$50,000,000 Drilling Program On ACOR's ORRI - Mulberry-7 Is Successful.

CISCO, Texas -- Australian-Canadian Oil Royalties Ltd. (herein called ACOR) (OTCBB:AUCAF) is pleased to announce that the operator of ATP-299 has reported that the 2nd well of the 51 planned wells, Mulberry-7 is to be cased and suspended as a Birkhead Oil Producer. The well encountered good oil shows in mud logs over the interval 1,242 to 1,260 meters in the Birkhead Formation and indications of good quality reservoir in the zone. The Mulberry Field is part of the Tintaburra Block on ACOR's ORRI under ATP-299. The Tintaburra Block is estimated to contain about 84 million barrels of proved plus probable oil in place or approximately $5,036,640,000, at current market prices.

Currently Averaging 100% Drilling Success

The Mulberry-7 is part of a $50 Million Drilling Program, the largest program of continuous oil drilling ever undertaken in the south/west Queensland section of the Cooper/Eromanga Basin. The program is off to a great start with the successful completion of the first two wells out of 51 wells to be drilled. Mulberry-6 was the 1st well to be completed earlier this month. The whole $50,000,000 drilling program consists of 45 Mulberry wells based on the Talgeberry/Endeavour 3D seismic data, 3-4 near field exploration wells planned for the Aros trend (Aros-2, Talgeberry North-1, Takya North-1 and Winna South-1) and 1-2 near field exploration wells at Mugginanullah where the operator currently has a 314km2 3D survey underway. Mulberry-2 -3 & -5 were all brought on stream in July last year as Jurassic oil producers, with the three wells containing a total cumulative oil column of 22.4m.

The operator is using the latest drilling and completion methods and has contracted 2 new automated drilling rigs from North America to undertake this massive drilling program on ACOR's ORRI.

ACOR owns .0575 of 1% ORRI under ATP-299.

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 15,293,450 gross surface acres of overriding royalty interest and approximately 8,900,776 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 interest and overriding royalty interest 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.