PUBLIC OFFERING OF CROWN OIL SANDS RIGHTS (AVAILABLE ON INTERNET AT HTTP://WWW.ResDev.GOV.AB.CA) DEADLINE After 12:00 noon on October 06, 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 October 06 ---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 7th 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, October 07, 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. AUGUST 11, 1999 Eugene Saldanha, Manager EDMONTON, AB Mineral Agreements & Sales ------------------------------------------------------------------------------- 1999 OCTOBER 06 OIL SANDS PUBLIC OFFERING NOTICE SCHEDULE A DEVELOPMENT LEASES Page 1 of 6 D.LEASE PARCELS HECTARES M RG TWP LAND DESCRIPTION ------ ATHABASCA OIL SANDS AREA ------ OS 001 768.00 4 24 077: 31 4 25 077: 35;36 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 002 512.00 4 25 077: 31;32 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 003 512.00 4 25 077: 33;34 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 004 2,048.00 4 23 078: 19;20;29-32 4 23 079: 4;5 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 005 384.00 4 24 078: 3N;4N;5N OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 006 768.00 4 24 078: 6 4 25 078: 1;2 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 007 1,024.00 4 24 078: 7;8;17;18 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 008 1,024.00 4 24 078: 9;10;15;16 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 ----------------------------------------------------------------------------- 1999 OCTOBER 06 OIL SANDS PUBLIC OFFERING NOTICE SCHEDULE A DEVELOPMENT LEASES Page 2 of 6 D.LEASE PARCELS HECTARES M RG TWP LAND DESCRIPTION OS 009 512.00 4 24 078: 21;28 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 010 1,024.00 4 24 078: 22;23N;24N;25;26S;27S OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 011 768.00 4 24 078: 33 4 24 079: 3;10 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 012 512.00 4 25 078: 3;4 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 013 1,536.00 4 25 078: 5-8 4 26 078: 1;12 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 014 512.00 4 25 078: 9;10 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 015 512.00 4 25 078: 11;12 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 016 1,024.00 4 25 078: 13;14;23;24 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 ----------------------------------------------------------------------------- 1999 OCTOBER 06 OIL SANDS PUBLIC OFFERING NOTICE SCHEDULE A DEVELOPMENT LEASES Page 3 of 6 D.LEASE PARCELS HECTARES M RG TWP LAND DESCRIPTION OS 017 512.00 4 25 078: 15;16 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 018 1,536.00 4 25 078: 17-20 4 26 078: 13;24 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 019 1,536.00 4 25 078: 21;22;27;28;33;34 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 020 1,024.00 4 25 078: 25;26;35;36 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 021 1,536.00 4 25 078: 29-32 4 26 078: 25;36 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 022 512.00 4 26 078: 11;14 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 023 256.00 4 26 078: 15 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 ----------------------------------------------------------------------------- 1999 OCTOBER 06 OIL SANDS PUBLIC OFFERING NOTICE DEVELOPMENT LEASES Page 4 of 6 SCHEDULE A D.LEASE PARCELS HECTARES M RG TWP LAND DESCRIPTION OS 024 768.00 4 26 078: 23;26;35 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 025 2,048.00 4 24 079: 6;7;18;19 4 25 079: 1;12;13;24 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 026 509.00 4 24 079: 11;14S,NW,NEP PORTION(S) LYING OUTSIDE WABASCA INDIAN RESERVE NO. 166 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 027 512.00 4 24 079: 15;22 APPENDIX 3 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 028 512.00 4 24 079: 16;21 APPENDIX 3 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 029 512.00 4 24 079: 17-20 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 030 512.00 4 25 079: 2;11 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 031 1,536.00 4 25 079: 3;4;9;10;15;16 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 