Cumberland Oil & Gas Ltd. Announces 2010 Reserves Growth

Cumberland Oil & Gas Ltd. ("Cumberland" or the "Company") is pleased to announce
the results of its independent reserve evaluation for the year ended December
31, 2010, as prepared by McDaniel & Associates Consultants Ltd. (the "McDaniel
Report").


2010 Highlights



--  Proved plus probable reserves at December 31, 2010 increased by 256% to
    559 mboe from 157 mboe at December 31, 2009. 
--  Replaced 2010 production 17.5 times with proved plus probable reserve
    additions and 7.8 times with proved reserve additions. 
--  Achieved all-in finding and development costs ("F&D") of $15.12 per boe
    on proved plus probable reserves and $22.76 per boe on proved reserves
    (including future development costs and revisions). 
--  Estimated net capital expenditures for the year ended December 31, 2010
    were approximately $3.0 million. 
--  Increased proved plus probable reserve value by 290% to $10.0 million
    from $2.6 million at December 31, 2009, using a 10% discount factor. 
--  Increased proved plus probable crude oil reserves weighting to 75% from
    100% natural gas weighting at December 31, 2009. 
--  Cumberland's net asset value per share at December 31, 2010 is estimated
    at $0.35 per diluted share. 

Reserves Summary

The following table provides summary reserve information based upon the
McDaniel Report using the published McDaniel (2011-01) price forecast.

                                                             Barrels of Oil 
                        Natural Gas    Light/Medium Oil          Equivalent 
                  Gross (1)  Net (2)  Gross (1)  Net (2)  Gross (1)  Net (2)
                     (Mmcf)   (Mmcf)     (Mbbl)   (Mbbl)     (Mboe)   (Mboe)
----------------------------------------------------------------------------
Proved                                                                      
 Producing           565.1    489.7       70.8     48.6      165.0    130.2 
 Non-producing        36.6     32.6       63.0     43.0       69.1     48.4 
 Undeveloped             -        -       52.6     38.7       52.6     38.7 
----------------------------------------------------------------------------
Total proved         601.8    522.3      186.5    130.4      286.7    217.4 
Probable             223.8    194.4      234.8    184.1      272.2    216.5 
----------------------------------------------------------------------------
Total proved                                                                
 plus probable       825.5    716.7      421.3    314.5      558.9    433.9 
----------------------------------------------------------------------------

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, 2010, and based on the published McDaniel (2011-01)
future price forecast, are summarized in the following table:


                                           Discounted at:                   
($ thousands)                 0%         5%        10%        15%        20%
----------------------------------------------------------------------------
Proved                                                                      
 Producing              4,686.1    3,674.0    2,994.8    2,518.8    2,171.7 
 Non-producing          3,657.3    2,786.9    2,228.6    1,849.2    1,577.9 
 Undeveloped            1,493.6      995.3      656.3      419.3      249.0 
----------------------------------------------------------------------------
Total proved            9,837.0    7,456.3    5,879.7    4,787.3    3,998.6 
Probable               11,497.4    6,568.6    4,164.8    2,843.3    2,038.5 
----------------------------------------------------------------------------
Total proved plus                                                           
 probable              21,334.4   14,024.9   10,044.5    7,630.5    6,037.1 
----------------------------------------------------------------------------

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. 
4.  Net present value after income taxes for total proved reserves is $5.83
    million and for total proved plus probable reserves is $9.05 million
    based on a discount factor of 10%. 

Reserves Reconciliation

The following summary reconciliation of Cumberland's gross reserves compares
changes in the Company's reserves as at December 31, 2010, to the reserves
at December 31, 2009, based on the McDaniel (2011-01) price forecast.


                                         Total                 Total Proved 
                                        Proved    Probable    plus Probable 
                                         (Mboe)      (Mboe)           (Mboe)
----------------------------------------------------------------------------
Balance December 31, 2009                119.3        37.6            156.9 
Technical revisions                       (0.1)       (0.3)            (0.4)
Discoveries/extensions                   191.8       234.9            426.7 
Production                               (24.4)          -            (24.4)
----------------------------------------------------------------------------
Balance December 31, 2010                286.7       272.2            558.9 
----------------------------------------------------------------------------

Notes:

1.  Gross reserves means working interest reserves before royalty
    deductions. 
2.  May not add due to rounding. 

Capital Efficiency - 2010

The efficiency of the Company's capital program for the year ended December
31, 2010 is summarized below. National Instrument 51-101 requires that the
exploration and development costs incurred in the year, along with the
change in estimated future development costs, be aggregated and then divided
by the applicable reserve additions.

