PUBLIC OFFERING OF CROWN OIL SANDS RIGHTS (AVAILABLE ON INTERNET AT HTTP://WWW.ENERGY.GOV.AB.CA:) DEADLINE After 12:00 noon on May 05, 1999, 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). 2. Payment by cheque will be accepted if it meets the criteria for exception mentioned in Information Letter 99-3. 3. All cheques should be made payable to: PROVINCIAL TREASURER HOW TO SUBMIT BIDS 1. The types of acceptable bids are BID TYPE1 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: "1999 May 05 ---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 $500 for each unsold parcel. * INDICATES ATTACHMENTS TO THIS PUBLIC OFFERING APPENDIX 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 offers will be published on the first available publishing date after the Metis negotiations are complete 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. MARCH 10, 1999 Brian Hudson, Manager EDMONTON, AB Mineral Agreements ------------------------------------------------------------------------------------------------------------------------------------------ 1999 MAY 05 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 001M 512.00 4 1 059: 8;9 APPENDIX 3 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 002M 512.00 4 1 059: 16;17 APPENDIX 3 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 003M 512.00 4 1 059: 20;21 APPENDIX 3 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 3 1,536.00 ha total END -------------------------------------------------------------------------------------------------------------------------------------------------- Page 1 of 1 1999 MAY 05 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 -------------------------------------------------------------------------------------------------------------------------------------------------- ADDENDA AND CONTACTS APPLICABLE TO THE 1999 MAY 05 OIL SANDS PUBLIC OFFERING NOTICE Page 1 of 1 APPENDIX 3 D.LEASE (DEVELOPMENT LEASES) PARCEL NO(s). ADDENDA DESCRIPTION & CONTACT OS 001M THE LANDS IN THIS LEASE IS/ARE WITHIN A METIS SETTLEMENT. OS 002M OS 003M THE SUCCESSFUL BIDDER MUST ENTER INTO A DEVELOPMENT AGREEMENT WITH THE METIS SETTLEMENTS GENERAL COUNCIL AND THE AFFECTED SETTLEMENT THAT INCLUDES NEGOTIATED COMMITMENTS TO: 1 ENSURE THE PROTECTION OF THE ENVIRONMENT IN THE SETTLEMENT AREA IN ACCORDANCE WITH PROVINCIAL STANDARDS AND SETTLEMENT BYLAWS. 2 CONDUCT OPERATION IN A WAY THAT MAINTAINS THE SOCIAL AND CULTURAL ORDER OF THE SETTLEMENT AREA AND CONFORMS WITH THE DEVELOPMENT PLANS AND LAND USE RESTRICTIONS ESTABLISHED BY THE SETTLEMENT COUNCIL. 3 EMPLOY, TRAIN, AND PROVIDE BUSINESS OPPORTUNITIES TO SETTLEMENT MEMBERS, TO AN EXTENT THAT IS PRACTICAL, DURING THE CONSTRUCTION, OPERATION, RECLAMATION AND ABANDONMENT PHASES OF ITS OPERATIONS IN THE SETTLEMENT AREA. 4 PAY APPLICABLE SETTLEMENT LICENCE FEES AND TAXES. 5 PROVIDE FAIR AND REASONABLE COMPENSATION FOR SURFACE ACCESS AND DAMAGES, INCLUDING INFRASTRUCTURE DAMAGE, TIMBER LOSS, AND OTHER SPECIAL DAMAGES. 6 RECOGNIZE THE GENERAL COUNCIL'S RIGHT TO AN OVERRIDING ROYALTY AND 25% PARTICIPATION OPTION AS PROVIDED FOR IN THE CO-MANAGEMENT AGREEMENT (SCHEDULE 3 OF THE METIS SETTLEMENTS ACT). 7 ADHERE TO THE PROCEDURES CONTAINED IN THE CO-MANAGEMENT AGREEMENT AND INFORMATION LETTER 92-19 8 THE SUCCESSFUL BIDDER WILL BE REQUIRED TO SIGN AN AGREEMENT IN THE FORM OF A MASTER DEVELOPMENT AGREEMENT, THE TEMPLATE OF WHICH IS AVAILABLE FROM THE GENERAL COUNCIL UPON REQUEST. PLEASE NOTE: UNDER THE MASTER DEVELOPMENT AGREEMENT, THE SUCCESSFUL BIDDER WILL BE A JOINT VENTURE PARTNER WITH RESCO OIL & GAS LTD., A COMPANY OWNED BY THE SETLEMENTS AND REPRESENTING THE GENERAL COUNCIL'S INTEREST. ADDITIONAL INFORMATION CAN BE OBTAINED FROM THAT COMPANY. POTENTIAL BIDDERS SHOULD NOTE THAT FURTHER INFORMATION AND DETAILS REGARDING THE ABOVE TERMS AND CONDITIONS WILL BE AVAILABLE ON MARCH 23, 1999. FOR THIS PURPOSE, PLEASE CONTACT: LORI DUROCHER METIS SETTLEMENT GENERAL COUNCIL SUITE 201,18335 - 105 AVENUE C/O RESCO OIL & GAS LTD. EDMONTON AB T5S 2K9 (780) 483-7370 END ============================================================================================