PUBLIC OFFERING OF CROWN OIL SANDS RIGHTS (AVAILABLE ON INTERNET AT HTTP://WWW.RESDEV.GOV.AB.CA:) DEADLINE After 12:00 noon on 2000 October 04, offers to purchase oil sands 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 (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. Companies and individuals that do not have a GST registration number are liable for payment of the Goods and Services Tax on various charges. All registrants must ensure that their GST number is provided in writing to Financial Services Branch @ Fax No. (780) 422-4281. 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: "2000 October 04, --- OIL SANDS LEASE BIDS', for 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 address: - 3rd Floor Monenco Place, 801 - 6th Avenue SW, T2P 3W2 or the Edmonton address - 7th Floor, Petroleum Plaza North Tower, 9945 - 108 Street, T5K 2G6. BIDS ARE ACCEPTED UNTIL 12:00 NOON ON THE PUBLIC OFFERING DATE. NO EXCEPTIONS. POINTS TO REMEMBER 1. Requestors of parcel(s) posted in a public offering are expected to bid on the posting(s). If the parcel(s) is not sold, the requestor will be charged a fee of $500 plus GST for each unsold parcel. 2. Effective January 01, 2000, all Oil Sands Agreements acquired include Solution Gas. Please refer to information letter 99-38 for the definition of Solution Gas and any other relevant information. · 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 2000 October 05 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. 2000 OCTOBER 04 OIL SANDS PUBLIC OFFERING NOTICE SCHEDULE A Page 1 of 2 LEASES LEASE PARCELS HECTARES M RG TWP LAND DESCRIPTION ------COLD LAKE OIL SANDS AREA ------ OS 001M 256.00 4 1 059: 8 APPENDIX 3 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 002M 256.00 4 1 059: 9 APPENDIX 3 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 003M 256.00 4 1 059: 16 APPENDIX 3 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 004M 256.00 4 1 059: 17 APPENDIX 3 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 005M 256.00 4 1 059: 20 APPENDIX 3 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 006M 256.00 4 1 059: 21 APPENDIX 3 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 007M 256.00 4 1 059: 28 APPENDIX 3 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 008M 256.00 4 1 059: 29 APPENDIX 3 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 009M 512.00 4 1 060: 8;9 APPENDIX 3 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 010M 512.00 4 1 060: 30;31 APPENDIX 3 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 Linda White August 09, 2000 Business Unit Leader Edmonton, AB Oil Sands Development 2000 OCTOBER 04 OIL SANDS PUBLIC OFFERING NOTICE SCHEDULE A Page 2 of 2 LEASES LEASE PARCELS HECTARES M RG TWP LAND DESCRIPTION ------ATHABASCA OIL SANDS AREA ------ OS 011 512.00 4 23 075: 36 4 23 076: 1 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 012 1,024.00 4 22 078: 20-23 APPENDIX 3 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 013 1,024.00 4 22 078: 26-29 APPENDIX 3 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 014 1,536.00 4 22 078: 32-36 4 22 079: 2 APPENDIX 3 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 14 7,168.00 ha total 2000 OCTOBER 04 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 ADDENDA AND CONTACTS APPLICABLE TO THE 2000 OCTOBER 04 OIL SANDS PUBLIC OFFERING NOTICE Page 1 of 2 APPENDIX 3 LEASE (LEASES) PARCEL NO(s). ADDENDA DESCRIPTION & CONTACT OS 001M THE LANDS IN THIS LEASE IS/ARE WITHIN A METIS SETTLEMENT. TO OS 010M THE SUCCESSFUL BIDDER MUST ENTER INTO A DEVELOPMENT AGREEMENT WITH THE METIS SETTLEMENTS INCL. 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 THE 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 SETTLEMENTS AND REPRESENTING THE GENERAL COUNCIL'S INTEREST. ADDITIONAL INFORMATION CAN BE OBTAINED FROM THAT COMPANY. FOR THIS PURPOSE, PLEASE CONTACT: LORI DUROCHER POSTING COORDINATOR METIS SETTLEMENT GENERAL COUNCIL # 201 - 18335 - 105 AVENUE EDMONTON AB T5S 2K9 (780) 483-7370 POTENTIAL BIDDERS SHOULD NOTE THAT FURTHER INFORMATION AND DETAILS REGARDING THE ABOVE TERMS AND CONDITIONS WILL BE AVAILABLE ON AUGUST 23, 2000. ADDENDA AND CONTACTS APPLICABLE TO THE 2000 OCTOBER 04 OIL SANDS PUBLIC OFFERING NOTICE Page 2 of 2 APPENDIX 3 LEASE (LEASES) PARCEL NO(s). ADDENDA DESCRIPTION & CONTACT OS 012 4 22 078: 21EP;22;23 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 LAND & FOREST SERVICE NORTHWEST BOREAL REGION LAND & FOREST SERVICE SLAVE LAKE AB T0G 2A0 (403) 849-7400 OS 013 4 22 078: 26;27;28SP,NWP,NE 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 LAND & FOREST SERVICE NORTHWEST BOREAL REGION LAND & FOREST SERVICE SLAVE LAKE AB T0G 2A0 (403) 849-7400 OS 014 4 22 078: 33E,WP;34-36 4 22 079: 2E,WP 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 LAND & FOREST SERVICE NORTHWEST BOREAL REGION LAND & FOREST SERVICE SLAVE LAKE AB T0G 2A0 (403) 849-7400