Blacksands Petroleum, Inc. announced today that on January 9, 2009, the Company’s Audit Committee concluded that there is an accounting error in its financial statements filed in its Form 10-KSB for the years ended October 31, 2007, and in its Form 10-Qs for the quarters of January 31, 2008, April 30, 2008, and July 31, 2008. As a result of these errors, the Company will restate the financial statements described above to correct its accounting of Oil and Gas Property Costs.

The error relates to the inappropriate capitalization of expenses as Oil and Gas Property Costs in each period. Amounts that should have been expensed have been capitalized, resulting in an understatement of the Company’s net loss, and an overstatement of the Company’s Oil & Gas Property Costs.

These adjustments to the Company’s accounting practices and restatements of prior year and interim period results have been discussed with the Audit Committee of the Company’s Board of Directors, as well as the Company’s Board of Directors, and the Company is reviewing and discussing these adjustments and restatement issues with its current and prior independent registered public accounting firms.

The Company will report its adjusted figures in its Form 10-K for the year ended October 31, 2008 for both the year ended October 31, 2008, and for the comparative figures of October 31, 2007, and will refile its Form 10-KSB from October 31, 2007, and its Form 10-Qs from January 31, 2008, April 30, 2008, and July 31, 2008 as soon as possible.

In the meanwhile, the Company cautions investors that they should not rely on the Company’s financial statements.

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