Alberta Oilsands Corrects Inaccurate Statements Made by Smoothwater Capital Corp. on TSX Venture Exchange Decision

CALGARY, Sept. 8, 2016 - Alberta Oilsands Inc. ("AOS" or the "Corporation") (TSX VENTURE:AOS) wishes to correct certain inaccurate statements made by Smoothwater Capital Corporation ("Smoothwater") regarding the decision taken by the TSX Venture Exchange ("TSXV").

Earlier today, Smoothwater issued a press release (the "Smoothwater Press Release") stating that the TSXV has deferred its decision on the acceptance or denial of acceptance of the proposed plan of arrangement (the "Arrangement") involving AOS and Marquee Energy Ltd. until after the annual and special meeting of shareholders of AOS, scheduled for November 15, 2016 (the "AGM"), and further stated that AOS cannot proceed with the proposed business combination until after the annual meeting to elect the directors of AOS and the satisfaction of all relevant conditions.

In fact, the TSXV has advised both Smoothwater and AOS that the TSXV has determined that it will not require the approval of AOS shareholders as a condition for final acceptance of the Arrangement. Smoothwater elected to obscure this fact in its press release.

Further, the TSXV has confirmed that in the event that the courts do not require an AOS shareholder vote on the Arrangement and the AGM is permitted to proceed, as scheduled, on November 15, 2016, then the TSXV intends to consider granting conditional acceptance of the Arrangement at the conclusion of such court proceedings.

A hearing before the Court of Queen's Bench of Alberta is scheduled for September 13, 2016 to consider Smoothwater's allegations. AOS is of the view that such allegations are unfounded and motivated only by Smoothwater's self-interest in the pursuit of its short-term, opportunistic, capital dividend proposal. AOS reiterates that it believes that the proposed Arrangement will create value for AOS shareholders, and will provide AOS with an opportunity to emerge from a volatile commodity price environment as a well-funded growth vehicle focused on the sustainable development of a top tier oil resource play.

If AOS is successful at the pending court proceeding (including any appeal), AOS intends to seek the conditional approval of the TSXV at that time. If such conditional approval is obtained, AOS intends to close the Arrangement as scheduled on or about September 22, 2016.


ABOUT ALBERTA OILSANDS

Alberta Oilsands holds bitumen leases in the Athabasca oil sands region of northeast Alberta. The Corporation'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".


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.

Certain statements included in this press release constitute forward-looking statements or information ("forward-looking statements") 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 anticipated timing of regulatory approvals and the outcome of court proceedings.

Forward looking statements involves significant known and unknown risks and uncertainties, some of which are beyond the control of AOS, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to, business plans and expectations, the ability of the Corporation to consummate the contemplated transactions, the impact of general economic conditions, industry conditions, volatility of commodity prices, environmental risks, competition from other industry participants and the lack of availability of qualified personnel or management. Additional risks and uncertainties affecting AOS and its business and affairs are described in further detail in the Corporation's management's discussion and analysis of financial condition and results of operations for the period ended June 30, 2016.

Although AOS believes that the expectations in such forward-looking statements are reasonable, they are based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking statements. As such, readers are cautioned not to place undue reliance on the forward-looking statements, as no assurance can be provided as to future results, levels of activity or achievements. 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. The forward-looking statements contained herein are expressly qualified by this cautionary statement.

NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES



Contact

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