$50 Million Dollar- 51 Well Drilling Program on ACOR's ORRI under ATP-299 - Mulberry-15 & Mimosa-1 Strike Oil on the $5 Billion Dollar Potential Oil Field- Three(3) Drilling Rigs Drilling Back-to-Back Wells on ACOR's ORRI.

CISCO, Texas -- Australian-Canadian Oil Royalties Ltd. (herein called ACOR) (OTCBB:AUCAF) reports that the JV partner of ATP-299 is pleased to announce that the Mulberry 15 appraisal well has encountered approximately 8 meters of oil pay in the Birkhead reservoir unit. The well was cased and suspended as a future oil producer. The Mimosa 1 well also encountered approximately 6 meters of oil pay in Birkhead reservoir unit. Mimosa 1 well was cased and suspended as a Birkhead oil producer.

The largest program of continuous oil drilling ever undertaken in the south/west Queensland section of the Cooper/Eromanga Basin now has three (3) drilling rigs drilling continuously on ACOR's ORRI.

Rig PDI-735 was released to the Mulberry 17 delineation well location on June 6, 2006. Mulberry 17 is located 1.34 kilometers southwest of Mulberry 2 and 1.2 kilometers west of Mulberry 7. Mulberry 17 spudded on the evening of June 7th.

Rig PDI-724 was released to the Endeavour 8 delineation well located 470 meters southwest of Endeavour 2 and approximately 600 meters southeast of Endeavour 3. The well is expected to spud today.

Rig PDI-721 has joined the drilling program at the Tintaburra Block and is currently rigging up at the Chancett 1 well location. Chancett 1 is located in PL-169 on ACOR's ORRI, 1.7 kilometers north northeast of Gimboola West 1 and 2.8 kilometers northwest of Gimboola 3.

About The Mulberry Oil Field:

Mulberry-1 was drilled in 2004 and is producing oil at a rate of approximately 600 barrels of oil per day. The 51 wells are designed to achieve additional oil production and to test the extent of the oil pool in the Birkhead 11-77 sand discovered in the Mulberry-1 well. The Mulberry-Gimboola-Endeavour/Tintaburra Oil Field contain significant proved undeveloped oil reserves and exploration up side.

The Mulberry-Gimboola-Endeavour Field is part of the Tintaburra Oil Field on ACOR's ORRI under ATP-299 and is estimated to contain around 84 million barrels of proved plus probable oil in place or approximately $5,036,640,000, at current market prices.

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 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 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.