Alberta Oilsands Finalizes Farm-Out Deal For Algar Lake

Calgary, June 05, 2013 - Further to the press release on April 15, 2013, Alberta Oilsands Inc. ("AOS" or the "Company")is pleased to announce that it has entered into a Farm-Out Agreement with Crescendo Resources Ltd., a private operator ("Operator") whose team specializes in Oilsands exploration.

To earn the initial 51% interest in Algar Lake, the Operator has agreed to fully fund, drill, core, geophysically log and abandon at least three (3) holes. To earn an additional 24% interest in Algar Lake, the Operator has agreed to fully fund drill, core, geophysically log and abandon an additional two (2) holes. The Operator has up to two (2) years to earn its interest in Algar Lake. As consideration for entering into the Farm-Out Agreement, the Operator shall deliver $2 million to AOS ("Cash Consideration") within 60 days from the date of the Farm-Out Agreement.

Crescendo Resources Ltd. is a newly formed affiliated company of Canshale Corp., a Calgary based private resource company. The principles have extensive experience in oil sands exploration and development of both mineable and in-situ resources.

Binh Vu commented, "We are very pleased to complete this deal, which gives immediate recognition of Algar Lake's current value in the form of a cash payment to AOS. This transaction is also structured to unlock the potential value of Algar Lake by bringing to bear an operator that is highly experienced and has a history of success in making Oilsands discoveries."


About Alberta Oilsands Inc.

Alberta Oilsands Inc. is engaged in the exploration and development of drill-defined domestic assets, and an expanding portfolio of international projects. AOS holds 106 bitumen leases in the Athabasca oil sands region of northeast Alberta, primarily its flagship Clearwater and Grand Rapids projects. In addition, the Company's new Africa initiative is focused on active and known onshore and offshore basins on the East Africa Rift System and the offshore in pursuit of additional Cretaceous and Miocene aged critical mass opportunities. 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:

Alberta Oilsands Inc.
Binh Vu, Interim CEO & President
+1 416 951 8800
bvu@aboilsands.ca

GMFB Communications
Adam Chambers
+1 416 907 9422
achambers@gmfbcommunications.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.