US Oil Sands Inc. Provides Project Update and Announces Second Quarter 2015 Results

CALGARY, ALBERTA--(Marketwired - Aug. 28, 2015) - US Oil Sands Inc. ("US Oil Sands" or the "Company") (TSX VENTURE:USO), a company focused on oil sands exploration and production in Utah, having developed a proprietary technology that addresses both the low oil price commodity markets and the continued environmental pressures facing the oil sands industry, today announced that it has filed its unaudited interim financial statements ("Interim Report") for the three month period ended June 30, 2015 ("Q2 2015") along with the management discussion and analysis ("MD&A") of the financial results of US Oil Sands for such period.

A copy of the aforementioned documents may be found for viewing on the System for Electronic Document Analysis and Retrieval website at www.sedar.com as well as US Oil Sands' website at www.usoilsandsinc.com.

The second quarter for US Oil Sands marked the commencement of 2015 field construction at the PR Spring Project site as utility infrastructure, piles and foundations and pipeline work began. This has been followed by a steady stream of equipment deliveries and subsequent installation as the various elements of the PR Spring Project are completed in readiness for commercial start-up in the fourth quarter.

"After several years of testing, design and preparation, it is exciting to see all the facets of our project come together", said Cameron Todd, CEO of US Oil Sands. "We are quickly closing in on the finish line with mechanical completion scheduled in just weeks. The project is on budget and targeted for first oil in the fourth quarter. By year-end we expect to be demonstrating our breakthrough extraction technology by delivering clean oil to market from the world's first commercial oil sands mining and extraction project that does not require a tailings pond. There are a lot of eyes on us and we look forward to fulfilling expectations of the most capital-efficient and environmentally-responsible oil sands project."

SELECTED QUARTERLY HIGHLIGHTS

Since April 1, 2015, the Company:

• Engaged additional construction management team members, recruited operations management and staff, administration and health, safety and environment personnel.
• Commenced field work in early May with construction of foundations and pilings, trenching and underground utilities, water and gas supply pipelines, pipe racks, construction office and security command post;
• Received key pieces of equipment at PR Spring Project site which were fabricated off-site including primary and secondary separation vessels, a rotating mixer, a clarifier, and a spiral vapour condenser;
• Initiated construction of mine opening including haul roads, over-burden removal and topsoil preservation and storage;
• Received a favourable ruling from the Utah Division of Oil, Gas and Mining regarding a challenge to the amendment to the Company's Large Mine Permit whereby the Company applied to optimize the mining sequence at PR Spring which reduces the size of storage areas required for overburden and tailings;
• Upgraded the Company's pilot demonstration unit located at our Grande Prairie, Alberta research and development facility; and
• Issued favorable results of testing completed on Canadian oil sands from the Athabasca region of Alberta to Alberta-based research partners. Tests showed USO's process was notably effective on deposits with low grade bitumen and high clay fines.

"The company's modular approach to construction has allowed a great deal of off-site fabrication and packaging to take place at multiple staging points, said Cameron Todd, CEO of US Oil Sands. "These modules are now converging on the PR Spring site for final erection and have allowed the Company to greatly increase efficiency, contain costs and improve quality".