CORPUS CHRISTI, Texas, June 3 /PRNewswire-FirstCall/ -- Strategic American Oil Corporation (OTC Bulletin Board: SGCA; the "Company"), is pleased to announce it has leased an Illinois land position in a previously producing oil field that could host significant in-place reserves through Enhanced Oil Recovery. By researching the Illinois State Geological Survey, the Company has discovered the oil field previously produced an aggregate of 1.5 million barrels of oil during the 1940s and 50s. Nearby waterflood operations in the same zones have yielded a 1:1 recovery. The Company has leased approximately 372 acres of the oil field. The Company plans to use existing injection wells while drilling new recovery wells to 4,000 feet. Company Chief Geologist, Jim Thomas, who has approximately 30 years of experience in the Illinois basin, and a BS and MS from South Illinois University, is heading up the Company's Illinois operations and will review engineering and development plans with Barger Engineering, of Evansville, Indiana. Barger has engineered a number of waterfloods in Illinois with a long history of success. Company President, Randall Reneau, stated, "This project offers the Company low risk long-term production potential in a proven waterflood area. The Company plans to design a pilot waterflood operation for the project, which, if proven, would be expanded into commercial operations." The Illinois Basin is a mature oil producing environment with a production history covering over 100 years. This development history has generated a large database including records for more than 180,000 wells. Strategic American Oil is working to grow the Company's reserves, and accessing and analyzing these historic records minimizes cost while identifying exploration and historical production targets to meet that growth. To date the Company has leased over 2000 acres in Illinois through utilizing these records. Finding and leasing this waterflood project demonstrates the value of these historic records and the Company's expertise in managing those records. "Waterflood" or "enhanced oil recovery" is an oil extraction method where water is pumped into an injection well displacing the reservoir formation and forcing the oil into a recovery well. This method is used to recover additional oil in place following primary production methods. About Strategic American Oil Corporation Strategic American Oil Corporation (OTCBB: SGCA) is an exploration and production company with operations in Texas, Oklahoma, Louisiana, and Illinois. The company draws on the experience of an internationally recognized team of geologists, engineers, and executives with extensive oil and gas exploration and production experience. The Company's objective is to find and acquire oil and gas projects of merit and develop those projects to their full potential. For further information please contact: Corporate Office Suite 2015, 600 Leopard Street Corpus Christi, Texas, 78473 Investor Relations (800) 643-5815 Safe Harbor Statements Except for the statements of historical fact contained herein, the information presented in this news release constitutes "forward-looking statements" as such term is used in applicable United States and Canadian laws. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans, "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and should be viewed as "forward-looking statements". Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors include, among others, the actual results of exploration activities, variations in the underlying assumptions associated with the estimation or realization of oil or gas resources, the availability of capital to fund programs and the resulting dilution caused by the raising of capital through the sale of shares, accidents, labour disputes and other risks of the oil and gas industry including, without limitation, those associated with the environment, delays in obtaining governmental approvals, permits or financing or in the completion of development or construction activities, title disputes or claims limitations on insurance coverage. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release and in any document referred to in this news release. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law. Such forward-looking statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including, the risks and uncertainties outlined in our most recent financial statements and reports and registration statement filed with the United States Securities and Exchange Commission (the "SEC") (available at http://www.sec.gov/). Such risks and uncertainties may include, but are not limited to, the risks and uncertainties set forth in the Company's filings with the SEC, such as the ability to obtain additional financing, the effect of economic and business conditions, the ability to attract and retain skilled personnel and factors outside the control of the Company. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although the Company believes that the beliefs, plans, expectations and intentions contained in this news release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate. Investors should consider all of the information set forth herein and should also refer to the risk factors disclosed in the Company's periodic reports filed from time-to-time with the SEC. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. DATASOURCE: Strategic American Oil Corporation CONTACT: Corporate Office, Investor Relations, 1-800-643-5815 Web Site: http://www.strategicamericanoil.com/

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