Arctic Oil and Gas Provides Update on Financing of Norton Sound/Onshore Placer Gold Projects in Alaska

Wed Jan 7, 2009 4:00pm EST
LAS VEGAS, NV, Jan 07 (MARKET WIRE) --
Arctic Oil and Gas Corp. (the "Company") (PINKSHEETS: AOAG) today
released an update on financing arrangements currently underway for their
Norton Sound and Onshore Placer Gold Mining Projects in Nome, Alaska
which is scheduled for development in 2009.

$250 million Gold Mine Financing

The Company management and JV Partners RE Shell Group/Concha Holdings have
begun actively seeking financing arrangements since first announcing their
unique $250 million forward gold offering at $500 per ounce to qualified
investors, banks, and institutions. The company is pleased to announce
that, beginning on Friday, December 9, 2009, management will be making the
first of several presentations to potential institutional buyers who have
expressed interest in the gold offering.

NI 43-101 Compliant Reserves Report

The Company's geologist Jim Halloran, a widely respected independent
geologist with intimate knowledge of the placer deposits of Nome and
Alaska alluvial gold regions, is currently preparing a new NI 43-101
compliant reserves report to provide additional investor security to the
forward gold purchase offer. The report is based on data and drill sample
results of Nome offshore placer deposits extending into AOAG's lease
application areas taken from ship-based sampling campaigns conducted by
the JV Partners, Westgold and others. The company expects to have the
report in hand by mid February.

Gold Dredge Construction:

The West Coast shipyard which previously built dredges designed by the JV
group has construction schedule openings and is ready to commence new
dredge construction immediately when funds are available. The additional
dredges will allow for the production of up to 300,000 more ounces gold
annually at a cost of $200-$300 per oz.

Reporting Status

The company anticipates having all SEC filings brought current by March
2009 and has initiated the financial auditing process with their certified
accountants.

About Arctic Oil and Gas

Arctic Oil and Gas Inc. is focusing on its gold reserves by 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 ocean going
dredges of their own design. 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.

Additional placer gold prospects are being sought in warmer Pacific
regions accessible by sea, in order to utilize the planned offshore gold
dredges during the Alaska winter months when ice prevents mining
operations.

JV PLACER GOLD; 2009-2010 PRODUCTION PROJECTS.

Norton Sound Alaska Oceanic Placer Gold Project; OCS 720 square mile
Leases Application and 2,000 acre Granted State Waters Leases. With 5-10
million ounce Gold placer resource potential at 250,000 - 500,000+ ounces
per year production rate.

Denali Placer Gold Project; Alaska Onshore fully permitted Claims with
approximately 500,000 ounce drill indicated reserves and 400 yard per hour
dredge mining equipment already on site. With plans to upgrade production
equipment to a 100,000 ounces per year operation in 2009.

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.

Please visit www.arcticoag.com

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 resource
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.



Contact:
Peter Sterling
323-356-7777 323-356-7777
Email Contact

Copyright 2009, Market Wire, All rights reserved.

-0-

© Thomson Reuters 2009. All rights reserved. Users may download and print extracts of content from this website for their own personal and non-commercial use only. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters and its logo are registered trademarks or trademarks of the Thomson Reuters group of companies around the world.

Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.