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Arctic Oil & Gas Corp.: Arctic Oil & Gas Corp. (AOAG) Alaska Placer Gold Mines

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^{Published in Business and Finance on Friday, January 2nd 2009 at 12:06 GMT, Last Modified on 2009-01-02 12:07:35 by Market Wire}  

LAS VEGAS, NV--(Marketwire - January 2, 2009) - Arctic Oil & Gas Corp. (PINKSHEETS: [ AOAG ]), a resources development company, is pleased to announce the Company is rapidly progressing its plans for two new Alaska placer mine developments for commissioning in 2009 to produce approximately 300,000 ounces gold p.a. in the first year.

NI 43-101 Compliant Reserves Reports Underway: The Company is re-evaluating the substantial amount of historical drilling and bulk sampling on the two permitted project areas and is preparing new NI 43-101 compliant reserves reports to provide additional investor security to the forward gold purchase offer on the Nome Offshore State Lease-Concha-Shell JV and Onshore Denali North Mines.

Gold resources are expected to total at least 1.00 million ounces of placer gold based on detailed historical resource drill estimates.

Fast Development Possible: Typically hard rock gold mines take four to five years to bring into fruition. Placer gold mining is less capital intensive than hard rock gold mining and faster to bring into production, especially given our partner properties have granted leases and permits in place. The Nome offshore placer mining project has the potential to be implemented on an increasingly larger scale with the addition of new dredges due to the potentially large resources available.

Additional Offshore Placer Prospects: The summer mining season in Alaska is five months per year. Accordingly, the Company is also evaluating additional large-scale placer gold deposits in warmer regions not affected by the arctic winter ice-over, so as to be able to re-deploy and profitably operate its fleet of planned ocean going gold dredges during the Alaska winter period. This could potentially enable the company to double its annual gold output per dredge. The company also anticipates widening profit margins due to lower energy and other input costs will lower per-ounce production costs.

$250 Million Gold Mine Financing: The Company is now distributing a $250 million private offering for delivery of 500,000 ounces of gold at $500 per ounce paid upfront. The forward gold purchase offer promises Banks and Institutional investors delivery of gold bullion at a discount to the spot price.

Use of Historic Resource Estimates: All historical resource estimates quoted herein are based on prior data and reports obtained and prepared by previous operators and certain other information. The historical estimates should not be relied upon. No qualified person (as defined by NI 43-101) has done sufficient work to classify the historical estimate as current mineral resources or mineral reserves. Further work will be required to evaluate these resource estimates.

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, 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.