Possible Look-A-Like Bakken Shale Play Identified in Australia on both sides of ACOR’s 50% Working Interest under ATP-582

Australian-Canadian Oil Royalties Ltd. (herein called ACOR) (OTCBB:AUCAF) is pleased to announce that the operator of EP 128,127,104, & 103 (Baraka Petroleum Limited) has stated that they are gearing up for an initial four-well drilling program in the Georgina Basin.

Recent news west of ATP-582

EP 128, EP 127, EP 104, & EP 103 are located in the Georgina Basin at the border of Northern Territory & Queensland. EP 104 adjoins ATP-582, in which ACOR holds a 50% working interest. Drilling is expected to begin in February and will include two horizontal wells on EP 127 & 128 and two vertical wells on EP 104 & 103.

The operator states possible estimated resources on EP 128, EP 127, EP 104, & EP 103 in excess of One Billion Barrels of oil.

The operator states that extensive core analysis of the basal Arthur Creek shale reservoir in the Macintyre-1 well on EP 127 indicates a potential bypassed unconventional pay zone analogous to the prolific Bakken Shale Formation in Southeast Canada & North Dakota.

The Baldwin-2 and Macintyre-2 wells will be drilled as horizontal wells into the Arthur Creek shale and be stimulated using multi-frac technology. The operator believes the use of multi-frac technology to test the shale oil zone would be the first time such technology has been used in oil shale exploration in Australia.

The multi-frac technology is widely used in North America to unlock unconventional reservoirs in shale oil zones in formations such as the Bakken shale.

The two vertical wells will focus on large anticlinorum structures updip from the Ross-1 well in EP103 and the Owen-2 well in EP104.

Click on link to see maps showing the four drilling locations and the location of ACOR’s ATP-582.

http://www.aussieoil.com/site/acor-map.pdf

The operator of EP 128, EP 127, EP 104, & EP 103 states:

Lead A has possible estimated resources of approximately 432,000,000 barrels of oil.
Lead B has possible estimated resources of approximately 414,000,000 barrels of oil.
Lead C has possible estimated resources of approximately 112,000,000 barrels of oil.
Lead D has possible estimated resources of approximately 67,000,000 barrels of oil.

If the four wells are successful, the operator (Baraka Petroleum Limited) plans to carry out a $44.8 million 20-well exploration drilling program.

The well locations and leads described above and on the maps are located on blocks EP 128, EP 127, EP 104, & EP 103 in which ACOR has no interest.

Recent news east of ATP-582

The operator east of ATP-582 (Central Petroleum) stated in a press release on December 12^th that the Central Petroleum has previously announced in-house estimates of shale gas and shale oil potential in some of its application areas in the Southern Georgina Basin as being up to approximately 80 TCFG UGIIP and up to 650 MMbblsUOIIP. (SPE "high” estimate undiscovered gas and oil initially in place respectively.)

The applications concerned are ATPs 909, 911 and 912 covering approximately 17,000 km2 in the deeper portions of the TokoSyncline where the Arthur Creek Shale source rocks are interpreted to be the deepest and thickest.

An encouraging development was recently announced by Baraka Petroleum Limited ("BKP”) concerning shale oil potential in two permits in the Southern Georgina Basin in which they have an interest (EP127 and EP 128 covering approximately 30,000 km2). The estimates prepared independently by US based Ryder Scott for these permits ranged from 5 to 11 billion barrels in prospective recoverable resources at the "low” to "high” estimate levels respectively.

Central has appointed RPS Scotia, MBA Petroleum Consultants and David Warner and Associates in conjunction with AWT to provide an independent assessment of UGIIP, UOIIP and prospective recoverable resources in its Southern Georgina Basin permit applications.

It is anticipated that the independent assessment report will be completed some time early in the new year.

Central Petroleum looks forward to its own exploration in the future of what is showing promise of becoming an emerging petroleum province with considerable potential.

About the Georgina Basin

The Georgina Basin, which covers most of the central-eastern part of the Northern Territory, is one of the most prospective undeveloped onshore petroleum provinces in the Northern Territory & Queensland.

