PUBLIC OFFERING OF CROWN OIL SANDS RIGHTS (AVAILABLE ON INTERNET AT HTTP://WWW.ResDev.GOV.AB.CA:) DEADLINE After 12:00 noon on August 25, 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 August 25 ---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 Thursday, August 26, 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. JUNE 30, 1999 Brian Hudson, Manager EDMONTON, AB Mineral Agreements & Sales --------------------------------------------------------------------------------------------------------------- 1999 AUGUST 25 OIL SANDS PUBLIC OFFERING NOTICE SCHEDULE A DEVELOPMENT LEASES Page 1 of 1 D.LEASE PARCELS HECTARES M RG TWP LAND DESCRIPTION ------ COLD LAKE OIL SANDS AREA ------ OS 006 18,768.234 4 6 058: 15-20;22;27-30;31S,NP;32S,NP; 33S,NP;34S,NP;35S,NP;36NP PORTION(S) LYING OUTSIDE KEHIWIN INDIAN RESERVE NO. 123 4 7 057: 36 4 7 058: 2-7;8S,NE;9;10S;11;13-15;17-21; 22S,NW;23NW;24-26;27SW;30-32;36 4 7 059: 1N,SE;4N,SW;5-8;9S,NW;10S,NE;11; 12S,NW,NEP;13W,EP,14S,NE,L15NW; 15-18;19N,SE;20;21;22S;23N,SE, L3SE;24W,EP;25W,EP;28-32;33S;34 PORTION(S) LYING OUTSIDE KEHIWIN INDIAN RESERVE NO. 123 4 7 060: 5-8;17 APPENDIX 3 OIL SANDS IN THE MANNVILLE GRP DRRZD4 OS 007 19,712.12 4 6 060: 7;8S,NW;11;16SE;17N,SW;18-20; 21S,NW;23W;25;26N,SW;28;29;31; 32;33S,NE;34-36 4 7 060: 18-20;25-27;29-32;34E;35;36 4 7 061: 3-7;8S,NW;9;16-18;19SE,SWP PORTION(S) DESIGNATED AS LAKE NO. 2 ON A TOWNSHIP PLAN APPROVED AND CONFIRMED BY THE SURVEYOR GENERAL AT OTTAWA ON 1925-03-19 4 8 059: 1-3;10-15;22-27;34-36 4 8 060: 1-3;10-13;24;25;36 4 8 061: 1;7-11;13;14;24 APPENDIX 3 OIL SANDS IN THE MANNVILLE GRP DRRZD4 2 38,480.354 ha Totals END ------------------------------------------------------------------------------------------------------------------------------------------------- Page 1 of 1 1999 AUGUST 25 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 AUGUST 25 OIL SANDS PUBLIC OFFERING NOTICE Page 1 of 2 APPENDIX 3 D.LEASE (DEVELOPMENT LEASES) PARCEL NO(s). ADDENDA DESCRIPTION & CONTACT OS 006 4 06 058: 31L11P,L12P; 4 07 059: 1EP,L11,L13,L14P; 11NP,SEP,L5,L6;12WP;14SW 15S,NP;16NE,L1,L8;21N,SE; 22SW;28S,NW;29L9,L16;32NP 4 07 060: 5SWP;6NWP,L3,L5,L6P IS/ARE WITHIN THE COLD LAKE INTEGRATED RESOURCE PLAN. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS. FOR FURTHER INFORMATION PLEASE CONTACT: DAVE LIND LAND USE SPECIALIST PROVINCIAL BUILDING DEPARTMENT OF ENVIRONMENT BOX 450 LAND & FOREST SERVICE LAC LA BICHE AB T0A 2C0 NORHEAST BOREAL REGION (780) 623-5263 OS 007 4 6 060: 8SEP;29L15;31SWP;32SP PART ONE OF 4 7 060: 19SWP,NEP;20NWP;25NE FOUR 29WP,L2,L7,L10,L15; 32W,L2,L7,L10,L15;34EP 4 7 061: 3P;4NP,SEP,L6;5W,NEP,L2,L7;8SW;SEP 4 8 059: 1NWP,L10,L15;11EP,L6,L11,L13,L14P; 12L2,L7,L10;14SP,NWP;22SEP; 4 8 060: 1NEP;13L3,L6;24NEP;25SEP IS/ARE WITHIN THE COLD LAKE INTEGRATED RESOURCE PLAN SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS. FOR FURTHER INFORMATION, PLEASE CONTACT:DAVE LIND LAND USE SPECIALIST DEPARTMENT OF ENVIRONMENT PROVINCIAL BUILDING LAND & FOREST SERVICE BOX 450 NORHEAST BOREAL REGION LAC LA BICHE AB T0A 2C0 (780) 623-5263 ---------------------------------------------------------------------------- ADDENDA AND CONTACTS APPLICABLE TO THE 1999 AUGUST 25 OIL SANDS PUBLIC OFFERING NOTICE Page 2 of 2 APPENDIX 3 D.LEASE (DEVELOPMENT LEASES) PARCEL N ADDENDA DESCRIPTION & CONTACT OS 007 4 7 060: 26WP;27SEP,SWP;29S,NWP,NE; 32E;WP PART TWO OF 4 7 061: 5 FOUR IS/ARE RESERVED FOR A PROPOSED PROVINCIAL RECREATION AREA. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS. FOR FURTHER INFORMATION, PLEASE CONTACT:DOUG BOWES LAND REFERRALS CO-ORDINATOR DEPARTMENT OF ENVIRONMENT 9820 - 106 STREET NW FLOOR 2 RECREATION AND PROTECTED AREAS SYSTEMS PLANNING AND PROGRAM DEVELOPMENT BRANCH EDMONTON AB T5K 2J6 (780 ) 427-9384 OS 007 4 7 060: 26WP,NEP;27EP,NWP;34EP; 35P;36NWP PART THREE OF 4 7 061: 3P;4NP,SEP,SW;8SE;9SWP FOUR IS/ARE WITHIN A PROPOSED PROVINCIAL PARK. SURFACE ACCESS IS NOT PERMITTED. FOR FURTHER INFORMATION, PLEASE CONTACT:DOUG BOWES LAND REFERRALS CO-ORDINATOR DEPARTMENT OF ENVIRONMENT 9820 - 106 STREET NW FLOOR 2 RECREATION AND PROTECTED AREAS SYSTEMS PLANNING AND PROGRAM DEVELOPMENT BRANCH EDMONTON AB T5K 2J6 (780) 427-9384 OS 007 4 8 060: 12NEP PART FOUR OF FOUR IS/ARE WITHIN A HISTORICAL RESOURCE MANAGEMENT AREA . PURSUANT TO SEC. 33 (2) OF THE HISTORICAL RESOURCE ACT, A HISTORICAL RESOURCES IMPACT ASSESSMENT WILL BE REQUIRED PRIOR TO CONDUCTING ANY SURFACE DISTURBANCE. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS. FOR FURTHER INFORMATION, PLEASE CONTACT: DEAN WETZEL COMMUNITY DEVELOPMENT RESOURCE MANAGEMENT PLANNER HISTORIC SITE SERVICES 8820 - 112 STREET OLD ST. STEPHEN'S COLLEGE EDMONTON AB T6G 2P8 (780) 431-2332 END =====================================================================================