Cumberland Oil & Gas Ltd. Financial and Operating Results for the Quarter and Year Ended December 31, 2010

Cumberland Oil & Gas Ltd. ("Cumberland" or the "Company") (TSX VENTURE:COG) has
filed its audited financial statements and related Management's Discussion and
Analysis ("MD&A") for the year ended December 31, 2010. 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


2010 Financial and Operating Highlights



--  Completed an amalgamation with four (4) Capital Pool Corporations in
    February 2010, resulting in Cumberland's common shares being listed on
    the TSX Venture Exchange, under the symbol "COG". 
--  Earned a 100 per cent ownership interest in the Valhalla Doe Creek "M"
    light oil Pool ("Valhalla"). 
--  Installed water-flood injection facilities at Valhalla and commenced
    full scale water injection in the fourth quarter. 
--  Average annual production for fiscal 2010 of 63 barrels of oil
    equivalent ("boe") per day. 
--  Increased proved plus probable reserves 256% to 559 mboe and proved
    reserves 140% to 287 mboe (1). 
--  Achieved all-in finding and development costs ("F&D") of $15.12 per boe
    on proved plus probable reserves basis and $22.76 per boe on proved
    reserves basis (including future development costs and revisions). 
--  Increased capital expenditures to $3.0 million from $1.3 million in
    2009. 
--  Recorded net asset value of $0.35 per diluted share, details of which
    calculation were set out in the Company's March 24, 2011 news release. 
--  Positive working capital of $1.63 million at December 31, 2010. 



Note:



1.  More detailed information in respect of the results of Cumberland's
    independent reserves for the year ended December 31, 2010, as evaluated
    by McDaniel and Associates Consultants Ltd. ("McDaniel") and related
    information was contained in Cumberland's news release dated March 24,
    2011, and will be contained in Cumberland's annual information form to
    be filed on or before April 30, 2011. It should not be assumed that the
    discounted future net revenues estimated by McDaniel represent the fair
    market value of the reserves. 

                               Three months ended          Year ended       
                                   December 31             December 31      
                                                                            
Financial                          2010        2009        2010        2009 
----------------------------------------------------------------------------
                                                                            
Oil and gas sales               155,910     132,779     759,057     439,961 
Funds used in operations (1)   (340,536)   (282,519) (1,095,472)   (801,777)
  Per basic and diluted                                                     
   share                          (0.01)      (0.01)      (0.03)      (0.04)
Cash used in operating                                                      
 activites                     (234,756)   (290,079) (1,093,772)   (771,185)
  Per basic and diluted                                                     
   share                          (0.01)      (0.01)      (0.03)      (0.04)
Net loss                       (505,040)   (430,511) (1,758,340) (1,216,841)
  Per basic and diluted                                                     
   share                          (0.01)      (0.02)      (0.05)      (0.06)
Capital expenditures, net       997,326     241,055   3,029,637   1,300,625 
Working capital (2)           1,626,685   1,170,240   1,626,685   1,170,240 
Weighted average shares                                                     
  - Basic                    35,684,319  20,738,887  32,184,073  21,070,755 
  - Diluted                  35,684,319  20,757,335  32,184,073  21,005,554 



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         Year ended     
                                      December 31           December 31     
                                                                            
Operations                            2010        2009       2010       2009
----------------------------------------------------------------------------
                                                                            
Daily production                                                            
 Crude oil (bbl/d)                       8           -         11          -
 Natural gas (mcf/d)                   306         324        311        315
 Oil equivalent (boe/d @ 6:1)           59          54         63         52
                                                                            
Average prices                                                              
 Crude oil ($/bbl)                   79.46           -      73.72          -
 Natural gas ($/mcf)                  3.59        4.49       3.95       3.83
 Oil equivalent ($/boe)              28.96       26.76      33.97      22.98
                                                                            
Netback                                                                     
 Operating netback ($/boe) (1)      (17.27)      10.68       6.04       7.74



 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. 



Operations Update and 2011 Outlook 

In 2010, the Company successfully completed construction and installation of
water-flood facilities at its light oil Valhalla Doe Creek 'M" pool in the Peace
River Arch. The Company expects the pool to experience water-flood response
during the second half of 2011. The Company was unsuccessful in attracting
investment capital to finance conventional oil and gas property acquisitions
during 2010. Several accretive acquisition opportunities were identified and
conditionally secured with non-binding letters of intent, but the Company was
unable to secure the necessary financing to close the acquisitions.


The Company's focus for 2011 will be on developing emerging resource plays on
its lands in southwest Saskatchewan and northeast British Columbia. The
Company's lands are in close proximity to several resource development projects
being undertaken by competitors. Prices paid at recent land sales immediately
adjacent to Cumberland's land in these areas, supports the Company's technical
thesis in both areas.


In southwest Saskatchewan, the Company is targeting medium gravity oil in the
Shaunavon formation. The Company has identified seven (5.2 net) horizontal well
locations, with plans to drill up to two (1.4 net) of these locations in 2011.
Based on productive analogy from nearby wells, each horizontal well is expected
to be capable of producing approximately, 100,000 to 150,000 barrels of oil.


In northeast British Columbia, the Company has four sections of land 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 activity by competitors, are adjacent to
infrastructure and afford year round access. In 2011, the Company plans to
recomplete an existing cased wellbore to evaluate the productive capability of
both the Upper and Lower Montney zones on its land. Both zones are developed in
this wellbore and the Company plans to drill a horizontal well in each zone
during 2011. The potential exists for up to fourteen (5.6 net) horizontal legs
in each zone.


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 operational activities; 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 or 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'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.