Alberta Oilsands Clears $10 Million Private Placement Financing

Alberta Oilsands Inc. reported that it intends to raise approximately $10.0 million in a non-brokered private placement financing (the "Private Placement") by issuing up to 10,752,689 common shares (the "Shares") at a price of $0.93 per share. Certain accounts of a large Boston-based institutional money manager have agreed, subject to certain conditions, to subscribe for approximately $8.2 million of the Private Placement. No fees are payable in connection with such subscriptions. There is no minimum number of Shares that must be subscribed for under the terms of the Private Placement for the Private Placement to close and the Company may have more than one closing in respect of the Private Placement. Under the terms of the Private Placement the Company may pay certain fees in connection with up to $1.8 million of the financing (in connection with subscriptions other than the aforementioned accounts) on terms and conditions determined by the Company and in accordance with the policies of the TSX Venture Exchange.

The Private Placement financing is expected to close on or about January 25, 2008 and is subject to customary conditions including regulatory approval.

The proceeds of the financing, along with the Company's existing cash balance of approximately $11.0 million, will be used to fund the Company's 2008 capital expenditure program and for general corporate purposes.