Alberta Oilsands Provides Additional Update on its Compensation Application for its Cancelled Clearwater Leases

Alberta Oilsands Provides Additional Update on its Compensation Application for its Cancelled Clearwater Leases

NOT FOR DISSEMINATION IN THE U.S.A.

Calgary, Alberta CANADA, March 05, 2014 /FSC/ - Alberta Oilsands Inc. (AOS - TSX Venture), ("AOS" or the "Company")is pleased to provide an update on its application to the Government of Alberta for compensation of its cancelled Clearwater oil sands leases.  

Pursuant to the Mineral Rights Compensation Regulation, the Company is entitled to compensation from the Government of Alberta for its cancelled leases in the Fort McMurray Urban Development Sub-Region area.  Under the legislation, compensation payable is the sum of lease amounts paid to the Crown, development and reclamation costs incurred and applicable interest.

As previously announced on November 28, 2013, the Company submitted a claim to the Government of Alberta for compensation of approximately $56 million (including interest).  

Since January 2014, the Alberta Department of Energy has been reviewing the Company's compensation application and in normal course, has been conducting an audit of AOS' submitted compensation claim to verify that the amounts claimed as development allowance from 2006 to 2013 are being claimed in accordance with section 6 of the Mineral Rights Compensation Regulation.  AOS has been working with the Alberta Department of Energy during this audit process by providing supporting documents for the development allowance claimed and has responded to all government queries to date.

AOS anticipates that the audit process will be completed shortly and that the Company will be in a position to confirm the compensation amount with the Government of Alberta thereafter.