prior sentiment pel 108 109 112, page-2

continued...


South Australia Cooper-Eromanga Basin

The Cooper Basin (including the overlying Eromanga basin) is Australia's largest onshore oil and gas basin and a world class hydrocarbon province. To date, a total of 11 trillion cubic feet of gas and 320 million barrels of oil have been discovered, including 8.3 trillion cubic feet of gas and 130 million barrels of oil in the South Australian sector.

Since the first gas discovery in 1963, a total of 123 gas fields and 58 oil fields have been discovered in the South Australian sector.

The Santos/Exxon et al Producing Block

The Santos/Exxon et al Producing Block is Australia's largest onshore producing block and is located in South Australia. The Santos/Exxon Producing Block originally consisted of approximately 29,000,000 gross acres and is reportedly making approximately $A930,000,000 per year in oil, gas, & associated hydrocarbons.

1st Time in approximately 40 years

A phased acreage release program commenced in February 1998, when all of the exploration acreage held by the Santos/Exxon et al Producing Block since 1954 expired without right of renewal, unless held by production. This was a fantastic opportunity for junior independent oil companies, like ACOR to be able to explore this highly prolific region. In 2000, ACOR was the successful bidder on the ex Santos/Exxon acreage, now called PEL 108, 109, & 112.

Cooper Energy, a new junior oil company had its 1st discovery, the Sellicks-1 in July 2002. This initial discovery was followed by the Christies-1 oil discovery in July 2003. Both the Sellicks and Christies oil fields adjoin ACOR's PEL 112 to the North.

Then Cooper Energy moved over to the adjoining block East of ACOR's PEL 112 and made the Worrior-1 oil discovery in September 2003.

Below are some recent discoveries adjoining to the North and East of PEL 112

Sellicks-1 Initial Potential 2160 Barrels Oil Per
Day
Christies-1 IP 500 BOPD
Christies-2 IP 1960 BOPD
Christies-3 IP 2397 BOPD
Worrior-1 IP 5390 BOPD
Worrior-2 IP 2000 BOPD
A discovery like any of these on PEL's 108, 109 or 112 with ACOR's 50% working interest could be a "Company-Maker" for ACOR.

About Australian-Canadian Oil Royalties Ltd:

ACOR management draws no cash salary. ACOR has NO LONG-TERM DEBT.

ACOR's principal assets consist of 14,926,346 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:

South Australia is a "hot spot" for exploration and ACOR's onshore working interest and overriding royalty interest assets are right in the middle of it!

Visit our website to see more information at: http://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.