PUBLIC OFFERING OF CROWN OIL SANDS RIGHTS (AVAILABLE ON INTERNET AT HTTP://WWW.ENERGY.GOV.AB.CA:) DEADLINE After 12:00 noon on 2001 May 30, 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: "2001 May 30, --- 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 2001 May 31 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. STEVE TKALCIC APRIL 04, 2001 DIRECTOR OPERATIONS EDMONTON, AB OIL SANDS DEVELOPMENT 2001 MAY 30 OIL SANDS PUBLIC OFFERING NOTICE SCHEDULE A LEASES Page 1 of 4 LEASE PARCELS HECTARES M RG TWP LAND DESCRIPTION ------COLD LAKE OIL SANDS AREA ------ OS 026 256.00 4 8 056: 8 OIL SANDS IN THE MANNVILE GRP. DRRZD 4 OS 027 256.00 4 8 056: 22 OIL SANDS IN THE MANNVILE GRP. DRRZD 4 OS 028 256.00 4 8 056: 36 OIL SANDS IN THE MANNVILE GRP. DRRZD 4 ------ATHABASCA OIL SANDS AREA ------ OS 029 512.00 4 23 074: 29;30 OIL SANDS BELOW THE TOP OF THE VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 030 256.00 4 23 074: 36 OIL SANDS BELOW THE TOP OF THE VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 031 256.00 4 24 074: 25 OIL SANDS BELOW THE TOP OF THE VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 032 1,024.00 4 4 075: 31 4 4 076: 6;7 4 5 075: 36 OIL SANDS BELOW THE TOP OF THE VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 033 768.00 4 5 075: 8;9;17 OIL SANDS BELOW THE TOP OF THE VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 034 768.00 4 5 075: 16;21;22; OIL SANDS BELOW THE TOP OF THE VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 2001 MAY 30 OIL SANDS PUBLIC OFFERING NOTICE SCHEDULE A LEASES Page 2 of 4 LEASE PARCELS HECTARES M RG TWP LAND DESCRIPTION OS 035 768.00 4 5 075: 18;19 4 6 075: 25 OIL SANDS BELOW THE TOP OF THE VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 036 1,024.00 4 5 075: 23;26-28 OIL SANDS BELOW THE TOP OF THE VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 037 768.00 4 5 075: 30;32 4 6 075: 24 OIL SANDS BELOW THE TOP OF THE VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 038 768.00 4 6 075: 20;21;28 OIL SANDS BELOW THE TOP OF THE VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 039 256.00 4 6 075: 27 OIL SANDS BELOW THE TOP OF THE VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 040 256.00 4 4 076: 4 OIL SANDS BELOW THE TOP OF THE VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 041 512.00 4 5 076: 1;12 OIL SANDS BELOW THE TOP OF THE VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 2001 MAY 30 OIL SANDS PUBLIC OFFERING NOTICE SCHEDULE A LEASES Page 3 of 4 LEASE PARCELS HECTARES M RG TWP LAND DESCRIPTION OS 042 512.00 4 5 076: 8;17 OIL SANDS BELOW THE TOP OF THE VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 043 512.00 4 5 076: 10;11 OIL SANDS BELOW THE TOP OF THE VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 044 256.00 4 5 076: 20 OIL SANDS BELOW THE TOP OF THE VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 045 256.00 4 5 076: 21 OIL SANDS BELOW THE TOP OF THE VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 046 256.00 4 5 076: 27 OIL SANDS BELOW THE TOP OF THE VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 047 256.00 4 5 076: 28 OIL SANDS BELOW THE TOP OF THE VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 ------PEACE RIVER OIL SANDS AREA ------ OS 048 256.00 5 15 083: 16 OIL SANDS BELOW THE TOP OF PEACE RIVER DRRZD 40 TO THE BASE OF THE PEKISKO FM DRRZD 174 OS 049 256.00 5 15 083: 17 OIL SANDS BELOW THE TOP OF PEACE RIVER DRRZD 40 TO THE BASE OF THE PEKISKO FM DRRZD 174 OS 050 256.00 5 15 083: 18 OIL SANDS BELOW THE TOP OF PEACE RIVER DRRZD 40 TO THE BASE OF THE PEKISKO FM DRRZD 174 2001 MAY 30 OIL SANDS PUBLIC OFFERING NOTICE SCHEDULE A LEASES Page 4 of 4 LEASE PARCELS HECTARES M RG TWP LAND DESCRIPTION OS 051 256.00 5 15 083: 19 OIL SANDS BELOW THE TOP OF PEACE RIVER DRRZD 40 TO THE BASE OF THE PEKISKO FM DRRZD 174 OS 052 256.00 5 15 083: 20 OIL SANDS BELOW THE TOP OF PEACE RIVER DRRZD 40 TO THE BASE OF THE PEKISKO FM DRRZD 174 OS 053 256.00 5 15 083: 21 OIL SANDS BELOW THE TOP OF PEACE RIVER DRRZD 40 TO THE BASE OF THE PEKISKO FM DRRZD 174 OS 054 256.00 5 15 083: 28 OIL SANDS BELOW THE TOP OF PEACE RIVER DRRZD 40 TO THE BASE OF THE PEKISKO FM DRRZD 174 OS 055 256.00 5 15 083: 33 OIL SANDS BELOW THE TOP OF PEACE RIVER DRRZD 40 TO THE BASE OF THE PEKISKO FM DRRZD 174 30 12,800.00 ha Totals END Page 1 of 1 2001 MAY 30 APPLICABLE DEEPER RIGHTS REVERSION ZONE DESIGNATIONS APPENDIX 2 DRRZD: 4 Zone: 2480 MANNVILLE GROUP INTERVAL: 2 557.00 - 2 985.00 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 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