PUBLIC OFFERING OF CROWN OIL SANDS RIGHTS (AVAILABLE ON INTERNET AT HTTP://WWW.ENERGY.GOV.AB.CA:) DEADLINE After 12:00 noon on October 29, 1997, offers to purchase oil sands development leases contained in this public offering will not be accepted. AMOUNT OF PAYMENT (Canadian Funds Only) 1. The total dollar offer should be stated 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 any bid. FORM OF PAYMENT 1. ELECTRONIC FUNDS TRANSFER (EFT) - The Department prefers this method of payment (see IL 97-14 for information on EFT). 2. Cheque. - Company or personal cheques are acceptable. Note - if this form of payment is used, each bid should be accompanied by an individual cheque attached to the back of the letter. 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 ejected 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 October 29 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 also terms and conditions for acquisition of parcel(s) within Metis Settlements (See IL 92-19). RESULTS OF THIS PUBLIC OFFERING 1. Accepted bids will be published on Thursday, October 30, 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. SEPTEMBER 03, 1997 Brian Hudson EDMONTON, AB Mineral Agreements ============================================================================ 1997 OCTOBER 29 OIL SANDS PUBLIC OFFERING NOTICE SCHEDULE A Page 1 of 1 DEVELOPMENT LEASES D.LEASE PARCELS HECTARES M RG TWP LAND DESCRIPTION ------ COLD LAKE OIL SANDS AREA ------ OS 878 256.00 4 8 060: 19 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 879 256.00 4 8 060: 21 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 880 256.00 4 8 060: 33 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 881 256.00 4 8 061: 2 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 882 256.00 4 8 061: 4 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 ------PEACE RIVER OIL SANDS AREA ------ OS 883 3,328.00 5 7 095: 10;11;13-15;22-26;34-36 APPENDIX 3 OIL SANDS BELOW TOP OF PEACE RIVER FM DRRZD 40 TO BASE OF THE PEKISKO DRRZD 174 OS 884 2,560.00 5 7 095: 19-21;27-33 APPENDIX 3 OIL SANDS BELOW TOP OF PEACE RIVER FM DRRZD 40 TO BASE OF THE PEKISKO DRRZD 174 OS 885 3,072.00 5 7 096: 3-10;15-18 APPENDIX 3 OIL SANDS BELOW TOP OF PEACE RIVER FM DRRZD 40 TO BASE OF THE PEKISKO DRRZD 174 ------ ATHABASCA OIL SANDS AREA ------ OS 886 1,536.00 5 5 097: 17-20;29;30 APPENDIX 3 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND DRRZD 258 9 11,776.00 ha total END ===================================================================== Page 1 of 1 1997 OCTOBER 29 APPENDIX 2 APPLICABLE DEEPER RIGHTS REVERSION ZONE DESIGNATIONS 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 DRRZD: 40 Zone: 2280 PEACE RIVER FM INTERVAL: 3 760.00 - 4 008.00 FEET KEY WELL: 00/07-09-076-08W6/0 LOG TYPE: BOREHOLE COMPENSATED SONIC DRRZD: 174 Zone: 6420 PEKISKO FM INTERVAL: 6 468.00 - 6 654.00 FEET KEY WELL: 00/10-27-067-22W5/0 LOG TYPE : ELECTRICAL DRRZD: 6 Zone: 2140 VIKING FM INTERVAL: 2 600.0 - 2 680.0 FEET KEY WELL: 00/10-10-042-14W4/0 LOG TYPE: INDUCTION ELECTRICAL DRRZD: 258 Zone: 7040 WOODBEND GRP INTERVAL: 1 284.0 - 2 251.0 FEET KEY WELL: 00/10-29-077-18W4/0 LOG TYPE: SONIC END =================================================================== ADDENDA AND CONTACTS APPLICABLE TO THE 1997 OCTOBER 29 OIL SANDS PUBLIC OFFERING NOTICE Page 1 of 1 APPENDIX 3 (DEVELOPMENT LEASES) D.LEASE PARCEL NO(s). ADDENDA DESCRIPTION & CONTACT OS 883 THE LANDS IN THIS LEASE IS/ARE WITHIN AN IMPORTANT CARIBOU RANGE. 884 885 SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS. FOR FURTHER INFORMATION, PLEASE CONTACT: AL HOVAN DISTRICT MANAGER ENVIRONMENTAL PROTECTION NORTHWEST BOREAL REGION BOX 390, 301 BIRCH ROAD NE LAND & FOREST SERVICE SLAVE LAKE AB T0G 2A0 (403) 849-7400 OS 886 THE LANDS IN THIS LEASE IS/ARE WITHIN AN IMPORTANT CARIBOU RANGE. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS. FOR FURTHER INFORMATION, PLEASE CONTACT: DAVE LAING REGIONAL LAND MANAGEMENT OFFICER ENVIRONMENTAL PROTECTION NORTHWEST BOREAL REGION POSTAL BAG 900-39 LAND & FOREST SERVICE PEACE RIVER AB T8S 1T4 (403) 624-6221 END