Alberta Oilsands Inc. Provides Notice to Smoothwater Capital Corporation on Previous Requisition Notice

CALGARY, ALBERTA--(Marketwired - Aug. 26, 2016) -

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

Alberta Oilsands Inc. ("AOS") (TSX VENTURE:AOS) announces that further to its press release on August 23, 2016, AOS has provided notice to Smoothwater Capital Corporation ("Smoothwater") that, due to the fact that the notice received from Smoothwater on August 22, 2016, under the AOS advance notice by-laws (for the nomination of five Smoothwater nominee directors at AOS's next annual meeting of shareholders) (the "Nomination Notice") is contradictory to the business proposed in the requisition of a shareholder meeting received from Smoothwater on March 28, 2016 (the "Requisition") to replace three AOS directors with three Smoothwater nominee directors, AOS considers the Requisition to have been abandoned. As a result, AOS will not be transacting the business set out in the Requisition at its upcoming annual meeting of shareholders to be held on November 15, 2016.

AOS has further provided notice to Smoothwater that the content of the Nomination Notice has not been received in proper written form pursuant to the AOS advance notice by-laws.

ABOUT ALBERTA OILSANDS

AOS 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.