HIGH VALUE TARGETS ON TREND WITH FIELDS THAT HAVE PRODUCED SIGNIFICANT RESERVES CORPUS CHRISTI, Texas, Aug. 6 /PRNewswire-FirstCall/ -- Strategic American Oil Corporation (OTC:SGCA) (BULLETIN BOARD: SGCA) (the "Company") is pleased to announce it has leased additional acreage in the Illinois Basin. The Illinois State Geological Survey (ISGS) has estimated the Illinois Basin has the potential to recover approximately 4 billion barrels of oil. To date, the Company has leased 2757.9 acres covering several prospects in Jefferson County. The Company also leased an additional 213.84 acres in Hamilton County which has been "farmed out" to Admiral Exploration Company (Strategic retained a 5% ORRI and a 10% back-in after payout). Total acres leased to date, including farmed out leases, is approximately 2971.74 acres. These leases cover multiple zone targets, to 4000 feet, as well as a potential waterflood prospect. The Company's Oakdale Northeast, DST, and the Waterflood Prospect (Jefferson County) are on trend with and offset fields that, according to the ISGS, have produced 764,600 to 3,570,500 barrels of oil from depths of 3,000 to 4,000 feet. These prospects were identified from geologic and historic well information provided by the state of Illinois State Geological Survey. Jim Thomas, Company Chief Geologist with over 35 years of experience in the Basin, has identified through the research of the ISGS records that the Waterflood Prospect, a historic oil field the Company is currently leasing (461 ac. Leased to date), originally produced over 1.5 million barrels of oil. ISGS records also indicate that waterflood recovery methods produce an approximate 1:1 recovery rate. "By utilizing the ISGS database to review current and historic oil fields with similar geologic characteristics to the Company's current leases, Strategic is able to compare the potential of our conventional as well as secondary recovery (waterflood) prospects in the Basin," said Company President, Randy Reneau. "These shallow oil trends offer the possibility of near term production and significant cash flow." About Strategic American Oil Corporation Strategic American Oil Corporation (OTCBB: SGCA) is an exploration and production company with operations in Texas, Louisiana, and Illinois. The company draws on an internationally recognized team of geologists, engineers, and executives with extensive oil and gas exploration and production experience. The Company's objective is to find and acquire oil and gas projects of merit and develop those projects to their full potential. http://www.strategicamericanoil.com/ For further information please contact: Suite 2015, 600 Leopard Street Corpus Christi, Texas, 78473 Phone: (800) 643-5815 Safe Harbor Statements Except for the statements of historical fact contained herein, the information presented in this news release constitutes "forward-looking statements" as such term is used in applicable United States and Canadian laws. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans, "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and should be viewed as "forward-looking statements". Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors include, among others, the actual results of exploration activities, variations in the underlying assumptions associated with the estimation or realization of oil or gas resources, the availability of capital to fund programs and the resulting dilution caused by the raising of capital through the sale of shares, accidents, labour disputes and other risks of the oil and gas industry including, without limitation, those associated with the environment, delays in obtaining governmental approvals, permits or financing or in the completion of development or construction activities, title disputes or claims limitations on insurance coverage. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release and in any document referred to in this news release. Forward looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law. Such forward-looking statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including, the risks and uncertainties outlined in our most recent financial statements and reports and registration statement filed with the United States Securities and Exchange Commission (the "SEC") (available at http://www.sec.gov/). Such risks and uncertainties may include, but are not limited to, the risks and uncertainties set forth in the Company's filings with the SEC, such as the ability to obtain additional financing, the effect of economic and business conditions, the ability to attract and retain skilled personnel and factors outside the control of the Company. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although the Company believes that the beliefs, plans, expectations and intentions contained in this news release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate. Investors should consider all of the information set forth herein and should also refer to the risk factors disclosed in the Company's periodic reports filed from time-to-time with the SEC. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. DATASOURCE: Strategic American Oil Corporation CONTACT: Strategic American Oil Corporation, 1-800-643-5815 Web Site: http://www.strategicamericanoil.com/

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