US Oil Sands Inc. Announces Successful Closing of Rights Offering and Restart of Full Construction Operations at PR Spring

CALGARY, ALBERTA--(Marketwired - May 31, 2016) -

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US Oil Sands Inc. ("US Oil Sands" or the "Company") (TSX VENTURE:USO), an innovator of oil extraction technologies, today announced that it has successfully completed its previously announced equity rights offering (the "Rights Offering") raising total gross proceeds of Cdn$12.8 million.

The Rights Offering was over-subscribed with total subscriptions received equalling 134% of the maximum offering as a result of interested shareholders exercising their additional subscription privilege to acquire common shares of the Company beyond the number allowable under shareholders' basic subscription privilege. Securities regulations do not allow the Company to exceed the approved financing amount of Cdn$12,797,136. Shareholders, including US Oil Sands' largest shareholder, ACMO S.à.r.l ("ACMO"), who subscribed for these additional shares may not have received their full requested allocation and will receive a partial refund of subscription monies from Computershare Investor Services Inc., the Company's subscription agent.

Of the 684,374,887 shares issued pursuant to the basic subscription privilege, insiders of US Oil Sands, including directors and officers of the Company as well as ACMO, subscribed for an aggregate of 407,472,986 shares, to the best of the Company's knowledge. A further 168,767,508 shares were issued pursuant to the additional subscription privilege; ACMO, an insider of the Company subscribed for 110,049,556 of those shares.

The Company issued 223,333,333 shares to ACMO pursuant to the basic subscription privilege, 110,049,556 shares pursuant to the additional subscription privilege, and no additional shares pursuant to the stand-by commitment.

"The support demonstrated by our shareholders, both large and small, through this successful Rights Offering is extremely encouraging considering that the oil industry continues to face very challenging capital markets," said Cameron Todd, CEO of US Oil Sands. "The Company is now well positioned to finish construction of the PR Spring Project and produce first oil before year end. We are confident that the demonstration of the Company's commercial technology and resource potential will support US Oil Sands' expectation to emerge as an industry leader among the most efficient, lowest capital cost and most environmentally sustainable oil sands companies."