Husky Extends Full Tender Payment Offer

Husky Energy Inc. has announced the extension of the payment of full tender offer consideration in connection with the previously announced cash tender offer to purchase any and all of the Company's outstanding 8.90% capital securities - CUSIP No. 448096AG2.

As a result of such extension, any holder that tenders its Notes prior to the expiration of the Tender Offer, which is scheduled for 12:01 a.m., New York City time, on July 11, 2008, unless extended or earlier terminated, and whose Notes are accepted for purchase pursuant to the terms of the Tender Offer, will receive the full tender offer consideration.

The full tender offer consideration is equal to U.S. $1,010 per U.S. $1,000 principal amount of Notes, plus accrued and unpaid interest thereon to, but not including, the settlement date. The settlement date will be promptly after the Expiration Date, and is expected to occur on or about July 11, 2008. The Company will redeem any and all Notes not tendered by issuing a notice of redemption as soon as practicable after the Expiration Date.

Global Bondholder Services Corporation, the depositary for the Tender Offer, has advised the Company that, as of 5:00 p.m., New York City time, on June 25, 2008, U.S. $208.05 million aggregate principal amount of the Notes had been validly tendered and not withdrawn, representing approximately 92.5% of the Notes outstanding. In accordance with the terms of the Tender Offer, any and all Notes that have been tendered or are tendered may not be withdrawn.