032 1,024.00 4 25 079: 5-8 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 ----------------------------------------------------------------------------- 1999 OCTOBER 06 OIL SANDS PUBLIC OFFERING NOTICE DEVELOPMENT LEASES Page 5 of 6 SCHEDULE A D.LEASE PARCELS HECTARES M RG TWP LAND DESCRIPTION OS 033 1,024.00 4 25 079: 17-20 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 034 768.00 4 25 079: 21;22;23 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 035 1,024.00 4 26 079: 1;2;11;12 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 036 1,024.00 4 26 079: 13;14;23;24 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 037 256.00 5 01 078: 16 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 038 1,024.00 5 01 080: 13;14;23;24 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 039 256.00 5 01 080: 15 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 040 256.00 5 01 080: 22 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 ----------------------------------------------------------------------------- 1999 OCTOBER 06 OIL SANDS PUBLIC OFFERING NOTICE DEVELOPMENT LEASES Page 6 of 6 SCHEDULE A D.LEASE PARCELS HECTARES M RG TWP LAND DESCRIPTION OS 041 3,584.00 5 05 092: 31 5 05 093: 5-8;17;18 5 06 092: 36 5 06 093: 1;2;11-14 APPENDIX 3 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 042 3,072.00 5 06 093: 7-10;15-22 APPENDIX 3 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 043 3,072.00 5 05 095: 28-33 5 05 096: 4-9 APPENDIX 3 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 044 3,328.00 5 05 096: 17-20 5 06 096: 9-11;13-16;23;24 APPENDIX 3 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 ------ PEACE RIVER OIL SANDS AREA ------ OS 045 3,072.00 5 12 091: 33;34 5 12 092: 2-11 OIL SANDS BELOW THE TOP OF THE PEACE RIVER FM DRRZD 40 TO THE BASE OF THE PEKISKO FM DRRZD 174 OS 046 3,840.00 5 11 092: 28-34 5 11 093: 4-6 5 12 092: 13;14;23-25 OIL SANDS BELOW THE TOP OF THE PEACE RIVER FM DRRZD 40 TO THE BASE OF THE PEKISKO FM DRRZD 174 OS 047 768.00 5 07 093: 12;13;24 APPENDIX 3 OIL SANDS BELOW THE TOP OF THE PEACE RIVER FM DRRZD 40 TO THE BASE OF THE PEKISKO FM DRRZD 174 OS 048 4,608.00 5 07 096: 19-36 APPENDIX 3 OIL SANDS BELOW THE TOP OF THE PEACE RIVER FM DRRZD 40 TO THE BASE OF THE PEKISKO FM DRRZD 174 48 59,261.00 ha Totals END ----------------------------------------------------------------------------- ----------------------------------------------------------------------------- 1999 OCTOBER 06 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 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 END -------------------------------------------------------------------- ADDENDA AND CONTACTS APPLICABLE TO THE 1999 OCTOBER 06 OIL SANDS PUBLIC OFFERING NOTICE Page 1 of 1 APPENDIX 3 D.LEASE (DEVELOPMENT LEASES) PARCEL NO(s). ADDENDA DESCRIPTION & CONTACT OS 027 4 24 079: 22NWP IS/ARE WITHIN A PROPOSED FOREST RECREATION AREA. SURFACE ACCESS IS NOT PERMITTED. FOR FURTHER INFORMATION PLEASE CONTACT: AL HOVAN FOREST AREA MANAGER DEPARTMENT OF ENVIRONMENT 301 BIRCH RD. NE LAND & FOREST SERVICE BOX 390 NORTHWEST BOREAL REGION SLAVE LAKE AB T0G 2A0 (780) 849-7400 OS 028 4 24 079: 21NP IS/ARE WITHIN A PROPOSED FOREST RECREATION AREA. SURFACE ACCESS IS NOT PERMITTED. FOR FURTHER INFORMATION, PLEASE CONTACT: AL HOVAN FOREST AREA MANAGER DEPARTMENT OF ENVIRONMENT 301 BIRCH RD. NE LAND & FOREST SERVICE BOX 390 NORTHWEST BOREAL REGION SLAVE LAKE AB T0G 2A0 (780) 849-7400 OS 041 5 05 093: 7NP,SWP;17N,SP;18 5 06 093: 1NP,SWP;2;11;12N,SW,SEP;13;14 IS/ARE WITHIN AN IMPORTANT CARIBOU RANGE. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS. FOR FURTHER INFORMATION, PLEASE CONTACT: DAVE LAING FORESTER DEPARTMENT OF ENVIRONMENT 301 BIRCH RD. NE LAND & FOREST SERVICE BOX 390 NORTHWEST BOREAL REGION SLAVE LAKE AB T0G 2A0 (780) 849-7400 OS 042 OS 043 OS 044 THE LANDS IN THIS LEASE IS/ARE WITHIN AN IMPORTANT CARIBOU RANGE. OS 047 OS 048 SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS. FOR FURTHER INFORMATION, PLEASE CONTACT: DAVE LAING FORESTER DEPARTMENT OF ENVIRONMENT 301 BIRCH RD. NE LAND & FOREST SERVICE BOX 390 NORTHWEST BOREAL REGION SLAVE LAKE AB T0G 2A0 (780) 849-7400 END