JOINT PRESS RELEASE

  AUSTRALIAN-CANADIAN OIL ROYALTIES LTD. (OTCBB: AUCAF) AND INTERNATIONAL TME
                           RESOURCES INC. (OTC: ITME)

   ACOR ANNOUNCES ACQUISITION OF INTERNATIONAL TME RESOURCES INC, INDEPENDENT
        RESOURCE EVALUATION OF ITS GEORGINA BASIN UNCONVENTIONAL ASSET,
                        OPERATIONS UPDATE AND FINANCING

FOR IMMEDIATE RELEASE

CISCO, TX, MAY 30, 2013 - Australian-Canadian Oil Royalties Ltd. (OTCBB: AUCAF)
("ACOR" or "the Company") and International TME Resources Inc. ("ITME") are
pleased to announced that they have signed an agreement in which ACOR will
acquire all of the issued and outstanding shares of ITME (the "Transaction").
The Transaction is expected to be completed by way of Plan of Arrangement (the
"Arrangement") and has been approved by the board of directors of both ACOR and
ITME. Shareholders representing approximately 63% of the issued and outstanding
shares of ACOR have entered into binding support agreements to vote in favor of
the proposed Transaction, and shareholders representing approximately 33% of the
issued and outstanding shares of ITME have entered into binding support
agreements to vote in favor of the proposed Transaction. The Transaction is
anticipated to close on or about August 2, 2013.

THE TRANSACTION

Under the terms of the Transaction, ITME shareholders will receive 0.5431 of a
common share of the combined entity, which shall be called Chelsea Oil and Gas,
Ltd. ("Chelsea") in exchange for one (1) ITME common share. After giving effect
to the Transaction, Chelsea will issue a total of 13,976,542 common shares to
former ITME shareholders. After the Transaction closes, Chelsea will have
64,005,607 common shares issued and outstanding prior to giving effect to the
proposed financing discussed below.

The Transaction will require the approval of 66 2/3% of the votes cast by each
of the ITME and ACOR shareholders at meetings to be called to consider the
Transaction. The proposed Transaction will as also require the approval of the
Supreme Court of British Columbia and the satisfaction of a number of customary
conditions.

ITME holds interests in several properties, including working interests, jointly
with the Company. The acquisition will consolidate these interests, including
shared royalty interests which are anticipated to provide the Company with
additional sources of revenue and cash flow in the future.

FINANCING AND CORPORATE RESTRUCTURING

Concurrent with the Transaction, the Company intends to complete a financing
transaction. The Company will use the proceeds of the proposed financing for
seismic acquisition on its Surat and Georgina Basin properties, the installation
of water injection facilities in its Surat Basin property, the repayment of debt
and general corporate purposes.

<PAGE>



Upon closing of the Transaction, Chelsea will reconstitute its board of
directors and executive management team. Chelsea will be based in Calgary,
Alberta, Canada, and is pleased to add two industry veterans to its board of
directors: Stewart Gibson and Toby Pierce.

Mr. Gibson brings 40 plus years' experience with industry majors and startups.
He has a B.Sc. (Hon.) Geology, and M.Sc. Petroleum Reservoir Engineering. He has
previously held positions with BP, Occidental, Bow Valley and is the former CEO
of Sterling Resources Ltd.

Mr. Pierce was most recently a Director & Senior Analyst with GMP Securities
(London, UK) GMP served as Director of Institutional Research at Tristone
Capital (London, U.K.) since 1994. Previous engagements include wellsite geology
over a period of five years for numerous companies across the Western Canadian
Sedimentary Basin. In addition, he has worked for three years across North and
Latin America as a geologist in the mining and exploration industry. Mr. Pierce
brings strong geological and financial understanding within resource sectors.
Mr. Pierce holds an M.B.A. from the Rotman School of Business and a B.Sc.
Geology from the University of Victoria.

Mr. Howard Siegel and Mr. Andre Sakhai will leave the board of directors of the
Company upon closing of the Transaction. The Company thanks both gentlemen for
their years of services and wishes them success in their future endeavors.

