Alberta Oilsands Inc. Responds to Smoothwater Capital Corporation and Announces Postponement of Annual General Meeting - Seite 3

As with Mr. Mitchell, the AOS board of directors supports the proposed Marquee transaction. The AOS board believes the transaction to be in the best interests of the Corporation, and based in part upon the opinion of its financial advisor, has determined that the consideration to be paid by AOS to Marquee shareholders pursuant to the arrangement is fair, from a financial point of view, to AOS shareholders. Mr. Mitchell has agreed to support the transaction and will be voting for the Arrangement at the Marquee shareholder meeting and will be supportive of AOS directors at the next annual meeting of AOS.

4. Smoothwater has even mischaracterized minor legal requirements to try to influence shareholders

Smoothwater alleges that AOS has failed to file its agreement with Marquee as required by law. This is not true. Such agreement must, and will, be filed no later than the deadline for AOS filing a material change report in respect of the proposed transaction. AOS will comply with its legal obligations in this regard.

5. Smoothwater is looking out for its own best interest and not the best interest of ALL shareholders

AOS believes that Smoothwater is trying to use the press to advance its own interest. The AOS board has been actively seeking to maximize shareholder value for ALL AOS shareholders since December 2014 and believes that the transaction with Marquee is in the best interest of the Corporation and its shareholders. The AOS board will not be influenced by a shareholder that has refused to enter into a standard confidentiality agreement and evaluate in good faith the proposed transaction.

POSTPONEMENT OF AOS ANNUAL GENERAL MEETING

On August 22, 2016, AOS received from Smoothwater a notice of nomination of five directors at AOS' next annual general meeting, which differs from Smoothwater's prior requisition of a shareholder meeting to replace three AOS directors. AOS is evaluating the new Smoothwater notice.

In order to close the proposed Marquee transaction in an orderly fashion, and to give all AOS shareholders the opportunity to be well informed of all that is occurring at AOS with respect to the new board resulting from the Marquee transaction, AOS has determined to postpone the previously requisitioned annual general meeting ("AGM") that was called in response to the requisition by Smoothwater scheduled for September 23, 2016, to November 15, 2016. AOS has received an order from the Court of Queen's Bench Alberta extending the date in which it could hold its AGM.