Alberta Oilsands Inc. completes bought deal financing

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

CALGARY, Nov. 17 /CNW/ - Alberta Oilsands Inc. ("AOS" or the "Company") (AOS - TSXV) is pleased to announce that it has completed its previously announced bought deal prospectus offering (the "Offering"). At closing today, AOS issued 11,500,000 units ("Units") at a price of $0.40 per Unit and 12,778,000 common shares of AOS ("Common Shares") issued on a flow-through basis ("Flow-Through Common Shares") at a price of $0.45 per Flow-Through Common Share for aggregate gross proceeds of approximately $10.35 million. 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. 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 (collectively, the "Underwriters").

The Underwriters have been granted an option (the "Option") to purchase, on the same terms, any combination of additional units and Flow-Through Common Shares. This option is exercisable, in whole or in part, by the Underwriters, in their sole discretion, at any time before December 17, 2009. Additional gross proceeds of approximately $1.3 million will be realized, should the Option be exercised in full.

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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