After the closing of the Transaction current board member William Petrie, Sr.
will retain the position of Chairman. Mr. Petrie has in excess of 35 years
experience as a petroleum geologist, primarily in Western Canada. He began his
career with Mobil Oil, leaving after several years to join the independent
sector. He has been involved as president and geologist for a number of public
and private oil and gas companies, the most recent public company being Marengo
Exploration Ltd. In these positions he was responsible for generating,
evaluating, and successfully exploiting oil and gas exploration, development,
and acquisition opportunities throughout the Western Canadian Sedimentary Basin.

After the closing of the Transaction, current board member Jesse Meidl will
retain his the position as a director of Chelsea. Mr. Meidl has over 15 years
experience in the oil and gas sector, both Canadian and international. He is
currently CFO of Caithness Petroleum Limited, a private UK company with several
international projects. He joined Caithness from the London office of Thomas
Weisel Partners, where he was an investment banker in the International Oil &
Gas group. He was previously the Chief Financial Officer for Arsenal Energy
Inc., an international exploration company listed on the Toronto Stock Exchange,
which held production assets in Canada and the USA and exploration assets in
Egypt, Colombia and Uzbekistan. Prior to that, he was an analyst at APF Energy
Trust. Mr. Meidl qualified as a Chartered Accountant with KPMG LLP and also
holds an ICAEW Corporate Finance qualification and a B.Comm. degree from the
University of Saskatchewan.

The new board of directors and management of the Company are committed to
capturing the considerable potential in the Company's assets.

<PAGE>



GEORGINA BASIN RESOURCE REPORT

Authority to Prospect 582 ("ATP 582") comprises in total 5.02 million acres, of
which approximately1.0 million acres in the northern part is underlain by the
southern Georgina Basin. This area also includes a large part of the Toko
Syncline which contains by far the thickest accumulation of Paleozoic strata in
the basin and is thought to be the most prospective for both conventional and
unconventional hydrocarbon resources. ACOR's wholly-owned subsidiary,
Cooper-Eromanga Oil Inc. ("CEO"), engaged Ryder Scott Petroleum Consultants Ltd.
("Ryder Scott") to prepare a report dated effective March 31, 2013 (the
"Resource Report") evaluating the unconventional hydrocarbon resources in ATP
582. Approximately 0.91 million acres were established by Ryder Scott through
review of previous seismic and well data to be prospective for unconventional
hydrocarbons in Cambrian age strata of the Georgina Basin within ATP 582.

The evaluation by Ryder Scott assigned resource estimates to one horizon in the
Georgina Basin, the Lower Arthur Creek Hot Shale (the "Hot Shale"). The Hot
Shale is the radioactive shale at the base of the Lower Arthur Creek which
exhibited high total organic content ("TOC") in historical wells on, and
offsetting, ATP 582. The following table summarizes the Ryder Scott report:


                 UNRISKED PROSPECTIVE RECOVERABLE RESOURCES(1)
--------------------------------------------------------------------------------

----------------- ------------------- ---------------------- -------------------
HYDROCARBON       LOW ESTIMATE (P90)   BEST ESTIMATE (P50)   HIGH ESTIMATE (P10)
-----------       ------------------   -------------------   -------------------
Oil (MMbbls)              21.1                   32.8                51.0
Gas (Tcf)(2)               2.5                    3.4                 4.6
Condensate (MMbc)         40.8                   89.0               155.5
----------------- ------------------- ---------------------- -------------------
TOTAL (MMBOE)            479.0                  688.5               973.1

(1) Reflects gross (100%) working interest in ATP 582.
(2) Includes associated gas.

The Resource Report has been prepared in accordance with the standards contained
in the Canadian Oil and Gas Evaluation Handbook (the "COGE Handbook") and
National Instrument 51- 101 - Standards for Disclosure for Oil and Gas
Activities of the Canadian Securities Administrators ("NI 51-101"). The Resource
Report is based on certain factual data supplied by the Company and Ryder
Scott's opinion of reasonable practice in the industry. The extent and character
of ownership and all factual data pertaining to the Company's petroleum
properties and contracts (except for certain information residing in the public
domain) were supplied by the Company to Ryder Scott and accepted without any
further investigation. Ryder Scott accepted this data as presented and neither
title searches nor field inspections were conducted. The recovery and resources
estimates for the Company's assets and properties described herein are estimates
only and there is no guarantee that the estimated resources will be recovered.
The actual resources for the Company's assets and properties may be greater or
less than those calculated.

