Independent Report Places Possible Estimated Reserves of Approximately 31,000,000 Barrels of Oil on ACOR's 13.83% Working Interest Under PEL 112 & PEL 444 in South Australia

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 and are located in Australia's most prolific onshore oil & gas producing basin, the Cooper/Eromanga Basin.

The study, received by the operator on June 12th 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.

Recent Drilling Successes adjoining PEL 112 to the North:

Two more new oil field discoveries in 2009 have been made on the adjoining block North of ACOR's PEL 112.

Click on link below to see map of recent new oil field discoveries.

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

New Field Discovery - The Perlubie Oil Field

In May 2009, the operator PEL 92 that adjoins PEL 112 to the North announced that the Perlubie-1 well came online at 3000 barrels of oil per day.

The Perlubie-1 well has now been choked back to 800BOPD due to strong production performance in the Parsons and Callawonga oil fields that adjoin PEL 112 to the North.

Currently, the new Parsons-Callawonga-Tantanna flow line is at 100% of its 6000 barrels of oil per day oil capacity.

Perlubie-1 was declared an oil discovery in February 2009.

New Field Discovery - The Perlubie South Oil Field

The operator of PEL 92 states that they have hit a winner with the Perlubie South-1 well in PEL 92, Cooper Basin, after logging confirmed the well is a new oil discovery.

According to partner Cooper Energy, preliminary evaluation of the logs show the well intersected an oil column between 1313-1316m and the oil-water contact appears to be similar to that encountered in the nearby Perlubie-1 well.

The operator of PEL 92 said the logs showed the reservoir appears to be of a similar high quality to other producing Namur oil reservoirs nearby.

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 and Offshore in the Carnarvon Basin in Western Australia.

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.

SOURCE: Australian-Canadian Oil Royalties Ltd.

Australian-Canadian Oil Royalties Ltd. 
Investor Relations, 254-442-2638 
acor@classicnet.net