By ahadmin October 18, 2010

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Release Date: October 18, 2010

CALGARY, ALBERTA – Alberta Star Development Corp. (TSXV:ASX) (“Alberta Star” or the “Company”) announces that it has entered into a sub-participation agreement with Arctic Hunter Uranium Inc. (“Arctic Hunter”). Under the agreement, Arctic Hunter has agreed to participate with Alberta Star in the two (2) test wells by October 31, 2010. Alberta Star holds a 50% working interest in the Landrose, Saskatchewan assets which form part of the heavy oil assets acquired by Alberta Star on August 6, 2010 from Western Plains Petroleum Ltd. (“Western Plains”). Under the agreement, Arctic Hunter must pay 100% of Alberta Star’s share of the cost to drill, complete and equip or abandon the test wells to earn a (50% net) before payout (BPO), reserving to Alberta Star a convertible overriding royalty of 10% until payout. After payout, Alberta Star has the option to either convert the gross overriding royalty to a 50% working interest (25% net) in the two test well spacing units or remain in a gross overriding royalty position. Arctic Hunter has no option to drill post-earning wells under the sub-participation agreement. Both test wells are vertical wells and are expected to be drilled, cased and completed on or before October 31, 2010. Western Plains Petroleum Ltd. will be the operator of the test wells.

The two (2) test wells (C-11, C-14) form part of the Company’s previously announced in-fill drilling program located on section 6-50-25 W3M in Landrose, Saskatchewan. Drilling completion and equipping costs are expected to average $400,000 per well ($200,000 net to Arctic Hunter). The locations of the two (2) in-fill wells are adjacent to the Company’s successful C12-06-50-25 W3M well which was drilled and completed in July 2010 in accordance with a farm-out with Arctic Hunter. The C-12 well is currently producing approximately 80bbls/d gross of heavy oil (4 bbls/d net BPO and 20 bbls/d net APO to the Company).
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The Company is a Canadian Oil & Gas exploration and development Company that acquires and finances the acquisition, exploration and development of oil and gas assets primarily in Western Canada. The Company is a junior heavy oil producer in the greater Lloydminster area of Alberta & Saskatchewan. The Company is constantly reviewing future production and exploration opportunities through selective property acquisitions and identifying low risk exploration drilling activities.

The Company has qualified management and has an Oil & Gas team of professionals seasoned in field exploration and drilling. The Company has the resources and necessary manpower to develop its natural resource and production properties. The Company is committed to minimizing risk through the selective acquisition, exploration and development of petroleum and natural gas resource assets. The Company intends to increase its oil production and reserves through its exploration activities and strategic property acquisitions.
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Tim Coupland, President and CEO
Arctic Hunter Energy Inc.
Tel: (604) 681-3131


Robert Hall, Director
Arctic Hunter Energy Inc.
Tel: (604) 681-3131

Neither the TSX Venture Exchange nor its Regulation Services Provider, (as the term is defined in the Policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.


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