Osum Oil Sands Corp Announces $275 Million Financing

CALGARY, Aug. 27 /PRNewswire/ - Osum Oil Sands Corp ("Osum"), a privately-held
company focused on bitumen extraction, today announced that it has closed a
private equity financing for a total of CDN$275 million at a price of
CDN$10.50 per share. The financing was led by Warburg Pincus LLC ("Warburg
Pincus") and included a substantial investment by Blackstone Capital Partners
V LP ("Blackstone").
Osum is currently the only junior player with a material position in the
thermal trend of the Cold Lake oil sands region of Canada, where a substantial
majority of the country's current "in situ" bitumen is produced. Producers
operating in the area include Imperial Oil, Canadian Natural Resources, Shell
and Husky. Osum plans to file its commercial application at Cold Lake in late
2009, with first production anticipated in 2013.
Osum's Chairman and CEO, Richard Todd, said, "The closing of this most recent
financing is a positive endorsement of our quality asset base and management
team. The caliber of private equity firms committed to this financing suggests
a solid base of access to capital going forward for our company. These funds
provide the opportunity for Osum to confidently move forward to first
commercial production from our Cold Lake bitumen project of approximately
35,000 barrels per day, and to pilot production at our much larger Saleski
project in the Wabasca region of Alberta., where our significant land position
holds the potential to produce in excess of 150,000 barrels per day from
several projects."
Mr. Todd continued, "The Saleski carbonates are thought by many to be one of
the world's next giant oil plays, and we are well-positioned to capitalize on
this opportunity to unlock a significant bitumen resource in Alberta. We
expect an application will be filed for large-scale commercial development at
one of our Saleski projects shortly after receipt of our first pilot results,
which are expected in early 2010. In short, the financing we have received
strengthens our momentum going forward, and we look forward to taking
advantage of multiple opportunities ahead of us."
The company also reported that, as part of its new financing, it is adding
Jeffrey Harris and David Krieger, both Managing Directors of Warburg Pincus,
and David Foley, Senior Managing Director of Blackstone to its Board of
Directors. Two of the company's existing Directors, Simon Clark and Gerry
Stephenson, have agreed to step down from the Board of Directors and will join
Osum's newly formed Board of Advisors.
Jeffrey Harris stated, "On behalf of Warburg Pincus, we are thrilled to
partner with Richard Todd and Osum's highly experienced management team to
help build the company into one of the premier oil sands operators in Canada.
Osum presents a unique opportunity to participate in one of the few remaining
independent oil sands plays of substantial scale in the primary fairway in
Canada."
David Foley, from Blackstone added, "We are pleased to have the opportunity to
play an active role in funding the continued growth of a company with such
significant recoverable resources and as experienced a management team as
Osum's."

About Osum:

Osum Oil Sands Corp. is a privately held Alberta based company with
approximately 11 billion barrels of bitumen in place net to Osum, focused on
the application of in situ recovery technologies to bitumen extraction. Osum's
mission is to provide secure, safe energy to North Americans through
innovative and environmentally responsible business practice. For more
information, please visit www.osumcorp.com.

About Warburg Pincus:

Warburg Pincus has been a leading private equity investor since 1971. The firm
currently has more than $35 billion of assets under management. Over the past
20 years, Warburg Pincus has invested more than $3.4 billion in more than 30
companies in the energy-sector worldwide. The firm has been the lead investor
in numerous successful public and private oil and gas exploration and
production companies, including: Newfield Exploration Co., Spinnaker
Exploration, Inc. (since acquired by Norsk Hydro ASA), Encore Acquisition
Company, Bill Barrett Corp., MEG Energy Corp., Antero Resources Corp., and
Canbriam Energy. Warburg Pincus has an active portfolio of more than 125
portfolio companies, and has offices in Beijing, Frankfurt, Hong Kong, London,
Mumbai, New York, San Francisco, Shanghai and Tokyo. For more information,
please visit www.warburgpincus.com.

About Blackstone:

Blackstone is one of the world's leading investment and advisory firms with
total assets under management of approximately $119 billion and a long and
distinguished track record of investing in the energy sector. Blackstone seeks
to create positive economic impact and long-term value for its investors, the
companies it invests in, the companies it advises and the broader global
economy. Blackstone's alternative asset management businesses include the
management of corporate private equity funds, real estate funds, hedge funds,
funds of funds, debt funds, collateralized loan obligation vehicles (CLOs) and
closed-end mutual funds. The Blackstone Group also provides various financial
advisory services, including mergers and acquisitions advisory, restructuring
and reorganization advisory and fund placement service. Further information is
available at www.blackstone.com.

Cautionary Information and Forward Looking Statements

Certain statements contained in this press release, including the documents
incorporated by reference, may contain projections and "forward-looking
statements" within the meaning of that phrase under Canadian and U.S.
securities laws. When used in this document, the words "may", "would",
"could", "will", "intend", "plan", "anticipate", "believe", "estimate",
"expect" and similar expressions may be used to identify forward-looking
statements. Those statements reflect our current views with respect to future
events or conditions, including prospective results of operations, financial
position, predictions of future actions or plans or strategies.
Certain material factors and assumptions were applied in drawing our
conclusions and making those forward looking statements. By their nature,
those statements reflect management's current views, beliefs and assumptions
and are subject to certain risks, uncertainties, known and unknown, and
assumptions, including, without limitation, machinery development or
production delays, changing environmental regulations, the ability to attract
and retain business partners, the ability to exploit hydrocarbon resources
with our technology, future levels of government funding, the need to obtain
and maintain proprietary rights over our technology, competition from other
technologies, the ability to access the capital required for research,
technology development, operations and marketing, the need to generate
positive cash flow in the foreseeable future, changes in energy prices and
currency levels.
Many factors could cause our actual results, performance or achievements to be
materially different from any future results, performance or achievements that
may be expressed or implied by these forward-looking statements. Should one or
more of these risks or uncertainties materialize, or should the assumptions
underlying our projections or forward-looking statements prove incorrect, our
actual results may vary materially from those described in this press release
as intended, planned, anticipated, believed, estimated, or expected. We do not
intend and do not assume any obligation to update these forward-looking
statements whether as a result of new information, plans, events or otherwise.
Our securities are not traded on any stock exchange in Canada and thus, OSUM
is not subject to regulation by any Canadian stock exchange. Our securities
are also not registered under the United States Securities Act of 1933 nor are
they traded on any securities or stock exchange in the United States. As a
result, we are not presently subject to the reporting, certification or other
requirements imposed on U.S. registered issuers under, among other things,
U.S. Sarbanes-Oxley Act of 2002 ("SOX").

SOURCE OSUM Oil Sands Corp.

For Osum Oil Sands Corp: Business Inquiries, Richard Todd, Chairman and CEO,
(403) 283-3224; Media Inquiries, Justin Robinson, Communications Manager,
(403) 270-4766; For Warburg Pincus: Joseph Kuo or Todd Fogarty, Kekst and
Company, (212) 521-4800, joe-kuo@kekst.com or todd-fogarty@kekst.com