Western Oil Sands Participates in Expansion 2 Feasibility Study

Western Oil Sands Inc. is pleased to announce its participation in a feasibility study of Expansion 2 of the Athabasca Oil Sands Project. The study, proposed by Shell Canada Energy, is open to participation by all Joint Venture Owners for their proportionate share.

The feasibility study will evaluate Expansion 2 to increase production from the Jackpine Mine on the east area of Lease 13 and the extension of that mine to adjacent leases. The first phase of the Jackpine Mine is currently under construction as part of the first 100,000 barrel per day expansion. The Expansion 2 study will evaluate a bitumen mining, recovery and blending project expected to produce approximately 100,000 barrels per day of dry bitumen which will then be blended with other lighter hydrocarbon materials to produce a marketable bitumen blend product. The bitumen is anticipated to be transported from the AOSP mine site via pipeline to the Scotford area for bitumen blending. Each Joint Venture Owner will then take its bitumen in kind for further downstream processing.

The proposed scope of the Expansion 2 study includes seeking the regulatory approvals required for the Jackpine Mine Expansion, as detailed in the January 2007 "Shell Canada Oil Sands Expansion: Jackpine Mine Expansion & Pierre River Mine Public Disclosure."

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