Alberta Oilsands Inc. announces that it has entered into an agreement to
assign its Kenyan assets

CALGARY, Feb. 16 /CNW/ - Alberta Oilsands Inc. (the "Company" or "AOS") (AOS - TSXV) is pleased to announce that it has signed a definitive agreement with Africa Oil Corp. ("Africa Oil") (AOI - TSXV) in which its wholly owned subsidiary, Platform Resources Inc. ("Platform"), has agreed to assign its interests in Blocks 12A and 13T in Kenya to Africa Oil.

Subject to Kenyan Government and TSX Venture Exchange approvals, Blocks 12A and 13T will be assigned to Africa Oil in consideration for 2.5 million common shares and 1.5 million share purchase warrants of Africa Oil. Each warrant is exercisable into one common share at a price of $1.50 per share over a period of 2 years. If the closing price for Africa Oil's common shares exceeds $2.00 for 20 consecutive trading days, Africa Oil can provide written notice to AOS accelerating the expiry date to a date that is not less than 180 days from the date of such written notice. Concurrent with the signing of the definitive agreement, Platform has submitted a request for assignment consent to the Kenyan Government.

Shabir Premji, Executive Chairman of Alberta Oilsands Inc., commented, "This transaction, not only monetizes our East African assets but also provides AOS the ability to continue to maintain an interest in the upside associated with a diversified portfolio of East African assets by being a shareholder in Africa Oil (AOI), which is a strong operator with assets in Kenya, Ethiopia and Somalia and a proven leadership team capable of accelerating the exploration and development of these oil and gas assets."

About AOS

Alberta Oilsands Inc. is a technically driven high growth energy company focused on the development and conversion of the company's oil sands resources to reserves and the creation of long term sustainable value by increasing production and cash flow on relevant conventional oil and natural gas assets.

Forward-Looking Statements and Information: This press release contains certain forward-looking statements and information within the meaning of such statements under applicable securities law. In particular, this news release contains forward-looking statements and information with respect to the ability of AOS, Platform and Africa Oil to obtain the necessary approvals which are required to complete the sale of Platform's interests in Blocks 12A and 13T in Kenya to Africa Oil, as described above. Such required approvals include the approval of the Kenyan Government and the TSX Venture Exchange, and, in light of the risks associated with obtaining such approvals and the uncertainty associated with negotiating with foreign governments, AOS cannot provide any assurances that such approvals can be obtained in a timely manner or at all. If such approvals are not obtained, or are not obtained in a timely manner, the proposed sale may not be completed. Due to the risks, uncertainties and assumptions inherent in forward-looking statements and information, prospective investors in the Company's securities should not place undue reliance on forward-looking statements and information.

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.

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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 Chad Dust, Executive Vice President Finance and Business Development, T: [phone], F: [phone], [email protected]; Company website: www.aboilsands.ca