Canadian Oil Sands Takes Up Shares Tendered to Canada Southern Offer

Canadian Oil Sands Trust (the "Trust") on Saturday announced that its wholly owned subsidiaries, Canadian Oil Sands Limited and 1212707 Alberta Ltd. ("Canadian Oil Sands"), have taken up the 9.8 million common shares of Canada Southern Petroleum Ltd. ("Canada Southern") (NASDAQ:CSPLF/TSX:CSW) validly deposited under Canadian Oil Sands' offer, representing approximately 65 percent of the outstanding common shares of Canada Southern.

Canadian Oil Sands' offer was subject to a minimum tender condition of 50.01 percent. Canadian Oil Sands also has provided for a subsequent offering period for the deposit of outstanding common shares of Canada Southern from midnight (Pacific daylight time) Friday, Aug. 18, 2006 to midnight (Pacific daylight time) on Wednesday, Sept. 6, 2006. Canadian Oil Sands will mail a formal notice to all Canada Southern shareholders on or about Aug. 22, 2006.

"We are pleased to have surpassed our minimum tender conditions for our offer to acquire Canada Southern, which enables us to proceed with this transaction," said Canadian Oil Sands' President and CEO, Marcel Coutu. "Having now acquired control of Canada Southern, we encourage remaining shareholders to tender to our offer, which is unanimously recommended by Canada Southern's Board of Directors. We would also note that US securities rules dictate that this will be the final opportunity to tender to our offer."

Canadian Oil Sands intends to acquire the remaining Common Shares not tendered to its offer by way of a compulsory acquisition, statutory arrangement, amalgamation, merger, reorganization, consolidation, recapitalization or other type of acquisition transaction or transactions for an amount in cash that equals US$13.10 per Common Share.

Canada Southern shareholders with questions, requests for copies of the documents, or requiring assistance in tendering their shares, please call D.F. King & Co. Inc. at 1-800-901-0068.

RBC Capital Markets acted as financial advisors to Canadian Oil Sands in this transaction.


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