$50 mil Farm-in Deal for Algar Lake and Immediate Non-Dilutive Financing Announced by Concerned Shareholders of Alberta Oilsands Inc.

TORONTO, ONTARIO--(Marketwire - June 24, 2012) - The Concerned Shareholders ("New Board") of AOS are pleased to announce that an agreement in principle ("Farm-in Agreement") has been reached with a large, private US based E & P company ("Company") whereby the Company would be prepared to farm into AOS's 51 exploration permits at Algar Lake, after the election of the New Board.

The Company would have the option to earn up to 80% of AOS's working interests in the 51 Algar Lake sections by spending $45 million over a phased 36-month exploration and development program to take Algar Lake to production. AOS would have a claw-back right over 29% such that AOS can retain a total 49% interest in Algar Lake, subject to repayment of a percentage of costs, at its election, at the end of the period.

In addition, under the terms of the Farm-in Agreement, the Company would upon closing deliver $5 million to AOS which will act as an important zero-dilution financing for shareholders.

Joe Francese commented, "Algar Lake is a promising part of the asset base that currently isn't being touched. We are extremely pleased and excited to have been able to reach this agreement in principle with a Company that has the financial and technical ability to build stand-alone 'company-making' value, a multiple of the current market capitalization of AOS, on just this asset alone. The addition of this new capital, and the low risk development of one of Alberta Oilsands Inc's assets is a huge leap forward in the New Board's stated revitalization plan."

"This is a major example, but only the first example, of the value that the New Board will deliver to fellow AOS shareholders immediately, by bringing its existing long-term relationships to bear with groups that want to work with the New Board. Transactions like this should result in an immediate re-rating of AOS in the market, once the New Board is elected."

"We are thrilled by the overwhelming wave of retail support that we have received so far, however every vote still counts. Please see the instructions below to vote your proxy no later than 5pm Monday."

Paradigm Capital Inc. is advising the New Board on this transaction. The transaction remains subject to satisfaction of certain conditions precedent, including all regulatory approvals.

** IMPORTANT: If shareholders have already voted using the blue management proxy, CHANGE YOUR VOTE simply by executing and submitting the GREEN form of proxy; as it is the later-dated proxy that will be counted. If a shareholder is no longer in possession of his/her GREEN proxy, simply call Phoenix Advisory Partners toll free at 1-800-294-4817 and they will arrange to have your GREEN proxy voted.

If you require assistance voting your GREEN proxy, please contact Phoenix Advisory Partners toll free at 1-800-294-4817 or visit www.saveAOS.com to vote NOW.

Once there, click on the big green VOTE button and simply type in your control number listed on your GREEN proxy which you received in the mail.

TO BE EFFECTIVE, GREEN PROXIES MUST BE RECEIVED BEFORE AND NO LATER THAN 5:00 P.M. (CALGARY TIME) ON JUNE 25, 2012