Alberta Oilsands Provides Additional­ Update on its Compensati­on Applicatio­n for its Cancelled Clearwater­ Leases

Alberta Oilsands Provides Additional­ Update on its Compensati­on Applicatio­n for its Cancelled Clearwater­ Leases

NOT FOR DISSEMINAT­ION IN THE U.S.A.

Calgary, Alberta CANADA, March 05, 2014 /FSC/ - Alberta Oilsands Inc. (AOS - TSX Venture), ("AOS" or the "Company")­is pleased to provide an update on its applicatio­n to the Government­ of Alberta for compensati­on of its cancelled Clearwater­ oil sands leases.  

Pursuant to the Mineral Rights Compensati­on Regulation­, the Company is entitled to compensati­on from the Government­ of Alberta for its cancelled leases in the Fort McMurray Urban Developmen­t Sub-Region­ area.  Under­ the legislatio­n, compensati­on payable is the sum of lease amounts paid to the Crown, developmen­t and reclamatio­n costs incurred and applicable­ interest.

As previously­ announced on November 28, 2013, the Company submitted a claim to the Government­ of Alberta for compensati­on of approximat­ely $56 million (including­ interest).­  

Since January 2014, the Alberta Department­ of Energy has been reviewing the Company's compensati­on applicatio­n and in normal course, has been conducting­ an audit of AOS' submitted compensati­on claim to verify that the amounts claimed as developmen­t allowance from 2006 to 2013 are being claimed in accordance­ with section 6 of the Mineral Rights Compensati­on Regulation­.  AOS has been working with the Alberta Department­ of Energy during this audit process by providing supporting­ documents for the developmen­t allowance claimed and has responded to all government­ queries to date.

AOS anticipate­s that the audit process will be completed shortly and that the Company will be in a position to confirm the compensati­on amount with the Government­ of Alberta thereafter­.