2012-10-04 19:40:27 -

Calgary, Alberta CANADA, October 04, 2012 /FSC/ - Alberta Oilsands Inc.("AOS" or the "Company")(AOS - TSX Venture),today announced it has received acceptance from securities regulatory authorities in each of the provinces of Canada for its previously announced rights offering (the "Offering") and has fixed the record date in connection with the Offering.

Pursuant to the terms of the Offering, and subject to applicable law, each registered holder of AOS Common Shares ("Shareholders") as of the close of business on October 16, 2012 (the "Record Date") will, in respect to each AOS Common Share held, be issued one (1) Right. Every one (1) Right will entitle the holder to purchase one (1) AOS unit ("Unit") at an exercise price of $0.10

per Unit until 5:00 p.m. (Toronto time) on November 19, 2012 (the "Rights Expiry Date"), after which unexercised Rights will be void and without value. Each Unit will consist of one (1) AOS Common Share and one AOS Common Share purchase warrant ("Warrant"). Each Warrant will entitle the holder thereof to purchase one (1) additional AOS Common Share at an exercise price of $0.30 per AOS Common Share at any time from the closing date of the Offering to up to 5:00 pm (Toronto time) on the date which is 24 months after such closing date.

The Rights will trade on the TSX Venture Exchange until 10:00 a.m. (Calgary time) on the Rights Expiry Date.

The Company's final prospectus dated October 2, 2012 which was filed in connection with the Offering (the "Prospectus"), which contains instructions on how to exercise the Rights, will be mailed following the Record Date to all Shareholders as of the close of business on the Record Date. This news release should be read together with the Prospectus, which contains more detailed information regarding the Offering and is available at www.sedar.com.

About AOS

Alberta Oilsands Inc. is engaged in the exploration and development of bitumen in the Athabasca oil sands region of northeast Alberta. Its head office is located in Calgary, Alberta, Canada and the AOS Common Shares are traded on the TSX Venture Exchange under the trading symbol "AOS".

For further information please contact:

GMFB Communications Inc.
(416) 907-9422
Email: achambers@gmfbcommunications.ca
Website: www.gmfbcommunications.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.

Forward-Looking Information

This press release contains certain "forward-looking information" within the meaning of applicable securities law including statements regarding the listing of the Rights on the TSX Venture Exchange, the date the Rights will cease trading on the TSX Venture Exchange and the date that the Prospectus will first be mailed to Shareholders.

Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "would", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. The forward-looking information contained in this press release is based on the assumption that the Offering will be completed in accordance with the timeline currently contemplated and that the Rights will be listed for trading on the TSX Venture Exchange. In addition, the forward-looking information included in this press release is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. These factors include the possibility that unforeseen circumstances may arise which delay the Offering. For a description of the risks and uncertainties facing AOS and its business and affairs, readers should refer to AOS's Annual Information Form for the year ended December 31, 2011. AOS undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change, unless required by law. The reader is cautioned not to place undue reliance on forward-looking statements.

To view this press release as a webpage, please click on the following link:
www.usetdas.com/pr/albertaoilsandsoct042012.htm


Source: Alberta Oilsands Inc. (TSX-V AOS) www.aboilsands.ca
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