ACOR Getting Set for a Visit from a Chinese Oil Company; 415 BOPD Mirage Field - Going for More with Mirage-2 on ACOR's ORRI.

CISCO, Texas -- Australian-Canadian Oil Royalties Ltd. (herein called ACOR) (OTCBB:AUCAF) is pleased to announce that the company 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. Last week, ACOR attended as an exhibitor, the annual NAPE 06 properties & prospects convention, at the George Brown Convention Center in Houston, Texas. The NAPE 06 show has grown in attendance, with over 16,000 oil & gas investors and upper management decision makers for major companies from around the world attending this year's show. ACOR's working interest properties were of major interest to several companies.

ACOR has been contacted by a large oil company located in Beijing China, expressing an interest in coming to the Cisco Texas office to review the data on PEL 108, 109 & 112 and to visit with ACOR management this month. ACOR welcomes the opportunity to visit with this company from China.

ACOR management is also exploring the possibilities of raising the approximately $US5,000,000 necessary to drill & complete 3 wells on PEL 112 through a Private Placement of AUCAF stock. The new seismic data on PEL 112 has identified some exciting prospects. Two of these prospects are called C-23 & C-26, which cover a combined area of approx 5,534 acres with excellent closure. The tremendous gross revenue of approximately $US70,000,000 per year adjoining to the east of PEL 112 and approximately $US35,000,000 per year adjoining to the north of PEL 112, have been the topic of many ACOR management discussions.

ACOR owns a 41.5% working interest under PEL 112.

Mirage-2 Development Well Has Spudded

ACOR is pleased to announce the drilling of the first development well, Mirage-2 on the Mirage Oil Field, located in South Australia on PEL 115. Mirage-2 is located 580 meters north east of Mirage-1, the operation was drilling ahead at a depth of approximately 953 meters towards the primary Murta objective at 1310 meters.

The Mirage-2 well is the first of a three well development program on the Mirage Oil Field. If the development program on the Mirage Oil Field is successful, as we hope it will be, we look forward to an increase in the daily oil production from the current 415 barrels of oil per day being produced from Mirage-1. Any increase in oil production from the Mirage Oil Field would be timely in this current time of high oil prices.

The operator for the PEL 115 Joint Venture states that interpretation of the 3D seismic data is well advanced, with interpretation of the data indicating that the oil/water contact encountered in Mirage-1 is below what has been mapped as the structural closure of the Mirage feature. Using conservative reservoir parameters such an area has the possibility of containing up to 20 million barrels of oil in place.

Further exploration drilling is required to confirm this possibility and this will take place after the three Mirage development wells, with the drilling of the Lightning-1 and Jindivik-1 exploration wells. The initial three development locations for the PEL 115 Mirage Oil Field and two exploration wells have been approved by the PEL 115 Joint Venture.

480 Barrels of Oil Per Day on ACOR's PEL 115 ORRI 

Current stabilized oil production on pump for Mirage-1 was achieved last week with a rate of 415 barrels of oil per day and the Ventura-1 oil well, which is also on artificial lift with a beam pump, is currently producing 65 barrels of oil per day.

The combined gross flow rate for the Mirage-Ventura Oil Field complex in the southern part of PEL 115 is 480 barrels of oil per day.

ACOR owns a 1/10th of 1% ORRI under PEL 115.

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.