PUBLIC OFFERING OF CROWN OIL SANDS RIGHTS (AVAILABLE ON INTERNET AT HTTP://WWW.ENERGY.GOV.AB.CA:) DEADLINE After 12:00 noon on January 07, 1998, offers to purchase oil sands development leases and/or permits 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 annual rental is $3.50 per hectare or $50.00 whichever is the greater. The issuance fee is $500 per parcel. 3. The minimum acceptable offer is $2.50 per hectare (development leases) and $1.25 per hectare (permits). 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 identified in attachments to Information Letter 97-14. 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: "1998 January 07 ---OIL SANDS DEVELOPMENT LEASE BIDS" for Development Leases. "1998 January 07 ---PERMIT BIDS" for Permits. 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 $500 for each unsold parcel. ATTACHMENTS TO THIS PUBLIC OFFERING APPEXDIX 1 - Contains applicable Zone Designations (zd's). 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, January 08, 1998 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. NOVEMBER 12, 1997 Brian Hudson, Manager EDMONTON, AB Mineral Agreements ============================================================================= 1998 JANAURY 07 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 973 256.000 4 1 054: 4 APPENDIX 3 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 974 100.696 4 1 054: 10WP PORTION(S) LYING OUTSIDE MAKAOOS INDIAN RESERVE NO. 120 AS SHOWN ON A TOWNSHIP PLAN APPROVED AND CONFIRMED BY THE SURVEYOR GENERAL AT OTTAWA ON 1919/08/13 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 ------ ATHABASCA OIL SANDS AREA ------ OS 975 4,608.000 4 15 065: 1-3;10-15;22-27;34-36 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 976 768.000 4 8 084: 23NW;24N;25S;26S,NE;27 APPENDIX 3 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 4 5,732.696 ha total END ============================================================================ 1998 JANUARY 07 OIL SANDS PUBLIC OFFERING NOTICE SCHEDULE B PERMITS Page 1 of 1 PERMITS PARCELS HECTARES M RG TWP LAND DESCRIPTION ------ ATHABASCA OIL SANDS AREA ------ OS 068 1,792.00 4 6 074: 31 4 7 074: 35;36 4 6 075: 6 4 7 075: 1-3 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 069 7,168.00 4 10 085: 6;7;18;19;30 4 11 085: 1-15;22-27 4 12 085: 1;12 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 2 8,960.00 ha total END =========================================================================== Page 1 of 1 1998 JANUARY 07 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 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 1998 JANUARY 07 OIL SANDS PUBLIC OFFERING NOTICE Page 1 of 1 APPENDIX 3 D.LEASE (DEVELOPMENT LEASES) PARCEL NO(s). ADDENDA DESCRIPTION & CONTACT OS 973 4 1 054: 4NWP IS/ARE WITHIN THE COLD LAKE INTEGRATED RESOURCE PLAN. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS. FOR FURTHER INFORMATION PLEASE CONTACT: LAND USE SPECIALIST DAVE LIND LAKELAND DISTRICT ENVIRONMENTAL PROTECTION BOX 450 NORTHEAST BOREAL REGION LAC LA BICHE AB TOA 2C0 LAND & FOREST SERVICE (403) 623-5263 OS 976 4 8 084: 23WP;26NP,SEP,SW;27SP,NEP IS/ARE WITHIN AN IMPORTANT CARIBOU RANGE. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS. FOR FURTHER INFORMATION PLEASE CONTACT: REGIONAL LAND MANAGEMENT OFFICER DAN SLAGHT PROVINCIAL BUILDING ENVIRONMENTAL PROTECTION BOX 450 NORTHEAST BOREAL REGION LAC LA BICHE AB T0A 2C0 LAND & FOREST SERVICE (403) 623-5240 END #########################################################################