Bow Valley Receives Waivers and Extensions, Agrees to Debt Fee

Bow Valley has received from its bank lending group waivers and extensions to an interim date of February 15th, 2009 for its senior and
subordinated acquisition facilities. The waivers and extension are provided in conjunction with the previously announced strategic review process being undertaken by the Company.

In respect of the senior facility the date for the scheduled redetermination at December 31, 2008 has been waived to February 15, 2009 and the US $10 million fixed minimum repayment has been extended by six months to June 30, 2009. The due date of the (pnds stlg)17.5 million acquisition facility has been extended to February 15, 2009. The Company expects that further waivers and extensions will be provided beyond the interim date of February 15, 2009, permitting the strategic review process to draw to a logical conclusion late in the first quarter or early in the second quarter.

In consideration of the waivers and extensions, Bow Valley has agreed to a fee of US $3 million payable upon the cancellation of all outstanding UK corporate debt.

As previously announced, Bow Valley's Board of Directors appointed a Special Committee composed of independent directors and has engaged Scotia Waterous Inc. to examine and consider a range of strategic alternatives available to the Company. These alternatives will include, among other things, potential asset divestments, equity alternatives, strategic alliances, joint venture opportunities, mergers or a corporate sale transaction.

No decision on any particular alternative has been reached at this time and there can be no assurance that the strategic review process will result in any change in the Company's current operations or that the Company will pursue any particular transaction.

Additionally, the Company advises that the Pan-Canadian Investors Committee has announced the implementation of the restructuring Plan affecting CDN $32 billion of third party Asset Backed Commercial Paper ("ABCP"). Bow Valley invested in 2007 in ABCP with a face value of CDN $40.6 million. The completion of the restructuring Plan should facilitate the establishment of an orderly trading market for the ABCP enabling the Company to determine the market value of its investment. In the interim, the Company has been provided with a borrowing facility from a Canadian bank in the amount of CDN $30 million principally secured by the investment in ABCP. The Company will make a decision at a later date whether to continue to hold or dispose of its investment.