Cumberland Oil & Gas Ltd. Announces Filing of September 30, 2011 Interim Financial Statements and MD&A

Cumberland Oil & Gas Ltd. (TSX VENTURE:COG) ("Cumberland" or the "Company") has filed its unaudited interim financial statements and related Management's Discussion and Analysis ("MD&A") for the three months (the "Quarter") and nine months ended September 30, 2011. Copies of these documents may be obtained under Cumberland's SEDAR profile via the SEDAR website at www.sedar.com or through the Company's website at www.cumberlandltd.com.

Highlights

--  Record production volumes for the Quarter of 101 boe per day, a 49%
    increase from the same period in 2010. 
--  Production mix of 52% light oil and 48% natural gas. 
--  Valhalla Doe Creek "M" Pool responding to water-flood, with average
    daily oil production for the Quarter of 52 bbl per day, up from 15 bbl
    per day since implementation. 
--  Oil and gas sales increased 177% from the comparable quarter in 2010. 
--  Operating netbacks for the Quarter improved 185% from comparable period.
--  Positive operating cash flow for the Quarter. 
--  Acquired remaining 60% interest in liquids rich Montney lands at West
    Nig for $250,000. 
--  Positive working capital of $0.95 million at September 30, 2011.

                              Three months ended        Nine months ended   
                                 September 30             September 30      
                                                                            
Financial                          2011        2010         2011        2010
----------------------------------------------------------------------------
                                                                            
Oil and gas sales               537,977     193,864    1,303,197     603,147
Cash flow (1)                    69,130   (125,621)    (160,335)   (754,936)
 Per basic and diluted                                                      
  share                            0.00      (0.00)       (0.00)      (0.02)
Cash used in operating                                                      
 activites                     (55,841)   (232,711)    (318,651)   (859,016)
 Per basic and diluted                                                      
  share                          (0.00)      (0.01)       (0.01)      (0.03)
Net loss                       (53,555)   (233,967)    (296,902) (1,074,729)
 Per basic and diluted                                                      
  share                          (0.00)      (0.01)       (0.01)      (0.03)
Capital expenditures, net       310,403   1,397,076      369,120   2,032,311
Working capital (2)             947,230   2,964,547      947,230   2,964,547
Weighted average shares                                                     
 Basic and diluted           35,684,319  35,504,971   35,684,319  31,004,504
                                                                            
Notes:                                                                      
(1) Represents cash flow from operating activities before changes in non-   
cash working capital.                                                       
(2) Working capital includes cash and cash equivalents, accounts receivable,
deposits and prepaid expenses, and accounts payable and accrued liabilities.
                                                                            
                                    Three months ended    Nine months ended 
                                       September 30         September 30    
                                                                            
Operations                               2011      2010       2011      2010
----------------------------------------------------------------------------
                                                                            
Average Daily Production                                                    
 Crude oil (bbl/d)                         52        13         39        13
 Natural gas (mcf/d)                      292       329        282       313
 Oil equivalent (boe/d @ 6:1)             101        68         86        65
 Crude oil weighting (%)                   51        19         45        20
                                                                            
Average Realized Prices                                                     
 Crude oil ($/bbl)                      92.13     71.71      94.65     72.59
 Natural gas ($/mcf)                     3.63      3.51       3.74      4.08
 Oil equivalent ($/boe @ 6:1)           58.12     30.96      55.33     33.97
 Netback ($/boe)                        28.57     10.01      23.04     11.58

Valhalla Doe Creek "M" Pool

In late 2010, the Company successfully completed construction and installation of water-flood facilities at its Valhalla Doe Creek "M" Pool (the "Pool"). The Company has seen Pool volumes increase from less than 15 bbls per day in January 2011, to over 50 bbls per day of light oil by the end of the third quarter. The Company expects to drill an additional water injection well in the first half of 2012 to further enhance water-injection and light oil production.

NE British Columbia

During the Quarter, Cumberland acquired the remaining 60% working interest on its acreage in the liquids-rich Montney natural gas play in northeast British Columbia from its partner. The Company now owns 2,816 net acres of land at West Nig, highly prospective for development of liquids-rich natural gas and condensate, in both the Upper and Lower Montney formations. The lands are situated on a well-defined structure proximal to recent drilling success by competitors and are adjacent to infrastructure and afford year round access. The Company plans to recomplete and test an existing cased wellbore to evaluate the productive capability of both the Upper and Lower Montney zones on its land. Both zones have been successfully developed by competitors in this region. The potential exists for up to fourteen (14 net) horizontal legs in each Montney zone.

SW Saskatchewan

The Company has over 1,150 net acres of land at Chambery and Dollard in the Shaunavon medium gravity oil trend in southwest Saskatchewan. The lands off-set both existing Upper Shaunavon producing wells and recently drilled horizontal Lower Shaunavon wells. The Company's independent engineering consultants assigned over 100,000 bbls of probable undeveloped reserves to a 100% horizontal well location at Chambery, with an initial estimated production rate of approximately 100 bbls per day of oil pursuant to a report dated March 18, 2011. Cumberland expects to drill this well during 2012 and has identified six additional Shaunavon horizontal locations for a total of 7 (5.2 net) horizontal locations on its 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 volumes and estimated value of Cumberland's oil and gas reserves; anticipated production volumes from the expected well at Chambery and from the Pool with continued water-flood activities; anticipated operational activities; the sources of funding for certain of the company's future operations; 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 provided herein are estimates only and there is no guarantee that the estimated reserves 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; the effect of water-flood activities at the Pool; 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'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.

Non-IFRS Measures

This news release includes references to financial measures commonly used in the oil and gas industry such as "cash flow" which does not have any standardized meaning prescribed by International Financial Reporting Standards ("IFRS"). Management believes that in addition to net income (loss), cash flow is a useful supplemental measure as it is a measure of a company's ability to generate the cash necessary to repay debt or fund future growth through capital investment. However, investors are cautioned that this measure should not be construed as an alternative to net income (loss) determined in accordance with IFRS as an indication of performance. The method of calculating this measure may differ from other companies and accordingly, they may not be comparable to similar measures used by other companies.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Contacts: Cumberland Oil & Gas Ltd. Alan MacDonald Vice President, Finance and Chief Financial Officer [phone]www.cumberlandltd.com