Alberta Oilsands Provides Updated Corporate Overview of Assets and Activities

Calgary, July 31, 2013 - Alberta Oilsands Inc. (AOS - TSX Venture), ("AOS" or the "Company") is pleased to provide a corporate update to its shareholders and to outline the current and ongoing state of affairs of the Company.


DOMESTIC ASSETS

1. Clearwater (~20 thousand acres) - As reported on July 26, AOS has been informed that it's 100% owned Clearwater property located in the Urban Development Sub-Region of Fort McMurray is being cancelled by the Province of Alberta in order to facilitate the expansion of the City limits of Fort McMurray.

The Mineral Rights Compensation Regulation (Alberta Regulation 317/2003) establishes the compensation payable by the Crown for cancelled agreements. Compensation includes at least the following:

1. Cost of acquiring the lease including annual license fees and application fees;

2. Wasted exploration and development expenditures;

3. Reclamation costs;

4. Interest of approximately 5 per cent (calculated as Alberta Treasury Branch prime plus 1 per cent).

In the near future, the Company expects to receive an official notice of cancellation from the Province of Alberta setting out details of the cancellation.

To date, AOS has spent approximately $51-million in the acquisition and development of Clearwater. AOS will work with the Province to facilitate a timely and equitable remuneration for its shareholders.

2. Grand Rapids (~11 thousand acres) - The 100% owned Grand Rapids property located in Northeastern Alberta, Township 088, Ranges 11 and 12 W4M consists of 18 sections and hosts 119 million barrels of best estimate contingent resources of bitumen, as outlined in GLJ Petroleum Consultants Ltd.'s NI 51-101 compliant resource report dated effective December 31, 2012 (the "GLJ Report").

AOS recently had its consultants Petrospec complete an estimated ultimate recovery (EUR) study to model potential development scenarios to access the resources and through the modeling, gain a better understanding of the potential recovery factor. The Company is pleased with the information from the study and will utilize it to aid in conversations with potential partners.

AOS is examining its options to advance the Grand Rapids project. As of the date of the last GLJ Report, Grand Rapids has a PV10 of C$333 million.

3. Algar Lake (~32 thousand acres) - As per the press release dated June 5, AOS is encouraged by the agreement with its new partner Crescendo, which is expected to close in the month of August. Crescendo is comprised of a team that includes highly skilled explorationists who have twice made billion barrel discoveries in Canada's oilsands region.

The 3 legacy holes at Algar Lake demonstrate a geology which illustrates the potential for lower viscosity oil Wabiskaw/McMurray formations. This presents a possibility of oil reservoirs that could be amenable to cold-flowing or CHOPS (Cold Heavy Oil Production With Sand) production methods, similar to proximal operations such as the Pelican Lake project to the south-west.

4. Mackay (~3 thousand acres) - AOS is pleased to see the recent success of its neighbours in successfully taking the STP-Mackay SAGD project to over 4,000 barrels per day of production, as reported on July 8, 2013 by Southern Pacific Resource Corp. AOS is examining its options to advance the Mackay lands.


INTERNATIONAL ASSETS

1. Zambia (~18 million acres) - Alberta Oilsands is extremely pleased with the land package that it has assembled in Zambia, which covers three rift systems and two lakes, including the important Lake Tanganyika.

The Company is highly encouraged by the activity on Lake Tanganyika including 2 ongoing seismic programs, and one recently completed by Beach Energy, bordering AOS's lake position. There are geological similarities between Lake Tanganyika and Lake Albert to the North, which hosts 3.5 billion barrels of oil reserves (according to information by Uganda's Ministry of Energy), and Lake Tanganyika has substantial evidence of a working petroleum system including the presence of what is thought to be the world's largest natural oil seep.

Alberta Oilsands intends to continue a formal process of evaluating its acreage and the possibility of partnerships or farm-downs, in Q3.

2. Namibia (~2.5 million acres) - AOS has been monitoring with interest the progress of oil and gas companies operating offshore Namibia. AOS is encouraged by results of HRT's Wingat-1 well, which established a working petroleum system in the deeper waters of Namibia. The recovery of light oil and the identification of two high-total-organic-content source rock intervals confirms HRT's view that multiple mature, oil-prone source rocks are present in the deep offshore, as reported in HRT's May 20, 2013 press release.

HRT reported on July 19, 2013 that it is now moving its Transocean Marianas rig to the test the Moosehead Prospect within PEL-24 block, which directly borders AOS's block 2712A. Moosehead-1 is a multi-billion barrel prospect which HRT has rated at a 25% Chance of Success as indicated by HRT in its June 2013 corporate presentation. Drilling is anticipated to start in late August or early September.

3. DRC (~1 million acres) - The Company, in partnership with Pan African Oil Ltd. has completed its desktop study as required under the MOU with the government. The DRC Lake Tanganyika MOU covers Blocks 5 (Kalembe) and Block 6 (Fatuma) in the Kalemie sub-basin.

AOS anticipates that its partners will be in a position to begin negotiating terms for a PSA with the government of the DRC in Q3.

4. Other - The Company is examining opportunities which meet its criteria as set out in a press release dated November 19, 2012, in Ethiopia, Chad, Burundi, and several West African nations.


