Mr. Binh Vu reports

ALBERTA OILSANDS INC. PROVIDES CORPORATE UPDATE

Since May, 2015, Alberta Oilsands Inc. has been involved in active discussions with various parties in connection with its strategic review process. AltaCorp Capital was engaged by the company in December, 2014, to provide financial advisory services in connection with this strategic review process. However, AltaCorp Capital has been unsuccessful in identifying a suitable option that was acceptable to the company. Notwithstanding the foregoing, the company believes that there remain options outside of the process with AltaCorp Capital that are worthy of further investigation, and, as such, Alberta Oilsands continues to actively evaluate opportunities. The engagement with AltaCorp Capital has been terminated and the company has engaged Tiger Capital Advisors Inc. to advise Alberta Oilsands on its continuing strategic review.

Tiger Capital Advisors is an energy industry consulting firm based in Calgary, Alta. Warren Holmes, Tiger Capital's founder and lead principal, has over 30 years of experience advising and financing both private and public companies in Canada's energy sector.

Parties interested in investigating possible opportunities with Alberta Oilsands may contact Mr. Holmes, director of Tiger Capital Advisors, at 403-860-1944 or at wholmes@shaw.ca.

The company continues to make available to such parties access to proprietary technical, financial, legal and other confidential information. In turn, Alberta Oilsands has been reviewing similar data made available by parties for purposes of the company determining whether the identified opportunities would maximize value for the company's cash and assets. The evaluation of such opportunities is based on certain criteria that include, but are not limited to: the quality of proposed management and board members, the valuation of a party's assets, and the proposed go-forward business plan to further enhance shareholder value.

The company has a total of 212,032,057 issued and outstanding common shares. In addition to the company's existing assets and no debt (other than trade and income tax payables), the company has a cash balance of $33,665,268, or approximately 15.8 cents per issued and outstanding share, as at the period ended Sept. 30, 2015. Until the company's strategic review is completed, and a transaction (if any) arising therefrom is approved, the company does not intend on making any new capital commitments.

While the company continues its strategic review process, there can be no assurance that any agreement or transaction will occur, or if a transaction is undertaken, as to its terms or timing. Given the nature of the strategic review process and the need for confidentiality during this process among all parties, the company does not intend to provide detailed updates until such time as the board of directors has approved a definitive course of action and/or the company has entered into a definitive agreement, or unless otherwise required by law or regulation or disclosure of which is deemed appropriate.

On May 26, 2015, the company announced that it was in receipt of compensation from the Province of Alberta for the cancellation of its oil sands leases located within the Fort McMurray urban development subregion. In the same announcement, the company also stated that it would continue to review its options to increase the compensation amount. After further review with various legal advisers regarding potential additional remedies with respect to this matter, Alberta Oilsands has concluded that it will not pursue any further action to seek additional compensation from the Province of Alberta.

We seek Safe Harbor.