Finance & Investing | Capital Markets

US Oil Sands Financing and Management Update

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US Oil Sands Inc. today announced the closing of the previously announced $80 million private placement financing of US Oil Sands with strategic investors Blue Pacific Investments Group Ltd., Anchorage Capital Group, L.L.C. and Spitfire Ventures, LLC and certain accredited investors.

The Financing was over-subscribed and gross proceeds will be approximately $81 million following receipt of an additional $1 million in subscription proceeds, which the Company expects to receive imminently. Pursuant to the terms of the Financing, US Oil Sands has appointed to its Board of Directors Serafino Iacono and Ronald Pantin as nominees of Oil Associates, Stephen Lehner as a nominee of ACMO, and Alfred Holcomb as a nominee of Spitfire. Kevin Ulrich of ACMO and Rod Lewis of Spitfire who were previously announced as incoming directors will act as observers to the Board. Due to other commitments, Frank Giustra will not be appointed to the Board. As observers, Kevin Ulrich and Rod Lewis will attend Board meetings and lend their expertise and extensive experience to the US Oil Sands team.

Verne Johnson, Cameron Todd and Ed Chwyl will retain their roles as existing directors of the Company, with Verne Johnson continuing as Chairman of the Board. Departing from the Board will be Douglas Hunter, James Banister and Ken Stephenson.

Cameron Todd, CEO of US Oil Sands, stated: "We are extremely pleased to have received shareholder and regulatory approval for this strategic financing, as it fully funds the initial 2,000 bbl/day phase of our PR Spring Project and bolsters our corporate development efforts to export our environmentally-responsible method of oil sands extraction around the world.

Our new slate of prominent directors and Board observers is unique for a company of our size and is an attribute that we plan to leverage when growing our Company's operations into other oil sands regions, such as those found in Canada and many other jurisdictions. Moreover, we are fortunate to have available the considerable technical expertise and operating experience of Messrs. Pantin and Lewis for the Board which will assist us in executing our extensive expansion plans."

Mr. Todd continued: "We again would like to acknowledge the significant contribution of our three retiring directors in stewarding US Oil Sands to its current level of success and thank them on behalf of the entire Company."