PUBLIC OFFERING OF CROWN OIL SANDS RIGHTS (AVAILABLE ON INTERNET AT HTTP://WWW.ENERGY.GOV.AB.CA:) DEADLINE After 12:00 noon on April 16, 1997, offers to purchase oil sands development leases contained in this public offering will not be accepted. AMOUNT OF PAYMENT (Canadian Funds Only) 1. State only the one total dollar amount submitted in your bid letter. A breakdown of the Bonus, Fee and Rent is not required. 2. The rent is $3.50 per hectare and the fee is $450 per parcel. 3. The minimum acceptable price is $2.50 per hectare (development leases) and $1.25 per hectare permits). Offers lower than this will be rejected. 4. The Department reserves the right to reject a bid. FORM OF PAYMENT 1. ELECTRONIC FUNDS TRANSFER (EFT) - The Department prefers this method of payment (see IL 95-16 for information on EFT). 2. Cheque. - Company cheques or certified personal cheques are acceptable. If payment is being made by cheque, each bid should be accompanied by an individual cheque. 3. All cheques should be made payable to: PROVINCIAL TREASURER HOW TO SUBMIT BIDS 1. The types of acceptable bids are: BID TYPE I and BID TYPE II. The type of bid and its format are identified in attachments to Information Letter 94-21. Bids may be rejected if they do not comply with these standards. 2. One envelope may contain more than one bid as long as they are for the same agreement type. 3. Bid(s) should be enclosed in a sealed envelope and clearly marked as follows: "1997 April 16 OIL SANDS DEVELOPMENT LEASE BIDS" for Development Leases. 4. Bids should be deposited in the box marked "OIL SANDS BIDS", or handed or mailed to any person acting for the manager at either the Calgary or Edmonton address: 3rd. Floor, Monenco Place 9th Floor, North Petroleum Plaza 801-6 Ave. SW 9945-108 Street Calgary, Alberta T2P 3W2 Edmonton, Alberta T5K 2G8 BIDS ARE ACCEPTED UNTIL 12:00 NOON ON THE PUBLIC OFFERING DATE. NO EXCEPTIONS. POINTS TO REMEMBER 1. Those who request a specific parcel(s) to be posted in a public offering are expected to bid on the posting(s). If the parcel(s) is not sold, the person or company that requested the posting may be charged a fee of $450 for each unsold parcel. 2. The full name of the person(s) or corporation(s) submitting a bid and their official address for service must be identified. 3. The maximum undivided interest is seven decimal places. Anything greater than this will be rounded to the seventh decimal place. ATTACHMENTS TO THIS PUBLIC OFFERING APPENDIX 2 - Contains applicable Deeper Rights Reversion Zone Designations (Drrzd's). APPENDIX 3 - Contains applicable addenda and contacts. RESULTS OF THIS PUBLIC OFFERING 1. Accepted bids will be published on Thursday, April 17, 1997 at 10:00 a.m. at the two addresses shown under the section entitled "HOW TO SUBMIT BIDS." 2. All agreements are issued in accordance with the Mines & Minerals Act and its regulations. February 19, 1997 Brian Hudson Edmonton, Alberta Mineral Agreements 1997 APRIL 16 OIL SANDS PUBLIC OFFERING NOTICE DEVELOPMENT LEASES SCHEDULE A Page 1 of 1 D.LEASE PARCELS HECTARES M RG TWP LAND DESCRIPTION ------ COLD LAKE OIL SANDS AREA ------ OS 729 128.00 4 8 060: 22E OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 730 128.00 4 8 060: 22W OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 731 128.00 4 8 060: 23E OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 732 128.00 4 8 060: 23W OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 733 128.00 4 8 060: 27E OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 734 128.00 4 8 060: 27W OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 735 128.00 4 8 060: 34E OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 736 128.00 4 8 060: 34W OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 737 128.00 4 8 060: 35E OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 738 128.00 4 8 060: 35W OIL SANDS IN THE MANNVILLE GRP DRRZD 4 10 1,280.00 ha END 1997 April 16 APPLICABLE ZONE DESIGNATIONS APPENDIX 2 DRRZD:4 Zone: 2480 MANNVILLE GRP INTERVAL: 2557.00 - 2985.00 METRES KEY WELL: 00/06-16-041-08W4/0 LOG TYPE: INDUCTION ELECTRICAL END Page 1 of 1 1997 APRIL 16 APPLICABLE DEEPER RIGHTS REVERSION ZONE DESIGNATIONS APPENDIX 2 DRRZD :4 Zone: 2480 MANNVILLE GROUP INTERVAL: 2 557.00 - 2985.00 FEET KEY WELL: 00/06-16-041-08W4/0 LOG TYPE: INDUCTION ELECTRICAL END