                                                                 Proved plus
($ Thousands)                                           Proved      Probable
----------------------------------------------------------------------------
Exploration and development expenditures (note 3)        3,022         3,022
Change in future development capital                     1,341         3,422
----------------------------------------------------------------------------
                                                         4,363         6,444
----------------------------------------------------------------------------
                                                                            
Reserve additions - (Mboe)                                                  
  Exploration and development                            191.7         426.3
----------------------------------------------------------------------------
                                                                            
Finding & development costs ($/boe) (note 1)         $   22.76     $   15.12
----------------------------------------------------------------------------
                                                                            
Reserves replacement ratio (note 4)                        7.8          17.5
----------------------------------------------------------------------------

Notes:

1.  The aggregate of the exploration and development costs incurred in the
    most recent financial year and the change during that year in estimated
    future development costs generally will not reflect total finding and
    development costs related to reserve additions for that year. 
2.  Calculation includes reserve revision and changes in future development
    costs. 
3.  2010 amounts include information based on estimated unaudited financial
    results that may change on the completion of the audited financial
    statements. 
4.  Calculated by dividing the 2010 reserve additions after revisions by the
    2010 total production. 

Net Asset Value

The following table provides management's calculation of Cumberland's
estimated net asset value at December 31, 2010 based on the estimated future
net revenues associated with Cumberland's proved plus probable reserves
before income tax and discounted at 10%, as presented in the McDaniel Report
and an internal estimate of undeveloped land value.

                                                               ($ thousands)
----------------------------------------------------------------------------
Proved plus probable reserves - discounted at 10%                  10,044.5 
Undeveloped land (note 1)                                             688.3 
Estimated working capital as at December 31, 2010 (notes 2 & 3)     1,626.7 
----------------------------------------------------------------------------
Net asset value                                                    12,359.5 
                                                                            
Diluted common shares outstanding (thousands)                        35,684 
----------------------------------------------------------------------------
                                                                            
Net asset value per share ($)                                    $     0.35 
----------------------------------------------------------------------------

Notes:

1.  Based on an estimated market value of $75 per hectare. 
2.  Includes information based on unaudited financial results that may
    change. 
3.  Working capital includes an estimate of the Company's accounts
    receivable less accounts payable and accrued liabilities as at December
    31, 2010. 



CAUTIONARY STATEMENTS

Unaudited Financial Information

Certain financial and operating information included in this press release for
the quarter and year ended December 31, 2010, such as finding and development
costs, production information and net asset value, are based on estimated
unaudited financial results for the quarter and year then ended and are subject
to the same limitations as discussed under Reader Advisories set out below.
These estimated amounts may change upon the completion of audited financial
statements for the year ended December 31, 2010 and changes could be material.


Information Regarding Disclosure on Oil and Gas Reserves

Our oil and gas reserves statement for the year ended December 31, 2010, which
will include complete disclosure of our oil and gas reserves and other oil and
gas information in accordance with NI 51-101, will be contained within our
Annual Information Form which will be available on our SEDAR profile by April
30, 2011 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.


In relation to the disclosure of net asset value ("NAV'), the NAV table shows
what is normally referred to a "produce-out" NAV calculation under which the
current value of the Company's reserves would be produced at forecast future
prices and costs and do not necessarily represent a "going concern" value of the
Company. The value is a snapshot in time and is based on various assumptions
including commodity prices and foreign exchange rates that vary over time. It
should not be assumed that the future net revenues estimated by McDaniel
represent the fair market value of the reserves, nor should it be assumed that
Cumberland's estimated value of its undeveloped land represents the fair market
value of the lands.


Reader Advisories

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 recognition of significant
additional reserves under the heading "Reserves"; the volumes and estimated
value of Cumberland's oil and gas reserves; 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 and resources
provided herein are estimates only and there is no guarantee that the estimated
reserves or resources 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; continued and timely
development of infrastructure in areas of new production; 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, 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

Barrel of oil equivalents or BOE's may be misleading, particularly if used in
isolation. A BOE conversion ratio 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.