ALBERTA OILSANDS INC. ANNOUNCES CLOSING OF PRIVATE PLACEMENT FINANCING

/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S./

CALGARY, Dec. 30 /CNW/ - Alberta Oilsands Inc. (the "Company" or "AOS") (TSXV:AOS) is pleased to announce that it has closed its previously announced non-brokered private placement financing, originally announced on December 22, 2010 (the "Offering"). Pursuant to the Offering, the Company raised $300,800 by issuing 470,000 common shares issued on a "flow through basis" pursuant to the Income Tax Act (Canada) (the "Flow-Through Shares") priced at $0.64 per Flow-Through Share to a Calgary, Alberta based institutional investor.

The gross proceeds of the Offering will be used to incur eligible Canadian exploration expenses, as defined under the Income Tax Act (Canada), and will be renounced to the subscribers effective on or before December 31, 2010.

Under the Offering, the Company will pay a 6% finder's fee in connection with the subscription for Flow-Through Shares on terms and conditions determined by the Company and in accordance with the policies of the TSX Venture Exchange.

The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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.

For further information:

Alberta Oilsands Inc., Suite 2800, 350 - 7th Avenue S.W., Calgary, Alberta, T2P 3N9, Shabir Premji, Executive Chairman,T: [phone], F: [phone], [email protected]; or Andrew Costantinidis, VP Finance and Business Development, T: [phone], F: [phone], [email protected]; Company website: www.aboilsands.ca