<PAGE>



The Company is pleased with the Hot Shale resource potential as established by
Ryder Scott. In addition to the Hot Shale, the Company has identified
considerable resource potential in horizons above the Hot Shale, defined as the
Upper Arthur Creek and Lower Arthur Creek formations. These formations were
penetrated by all of the historical wells present on ATP 582, and were tested in
one well, Mirrica-1 ("Mirrica"), drilled in 1989. While Mirrica was drilled
over-balanced, strong gas shows in the drilling fluid were encountered while
drilling through the Upper and Lower Arthur Creek formations. Six drill stem
tests ("DST") were conducted over a 600m meter interval, resulting in no
hydrocarbon and, importantly, no water recovery. The Company believes the
overbalanced drilling mud system caused formation damage to the unconventional
reservoir, resulting in inconclusive DSTs. Well logs over the Upper and Lower
Arthur Creek in Mirrica-1 indicate these formations to be gas saturated, but
tight. The Company has conducted an internal assessment of the Upper and Lower
Arthur Creek formations over the permit area, and estimates that these
formations could have up to 25 trillion cubic feet ("Tcf") of gas originally in
place ("OGIP") and 4.1 billion barrels of oil originally in place ("OOIP"), as
the permit straddles the oil, wet gas and dry gas maturity windows. The Company
intends to conduct additional analysis on these horizons during the year, and
obtain an independent resource assessment to the extent sufficient evidence can
be obtained to justify the assignment and classification of Prospective
Resources.

SIMPSON BASIN

The South West portion of ATP contains Simpson Basin sediments, as established
by historical drilling and seismic. The Simpson Basin within ATP 582 is less
mature than the Georgina Basin in terms of legacy activity; however, there have
been recent exploration licenses granted over the whole of the Simpson Basin,
including in immediately adjacent Northern Territory (excluding lands covered by
National Parks). The Simpson Basin is prospective for both conventional and
unconventional oil and gas within the Jurassic Poolowanna and Triassic
Peera-Peera sands and shales. The basin has one discovery, Poolowanna-1, drilled
in 1977, which tested oil at 96 barrels of oil per day ("bopd") but was
uneconomic at the time. Several wells within the basin had oil and gas shows,
and exhibited high TOC of between 2 - 6%.

The  Company estimates up to 2.0 million acres of ATP 582 may include Poolowanna
and Peera-Peera sediments. The operator of an offsetting 3.8 million acre permit
in  the  Simpson  Basin  estimates  resource  potential  of 12 - 25 Tcf from the
Poolowanna  and  Peera-Peera  formations  on its lands. The Company is currently
evaluating  the available legacy seismic and well data on and offsetting ATP 582
as  an initial step in assessing the potential for similar resources on southern
ATP 582.

COOPER BASIN DRILLING

The Company is pleased to announce that Wolfman #1, the first well on a
potential six well earning program under a farmout of its Cooper Basin permits
is underway. Construction of access roads and drill site preparation on
Petroleum Exploration License ("PEL") 112 began May 20, 2013. Regulatory consent
for road building was granted in advance of the Wolfman #1 drilling application,
which is awaiting its "Fit for Purpose" rig assessment. A Cultural Heritage
Inspection was completed on May 22, 2013 and the Wolfman #1 drilling project has
been approved by Native Title Holders.

The Wolfman #1 exploration well will be drilled vertically 1,720 meters (5,600
feet) and is expected to take approximately 10 days to reach total depth. The
well, which targets the Namur Sandstone in a conventional reservoir and
structure, is scheduled to spud in early July 2013. Average initial rates from
discoveries on trend are significant at in excess of 2,500 bopd and individually
range as high as 7,000 bopd. Operator estimates of potential recoverable
reserves from these smaller conventional structural plays are in the range of
one to five million barrels of 41 API gravity oil per pool discovery. ACOR holds
a 13.8% working interest in PEL's 112 and 444, reducing to 5.6% if the complete
six well program is executed.

