Cumberland Oil & Gas Ltd. Announces Farmout and Joint Venture Agreement at West Nig, BC

Cumberland Oil & Gas Ltd. (TSX VENTURE:COG) ("Cumberland" or the "Company") is
pleased to announce that it has entered into a Farmout and Joint Venture
Agreement (the "Agreement") with a senior oil and gas producer (the "Farmee") on
the Company's lands at West Nig in N.E. British Columbia (the "Lands").


The Lands comprise approximately 1,128 hectares in the emerging liquids rich
Upper Montney play that is being developed in the area. Third-party land sale
activity during 2011 on acreage either adjacent or proximate to the Lands has
resulted in total expenditures of approximately $50 million. The Lands are
accessible for field operations year-round and are transected by two major
natural gas pipelines.


The Farmee has committed to drill, complete and production test a horizontal
well (the "Test Well") targeting the Upper Montney formation at a location of
their choice. The Farmee will incur 100% of the costs of that operation and upon
completion, will earn a 75% working interest in the Lands. The Test Well is to
be drilled on or before August 1, 2012.


The Lands are situated on a well-defined structure proximal to recent drilling
successes and Cumberland believes the Montney formation represents a thick,
over-pressured, liquids rich, hydrocarbon-charged zone with specific intervals
exhibiting optimal porosity and permeability. In addition to the Upper Montney,
the Lower Montney is now being successfully developed by several operators.


Cumberland considers the Upper Montney play to have been significantly de-risked
over the past year through the drilling operations of other operators in the
area. At Nig Creek, a competitor recently announced that its first two Upper
Montney horizontal wells production tested at rates of 6.3 and 5.6 million cubic
feet per day respectively, with total natural gas liquids content expected to be
in excess of 30 barrels per million cubic feet. 


Mr. Dan Allan, President and CEO of Cumberland stated that the joint venture
enables Cumberland to participate in a high quality emerging liquids rich
Montney natural gas project. "We are very pleased to have a large,
well-capitalized partner participating with us in this play. It's a validation
of the technical thesis we have been developing for the last year. This joint
venture gives Cumberland significant exposure to a developing resource play with
exceptional upside".


Reader Advisory

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: anticipated drilling date of the test
horizontal well; and future working interests.


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 Farmee's
compliance and fulfillment of the terms of the Agreement; 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 Cumberland 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: an
incorrect assessment of the farm out lands; failure to realize the anticipated
benefits of the farm out lands and the transactions contemplated by the
Agreement; 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 by Cumberland; 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.