Canadian Oil Sands Prices $500MM of Senior Notes

Canadian Oil Sands Trust announced that its wholly-owned subsidiary, Canadian Oil Sands Limited (the "Corporation"), has agreed to issue US $500 million principal amount of 7.75% senior unsecured notes. The notes mature on May 15, 2019 and were priced at $99.792 to yield 7.78%.

Proceeds from the issue will be used to repay the principal amount on maturity of approximately CAD$200 million of unsecured notes which mature on June 29, 2009 and approximately US $250 million of unsecured notes which mature on August 10, 2009, as well as for other general corporate purposes. The transaction is expected to close on May 11, 2009, subject to customary closing conditions.

The offering is being made pursuant to Rule 144A under the Securities Act of 1933 (the "Act"). The offering will not be registered under the Act and none of the notes may be offered or sold in the United States absent registration under the Act or the availability of an applicable exemption from registration requirements. Offers and sales in Canada will be made only pursuant to exemptions from the prospectus requirements of applicable Canadian provincial or territorial securities laws. This press release does not constitute an
offer to sell or the solicitation of an offer to buy any security.