<PAGE>



FORWARD LOOKING STATEMENTS

Certain statements in this material may be "forward-looking statements"
including timing for the completion of the Transaction, satisfaction of
conditions precedent in respect of the Transaction, proposed changes to the
board of directors of the Company, internal estimates of the resources on the
Company's properties and adjacent properties, outlook on oil and gas prices,
estimates of future production, estimated completion dates of acquisitions and
construction and development projects, business plans for drilling and
exploration, estimated amount and timing of capital expenditures and anticipated
future debt levels and royalty rates. Information concerning reserves and
resources contained in this material may also be deemed forward-looking
statements as such estimates involve the implied assessment that the resources
described can be profitably produced in the future. These statements are based
on current expectations, estimates and projections that involve a number of
risks and uncertainties, which could cause actual results to differ from those
anticipated by ACOR.

There is no certainty that any portion of the resources described herein will be
discovered. If discovered, there is no certainty that it will be commercially
viable to produce any portion of the resources. Additionally, certain analogous
field information contained herein is based on industry and market data, as well
the Company's knowledge and experience in the markets in which the Company
operates. While the Company believes this data to be reliable, market and
industry data are subject to variations and cannot be verified with complete
certainty due to limits on the availability and reliability of raw data, the
voluntary nature of the data gathering process and other limitations and
uncertainties inherent in any such data. The Company has not independently
verified any of the data in respect of the information referred to herein, or
the underlying assumptions in respect of such matters. The analogous field
information contained herein has not been prepared by a qualified reserve
evaluator or auditor or in accordance with the COGE Handbook or any other
applicable standards.

Statements contained in this press release and corporate information relating to
future results, events and expectations are forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. Although we
believe that the expectations and assumptions upon which they are based are
reasonable, we can give no assurance that such expectations and assumptions will
prove to have been correct. The reader is cautioned not to put undue reliance on
these forward-looking statements, as these statements involve known and unknown
risks, uncertainties, scheduling, re-scheduling and other factors which may
cause the actual results, performance, estimates, projections, resource
potential and/or reserves, interpretations, prognoses, schedules or achievements
of the Company, or industry results, to be materially different from any future
results, performance or achievements expressed or implied by such statements.
The Company does not intend, nor do we undertake any obligation, to update or
revise any forward-looking information or statements contained in this news
release to reflect subsequent information, events or circumstances or otherwise,
except if required by applicable laws. Although we believe that our expectations
are based on reasonable assumptions, we can give no assurance that our
expectations will materialize. Many factors could cause actual results to differ
materially from our forward-looking statements. Such factors include, among
others, those described in the Company's annual reports filed with the United
States Securities and Exchange Commission (the "SEC") and available on EDGAR at
www.sec.gov.


<PAGE>


NOTE TO U.S. INVESTORS

Users are cautioned that these values represent resources, and not reserves as
defined by the SEC. . Under SEC standards, hydrocarbon resources may not be
classified as a reserve unless the determination has been made that the resource
could be economically and legally produced or extracted at the time the reserve
determination is made. Hydrocarbon resources that are not hydrocarbon reserves
do not have demonstrated economic viability. Investors are cautioned not to
assume that all or any of measured or indicated resources will ever be converted
into reserves.

This news release shall not constitute an offer to sell or a solicitation of an
offer to buy the common shares of the Company or any other securities, and shall
not constitute an offer, solicitation or sale in any state or jurisdiction in
which such an offer, solicitation or sale would be unlawful. The securities to
be offered by the Company have not been and will not be registered under the
United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or
any state securities laws and may not be offered or sold in the United States
absent registration or an applicable exemption from the registration
requirements of the U.S. Securities Act. The Company intends to offer and sell
its securities in the United States pursuant to the exemption from registration
set forth in Section 3(a)(10) of the U.S. Securities Act.

BARRELS OF OIL EQUIVALENT

The term barrels of oil equivalent ("BOE") may be misleading, particularly if
used in isolation. Per boe amounts have been calculated using a conversion ratio
of six thousand cubic feet of natural gas (6 mcf) to one barrel of oil (1 bbl).
This boe conversion ratio of 6 mcf to 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. Given that the value ratio based on the
current price of crude oil as compared to natural gas is significantly different
from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be
misleading as an indication of value.

We seek safe harbor.

For further information on ACOR, please visit our website at www.aussieoil.com,
e-mail acorltd@suddenlink.net or call:


1-254-442-2638 (Office)
1-800-290-8342 (Toll Free in the United States)