Alberta Oilsands Inc. announces first quarter 2010 results

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

CALGARY, May 28 /CNW/ - Alberta Oilsands Inc. ("Alberta Oilsands" or the "Company") (TSXV: AOS) is pleased to announce that it has filed with Canadian securities authorities its interim unaudited consolidated financial statements and management's discussion and analysis for the interim period ended March 31, 2010.

After the end of the first quarter, on May 20, 2010, Alberta Oilsands announced that it had achieved an important milestone towards commercial production at its Clearwater West property. The Company received a National Instrument 51-101 compliant third party evaluation by Ryder Scott Company Canada Petroleum Consultants ("Ryder Scott"), with an effective date of March 31, 2010, that assigned 67.6 million barrels of Probable plus Possible (3P) bitumen gross lease reserves on approximately one section of the Company's 100% working interest lands in the Clearwater West area, southeast of the City of Fort McMurray. Lease reserves are gross volumes before deductions for capital costs, operating costs, royalties and encumbrances. Of the 67.6 million barrels, 16.3 million barrels are classified as Probable bitumen reserves and 51.3 million barrels are classified as Possible bitumen reserves. The Company's 100% working interest in these lands is subject to a 2% Gross Overriding Royalty granted by the Company to the Fort McMurray Airport Authority. This classification of reserves stems from the Company's filing of a pilot project application in respect of its Clearwater West project area with regulatory authorities in Alberta on January 15, 2010. Please refer to the Company's news release dated May 20, 2010 for more detailed information included in the Ryder Scott report.

Copies of the filed documents and the Company's May 20, 2010 news release may be obtained through www.sedar.com.

Definitions

"Proved reserves" means those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated Proved reserves.

"Probable reserves" means those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated Proved plus Probable reserves.

"Possible reserves" means those additional reserves that are less certain to be recovered than probable reserves. It is unlikely that the actual remaining quantities recovered will exceed the sum of the estimated Proved plus Probable plus Possible reserves.

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. In particular, this press release contains statements relating to "reserves" which are deemed to be forward looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the described reserves exist in the quantities predicted or estimated, and can be profitably produced in the future. There is no certainty that it will be commercially viable to produce any portion of the reserves described in this press release. Forward-looking statements are based on the opinions and estimates 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 and properties, the uncertainties involved in interpreting drilling results and other geological data, uncertainties relating to the ability of the Company to receive the necessary regulatory approvals in respect of its Clearwater West pilot project application, uncertainties relating to the availability and costs of financing needed to fund the Clearwater West pilot project, uncertainties relating to the technologies associated with the Clearwater West pilot project and whether the results of the Clearwater West pilot project will meet designed capacities and simulated production numbers once operational, fluctuating oil and gas prices, the possibility of cost overruns or unanticipated costs and expenses, the possibility that royalties and other government levies could be increased, and other factors including unforeseen delays. As an oil sands focused enterprise, the Company faces risks, including those associated with exploration, development, regulatory approvals, fluctuations in commodity demand and commodity prices 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 and management discussion and analysis for the year ended December 31, 2009 and for the three months ended March 31, 2010, 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.

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.

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 securities 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

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, T: (403) 538-3191, cdust@aboilsands.ca; Company website: www.aboilsands.ca

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ALBERTA OILSANDS INC.

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