CALGARY, ALBERTA--(Marketwire - May 2, 2012) - Cumberland Oil & Gas Ltd. ("Cumberland" or the "Company") (TSX VENTURE:COG) announces that its Board of Directors has initiated a process to identify, examine and consider a range of strategic alternatives available to the Company with a view to enhancing shareholder value.

Strategic alternatives may include, but are not limited to, a sale of all or a material portion of the assets of Cumberland, either in one transaction or in a series of transactions, the outright sale of the Company, or merger or other transaction involving Cumberland and a third party. For the purposes of considering strategic alternatives, Cumberland has established a special committee consisting of directors, Steven Cloutier (Chair), Richard Charron and Martin Hislop to oversee the process.

Cumberland has engaged Peters & Co. Limited as its financial advisor in connection with the process.

This strategic alternative review process has not been initiated as a result of receiving any offer and there are no assurances that a transaction will be undertaken. It is Cumberland's current intention not to disclose developments with respect to the process unless and until the Board of Directors has approved a specific transaction or otherwise determines that disclosure is necessary or appropriate. The Company cautions that there are no assurances or guarantees that the process will result in a transaction or, if a transaction is undertaken, the terms or timing of such a transaction. The Company has not yet set a definitive schedule to complete its identification, examination and consideration of strategic alternatives.

Forward-Looking Statement Advisory

Certain information set forth in this news release, contains forward-looking statements including management's assessment of future plans regarding the strategic alternative review process. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Cumberland's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, delays resulting from or the inability to obtain required regulatory approvals, inability to retain and delays in retaining drilling rigs and other services, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions, and ability to access sufficient capital from internal and external sources. The foregoing list is not exhaustive. Additional information on these and other risks that could affect Cumberland's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website ([ www.sedar.com ]). Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The actual results, performance or achievement of Cumberland could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Cumberland will derive therefrom. Cumberland disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.

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