Adjoining Operator Commits to Extend Aggressive Exploration Program Adjoining ACOR's PEL 112

CISCO, Texas, July 13, 2011 /PRNewswire/ -- Australian-Canadian Oil Royalties Ltd. (herein called ACOR) (OTCBB: AUCAF.ob) is pleased to announce that the PEL 92 Joint Venture has approved the work program and budget for an aggressive exploration campaign for the twelve month period to June 2012. The program includes nine exploration wells and both 3D and 2D seismic.

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The nine exploration wells will focus largely on the remaining prospectively in the primary productive reservoir of the permit, the Namur Sandstone.

On May 11, 2011, Holloman Energy accepted the terms of a preliminary farm-out agreement with Brandenburg Metals Corp. through which Brandenburg can earn a working interest in PEL 112 and PEL 444 upon meeting certain milestones.

The general terms of Holloman's farm-out include Brandenburg's funding of new 3D seismic and a multiple well drilling program on PEL 112 and PEL 444. Both the farm-out transaction and the participation agreement are subject to a number of conditions including certain approvals, and the execution of definitive agreements.

Click on link below to see more information on ACOR's assets.

http://www.aussieoil.com/site/acor-map.pdf

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 15,440,116 gross surface acres of overriding royalty interest and approximately 8,561,007 gross acres of working interests.  One of ACOR's main working interest asset is ATP-582, located in Queensland Australia with part of this giant oil & gas concession located in the Georgina Basin and part in the prolific Cooper/Eromanga Basin. The permit area covers approximately 6,716,000 gross acres and has the potential of a "Look-a-like" Bakken Shale Oil Play. The operator directly adjoining west to ACOR's ATP-582 states that their 3rd party independent study estimates approx. 27 Billion bbls oil. This operator has just announced a $US 32 million drilling program which includes drilling 3 horizontal wells and 3 vertical wells to test the Arthur Creek formation and to be stimulated using multi-fracing techniques. It is believed to be the 1st time ever to use these techniques onshore in Australia. The operator directly adjoining east to ACOR's ATP-582 states that their 3rd party independent study estimates approx. 5 Billion bbls oil and approx. 33 TCF of gas. ACOR owns a 50% carried working interest under approx. 6,716,000 gross acres of ATP-582.

Disclaimer:

Cautionary Note to U.S. Investors:

The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this press release, such as "probable" (P90), and "mean risked reserves," that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosures in our Form 10K, Form 10Q and other filings with the SEC available from us at 1301 Ave M, Cisco, Texas 76437. You can also obtain this information from the SEC on-line at www.sec.gov or by calling 1-800-SEC-0330.

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.

Contact:
Australian-Canadian Oil Royalties Ltd.
Investor Relations, 254-442-2638

SOURCE Australian-Canadian Oil Royalties Ltd.