PETROSANDS ANNOUNCES INCREASE TO EQUITY FINANCING

/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

TSX Venture Exchange
Trading Symbol: PCA

CALGARY, Dec. 23 /CNW/ - PetroSands Resources (Canada) Inc. ("PetroSands" or the "Company")(TSX-V:PCA) is pleased to announce that is has closed its previously announced private placement financing (the "Financing") which was announced in the Company's December 3, 2010 press release for total proceeds of approximately $5 million. In addition, the Company is pleased to announce that it intends on closing on an additional amount of up to $2 million on the same terms as the Financing.

The Financing is of units of the Company ("Units") at a price of $1.10 per Unit and is now for total gross proceeds of up to $7 million with the increase. Purchasers resident in the United States who purchase Units will receive Common Shares in the place of the Flow-Through Shares. As of the date hereof, the Company has issued a total of approximately 4.5 million Units, resulting in the issuance of approximately 9 million common shares in the capital of the Company and 9 million common share purchase warrants.

The foregoing securities will be subject to a four month hold period. Closing of the Financing is subject to, among other things, regulatory approval. Proceeds from the Financing are intended to be used to fund the Company's fourth quarter 2010 and first quarter 2011 drilling program and for general corporate purposes. The Company will be applying to list the Common Shares, Flow-Through Common Shares and Warrants on the facilities of the TSX Venture Exchange, such listing being subject to approval of the TSX Venture Exchange.

About PetroSands Resources (Canada) Inc.

PetroSands Resources (Canada) Inc. is a publicly traded junior oil and gas company focused on exploration and development of oil and natural gas in Canada. The Company remains focused on strategic acquisitions and aggressively expanding production, reserves and opportunistic transactions in this sector.  The Company holds in excess of 35,000 net acres of undeveloped land for production and exploration and currently has approximately 16.2 million shares outstanding.

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.

Forward-Looking Statements and Information: The forward-looking statements contained in this document are based on certain key expectations and assumptions made by PetroSands, including with respect to the anticipated closing date(s) of the Financing, use of proceeds of the Financing and the listing of the Common Shares, Flow-Through Shares and Warrants, expectations and assumptions concerning timing of receipt of required regulatory approvals and third party consents and the satisfaction of other conditions to the completion of the Financing and the listing of said securities.

Although PetroSands believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because PetroSands can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the failure to obtain necessary regulatory approvals or satisfy the conditions to closing the Financing, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures, the uncertainty of reserve estimates, the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuations and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Certain of these risks are set out in more detail in PetroSand's Management Discussion and Analysis which has been filed on SEDAR and can be accessed at www.sedar.com.

The forward-looking statements contained in this document are made as of the date hereof and PetroSands undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

For further information:

Chad Dust
Telephone: [phone]
Telephone: [phone]
E-mail:  [email protected]