$50,000,000-51 Well Drilling Program On ACOR's ORRI - Mulberry-7 Spuds; The $5 Billion Dollar Potential Oil Field.

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 has begun with the spudding of Mulberry-7 on ACOR's ORRI. The target is the Birkhead Formation; the total depth is 1440 meters. The location of Mulberry-7 is approximately 550 meters south/southeast of Mulberry-1 and 425 meters southwest of Mulberry-5 wells.

The largest program of continuous oil drilling ever undertaken in the south/west Queensland section of the Cooper/Eromanga Basin is already off to a great start with the successful completion of the 1st well (Mulberry-6) of the 51 wells to be drilled. The Mulberry-6 was successful in increasing the boundaries of the Mulberry Oil Field and will be cased as a Birkhead Oil Producer. The well encountered good oil shows in mud logs over the interval 1,230 to 1,248 meters in the Birkhead Formation.

The $5 Billion Dollar Potential Oil Field

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.

Why is the operator willing to spend $50 million dollars to drill 51
wells on ATP-299?

Using Bloomberg's closing market price of $59.96 per barrel for crude oil on March 10th, ATP-299 is estimated to contain approximately 84 million barrels of proved plus probable oil in place.

84,000,000 bbls oil x $59.96 per barrel = $5,036,640,000.00

               5,000,000,000 / 50,000,000 / = 100 Times

The operator has a chance of possibly earning 100 times the original
investment.

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


            ACOR Management Helped Discover Oil on ATP-299
                      Approximately 30 Years ago

Robert Kamon is a director of ACOR and one of the largest shareholders in the company. In the late 1970's, Robert Kamon, a Petroleum Engineer was President of another public oil company with ORRI assets in Australia. Robert had noticed the East-West oil migration path in the Cooper/Eromanga Basin and stepped out approximately 92 miles East from the nearest oil & gas producing field (The Jackson Field) and leased what would be considered at the time a rank wildcat area, called ATP-299.

The 1st well drilled on ATP-299 was called the Tintaburra # 1 and it came in with an initial potential of approximately 1835 barrels of oil per day from two zones. Successful well after well was drilled and completed on ATP-299 and a large oil company bought ATP-299 for several hundred million dollars.

When Robert sold controlling interest in the old public company that he was President of, the stock had reached trading levels at a maximum of approximately 183 times the original price from the time at which Robert bought controlling interest.

Could PEL 112 become another ATP-299 or Greater?

               Here is the exciting part of this story!

     ACOR owns a bigger piece of the PEL 112 Potential Revenue Pie

ACOR owns a 41.5% working interest under PEL 112. PEL 112 covers 818,904 acres and has never been drilled on (no dry holes) and is located in the Cooper/Eromanga Basin of South Australia. ACOR has just completed a new seismic survey on PEL 112 and discovered two large seismograph highs as well as 28 smaller ones. The two large seismograph highs are called C-23 & C-26, which cover a combined area of approx. 5,534 acres with excellent closure.

New Drilling Activity Adjoining ACOR's PEL 112

11 new wells adjoining PEL 112 to the North & East are planned for 2006, with Worrior-4 having already begun. The adjoining production is multiple pay with wells averaging a reported $37,000,000.00 a year per well on the adjoining block to the east of PEL 112 and wells averaging a reported $33,000,000.00 a year gross on the adjoining block to the north of PEL 112. The wells are approximately 6,000 feet deep and cost around $1.5 million dollars to drill and complete.

This is some of the most profitable production in onshore Australia, and ACOR is right in the middle of it.

ACOR is receiving interest from several investor groups with interest in possibly participating in the exploration for oil & gas and associated hydrocarbons on ACOR's PEL 112.

ACOR owns 41.5% WI under PEL's 108, 109, & 112.

About Australian-Canadian Oil Royalties Ltd.:

ACOR management draws no cash salary. ACOR has NO LONG-TERM DEBT. ACOR's principal assets consist of 15,293,450 gross surface acres of overriding royalty interest and 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.