Production in January reflects unplanned outages in Syncrude’s mine train ore preparation units.  It is the same issue as was described in our Q4 report as unplanned outages in mine trains.  We don’t believe it should affect our full-year production Outlook, since we have a lot of time to make up for the lost bitumen production.  If there is a material change to our Outlook for the year, that would be announced via press release. 

Of note, Syncrude has been operating at an average of about 83% of design capacity (350,000 bblo/d) since we brought on the last expansion in 2006. That’s typical of mining oil sands operations and much better than the average for in-situ producers. What we are aiming for is much higher utilization rates that set us apart from the industry; we believe we will achieve that in time. 

Regards,

Patsy

Patsy Corning

Executive Assistant, President's Office

Canadian Oil Sands Limited (TSX: COS)

2500, 350 - 7th Avenue SW

Calgary, AB  T2P 3N9

www.cdnoilsands.com