$50 Million Dollar-51 Well Drilling Program On ACOR's ORRI - 1st Four Wells Strike Oil - Averaging 100% Success - Mulberry-9 Is Successful On 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 successfully drilled and completed the Mulberry-9, which is the 4th successful well to be completed as a Birkhead oil producer of the 51 planned wells. Mulberry-9 will be completed in the Birkhead Formation after the well encountered fair to good oil shows in mud logs over the interval 1,245 to 1,251 meters. Wireline logs confirmed fair to good quality oil reservoir in that zone. Mulberry-9 has proved a further extension of the Mulberry Oil Pool. The total depth of the Mulberry-9 is 1345 meters. The location of Mulberry-9 is approximately 650 meters south of the Mulberry-5 well and 600 meters south/west of the Mulberry-3 well.

Since it began in Feb. 2006, the largest program of continuous oil drilling ever undertaken in the southwest Queensland section of the Cooper/Eromanga Basin is off to a fantastic start with the successful completion of the first four wells (Mulberry-6, Mulberry-7, Mulberry-8 and Mulberry-9) of the 51 wells to be drilled. All the wells encountered fair to good oil shows in mud logs in the Birkhead Formation.

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 Tintaburra Oil Field contains significant proved undeveloped oil reserves and exploration up side.

ACOR's ORRI under ATP-299 will help build ACOR's ORRI revenue in the Cooper/Eromanga Basin.

The Mulberry Field is part of the Tintaburra Oil Field on ACOR's ORRI under ATP-299. The Tintaburra Oil Field 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.

Approximately $108 Million Gross Annual Oil Production Adjoins East & North of ACOR's 41.5% Working Interest Under PEL 112

The operator on the adjoining area to the north of ACOR's PEL 112 advises that the Christies-4 well will be cased and suspended after encountering oil pay in the Hutton and Namur Sandstone. DST 1 was a misrun, and the results of DST 2 conducted on March 24th 2006 were an initial potential of 653 BOPD. Christies-4 was drilled to appraise the south eastern extent of the Birkhead/Hutton oil pool discovered in July 2003. It is the first of two Christies' wells in this program. The Christies-5 spudded on March 30th and is approximately 972 meters, drilling to a total depth of 1840 meters. Christies-5 will appraise the northwest extent of the Birkhead/Hutton oil pool discovered in July 2003. Christies-5 is located approx. 200 meters east northwest of Christies-1 and 300 meters north of Christies-2.

The Christies Oil Field has confirmed that the oil entrapment model for the southern Queensland flank, like the Tintaburra/Mulberry Oil Field on ATP-299 is applicable in the area of PEL 112. The Christies structure appears to be fully charged, with oil now proven in various stacked reservoirs.

The drilling of Christies-2 and Christies-3 has resulted in two new pool discoveries within the Namur Sandstone, as well as improved reservoir potential within the main reservoir, the Birkhead Formation and Hutton Sandstone. Each of the zones tested gave good oil flows. The wells had initial potentials of 3600 BOPD on clean up flow from the Namur Formation.

The current production on the adjoining area to the north, not counting the new Christies-4 well is averaging a reported $33,000,000 a year gross on the adjoining block to the north of PEL 112.

Worrior-4 was drilled on March 17th and was completed as an oil producer; the well adjoins PEL 112 to the east. The Worrior-4 has been tied into the Worrior Oil Field facilities and came online Sunday morning. The initial 18 hour rate of the Worrior-4 was reported at 1,660 BOPD with negligible water from the McKinlay formation. Worrior-4 encountered oil bearing reservoirs in the McKinlay and Birkhead Formations as expected.

The current production on the adjoining area to the east, not counting the new Worrior-4 well, is averaging a reported $75,000,000 a year.

Twelve new wells adjoining PEL 112 to the North, East & West have been slated for drilling in 2006. 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.

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 at a cost of approximately $1,100,000. The new seismic survey has 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.

ACOR is currently getting drilling bids for the 2 best drilling locations identified by seismic.

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.