US Oil Sands Inc. Announces US$7.5 Million Financing and PR Spring Project Update - Seite 2

With mine opening complete and ready for active mining operations, the Company completed a 4-week mobilization and field training program of the Company's mining machine which will be used in the mine to mill the oil sand deposit. The program also produced a stockpile of ore for the Company to use during initial commissioning and start-up of the plant.

LIQUIDITY

As previously disclosed, the Company has limited working capital for funding of remaining Project construction costs incurred, commissioning and start-up, operations and ongoing corporate G&A costs. As of the date hereof, there are approximately US$5.0 million of current liabilities directly related to the Project. In addition, there are an estimated US$0.2 million in expenditures required to complete commissioning of the Project that have not yet been committed. Based on these estimates and without the Financing, the Company would not have sufficient capital resources to fund the current working capital deficiency, along with the remaining commissioning and start-up costs.

FINANCING

The Company has signed a non-binding letter of intent with ACMO in respect of the Financing. The Financing is a US$7.5 million senior secured term loan bearing interest at 15% per annum, payable upon loan maturity. The loan is repayable in one year with a further 12-month extension available if the Company meets certain production volume and cost targets. In consideration for providing the Financing, the Company will issue to ACMO 1.2 billion warrants exercisable at C$0.015 having a five-year term to expiry. The Company currently has 1,814,097,605 common shares issued and outstanding on a fully diluted basis. With 3,014,097,605 shares outstanding if as and when ACMO's warrants are exercised, the Company anticipates completing the previously announced and shareholder approved share consolidation, either concurrently with or shortly after closing the Financing. Upon closing the Financing, the Company will reconstitute its Board of Directors such that the number of directors will decrease from eight to six and ACMO will increase its representation on the Board from two to three directors. Completion of the Financing is subject to negotiation of definitive agreements which will require final board approval and satisfaction of the conditions therein. The Financing will be subject to TSXV Exchange (the "Exchange") approval which will require a waiver of Exchange policies relating to the warrants proposed to be issued as part of the Financing. There is no certainty that the Exchange will approve the Financing.