Alberta Oilsands Inc. $10,000,000 senior committed credit facility

    
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CALGARY, Oct. 16 /CNW/ - Alberta Oilsands Inc. (the "Company" or "AOS") is pleased to announce that it has arranged a $10,000,000 senior committed credit facility from a Canadian financial institution. On October 15Th, 2009, the Company executed a letter agreement with Tosanca Capital Corporation and Toscana LP (or it assignees) as the lender. The purpose of the facility is to augment working capital and fund a portion of AOS's capital expenditure program focused on the completion and tie in of conventional oil and gas wells over the next 12 months. The facility carries an initial 10% annualized coupon adjusted quarterly based on utilization. The facility is to be secured by a floating debenture. In connection with the facility the lender will be issued 650,000 warrants to purchase common shares of the company at $0.50 per share for a period of 18 months. The closing of the facility and warrant issue is subject to certain conditions including definitive agreement and applicable regulatory approval.

Alberta Oilsands Inc. is a technically driven high growth energy company focused on the development and conversion of the company's oil sands resources to reserves and the creation of long term sustainable value by increasing production and cash flow on relevant conventional oil and natural gas assets.

Forward-Looking Statements and Information: This press release contains certain forward-looking statements and information ("forward-looking statements") within the meaning of such statements under applicable securities law including management's assessment of the Company's properties, production and prospects. Forward-looking statements are frequently characterized by words such as "plan", "expect", "indicative", "project", "intend", "believe", "design", "anticipate", "estimate", "may", "will", "potential", "predict", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. In particular, this news release contains forward-looking statements and certain forward-looking financial information with respect to: (i) possible SAGD development (including the timing of such development and any future values associated therewith) on the Company's oil sands properties, including in respect of pilot projects and further development in respect of its Fort-McMurray properties; (ii) the possibility that certain of the Company's resources may be classified as "reserves" in the future; (iii) the results of the Company's oil sands development; (iii) the results achieved from implementing new technologies; and (iv) the Company's ability to fund its future developments. These statements are only predictions. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are 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 statements. These factors include the inherent risks involved in the exploration and development of oil sands properties, the uncertainties involved in interpreting drilling results and other geological data and in utilizing unproven technologies, the possibility that royalties and other government levies could be increased, fluctuating oil prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors including unforeseen delays. As an oil sands focussed enterprise, the Company faces risks, including those associated with exploration, development, approvals and the ability to access sufficient capital from external sources. Anticipated exploration and development plans relating to the Company's properties are subject to change. For a detailed description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company's annual financial statements, management discussion and analysis and annual information form for the year ended December 31, 2008 as well as the Company's management discussion and analysis for the period ended June 30, 2009, all of which are available at www.sedar.com.The Company undertakes no obligation to update such forward-looking statements or information if circumstances or management's estimates or opinions should change, unless required by law. Barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

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.

%SEDAR: 00020297E

SOURCE ALBERTA OILSANDS INC.

For further information: For further information: Alberta Oilsands Inc., Suite 2800, 350 - 7th Avenue S.W., Calgary, Alberta, T2P 3N9, Shabir Premji, Executive Chairman, T: (403) 232-3341, F: (403) 263-6702, spremji@aboilsands.ca, or Chad Dust, Executive Vice President Finance and Business Development, T: (403) 538-3191, F: (403) 263-6702, cdust@aboilsands.ca; Company website: www.aboilsands.ca

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ALBERTA OILSANDS INC.

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