ACOR’s PEL 444, PEL 112 & PEL 111 are Located in an Oil Boom in the Western Oil Rim of the Cooper/Eromanga Basin in South Australia

Australian-Canadian Oil Royalties Ltd. (herein called ACOR) (OTCBB:AUCAF) is pleased to announce that ACOR’s 13.83% working interest under PEL 112, PEL 444 & ACOR’s ORRI under PEL 111 appear to be possibly located in the highly productive western rim of the Cooper/Eromanga Basin. This western rim of the basin has become a hotspot of successful exploration activity.

ACOR is well positioned in the exciting new oil producing trend in the western rim of the Cooper/Eromanga Basin, which is Australia’s largest oil and gas producing basin. ACOR has carried working interests and overriding royalties under thousands of acres along this western oil rim.

The Western Oil Rim is an attractive exploration target for three reasons.

1. It is one of the few places where hydrocarbons from Cooper Basin source rocks can migrate into traps in the overlying Eromanga Basin. In most places, a cap rock at the unconformity between the Cooper and Eromanga prevents this happening, but along the western margin the cap rock is faulted, eroded or otherwise missing.

2. The western margin is only lightly explored. Santos made oil discoveries at Charo and Callabonna in the early 1990s, but it left thousands of miles unexplored because of its priority on gas exploration.

3. The Permian source beds sub crop under the Jurassic Reservoir beds with porosities up to 25% and permeabilities up to 10,000 millidarcies.

Exploration in recent years has produced a series of oil discoveries within the western oil rim. As of April 2010, approximately 23,630,870 barrels of oil has been produced in the western oil rim or $US1,654,160,900 using $US70.00 per barrels crude oil prices.

Important Notice: There are 10 New Field Discoveries not reported in the 23,630,870 barrels of oil production figure.

Those new oil fields are Snatcher, Warhawk, Marino Tigercat, Tigershark, Wirraway, Marino, Chilton, Purlubie, Purlubie South & Butlers.

Concession Adjoining ACOR’s PEL 112 Draws Highest Guaranteed Bid in Acreage Release

The South Australian Government recently announced successful bidders on five new Petroleum Exploration Licenses within the Cooper Basin.

The highest guaranteed bid was offered on Block CO2009-A which directly abuts the northern borders of ACOR’s PEL 112 concession (see map). The winning bid requires ACOR’s newest neighbor to drill 12 exploration wells and shoot 650 square kilometers of seismic on the acquired acreage at an estimated cost of approximately $AU25,000,000.

"The highly competitive bidding reflects the petroleum industry's continuing view that the South Australian Cooper Basin represents a real asset in their exploration portfolios... it clearly indicates their perception of the potential for further oil and gas discoveries...," stated Hon. Paul Holloway, South Australia's Minister for Mineral Resources. "Success rates for oil are high and discoveries can be commercialized within months," Holloway continued. "The country's exploration industry has been reshaped by the turnover of Cooper Basin acreage since 1998 through a number of 'Company-Making' discoveries... The CO2009 acreage release confirms that the Cooper Basin remains a very attractive exploration address."

About PEL 111

Snatcher Oil Field Commenced 1^st Oil Production in January 2010.

The Snatcher Oil Field is situated on the Western Oil Rim, with the Snatcher-1 and Snatcher-2 wells producing oil from a channel system present within the Jurassic Birkhead Formation.

The Snatcher-3 oil discovery will be placed on production in 2010.

ACOR owns a 1/10th of 1% ORRI under PEL 111, which includes the Snatcher Oil Field, covering approximately 292,819 gross acres.

About PEL 112 & PEL 444

In June, the operator of PEL 112 & PEL 444, released a press release stating the results of an independent petroleum study which increases the probable (P90) reserves in ACOR’s PEL 112 & PEL 444, located in Australia's Cooper/Eromanga Basin by 600%.

The study, received by the operator on June 12^th, 2009, analyzed only 10 of 45 drilling leads and concluded undeveloped P90 and mean risked reserves related to those leads were approximately 25,300,000 barrels of oil and approximately 31,600,000 million barrels of oil, respectively.

The independent study was conducted by ISIS Petroleum Consultants Pty. Ltd. of Australia, an internationally recognized petroleum engineering firm. The reported increase in reserves results, in largest part, from the likely migration of oil past the Cooper Basin's Permian zero edge resulting in the recognition of the Namur Sandstone as the Company's primary reservoir.

The operator of PEL 112 & PEL 444 states that seismic acquisition and a 5-well drilling program to begin exploration of the leases will require expenditures in excess of $11,000,000.

ACOR owns a 13.83% working interest under PEL 112 & PEL 444 and is 100% fully carried for its 13.83% working interest in the next 2 wells drilled on either block. ACOR will pay their proportionate part on any exploration cost thereafter. PEL 112 and PEL 444 comprise of approximately 4,544 Sq. kilometers or approximately 1.125 million gross acres.

About Australian-Canadian Oil Royalties Ltd.:

ACOR management draws no cash salary. ACOR has NO LONG-TERM DEBT. ACOR's principal assets consist of 15,440,116 gross surface acres of overriding royalty interest and 8,561,007 gross acres of working interests, located Onshore Australia in the Cooper-Eromanga Basin and Offshore Australia in the Gippsland Basin in the Bass Strait.

ACOR is a publicly traded oil company trading on the NASDAQ OTC Bulletin Board Exchange under the trading symbol "AUCAF."

Summary:

Australia is a "hot spot" for oil & gas exploration and ACOR is positioned for possible "Company-Maker" discoveries. ACOR's working interests and overriding royalty interests are located offshore & onshore in the best producing basins.

Visit our website at www.aussieoil.com.

Disclaimer:

Except for historical information contained herein, the statements released are forward-looking statements that are made pursuant to the provision of the Private Securities Litigation Reform Act of 1955. Forward-looking statements involve known and unknown risks and uncertainties that may cause the Company's actual results in future periods to differ materially from forecasted results. Such risks and uncertainties include, but are not limited to, market conditions, competitive factors, the ability to successfully complete additional financings and other risks.