Burundi-1 Well Spuds To Be Followed by the Maxwell-5 Well as Drilling Continues on ACOR's ORRI under ATP-267-Inspired by the Muthero-3 Well 1030 BOPD Discovery.

CISCO, Texas -- Australian-Canadian Oil Royalties Ltd. (herein called ACOR) (OTCBB:AUCAF) announced that the JV partner of ATP 267 advises that the first of two planned Cooper/Eromanga Basin wells spudded on PL-33, with the four way dip closed oil prospect Burundi-1 well kicking off the program on ACOR's ORRI.

The Burundi-1 well will target oil in the Murta and Birkhead formations in a location south of the Nockatunga oilfield and SW of the Thungo oilfield, and will be followed by appraisal well Maxwell-5 to the SE in PL-50.

The location of the Burundi-1 is a fair distance from Nockatunga oil field, at 4.6 miles away, but will help prove the oily reputation of the permit if it comes in that far to the south. The wells are planned and designed to appraise the Birkhead oil pool discovered in the Muthero-3 well in December 2005 on the Muthero oil field.

The Muthero-3 well was drilled to a total depth of 4692 feet. Oil shows were encountered in the Birkhead Formation and Murta Member during drilling. DST-1 flowed oil on final flow at 1030 BOPD through a 1/2" choke at 25 psi. Muthero-3 was cased and suspended as a future Birkhead oil producer.

About ATP 267:

A ten (10) well program covering the full spectrum of operations from exploration through to appraisal and development was carried out in the Mar quarter by the JV partners at the Thungo and Muthero fields in PL-51, with a 100% success ratio. All ten (10) wells were successfully drilled & completed for production, along with near field exploration wells Dilkera North-1 well and Kamel-1 well.

ATP 267, including Petroleum License (PL) 33, 50 & 51 consists of approximately 220,800 gross acres and is located in Queensland Australia in the prolific Cooper/Eromanga Basin. The western border of ATP 267 is located approximately 5 miles from the Jackson Oil Field. The Jackson Oil Field is Australia's 2nd largest onshore oil field and has reserves in excess of 40,000,000 barrels of good quality crude oil or approximately $3.2 Billion Dollars at current crude market prices.

ACOR management is excited about the drilling program on ATP 267 and is very excited about the potential revenue that could be generated for the company.

ACOR owns 17.15% of 1% ORRI under ATP 267 which include Petroleum License 33, 50, & 51.

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 interests and overriding royalty interests 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.