American Liberty Petroleum Corp. (OTCBB: OREO) (herein after "American Liberty" and/or "the Company") is pleased to provide a summary of the Company's recent progress on the Cortez Operation. The operation is located on the 3,840-acre Cortez lease in Gabbs Valley, Nye County, Nevada, and includes two wells: Cobble Cuesta 1-12 and Paradise 2-12.

In early May 2012, work resumed on the Paradise 2-12 well, including a fluid level test that indicated a 1920' fluid column in the well bore above the pump. Following the application of hot water and a new proprietary chemical formula treatment, the well produced additional fluid consisting of an oil/water mix. In total, approximately 29 barrels of crude was shipped to Foreland's Eagle Springs Refinery in neighboring White Pine County, representing the Company's second sale to Foreland. The BLM was also notified of the sale in order that the Company might secure "held by production" status on the Cortez lease.

The Company has continued to work with oil and gas consulting services firm Netherland, Sewell & Associates Inc. ("NSAI") to gather information toward determining next steps in the development of the Cortez operation. In particular, the Company is currently considering options that include:

1) Deepening the Cobble Cuesta 1-12 well

2) Deepening the Paradise 2-12 well

3) Drilling a new well based on information gained to date

4) Performing more seismic surveying prior to further exploration activities

NSAI is assisting the Company's assessment of all possible options by reviewing and evaluating the geological information currently available, and is providing American Liberty with their recommendations of the technical alternatives associated with each of the options, taking care to point out both the merits and potential challenges of each.

As of May 29, 2012, the Company had received an Authority For Expenditure (AFE) to re-enter the Cobble Cuesta 1-12 well, and an AFE to drill a new well in the Cortez lease. The AFEs act as budgetary documents that list the estimated expenses associated with the development activity in question: in the case of the well re-entry, an oil/gas well/re-enter with intermediate casing at 6000' and production casing at 8500', including perforate casing and frac; in the case of the new well, an oil/gas well with surface casing at 850', intermediate casing at 6000', and production casing at 8500', including perforate casing and frac.

American Liberty Petroleum's President, Alvaro Vollmers, commented: "We're encouraged to have completed a second sale of crude to the Foreland refinery. Meanwhile, we're looking forward to receiving NSAI's development recommendations on our best options for maximizing on production potential at the Cortez operation.”

FOR MORE INFORMATION

Learn more about the Cortez Operation and the Gabbs Valley Prospect at the American Liberty Petroleum website, where you can also find more information about the Company as well as the latest news releases: http://www.americanlibertypetro.com.

ABOUT AMERICAN LIBERTY PETROLEUM CORP.

Based in Bakersfield, California, American Liberty is a publicly traded company (OTCBB: OREO) focused on reducing America’s need for imported oil through discovering major, new onshore U.S. energy resources and by tapping overlooked or undervalued onshore domestic resources through exploration and development technologies not previously available. Recent significant discoveries, such as Occidental Petroleum's estimated 1+ billion barrels of oil and natural gas equivalents in California*, underscore the potential for developing new oil and gas production solutions in western America. Next door in the under-explored state of Nevada, American Liberty's 8,157-acre Gabbs Valley Prospect is located on the 26,000-acre Cobble Cuesta structure, which is estimated to represent oil reserves of 4+ billion barrels**. The Company's 7,270-acre Kibby Flat Prospect in the Monte Cristo basin, meanwhile, represents estimated ultimate recovery (EUR) of as high as 669 million barrels of oil according to a 2008 report***.

* Occidental Petroleum's Path to Easy Oil. Forbes Magazine, March 29, 2010** Reserve Estimates for the Cobble Cuesta Structure, Alfred H. Pekarek, Ph.D., Geologist, January, 2008*** Kibby Flat Prospect report, Jerry Walker, Consulting Geologist, Sept. 2008

ON BEHALF OF THE BOARD OF DIRECTORS,

American Liberty Petroleum Corp.Alvaro Vollmers, President

4900 California Ave.Tower B-210Bakersfield, CA 93309

OTCBB: OREO.OB

Certain statements in this press release are considered to be forward looking and involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. American Liberty Petroleum Corp. bases these forward-looking statements on current expectations and projections about future events, which are based on information currently available. The forward-looking statements in this press release may also include statements relating to American Liberty Petroleum Corp.'s anticipated business prospects, new developments, financial performance, strategies and similar matters. American Liberty Petroleum Corp. disclaims any obligation to update any of its forward-looking statements, except as may be required by law.

Cautionary Note to U.S. Investors - The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We may use certain terms in this press release, such as “measured,” “indicated,” and “inferred” “resources,” which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 10-K which may be secured from us, or from our website at http://www.sec.gov/edgar.shtml.