Alberta Oilsands Strengthens its Board of Directors

Alberta Oilsands has appointed, subject to regulatory approval, Mr. Adrian Goodisman, MSc, of Houston, Texas, to the Board of Directors of the Company.

Mr. Goodisman is a Managing Director for Scotia Waterous, the global oil and gas M&A arm of Scotia Capital. He brings investment banking experience, with a specialization in M&A, and more than 18 years exploration and production experience to the Board, gained primarily in the United States and Canada, and internationally in Asia, Europe and South America. Prior to joining Scotia Waterous, Mr. Goodisman was Senior Vice President with Ziff Energy Group, during which time he opened its U.S. office and led the development of its upstream products and services. He also spent nine years with Phillips Petroleum acquiring technical expertise primarily in field exploitation and acquisitions and divestitures. Mr. Goodisman currently serves on the Palmer Drug Abuse Program (PDAP) Board of Trustees, and sits on the Advisory Board of the Bilateral US-Arab Chamber of Commerce. He also serves on the Capital Markets Committee of the Independent Producers Association of America (IPAA), and has served in a variety of positions with the Society of Petroleum Engineers (SPE) including: Chairman, Canadian Section; Chairman, International Membership Committee; and Director, Gulf Coast (Houston) Section. For the 2001/2002 season, he served as an SPE distinguished lecturer. Mr. Goodisman holds an Honours Bachelor of Science degree in Mathematics from the University of Salford, United Kingdom and a Masters of Science degree in Petroleum Engineering from the University of Texas, Austin. Additionally, he is a registered broker dealer in the U.S. holding Series 24, 7 and 63 licenses.

Mr. Shabir Premji, Executive Chairman of the Company, stated, "We are extremely pleased to have an individual with Mr. Goodisman's qualifications, credentials and skills join the Company's Board of Directors. This appointment is expected to contribute greatly to the execution of the overall strategic direction and plans of AOS."

In connection with the appointment of Mr. Goodisman to the Board of Directors, the previously announced appointment of officers of the Company on July 23, 2007 and the establishment of consulting arrangements, certain insiders and consultants of the Company will subscribe for, subject to regulatory approval, 230,769 common shares of the Company on a private placement basis at a price of $1.30 per common share, the closing market price of the common shares of AOS on August 30, 2007, for total gross proceeds of approximately $300,000. Subject to regulatory approval, the Company has also approved the grant of an aggregate of 425,000 stock options to a director and to consultants of the Company. The options will be granted with an exercise price of $1.30 per common share and will expire five years from the grant date.