Alberta Oilsands Inc. announces closing of bought deal financing



    
    /NOT FOR DISTRIBUTION TO THE U.S.A. NEWS WIRE SERVICES OR FOR
    DISSEMINATION IN THE U.S.A./
    

    CALGARY, Aug. 7 /CNW/ - Alberta Oilsands Inc. (the "Company") is pleased
to announce that it has closed its private placement offering originally
announced on July 10, 2008 (the "Private Placement"). In connection with the
Private Placement, the Company has sold 4,878,300 common shares at a price of
$0.75 per common share and 12,440,300 flow-through common shares at a price of
$0.95 per flow-through common share for aggregate gross proceeds of
$15,477,010. The Private Placement was led by Canaccord Capital Corporation
and included National Bank Financial Inc., BMO Nesbitt Burns Inc., Genuity
Capital Markets, GMP Securities L.P., Raymond James Ltd. and Richardson
Partners Financial Limited. In connection with the private placement, the
Company paid a commission to the underwriters of approximately $1.0 million.
    The proceeds from the Private Placement will be used to fund the
Company's 2008/09 capital expenditure program. Proceeds from the issuance of
the flow-through common shares will be used to incur Canadian exploration
expenses on continued exploration of the Company's oil and natural gas
properties in western Canada, including its Athabasca oil sands lands, prior
to December 31, 2009 and will be renounced to subscribers of the flow-through
common shares effective December 31, 2008.

    Forward-Looking Statements: This press release contains certain
"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", "project",
"intend", "believe", "anticipate", "estimate", "may", "will", "potential",
"proposed" and other similar words, or statements that certain events or
conditions "may" or "will" occur. 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, 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 focused 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, 2007, all of which are
available at www.sedar.com. The Company 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.

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy and accuracy of this release.

    Not for dissemination in the United States of America. This news release
shall not constitute an offer to sell or the solicitation of any offer to buy
securities of the Company in any jurisdiction, including the United States.
The common shares of the Company have not been and will not be registered
under the United States Securities Act of 1933, as amended (the "U.S.
Securities Act") or any state securities laws and have not been and will not
be offered or sold in the United States or to any U.S. person except in
certain transactions exempt from the registration requirements of the U.S.
Securities Act and applicable state securities laws.

    %SEDAR: 00020297E




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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