American Liberty Petroleum Corp. Announces Foreland Refining's Crude Oil Purchase Contract For All Production from Gabbs Oil Field

BAKERSFIELD, Calif.--()--American Liberty Petroleum Corp. (OTCBB:OREO.OB; herein after "American Liberty" and/or "the Company") is pleased to announce that on April 19, 2012, Foreland Refining Corporation ("Foreland") signed an agreement to purchase all of the Company's crude oil production from the Gabbs Valley oil field in Nye County, Nevada. Foreland operates the Eagle Springs Refinery in Ely, Nevada, in neighboring White Pine County to the east. The refinery receives crude oil from Nevada's Railroad Valley and other oil wells to process into asphalt, diesel fuel and other petroleum products.

Foreland signed the crude oil purchase agreement with Independence Drilling LLC, the designated operator for a joint venture ("the JV") between American Liberty Petroleum, Cortez Exploration LLC and Desert Discoveries LLC. The JV was formed to acquire and develop oil and gas properties in Nevada with the aim of petroleum production.

According to the terms of the crude oil purchase agreement, Foreland will pay the "Big West Oil" Black Wax crude posting adjusted for gravity and B.S. & W. and less freight delivered to Foreland's Eagle Springs Refinery. Foreland will make its payments via wire transfer of funds on the 20th day of the month following the month of delivery.

American Liberty Petroleum's President, Alvaro Vollmers, commented: "We're fortunate to now have an agreement in place with a nearby refiner for the purchase of all subsequent production from our Gabbs Valley-based activities. Our next step is to maximize on the production potential of the Paradise 2-12 well while further exploring our other opportunities in the area.”

FOR MORE INFORMATION

Learn more about the Paradise 2-12 well and the Gabbs Valley Prospect at the American Liberty Petroleum website, where you can also find more information about the Company as well as the latest news releases: http://www.americanlibertypetro.com.

ABOUT AMERICAN LIBERTY PETROLEUM CORP.

Based in Bakersfield, California, American Liberty is a publicly traded company (OTCBB: OREO.OB) focused on reducing America’s need for imported oil through discovering major, new onshore US energy resources and by tapping overlooked or undervalued onshore domestic resources through exploration and development technologies not previously available. Recent significant discoveries, such as Occidental Petroleum's estimated 1+ billion barrels of oil and natural gas equivalents in California*, underscore the potential for developing new oil and gas production solutions in western America. Next door in the under-explored state of Nevada, American Liberty's 8,157-acre Gabbs Valley Prospect is located on the 26,000-acre Cobble Cuesta structure, which is estimated to represent oil reserves of 4+ billion barrels**. The Company's 7,270-acre Kibby Flat Prospect in the Monte Cristo basin, meanwhile, represents estimated ultimate recovery (EUR) of as high as 669 million barrels of oil according to a 2008 report***.

* Occidental Petroleum's Path to Easy Oil. Forbes Magazine, March 29, 2010
** Reserve Estimates for the Cobble Cuesta Structure, Alfred H. Pekarek, Ph.D., Geologist, January, 2008
*** Kibby Flat Prospect report, Jerry Walker, Consulting Geologist, Sept. 2008

ON BEHALF OF THE BOARD OF DIRECTORS,

American Liberty Petroleum Corp.
Alvaro Vollmers, President

4900 California Ave
Tower B-210
Bakersfield, CA
93309

OTCBB: OREO.OB

Certain statements in this press release are considered to be forward-looking and involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. American Liberty Petroleum Corp. bases these forward-looking statements on current expectations and projections about future events, which are based on information currently available. The forward-looking statements in this press release may also include statements relating to American Liberty Petroleum Corp.'s anticipated business prospects, new developments, financial performance, strategies and similar matters. American Liberty Petroleum Corp. disclaims any obligation to update any of its forward-looking statements, except as may be required by law.

Cautionary Note to U.S. Investors - The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We may use certain terms in this press release, such as “measured,” “indicated,” and “inferred” “resources,” which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 10-K which may be secured from us, or from our website at http://www.sec.gov/edgar.shtml.

Contacts

American Liberty Petroleum Corp.
INVESTOR RELATIONS
Andrew Barwicki
Toll Free: 1-888-689-9654
ir@americanlibertypetro.com

Contacts

American Liberty Petroleum Corp.
INVESTOR RELATIONS
Andrew Barwicki
Toll Free: 1-888-689-9654
ir@americanlibertypetro.com