July 6, 2011

TD Securities

Unconventional Energy Conference

Forward-Looking Information and Advisories

This presentation contains "forward-looking information" within the meaning of applicable Canadian securities laws. Forward-looking information is included in this presentation with respect to, among other things: estimates of reserves and resources and future net revenue associated therewith; forecast netbacks and the anticipated benefits thereof; anticipated timing associated with the phased development of Alberta Oilsands Inc.'s ("AOS'") Clearwater, Hangingstone, Grand Rapids and Algar Lake properties (including anticipated timing for receipt of regulatory approvals, delineation, drilling, completion project plans, commencement of construction, first-steam, commencement of production and timing of stakeholder consultations); expectations of future production and bitumen production goals; the anticipated application of certain technologies to enhance production; funding requirements and capital expenditures associated with such development; achieving commerciality; future development of AOS' conventional assets and its reserves and resource base; and general operational and financial performance in future periods. With respect to forward-looking information contained in this presentation, AOS has made assumptions regarding, among other things: the future growth of AOS, operating costs; future prices for crude oil, natural gas, bitumen and refined products; AOS' ability to generate sufficient cash flow from operations and to access existing credit facilities and capital markets to meet its future obligations; the legal and regulatory framework representing royalties, taxes and environmental matters where AOS conducts its business; and future economic conditions. Although the forward-looking information contained in this presentation is based upon assumptions which management of AOS believes to be reasonable, AOS cannot assure investors that actual results will be consistent with this forward-looking information. Forward-looking information involves significant known and unknown risks and uncertainties. A number of factors, many of which are beyond the control of AOS could cause actual results to differ materially from the results discussed in the forward-looking information. Some of the risks that could affect the future results of AOS and could cause results to differ materially from those expressed in the forward-looking information of AOS include: the need to obtain required approvals and permits from regulatory authorities; the impact of competition; compliance with and liabilities under environmental laws and regulations; the uncertainties of estimates by AOS' independent consultants with respect to the company's reserves and resources; the volatility of crude oil, natural gas, bitumen and refined product prices; economic conditions in Canada and globally; changes to royalty regimes and government regulations regarding royalty payments; risks associated with exploring for, developing, producing, processing, storing and transporting crude oil, bitumen and natural gas; geological, technical, drilling and processing problems; imprecision in estimating capital expenditures and operating expenses; imprecision in estimating the timing, costs and levels of production and drilling; imprecision in estimates of future production capacity, potential delays or changes in plans with respect to exploration and development projects or capital expenditures; and changes to regulations and legislation applicable to the Corporation and the interpretation thereof including tax and environmental legislation and regulations in the provinces of Canada in which AOS conducts its business. These and additional risks and uncertainties relating to the business and operations of AOS are described in detail in its most recently filed Annual Information Form, which is available on SEDAR at www.sedar.com. Statements relating to "reserves" and "resources" are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the described reserves and resources, as the case may be, exist in the quantities predicted or estimated, and can be profitably produced in the future. "Contingent resources" means those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political and regulatory matters or a lack of markets. It is also appropriate to classify as contingent resources the estimated discovered recoverable quantities associated with a project in the early evaluation stage. "Prospective resources" means those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. It should be noted that reserves, contingent resources and prospective resources involve different risks associated with achieving commerciality. There is no certainty that it will be commercially viable to produce any portion of the resources described in this presentation. Further, there is no certainty that any portion of the prospective resources described in this presentation will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the prospective resources. The prospective resource estimates set forth herein have been risked for the chance of discovery but not for the chance of development and hence are considered partially risked estimates. If a discovery is made, there is no certainty that it will be developed or, if it is developed, there is no certainty as to the timing of such development. In addition, the estimated future net revenues and values contained in this presentation do not necessarily represent the market value of such reserves or resources. In addition to the foregoing, investors are cautioned that this presentation contains forecasted netbacks. The forecasted netbacks represent AOS' revenue, less royalties and certain operating expenses. The forecasted netbacks contained herein do not have any standardized meaning prescribed by Canadian generally accepted accounting principals and therefore are unlikely to be comparable to similar measures presented by other companies and may not be appropriate for other purposes. Management believes that forecasted netbacks are useful supplemental measures as they provide an indication of the ability of AOS to fund future growth through capital expenditures. The forward-looking information contained herein is made as of the date of this presentation, and AOS assumes no obligation to update or revise it to reflect new events or circumstances, except as required by law. Because of the risks, uncertainties and assumptions inherent in forward-looking information, prospective investors in the securities of AOS should not place undue reliance on this forwardlooking information. The disclosure of barrels of oil equivalent ("boe") in this presentation may be misleading, particularly if used in isolation. A boe conversion ration of 6 mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Corporate Overview
Alberta Oilsands Inc. (TSX-V:AOS) is a technically driven, high-growth energy company focused on creating sustainable value through the development of oil sands resources Oilsands Leases
144.5 sections of high working interest land
MacKay River
5 sections 100% WI

Grand Rapids
18 sections 100% WI

Fort McMurray

2,820 MMB* 32 sections 100% WI

350 MMB Contingent

Clearwater

154 MMB
Contingent

Hangingstone Algar Lake

810 MMB* 51 sections 100% WI 1,150 MMB* 38.5 sections 50% WI

Corporate Strategy
Develop and produce bitumen using steam assisted gravity drainage technology and secure funding by strong financial and industry partnerships