UPCOMING MILESTONES REVIEW

1. Clearwater - government remuneration process initiated (expected in Q4 2013)

2. Namibia - drilling by HRT Participacoes SA of a ~$100 million well directly bordering AOS's block on a multi-billion barrel prospect begins in August/September (Q3/Q4 2013)

3. Algar Lake - initial drill program conducted by Crescendo of 3 - 5 wells (Q1 2014)

4. Partnerships - ongoing discussions on both domestic and international assets (ONGOING)

In addition to the ongoing management of the Company and its assets, management and the board continue to evaluate all strategic methods and alternatives at its disposal to maximize shareholder value including, but not limited to:

Assets divestitures, cash dividends to shareholders, farm-outs, further accretive acquisitions and farm-ins, joint-ventures, potential combinations, share buybacks, spinouts and share or cash dividends, partnerships, and the outright sale of the Company.

Discussions with numerous groups are ongoing, but there is no guarantee that any transaction(s) will materialize until definitive agreements are reached.

AOS currently has 211,482,057 issued and outstanding common shares, and as of March 31, 2013, the Company had current assets of approximately $6.76-million.


WEBSITE AND EMAIL SIGNUP

Please visit us at www.aboilsands.ca to view the corporate presentation, as well as to subscribe to the Email List to be informed of news as it is released.


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 bitumen leases in the Athabasca oil sands region of northeast Alberta. In addition, the Company's new Africa initiative is focused on active and known onshore and offshore basins with an emphasis on Cretaceous and Miocene aged critical mass opportunities. The Company's head office is located in Calgary, Alberta. Common shares are traded on the TSX Venture Exchange under the trading symbol AOS. For more information, go to www.aboilsands.ca.



For further information please contact:

Alberta Oilsands Inc.
Binh Vu
416-825-2031
bvu@aboilsands.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.


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.

The present value referred to herein should not be construed as the fair market value of estimated resources attributable to the Grand Rapids property. The estimated discounted future revenue is based upon price and cost estimates which may vary from actual prices and costs and such variance could be material. Actual future net revenue will also be affected by factors such as the amount and timing of actual production, supply and demand for bitumen, crude oil and natural gas, curtailments or increases in consumption by purchasers and changes in governmental regulations or taxation. Canadian Oil and Gas Evaluation Handbook (COGEH) criteria were used in assessing the resources categories in the GLJ Report. The reclassification of these volumes from resources to reserves is contingent upon further reservoir studies, delineation drilling, facility design, preparation of firm development plans, regulatory applications, and company approvals.

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.


Analogous Information

Certain information in this document may constitute "analogous information" as defined in National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101"), including, but not limited to, information relating to the areas in geographical proximity to prospective exploratory lands held or to be to be held by AOS. Such information has been obtained from government sources, regulatory agencies or other industry participants. Management of AOS believes the information is relevant as it helps to define the reservoir characteristics in which AOS may hold an interest. AOS is unable to confirm that the analogous information was prepared by a qualified reserves evaluator or auditor. Such information is not an estimate of the reserves or resources attributable to lands held or to be held by AOS and there is no certainty that the reservoir data and economics information for the lands held or to be held by AOS will be similar to the information presented herein. The reader is cautioned that the data relied upon by AOS may be in error and/or may not be analogous to such lands held or to be held by AOS.


Forward Looking Statements and Information

Certain statements included in this press release constitute forward-looking statements or forward-looking information under applicable securities legislation. Forward-looking statements or information typically contain statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "potential", "propose", or similar words suggesting future outcomes or statements regarding an outlook. Specific forward-looking statements in this press release include statements with respect to the timing and amount of compensation to be received from the Province of Alberta for the Clearwater property, the timing of closing the agreement with Crescendo in respect of the Algar Lake property, potential geological formations and reservoirs, possible future production methods for developing the Company's properties, the anticipated timing and scope of its drilling program, the anticipated timing with respect to negotiating a PSA in the Democratic Republic of Congo, the Company's intentions with respect to its international strategy and its continued strategic review and evaluation of its various properties.

Forward looking information is based on management's expectations regarding the Company's future financial position, the satisfaction and timing of receipt of required regulatory and stock exchange approvals, the results of geological and geophysical studies on the Company's properties, future negotiations, future commodity prices and foreign exchange rates, future capital and other expenditures (including the amount, nature and sources of funding thereof), plans for and results of drilling activity, environmental matters, business prospects and opportunities and future economic conditions. Forward looking information involves significant known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to: the risks associated with the oil and gas industry (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 and resource estimates, the uncertainty of geological interpretations, the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks); the political, regulatory and economic regimes in the Democratic Republic of Congo, Namibia and Zambia; the actions of competitors and prospective partners; the risk of commodity price and foreign exchange rate fluctuations; and the risks associated with the impact of general economic conditions.

Additional risks and uncertainties affecting AOS and its business and affairs are described in further detail in the Company's Annual Information Form for the year ended December 31, 2012. Although AOS believes that the expectations in such forward looking information are reasonable, there can be no assurance that such expectations shall prove to be correct. The forward looking information included in this press release is expressly qualified in its entirety by this cautionary statement. The forward looking information included herein is made as of the date of this press release and AOS assumes no obligation to update or revise any forward looking information to reflect new events or circumstances, except as required by law.

NOT FOR DISSEMINATION IN THE U.S.A.