SOURCE: Arctic Oil & Gas Corp.

December 01, 2008 07:00 ET

Arctic Oil & Gas Corp. (AOAG): Norton Sound Oceanic Placer Gold Project; Up to 500,000 Ounce per Year Gold Production

AOAG: 80% Equity

LAS VEGAS, NV--(Marketwire - December 1, 2008) - Arctic Oil & Gas Corp. (PINKSHEETS: AOAG) (360 million shares issued), a resources exploration company, is pleased to announce the Company has set up a new division to pursue precious metals resource opportunities.

The Company's management has many years experience in exploring for and developing gold mines. Management believes that by developing its new precious metals division it will create shareholder value more quickly as gold is a resource which is enjoying high prices and rapid increases in physical demand.

With the cataclysmic downfall of financial institutions that were seemingly indestructible, investors around the world are looking for ways to protect their capital. Gold, as no one's liability, is the safest financial asset; investors can store savings in their own vault, safe from the closure or expropriation of fragile banks and brokers.

The Company intends to develop a slate of profitable Gold projects with low geological-technical risks. Accordingly, the Company is a 80% equity partner in a new large gold prospect the "Norton Sound Oceanic Placer Gold Project."

Norton Sound Alaska, OCS 720 square mile OCS Gold Leases Application

(1-10 million ounce Gold targeted placer resource potential)

In 1991 the MMS indicated that a small portion of the lease application area could yield as much as 1,060,000 ounces of gold from gold bearing placer deposits at or near the seafloor extending up to 10 miles seaward beyond the State of Alaska's 3-mile coastal waters limit.

The advent of modern high-capacity suction cutter dredges has transformed the dredging industry and dramatically lowered large-scale mining costs to less than $1/M3. The application of large-scale dredging equipment, coupled to computer-controlled gravity gold recovery plant could make the Nome offshore placers very profitable today.

Mining costs could be approximately $4.00/M3 with targeted recoverable grades of approximately 0.50 grams/M3 ($13.00/M3) resulting in Gold production costs of less than $300/ounce.

The Company is preparing a private LLC offering memorandum for institutional investors looking for diversification away from paper money into hard gold assets via gold production sharing arrangements to fund this project and other gold mines.

There is no guarantee that the OCS leases will be granted to the Applicants on the terms proposed.

Active negotiations are underway on additional offshore and onshore permitted gold properties with immediate development potential.

OIL-GAS: The Company and partners have speculative Claims and lease applications over four large areas with proven and potential oil and or gas reserves. There is political "Title Risk" but low geological "Reserve Risk" associated with each of these projects. The Company believes that at some point in the near future the oil price will rise to levels which justify the development of these projects.

Please visit and

This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Actual results may differ from management's expectations. These forward-looking statements involve risks and uncertainties that include, among others, risks associated with oil & gas exploration risks related to competition, management of growth, new products, services and technologies, potential fluctuations in operating results, international expansion, commercial agreements, acquisitions and strategic transactions, government regulation and taxation. More information about factors that potentially could affect AOAG's financial results is included in its filings with the Securities and Exchange Commission.

Contact Information