Anglo Canadian Oil initiates process to enhance shareholder value

Source: Anglo Canadian Oil Corp.

Anglo Canadian Oil Corp. ("Anglo" or the "Company") (TSX-V: ACG.V) is pleased to announce that its Board of Directors has decided to initiate a process to identify, examine and consider a range of strategic alternatives available to the Company with a view to enhancing shareholder value.

Strategic alternatives may include, but are not limited to, a sale of all or a material portion of the assets of Anglo, either in one transaction or in a series of transactions, the outright sale of the Company, or merger or other transaction involving Anglo and a third party. For the purposes of considering strategic alternatives, Anglo has established a special committee to oversee the process. Anglo has engaged PI Financial Corp. ("PI Financial") as its financial advisor in connection with the process.

The Board of Directors has determined that the Company's shares trade at a significant discount to the value of its underlying assets, especially given its significant Nordegg, Beaverhill Lake and Duvernay prospective land base, strong balance sheet, and producing Bakken heavy oil assets.

Anglo owns rights to 172,160 acres (269 sections) of potential Nordegg oil bearing lands in West Central Alberta, as well as 89,919 acres (140 sections) of potential oil bearing Beaverhill Lake and Duvernay lands in Central Alberta and an additional 17,640 acres (27 sections) of potential Bakken and Mannville oil bearing lands in the Kindersley area of Southwest Saskatchewan. In the vast majority of these lands, the Corporation holds a 100% working interest.

Anglo Canadian Oil Corp. ("Anglo" or the "Corporation") has obtained an independent resource study in respect of its 172,169 acre "Nordegg Member" oil prospect in West Central Alberta. This resource evaluation (the "Report") was prepared by AJM Petroleum Consultants ("AJM"), an independent qualified resource evaluator, with an effective date of June 30, 2010 and complies with the Canadian Oil And Gas Evaluation Handbook (COGEH) standards and National Instrument 51-101 entitled Standards of Disclosure for Oil and Gas Activities as adopted by the Canadian Securities Regulators.

Probabilistic analysis was used in the preparation of this volumetric resource estimate on Anglo's lands in the "Nordegg Member". The Report documents the results of AJM's independent evaluation with the following table summarizing the total un-risked Discovered Petroleum Initially-in-Place ("DPIIP") volumes for the four areas studied, including a best estimate of over 6.47 billion barrels of Petroleum Initially in Place as follows:

Discovered Petroleum Initially-In-Place (Mstb)

Area Low Best High
Rycroft, Alberta 605,310 781,862 1,009,909
Kakut, Alberta 1,287,287 1,691,537 2,222,736
Sturgeon Lake, Alberta 1,845,799 2,465,124 3,292,252
Ante Creek North, Alberta 1,193,885 1,537,890 1,981,016
Total (Arithmetic Sum) (i) 4,932,281 6,476,413 8,505,913

(i)Note: These volumes are an arithmetic sum of multiple estimates of Discovered Petroleum Initially-in-Place, which statistical principles indicate to be misleading as to volumes that may actually be initially in place. Readers should give attention to the estimates of the individual classes of DPIIP and appreciate the differing probabilities associated with each. The probability associated with the High estimate would be considered far less than P10, and conversely, the Low estimate would be expected to be much higher than the presented arithmetic sum. Probabilistic aggregation could have been performed, but given the lack of general acceptance in these procedures, COGEH (section 5.5.3) prefers that these values not be presented.

Jim Ehret, President of Anglo said, "Anglo is well positioned to continue to develop its Nordegg oil resource play projects. With approximately $4.5 million in cash, no bank debt, 269 sections of potential Nordegg oil bearing lands, 140 sections of multi-stacked zone oil potential in central Alberta, and 27 sections of Bakken and Mannville acreage with Bakken heavy oil production, Anglo's shares trade at a substantial discount to the underlying value of our assets and we believe it is in the best interests of all shareholders to initiate a strategic alternatives review process at this time."

Parties interested in obtaining further information regarding the process or the Company can contact Arthur Kwan, Director of Energy Investment Banking at PI Financial at

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