Cumberland Oil & Gas Ltd. Announces Filing of June 30, 2010 Interim Financial Statements and MD&A and Provides Operational Updat

Cumberland Oil & Gas Ltd. ("Cumberland") (TSX VENTURE:COG) has filed its
unaudited interim financial statements and related Management's Discussion and
Analysis ("MD&A") for the period ended June 30, 2010. Copies of these documents
may be obtained via the SEDAR website at www.sedar.com.


Highlights



 - Received regulatory approval to commence drilling infill oil wells as the
   first step of the Valhalla Doe Creek 'M" Pool secondary recovery project.
 - Completed a water source well at Valhalla capable of high rate water     
   injection volumes for the Valhalla waterflood.                           
 - Licensed two infill oil well locations in the Valhalla Doe Creek "M"     
   Pool, both of which were drilled in the third quarter.                   
 - Assembled exploration lands in the Peace River Arch area of Alberta with 
   four drillable prospects for both Doe Creek light oil and high impact    
   natural gas.                                                             
 - Achieved record production volumes of 72 boepd, 24% higher than the same 
   period last year.                                                        
 - Announced a flow-through common share private placement for gross        
   proceeds of $907,500 that closed July 5, 2010.                           
 - Positive working capital of $3.59 million at June 30, 2010.              


                              Three months ended           Six months ended 
                                         June 30                    June 30 
Financial                      2010         2009          2010         2009 
-------------------------------------------------------------- -------------
                                                                            
 Oil and gas sales          244,024      108,547       409,283      215,532 
 Funds used in                                                              
  operations (1)           (304,752)    (233,172)     (629,315)    (349,329)
  Per basic and                                                             
   diluted share              (0.01)       (0.01)        (0.02)       (0.02)
 Cash used in                                                               
  operating activites      (543,594)    (241,302)     (626,305)    (411,908)
  Per basic and                                                             
   diluted share              (0.02)       (0.01)        (0.02)       (0.02)
 Net loss                  (483,572)    (368,830)     (951,119)    (467,613)
  Per basic and                                                             
   diluted share              (0.01)       (0.02)        (0.03)       (0.02)
 Capital                                                                    
  expenditures, net         230,128       48,219       635,234      854,732 
 Working capital (2)      3,590,095    2,069,582     3,590,095    2,069,582 
 Weighted average                                                           
  shares                                                                    
  Basic and diluted      32,384,319   21,141,085    28,716,973   21,239,439 

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 Canadian GAAP and therefore may not be comparable with    
    calculations of similar measures for other companies.                   
 2. Working capital includes cash and cash equivalents, accounts receivable,
    deposits and prepaid expenses, and accounts payable and accrued         
    liabilities.                                                            


                               Three months ended           Six months ended
                                          June 30                    June 30
Operations                      2010         2009          2010         2009
----------------------------------------------------------------------------
                                                                            
Daily production                                                            
  Crude oil (bbl/d)               21            -            13            -
  Natural gas (mcf/d)            307          349           305          296
  Oil equivalent                                                            
   (boe/d @ 6:1)                  72           58            63           49
                                                                            
Average prices                                                              
  Crude oil ($/bbl)            71.73            -         73.06            -
  Natural gas ($/mcf)           3.88         3.42          4.39         4.03
  Oil equivalent                                                            
   ($/boe)                     37.28        20.52         35.61        24.18
                                                                            
Netback                                                                     
  Operating netback                                                         
   ($/boe) (1)                 12.39         7.32         12.44        10.08

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 Canadian GAAP
    and therefore may not be comparable with the calculation of similar     
    measures for other companies.                                           



Valhalla Doe Creek "M" Pool

During the month of July, Cumberland drilled, cased and completed two new light
oil wells at Valhalla. The new wells were completed in the Doe Creek interval
and placed on production in early August. Coincident with the drilling of these
new producing wells, two existing producing oil wells were re-stimulated and
converted to water injection wells. Water injection tests were conducted on
these wells and Cumberland has submitted an application for water injection
approval to the Alberta Energy and Utilities Board.


The construction of injection and gathering facilities at Valhalla is underway
and Cumberland expects to commence full scale water injection in October,
subject to receipt of all regulatory approvals.


Reader Advisories

Forward-Looking Statements: This news release contains certain forward-looking
statements, including management's assessment of future plans and operations,
including expectations on the commencement of water injection operations at
Valhalla and the timing thereof, that involve substantial unknown risks,
uncertainties and assumptions, some of which are beyond the Company's control.
Such risks, uncertainties and assumptions include, without limitation, those
associated with oil and gas exploration, development, exploitation, production,
marketing, processing and transportation, loss of markets, volatility of
commodity prices, imprecision of reserve estimates, environmental risks, failure
to receive the requisite regulatory approvals, competition from other producers,
inability to retain drilling rigs and other services, delays resulting from or
inability to obtain required regulatory approvals and ability to access
sufficient capital from internal and external sources, the impact of general
economic conditions globally and in Canada, industry conditions, changes in laws
and regulations (including the adoption of new environmental laws and
regulations) and changes in how they are interpreted and enforced, the lack of
availability of qualified personnel or management, fluctuations in foreign
exchange or interest rates, stock market volatility and obtaining required
approvals of regulatory authorities. Cumberland's actual results, performance or
achievements could differ materially from those expressed in, or implied by,
those forward-looking statements and, accordingly, no assurances 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. Readers are cautioned that the foregoing list is not
exhaustive. Additional information on these and other factors 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). All subsequent forward-looking statements,
whether written or oral, attributable to Cumberland or persons acting on its
behalf are expressly qualified in their entirety by these cautionary statements.
Furthermore, the forward-looking statements contained in this news release are
made as at the date of this news release and Cumberland does not undertake any
obligation to update publicly or to revise any of the included forward-looking
statements, whether as a result of new information, future events or otherwise,
except as may be required by applicable securities laws.


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.