CALGARY

Oct. 16

/CNW/ - Alberta Oilsands Inc. (the "Company" or "AOS") is pleased to announcethat it has arranged a $10,000,000 senior committed credit facility from a Canadian financial institution. On October15Th, 2009 the Company executed a letter agreement with Tosanca Capital Corporation and Toscana LP (or it assignees) as the lender. The purposeof the facility is to augment working capital and fund a portion of AOS's capital expenditure program focused on the completion and tie in of conventionaloil and gas wells over the next 12 months. The facility carries an initial 10% annualized coupon adjusted quarterly based on utilization. The facility is to be secured by a floating debenture. In connection with the facility the lender will be issued 650,000 warrants to purchase common shares of the company at $0.50 per share for a period of 18 months. The closing of the facility and warrant issue is subject to certain conditions including definitive agreement and applicable regulatory approval.

Alberta Oilsands Inc. is a technically driven high growth energy company focused on the development and conversion of the company's oil sands resourcesto reserves and the creation of long term sustainable value by increasingproduction and cash flow on relevant conventional oil and natural gas assets.