PUBLIC OFFERING OF CROWN OIL SANDS RIGHTS (AVAILABLE ON INTERNET AT HTTP://WWW.ENERGY.GOV.AB.CA:) DEADLINE After 12:00 noon on June 30, 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. Only by electronic funds transfer (EFT) 2. Payment by cheque will only be accepted if it meets the criteria for exception mentioned in IL 99-3. 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 99-12. 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 June 30 ---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 bids will be published on Friday, July 02, 1999 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. MAY 05, 1999 Brian Hudson, Manager EDMONTON, AB Mineral Agreements ------------------------------------------------------------------------------------------------------------------------------------------------- 1999 JUNE 30 OIL SANDS PUBLIC OFFERING NOTICE SCHEDULE A DEVELOPMENT LEASES Page 1 of 1 D.LEASE PARCELS HECTARES M RG TWP LAND DESCRIPTION ------ ATHABASCA OIL SANDS AREA ------ OS 004 1,536.00 4 10 079: 19-21;28-30 APPENDIX 3 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 1 1,536.00 Totals END --------------------------------------------------------------------------------------------------------------------------------------------------- Page 1 of 1 1999 JUNE 30 APPLICABLE DEEPER RIGHTS REVERSION ZONE DESIGNATIONS APPENDIX 2 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 1999 JUNE 30 OIL SANDS PUBLIC OFFERING NOTICE Page 1 of 1 APPENDIX 3 D.LEASE (DEVELOPMENT LEASES) PARCEL NO(s). ADDENDA DESCRIPTION & CONTACT OS 004 4 10 079: 19SP,NWP;30WP IS/ARE WITHIN AN IMPORTANT CARIBOU RANGE. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS. FOR FURTHER INFORMATION PLEASE CONTACT: DAN SLAGHT REGIONAL LAND MANAGEMENT OFFICER PROVINCIAL BUILDING ENVIRONMENTAL PROTECTION BOX 450 NORHEAST BOREAL REGION LAC LA BICHE AB T0A 2C0 LAND & FOREST SERVICE (403) 623-5240 END ====================================================================================