CALGARY, ALBERTA--(Marketwire - April 11, 2012) - Cumberland Oil & Gas Ltd. (TSX VENTURE:COG) ("Cumberland" or the "Company") has filed its Audited Financial Statements, related Management's Discussion and Analysis ("MD&A") and Annual Information Form for the year ended December 31, 2011. Copies of these documents may be obtained under Cumberland's SEDAR profile via the SEDAR website at [ www.sedar.com ]or through the Company's website at [ www.cumberlandltd.com ]

2011 Financial and Operating Highlights

• Achieved water-flood response at the Valhalla Doe Creek "M" light oil pool ("Valhalla"). Light oil production has increased from 10 barrels of oil per day ("bopd") at December 2010 to over 50 bopd in the fourth quarter 2011.
• Successful in moving 63 mbbl from proved non-producing to proved producing reserves due to positive water-flood response at Valhalla. The before tax net revenues (discounted at 10%) of the Company's oil reserves increased by 1% year over year in part due to the Company's success at Valhalla. Light oil reserves now account for approximately 90% of the Company's proved plus probable before tax net revenues.
• Average annual production for fiscal 2011 increased by 41% to 89 barrels of oil equivalent ("boe") per day.
• Acquired an additional 902.4 net hectares of land at West Nig through the acquisition of its partners' combined 80% interest in this prospect. This land was acquired at an average price of $305 per hectare. At the February 22, 2012 BC crown land sale, an eight section license approximately one mile away was sold for an average price of $3,232 per hectare.
• Entered into a farm-out and joint venture agreement at West Nig with a well capitalized senior oil and gas producer. This senior producer has agreed to drill and complete an Upper Montney horizontal well by August 2012.
• Positive working capital of $0.70 million as at December 31, 2011.

Notes:

(1) Funds used in operations is calculated as cash used in operating activities and adding changes in non-cash working capital, if any. Funds used in operations per share is calculated using the basic and diluted weighted-average number of shares for the period. Funds used in operations and funds used in operations per share are used to analyze Cumberland's operating performance. Funds used in operations and funds used in operations per share do not have standardized measures prescribed by International Financial Reporting Standards ("IFRS") and therefore may not be comparable with calculations of similar measures for other companies.

(2) Working capital includes current assets and current liabilities.

Note:

(1) Operating netback equals oil and gas sales less royalties, operating expenses and transportation costs, calculated on a boe basis. Operating netback does not have a standardized measure prescribed by IFRS and therefore may not be comparable with the calculation of similar measures for other companies

Reserves Summary

The following table provides summary reserve information based upon the report from McDaniel & Associates Consultants Ltd.("McDaniel") evaluating Cumberland's crude oil, natural gas and natural gas liquids reserves as at December 31, 2011 (the "McDaniel Report") using the published McDaniel (2012-01) price forecast.

Notes:

1. "Gross" reserves are working interest reserves before royalty deductions.

2. "Net" reserves included working interest reserves after royalty deductions plus royalty reserves.

3. Oil equivalent amounts have been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel of oil.

4. May not add due to rounding.

Reserves Values

The estimated before tax net revenues associated with Cumberland's reserves effective December 31, 2011 as set forth in the McDaniel Report, and based on the published McDaniel (2012-01) future price forecast, are summarized in the following table:

Notes:

1. The estimated future net revenues are stated before deducting future estimated site restoration costs and are reduced for estimated future abandonment costs and estimated capital for future development associated with the reserves.

2. May not add due to rounding.

3. Prior to provision of income taxes, interest, debt service charges and general and administrative expenses. It should not be assumed that the undiscounted and discounted future net revenues estimated by McDaniel represent the fair market value of the reserves.

Reserves Reconciliation

The following summary reconciliation of Cumberland's gross reserves compares changes in the Company's reserves as at December 31, 2011, to the Company's reserves as at December 31, 2010, based on the McDaniel (2012-01) price forecast.

Notes:

1. Gross reserves means working interest reserves before royalty deductions.

2. May not add due to rounding.

Operations Update and 2012 Outlook

In 2011, the Company experienced positive water-flood response to its light pool at Valhalla. Light oil production increased from 10 bopd at the end of 2010 to 50 bopd during the fourth quarter of 2011. The Company expects the pool to continue to respond to water injection and for light oil production to increase during 2012.

