid to late July 2016. The Board now expects to complete its strategic review in August 2016, prior to the mailing of shareholder meeting materials on or before September 1, 2016. The Company’s annual and special meeting of shareholders is scheduled for September 23, 2016.

“The strategic review process will continue throughout the coming weeks,” said Mr. Robert Metcalfe, Chairman of the Board. Mr. Metcalfe continued saying that, “The recent confluence of the recovering oil prices combined with the increased availability of oil & gas assets unable to attract traditional institutional financing is generating some very interesting prospects for AOS to review and consider.”

The evaluation of such opportunities is based on certain criteria which include, but are not limited to: the quality of proposed management and board members, the quality of the business and/or underlying assets, and the proposed go-forward business plan to further enhance shareholder value. Should no suitable opportunity be identified within the estimated timelines, the Company intends to make arrangements to distribute its net cash to shareholders. Prospective interested parties should contact Warren Holmes at Tiger Capital Advisors Inc. at 403-860-1944.

While the Company continues its strategic review process, there can be no assurance that any agreement or transaction will occur, or if a transaction is undertaken, as to its terms or timing. Given the nature of the strategic review process and the need for confidentiality during this process among all parties, the Company does not intend to provide detailed updates until such time as the Board has approved a definitive course of action and/or the Company has entered into a definitive agreement, unless otherwise required by law or unless circumstances exists whereby disclosure is deemed appropriate.


About Alberta Oilsands Inc.

Alberta Oilsands Inc. is engaged in the exploration and development of drill-defined domestic assets, and owns a portfolio of international assets.  AOS holds bitumen leases in the Athabasca oil sands region of northeast Alberta. In addition, the Company's Africa portfolio is focused on active and known onshore and offshore basins on the East Africa Rift System and offshore Africa.  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 the business of AOS, the timing and review of various strategic alternatives and the Company’s consideration of any cash distribution.

Forward looking statements involves significant known and unknown risks and uncertainties, some of which are beyond the control of AOS, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to, risks associated with securing a suitable strategic transaction, the impact of general economic conditions, industry conditions, volatility of commodity prices, environmental risks, competition from other industry participants and the lack of availability of qualified personnel or management.  Additional risks and uncertainties affecting AOS and its business and affairs are described in further detail in the Company’s management's discussion and analysis of financial condition and results of operations for the year ended December 31, 2015.  There can be no assurance that the review of various strategic alternatives will result in the Company pursuing any transaction or that a transaction, if pursued, will be completed.

Although AOS 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 AOS 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.