Clearwater
Strategy
Convert resources to proved reserves Construct and produce from Clearwater Phase I (approximately $100 mm of incremental capital) Establish development partnerships for Phase II

Financing
Project funding (equity and debt) for Clearwater Phase I Joint venture or partner funding

Future
Clearwater Phase II develop commercial operations targeting 25,000 barrels per day Reduce funding requirements for future phases De-risk equity and debt funding for AOS Pursue technology alliances with suppliers and produce

Project Schedules
Application Filing
Clearwater Phase 1 Jan 2010

Target First Production

2013

Projected Production (bbl/d)

4,500

Clearwater Phase 2
Hangingstone Grand Rapids Algar Lake TOTAL

2013
2013 2014 2015

2016
2016 2017 2018

25,000
25,000 10,000 25,000 89,500

Oil sands Value Creation

Acquire Land

Deliniation

Contingent Resource

Reserves

Production

Grand Rapids
Algar Lake

Hangingstone

Clearwater

The Market Cap vs. NAV Delta

NAV (1) $ 661.1 million Production Project Build Project approval Monetization Financing Debt or JV Market Cap (2) $ 43.2 million

Net asset value($661.1 million) 89.9 547.0

Clearwater Land (at cost) Working Capital Hangingstone Conventional

Market Cap ($43.2 million) 5.1 5.1 4.1 34.0

15.0
4.1

Oilsands

Conventional

Working Capital

1. 2.

NAV: $4.28 per share basic Current share price: $0.28 per share

Clearwater Project
Low Pressure SAGD with Solvent Co-Injection

Clearwater: Approach and Keys to Success

Fort McMurray Regional Airport

Confirm commerciality and demonstrate safety

1. Operational integrity
Safety design, monitoring and response plan

2. Confirm reservoir performance

Production rate, SOR

3. Validate economics
% Solvent retention
Clearwater Plant

4. Commercial operation
Build full-scale 25,000 barrel per day commercial operation in Phase II

Low Pressure SAGD with Solvent Co-Injection

Nexen SAGD: 1 barrel of oil / 6 barrels of water

Average SAGD: 1 barrel of oil / 3 barrels of water Clearwater: 1 barrel of oil / 1.8 barrels of water

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Tilt Meter Monitoring Array

155 Tilt Meters provide continuous monitoring of reservoir steam pressure

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75% H2O Reduction East Wind

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AOS Clearwater Regional Benefits

AOS Clearwater Project will help fund FMAA Expansion Anticipate economic benefits to:

Aboriginal firms
Service companies Hospitality providers Local businesses

Anticipate contributions to community identified priority projects

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AOS Clearwater Economic Benefits

Temporary construction staff, including opportunity for local contractors & suppliers.

Permanent locally-hired operational staff

Expenditures to date approx. $30 million.
Anticipated to be $150 million by project commissioning.

Operational expenditures anticipated to be $60 million annually, with 70% supplied locally.

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Clearwater Phase 1 Economics

Operating Netbacks @ WTI US$ 89.00
$90 $80 $70 $60 42.34 34.90 Netback

(1)

Solvent Opex 9.65

Fuel Opex Non-Fuel Opex Royalties WCS/ Realized Bitumen

$50 $40 $30 $20 $10 $0

5.22 9.75 3.02

3.76 9.00 3.02

11.23

11.23

20.19

20.19

WTI/WCS Differential

SAGD

SLP-SAGD
(1) 2011 Ryder Scott Price Forecast

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Clearwater Phase II
25,000 barrel per day commercial project
R8 R7W4
32 33 34 35 36 31 32

InterPipe Bitumen Pipeline

29 28 27 26 25 30 29

Phase I
20 21 22 23 24 19 20

T88

T88

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PHASE II Well Pad Satellite

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Phase II Plant Site

15 14 13 18 17

Hwy 69

10

11

CN Rail Terminal
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Land Purchased in November 2010

5 4 3 2 1 6 5

R8
File: AOS Clrwtr_Phase_II.MAP Datum: NAD27 Projection: Stereographic Center: N56.64214 W111.15365

R7W4
Created in AccuMap, a product of IHS

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Analog Reservoir Quality Comparison

Property Bitumen Gravity Net pay range Reservoir depth Base of Clearwater shale (cap-rock) Porosity Permeability HZ Permeability vertical Saturation Weight Bitumen Bitumen viscosity at T (res.) Initial Temp Initial pressure McKay 8 15-35 90-130 86 32 6.4 3.4 80 14 1-3 mm 7 300-500 Clearwater 8 35-45 75-125 64 32 3.9 2.9 80 15 1.5 mm 6 200-300 Units API m m m % Darcie Darcie % % centiPoise C degrees kPa

Suncor Energy Inc.s MacKay River SAGD project; widely recognized as a premier in-situ project, is a direct analogue to Clearwater based on reservoir characteristics; however, Clearwater West is over 10 meters thicker on average Clearwater reservoir compares favorably to existing SAGD projects on key measures
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Environmental foot print

Contact Information

Shabir Premji, Executive Chairman 800, 350 7th Ave S.W. Calgary, AB T2P 3N9 Tel: 403.263.6700 Fax: 403.263.6702 Email: info@aboilsands.ca Website: www.aboilsands.ca

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