US Oil Sands Inc. Announces Successful Closing of Rights Offering and Restart of Full Construction Operations at PR Spring - Seite 2

US Oil Sands now has 1,706,284,790 common shares issued and outstanding. In consideration for providing the standby commitment, ACMO has been issued 160,725,000 warrants as further described below. If fully exercised, the Company would have 1,867,009,790 shares outstanding. Pursuant to the approval obtained from shareholders at the Company's Annual General and Special Meeting held on May 18, 2016, US Oil Sands intends to complete a share consolidation in the near future at a consolidation ratio to be determined by the Company's board of directors, but not exceeding 100 to 1.

The Company is also working towards the approved name change of the Company. The name "US Oil Sands Inc." was chosen in 2011, after the acquisition of Earth Energy Resources Inc., to reflect the Company's focus on developing oil sands properties in the State of Utah. Since that time, the Company has decided to expand its focus from solely Utah to other potential development areas, such as the Athabasca region of Alberta and other international opportunities. A name change is important to better reflect the focus and strategy of the Company on maximizing its use of innovate technologies in the energy industry and expanding to new geographic locations.

PR SPRING PROJECT UPDATE

With the closing of the Rights Offering, US Oil Sands today resumed full construction activities on the PR Spring Project (the "Project"). The Project is approximately 93% complete with remaining activities consisting primarily of on-site piping, instrumentation and electrical installation. Concurrent to and following mechanical completion, commissioning procedures will begin, followed by start-up, expected in Q4 2016.

INVESTMENT BY ACMO

ACMO invested Cdn$5.0 million pursuant to the Rights Offering and its stand-by commitment pursuant to a standby purchase agreement (the "Standby Purchase Agreement") between ACMO and US Oil Sands dated April 15, 2016.

Pursuant to the Rights Offering, ACMO acquired 333,382,889 shares, increasing its ownership of US Oil Sands by approximately 6.4%. ACMO paid US$0.012 per share. Pursuant to the Standby Purchase Agreement, ACMO also received 160,725,000 warrants which entitle ACMO to acquire one share for each warrant held ("Warrants"). The Warrants are exercisable on or before November 30, 2016 at an exercise price equivalent to the Rights Offering subscription price of Cdn$0.015 or US$0.012 per share. If ACMO were to exercise all of the Warrants as of today's date, ACMO's ownership of US Oil Sands would increase an additional 5.8% and the total amount paid for the exercised Warrants would be Cdn$2,410,875 or US$1,928,700.