CALGARY,Nov. 17 /CNW/ - Alberta Oilsands Inc. ("AOS" or the "Company") (AOS -TSXV) is pleased to announce that it has completed its previouslyannounced bought deal prospectus offering (the "Offering"). At closingtoday, AOS issued 11,500,000 units ("Units") at a price of
.40 perUnit and 12,778,000 common shares of AOS ("Common Shares") issued on aflow-through basis ("Flow-Through Common Shares") at a price of
.45per Flow-Through Common Share for aggregate gross proceeds ofapproximately $10.35 million. Each Unit consists of one Common Share ofAOS and one Common Share purchase warrant of AOS (a "Warrant"), whereeach whole Warrant will entitle the holder thereof to acquire oneCommon Share from the Company at a price of
.50 per Common Share atany time prior to 5:00p.m. (Calgary time) on November 17, 2011. Thesyndicate of underwriters was led by Canaccord Capital Corporation andincluded Scotia Capital Inc., Genuity Capital Markets, Raymond JamesLtd. and Octagon Capital Corporation (collectively, the"Underwriters").

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

Proceeds of the offering will beused to fund a portion of the Company's ongoing capital program withthe Flow-Through Common Share proceeds used to incur eligible Canadianexploration expenditures that will be renounced to subscriberseffective on or before December 31, 2009.