ALBERTA OILSANDS INC. EXPANDS OIL SANDS HOLDINGS IN CLEARWATER

Not for distribution in the U.S.A.

CALGARY, Nov. 29 /CNW/ - Alberta Oilsands Inc. ("AOS" or the "Company") (AOS - TSX-V) is pleased to announce that it has acquired four additional sections of oil sands rights immediately offsetting its proposed Clearwater Phase I Project site. The newly acquired leases are sections 18, 19, 23 and 24 Twp088 R08 W4M. The acquired and existing oil sands rights combine to form a contiguous Clearwater land block, specifically around sections 21 and 22, Twp088 R08W4. 

The Company believes that this is a strategic acquisition as the leases are expected to provide additional bitumen resources upon a successful coring program and will expand the catchment area for the planned Phase II development of the Clearwater project. The Company now holds 32 sections of 100% working interest oil sands rights in the Clearwater project area and a total of 144.5 sections gross (125.25 sections net) company wide. 

AOS has prepared a sizeable coring program to be conducted over the upcoming drilling season. The program will explore for a possible additional bitumen channel in the area which may add to the 350 million barrels of best estimate contingent resources of bitumen it has already discovered in this area, as outlined in Ryder Scott Petroleum Company's NI 51-101 compliant resource report dated effective June 1, 2009. The Company has a 100% working interest in the lands upon which such contingent resources are assigned, subject to a 2% gross overriding royalty granted to the Fort McMurray Airport Authority.  See "Disclosure of Resources" below in this press release for important information concerning the disclosure of the contingent resources outlined herein.

Shabir Premji, Executive Chairman of AOS commented, "This acquisition could potentially provide additional resources that will result in an enhancement of the commerciality of the planned Phase II development at Clearwater. We have added a critical and contiguous piece to the Clearwater area lease profile with this acquisition"  

About AOS

Alberta Oilsands Inc. (TSX-V:AOS) is a technically driven, high-growth energy company focused on creating sustainable value through the development of oil sands and conventional resources.

Disclosure of Resources

"Discovered Resources" are quantities of petroleum that are estimated to exist originally in naturally occurring accumulations, including the quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations, prior to production, plus those estimated quantities in accumulations yet to be discovered.

"Contingent resources" are defined as those quantities of petroleum estimated, on a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more  contingencies. Contingencies may include factors such as economic, legal, environmental, political and regulatory matters or a lack of markets. It is also appropriate to classify as "contingent resources" the estimated discovered recoverable quantities associated with a project in the early project stage.

There is no certainty that it will be commercially viable for the Company to produce any portion of the bitumen resources detailed in this press release. The high level of uncertainty associated with the Company's possible recovery of any of these resources is the result of various risks and uncertainties including: current uncertainties around the specific scope and timing of the development of the Company's oil sands properties; the ability of the Company to finance any potential oil sands projects at its properties; proposed reliance on technologies that have not yet been demonstrated to be commercially applicable in oil sands applications; lack of regulatory approvals; the uncertainty regarding marketing plans for production from the subject areas; and improved estimation of project costs. There are a number of inherent risks and contingencies associated with such development, including commodity price fluctuations, project costs and those other risks and contingencies discussed in more detail in the sections entitled "Forward-looking Statements and Information" in this press release.

Forward Looking Statements and Information

This news release contains certain forward-looking statements and information ("forward-looking statements") within the meaning of such statements under applicable securities law including management's assessment of the Company's properties, production and prospects.  Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "schedule", "target", "may", "will", "potential", "design", "predict", "proposed", and other similar words, or statements that certain events or conditions "may" or "will" occur.  In particular, this new release contains forward-looking statements and information with respect to: (i) the expectation that the acquisition of the oil sands rights described in this press release will be accretive to the Company; (ii) the Company's planned coring program on its newly acquired oil sands leases and the results therefrom, including the expectation that the leases will provide additional bitumen resources for the Company; (iii) the ability of the Company to receive the necessary regulatory approvals in respect of its oil sands projects in a timely manner, or at all; (iv) the ability of the Company to raise the necessary funds to proceed with the development of its oil sands projects; and (v) the results and timing of development in respect of the Company's oil sands projects (including in respect of estimated design capacities and simulated production numbers).  In addition, statements relating to "resources" are deemed to be forward looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the described resources exist in the quantities predicted or estimated, and can be profitably produced in the future. There is no certainty that it will be commercially viable to produce any portion of the resources described in this press release. Additional information regarding the disclosure of reserves and resources and the assumptions relating to the resources of the Company are discussed under "Disclosure of Resources" in this press release. These statements are only predictions.  Forward-looking statements are based on the opinions and estimates of management at the date of the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements.  These factors include the inherent risks involved in the exploration and development of oil sands and properties, the uncertainties involved in interpreting drilling results and other geological data, uncertainties relating to the ability of the Company to receive the necessary regulatory approvals in respect of its oil sands projects, uncertainties relating to the technologies associated with the Company's oil sands projects and whether the results of the Company's oil sands projects will meet designed capacities and simulated production numbers once operational, fluctuating oil and gas prices, the possibility of cost overruns or unanticipated costs and expenses, uncertainties relation to the availability and costs of financing needed to fund the Company's oil sands projects, the possibility that royalties and other government levies could be increased, and other factors including unforeseen delays.  As an oil sands focused enterprise, the Company faces risks, including those associated with exploration, development, regulatory approvals, fluctuations in commodity demand and commodity prices and the ability to access sufficient capital from external sources.  Anticipated exploration and development plans relating to the Company's properties are subject to change.

For a detailed description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company's annual financial statement and management discussion and analysis for the year ended December 31, 2009, which are available at www.sedar.com.  The Company undertakes no obligation to update such forward-looking statements or information if circumstances or management's estimates or opinion should change, unless required by law.

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.

%SEDAR: 00020297E

For further information:

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