OilSands Canada to Make Normal Course Issuer Bid

OilSands Canada intends to make a normal course issuer bid for its equity shares through the facilities of the Toronto Stock Exchange. This normal course issuer bid is intended to commence on September 4, 2007 and will terminate on September 3, 2008.

The Fund had 5,000,000 units issued and outstanding as at August 21, 2007. Each unit consists of one equity share and one-half of one equity share purchase warrant. The equity shares and warrants comprising the units will separate and commence trading independently on the TSX on September 4, 2007. OilSands may, during the 12 month period commencing September 4, 2007 purchase on the TSX up to 480,410 equity shares, being 10% of the public float of 4,804,101 equity shares and may not, in any 30 day period, purchase more than 100,000 equity shares, being 2% of the equity shares issued and outstanding. OilSands will cancel all equity shares purchased pursuant to the bid. OilSands believes that its equity shares represent good value for the Fund and purchases under the normal course issuer bid may serve to enhance returns to shareholders.

OilSands Canada Corporation trades on the Toronto Stock Exchange under the symbol "OCF".