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Friday, December 12, 2008

Arctic Oil & Gas Corp. (AOAG): Norton Sound and Onshore Alaska Placer Gold Project JV

LAS VEGAS, NV, Dec 08, 2008 (MARKET WIRE via COMTEX) -- Arctic Oil & Gas Corp. (PINKSHEETS: AOAG) (360 million shares issued), a resources development company, is pleased to announce the Company's precious metals division has secured agreements to pool its Nome offshore OCS lease Application with Shell Trust Dredge Engineers, holders of options over adjacent granted State Waters leases with drill indicated gold reserves of approximately 500,000 ounces or more, and additional onshore placer resources property carrying additional 500,000 ounces gold resources, both of which could be producing in 2009-2010.
AOAG is pooling its Norton Sound OCS applications of which it is an 80% equity partner into the new 50%-50% profit-sharing joint venture with the R.E Shell Trust, a long-established gold dredging-engineering group, whose principals have produced millions of ounces of gold utilizing suction-cutter dredges of their own design. Some of these dredges were ocean-going in size. Shell owns proprietary drill sample results of Nome offshore placer deposits extending into AOAG's lease application areas, from ship-based sampling campaigns they conducted.
The JV partners intend to finance and develop two or more large-scale placer mines starting on the JV granted State leases, commencing gold production in 2009-2010.

1) Norton Sound Alaska Oceanic Placer Gold Project; OCS 720 square mile
Leases Application and 2,000 acre Granted State Waters Leases. With
1.5-10 million ounce Gold placer resource potential at
250,000 - 500,000+ ounces per year production rate.
2) Denali Placer Gold Project; Alaska Onshore fully permitted Claims with
500,000 ounce drill indicated reserves and mining equipment already on
site. With plans to upgrade production equipment to a 60,000 ounces per
year operation in 2009. Estimated Gold production costs $300/ounce.

Ocean-Going Gold Dredges: The Shell-designed high-capacity suction cutter dredges transformed the American gold dredging industry and dramatically lowered large-scale mining costs to less than $0.50/M3. The deployment of new large-scale dredging equipment, coupled to Shell's proven vibrating-gravity gold recovery plant should make the Nome offshore placers profitable today.
Using Shell-designed dredges, mining costs could halve AOAG's previously estimated $4.00/M3 costs, with targeted recoverable Norton Sound grades of approximately 0.50 grams/M3 ($12.00/M3) resulting in Gold production costs of less than $200/ounce.
The JV is preparing a Non-AOAG-stock-dilutive, private LLC offering memorandum for institutional investors to fund these two mines and also build additional plants on other leases under investigation. There is no guarantee that the various Leases and Claims will be secured by the JV until sufficient financing has been secured.
OIL-GAS: The Company and partners have speculative Claims and lease applications over four areas with proven and potential oil and or gas reserves. The Company believes that in the future the oil price will rise to levels which will justify their development.
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This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Actual results may differ from management's expectations. These forward-looking statements involve risks and uncertainties that include, among others, risks associated with oil & gas exploration risks related to competition, management of growth, new products, services and technologies, potential fluctuations in operating results, international expansion, commercial agreements, acquisitions and strategic transactions, government regulation and taxation. More information about factors that potentially could affect AOAG's financial results is included in its filings with the Securities and Exchange Commission.

Peter Sterling
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SOURCE: Arctic Oil & Gas Corp.

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