The basin is one of several large intracratonic basins found in central Australia that are filled mainly with Paleozoic and Precambrian sediments (about 1,000-5,000 metres thick). Intracratonic basins are worldwide in occurrence and are normally found within continental interiors and away from plate boundaries. Other well-known intracratonic basins are the highly productive Williston Basin (located in North Dakota, Montana and Saskatchewan) and the Parana Basin in South America. Both the Williston and the Georgina Basin areas contain massive source rocks. The Cambrian strata of the Arthur Creek (Georgina Basin) is considered to be similar to the Mississippian succession (Brakken Shale) of Western Canada & North Dakota that has produced more than ten tcf of gas and one billion bbls of oil.

Although the Georgina Basin has not had a discovery to date, the location of the basin, and information from the limited exploration work conducted in the past, including 2D seismic data, suggest the presence of active Cambrian era petroleum systems in the region with oil-mature source rocks and reservoirs occurring at shallow depths. The region is believed to have all of the prerequisites needed for oil and gas entrapment, migration and production. Individual trapping situations in the Georgina Basin are estimated to hold up to 230 million boe in place at depths of 300 to 900 metres.

Ryder Scott Company Petroleum Consultants independent evaluation of the hydrocarbon potential of the Georgina Basin states:

The Cambrian Thorntonia-Arthur Creek succession of the Georgina Basin possess all the required elements necessary for petroleum generation, migration and entrapment. All these elements are is believed to be found EP 103 and EP 104. Currently there is no production from the Georgina Basin, however analogous production occurs in the Amadeus Basin to the west and in other, similar, setting found elsewhere in the world. Structural leads within, and close to, Blocks EP 103 and EP 104 indicated closures covering between 6 and 130 km². This suggests a potential range of individual pool and field sizes of between 4.2 x 106m³ (26.4 mmbo) and 91 106m3 (571.5 mmbo) of oil-in-place.

It should again be emphasized that these projects are high risk exploration plays and no commercial hydrocarbons have been discovered to date on any of ACOR’s prospects and there is no assurance any commercial hydrocarbons will be discovered as a result of ACOR’s proposed exploration activities.

About ATP-582

ATP-582 is located in Queensland Australia with part of this giant oil & gas concession located in the Georgina Basin and part in the prolific Cooper/Eromanga Basin. The permit area covers approximately 6,716,000 gross acres.

In 2008, ACOR management traveled to Australia and met with two (2) aboriginal tribes for the purpose of clearing native title issues on ATP-582. The ATP-582 JV Partner has spent several thousands of dollars in legal fees clearing the way for the Native Title Issues to be settled.

The lawyers are now in the process of drafting the final agreements for ACOR management to sign.

ACOR management is very excited about the recent news and the upcoming drilling program to possibly identify a new look-a-like Bakken Shale play on the adjoining blocks west of ATP-582.

If the wells are successful, ACOR management & the ATP-JV Partner would immediately focus seismic and drilling plans on ATP-582 in the Northern part of ATP-582 in the deeper portions of the Toko Syncline, where the Arthur Creek Shale source rocks are interpreted to be the deepest and thickest.

ACOR management has also identified two additional prospects on the southern portion of ATP-582 from the 850 miles seismic data, owned by ACOR. The Samphire prospect covers approximately 3,800 acres and exhibits approximately 110 feet of closure. The Samphire West, which covers around 4,700 acres. If the Samphire prospect proves to be productive, a number of additional field discoveries may result from leads in the Southern part of ATP-582.

ACOR’s 50% Carried Working Interest in 1^st well:

The ATP-582 JV investor group has agreed pay for 100% of the cost to clear native title, pay 100% of the cost to shoot $US1,000,000 of new seismic, and pay 100% of the cost to drill one well.

ACOR will be carried for 50% Working Interest in the 1^st well.

After the well is drilled, ACOR will pay its proportionate part to participate in any additional drilling and/or seismic work on ATP-582, as needed.

About Australian-Canadian Oil Royalties Ltd.:

ACOR management draws no cash salary. ACOR has NO LONG-TERM DEBT. ACOR's principal assets consist of approximately 15,440,116 gross surface acres of overriding royalty interest and approximately 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:

Cautionary Note to U.S. Investors:

The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this press release, such as "probable" (P90), and "mean risked reserves," that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosures in our Form 10K, Form 10Q and other filings with the SEC available from us at 1301 Ave M Cisco, Texas 76437. You can also obtain this information from the SEC on-line at www.sec.gov or by calling 1-800-SEC-0330.

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.