During 2011, the Company acquired its partners' interests at West Nig, an emerging liquids-rich Montney resource play in N.E. British Columbia. Ownership of 100% of the land enabled Cumberland to negotiate a farm-out of its interest to a senior oil and gas producer active in the area. This senior producer has undertaken to drill and complete, at its sole cost, an Upper Montney horizontal well by August of this year. Recent drilling activity in the area has focused primarily on the Upper Montney formation, with very encouraging results. Within the last few months a competitor has targeted the Lower Montney formation with a horizontal well, and has reported very high liquids content in that zone. These results continue to support the potential of this play.

The Company's remaining focus for 2012 will be on developing its oil resource play at Chambery in southwest Saskatchewan as well as attempting to add to its land holdings in the Peace River Arch. The Company's lands in Chambery are in close proximity to several resource development projects being successfully undertaken by large companies in that area. Recent drilling results have been very encouraging. In addition, prices paid at recent land sales immediately adjacent to Cumberland's land supports the Company's technical thesis in this area.

READER ADVISORIES

Information Regarding Disclosure on Oil and Gas Reserves

Our oil and gas reserves statement for the year ended December 31, 2011, which includes complete disclosure of our oil and gas reserves and other oil and gas information in accordance with NI 51-101, is contained within our Annual Information Form which is available on our SEDAR profile at [ www.sedar.com ]. In relation to the disclosure of estimates of reserves relating to less than all of the Company's reserves, such estimates for individual properties may not reflect the same confidence level as estimates of reserves for all properties, due to the effects of aggregation.

Forward-Looking Statements

This news release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect', "anticipate", "continue", "estimate", "may", "will", "should", "believe", "intends" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this news release contains forward-looking information and statements pertaining to the following: the volumes and estimated value of Cumberland's oil and gas reserves; anticipated production volumes from the expected well at Chambery and from the Valhalla Doe Creek "M" pool with continued water-flood activities; the drilling of a horizontal well at West Nig during the year; anticipated operational activities; the sources of funding for certain of the company's future operations; the life of Cumberland's reserves, the volume and product mix of Cumberland's production; future oil and natural gas prices; future liquidity and financial capacity; the total future capital associated with development of reserves and resources; future operating costs, royalty rates and exchange rates.

The recovery and reserve estimates of Cumberland's reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. In addition, forward-looking statements or information are based on a number of material factors, expectations or assumptions of Cumberland which have been used to develop such statements and information but which may prove to be incorrect. Although Cumberland believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because Cumberland can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified herein, assumptions have been made regarding, among other things: results from drilling and development activities consistent with past operations and offsetting wells; the effect of water-flood activities at the Pool; continued and timely development of infrastructure in areas of new production; joint venture partner activities, including fulfilling its commitment to drill a horizontal well at West Nig; availability of debt and equity financing and cash flow to fund Cumberland's current and future plans and expenditures; the impact of increasing competition; stability of the economic and political environment in which Cumberland operates; timely receipt of any required regulatory approvals; ability of Cumberland to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; ability of the operator of the projects in which Cumberland has an interest in to operate the field in a safe, efficient and effective manner; ability of Cumberland to obtain financing on acceptable terms; field production and decline rates; ability to replace and expand oil and gas reserves through acquisition, development and exploration; timing and cost of pipeline, storage and facility construction and expansion and the ability of Cumberland to secure product transportation; future commodity prices; currency, exchange and interest rates; regulatory framework regarding royalties, taxes, and environmental matters in the jurisdictions in which Cumberland operates; and the ability of Cumberland to successfully market its oil and natural gas products.

The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such information and statements, including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information or statements including, without limitation; changes in commodity prices; changes in the demand for or supply of Cumberland's products; unanticipated operating results or production declines; changes in tax or environmental laws, royalty rates or other regulatory matters; changes in development plans of Cumberland or by third party operators of Cumberland's properties, default of third parties of contractual commitments; inaccurate estimation of Cumberland's oil and gas reserve and resource volumes; limited or a lack of access to capital markets; increased costs; inadequate insurance coverage; impact of competitors and certain other risks detailed from time-to-time in Cumberland's public disclosure documents (including, without limitation, those risks identified in this news release and Cumberland's Annual Information Form).

The forward-looking information and statements contained in this news release speak only as of the date of this news release and Cumberland does not assume any obligation to publicly update or revise any of the included forward-looking statements or information, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

BOE Equivalent

Boe's may be misleading, particularly if used in isolation. A boe conversion of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion ratio of 6:1 may be a misleading indication of value.

Contributing Sources

---

Market Wire