Alberta Oilsands Inc. announces closing of over-allotment option

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

CALGARY, Nov. 25 /CNW/ - Alberta Oilsands Inc. ("AOS" or the "Company") (AOS - TSXV) is pleased to announce that it has closed the sale of an additional 1,281,250 units ("Units") at a price of $0.40 per Unit, pursuant to the over-allotment option exercised by the underwriters in connection with its public offering of securities which closed on November 17, 2009. The exercise of the over-allotment option brings the total number of Units sold by the Company in this public offering to 12,781,250 and, together with the 12,778,000 common shares of the Company sold on a "flow-through" basis by the Company on November 17, 2009 at a price of $0.45 per share, brings the total gross proceeds of the public offering to $10,862,600. The syndicate of underwriters was led by Canaccord Capital Corporation and included Scotia Capital Inc., Genuity Capital Markets, Raymond James Ltd. and Octagon Capital Corporation.

Each Unit consists of one common share of AOS and one common share purchase warrant of AOS (a "Warrant"), where each whole Warrant will entitle the holder thereof to acquire one common share from the Company at a price of $0.50 per common share at any time prior to 5:00p.m. (Calgary time) on November 17, 2011.

Proceeds of the offering will be used to fund a portion of the Company's ongoing capital program with the Flow-Through Common Share proceeds used to incur eligible Canadian exploration expenditures that will be renounced to subscribers effective on or before December 31, 2009.

The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Forward-looking statements: This press release contains forward looking statements. More particularly, this press release contains statements concerning the anticipated use of the net proceeds of the offering. Although AOS believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because AOS can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The intended use of the net proceeds of the offering by AOS might change if the board of directors of AOS determines that it would be in the best interests of AOS to deploy the proceeds for some other purpose.

The forward looking statements contained in this press release are made as of the date hereof and AOS undertakes no obligations to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

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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