20-01-2014

US Oil Sands Inc awards Utah project and construction management contract to KBR

US Oil Sands Inc, a company focused on oil sands exploration and production in Utah, is pleased to announce that it has selected Kellogg Brown & Root LLC ("KBR") to provide project and construction management services for the Company's PR Spring Project. Working jointly with US Oil Sands, KBR will work to bring both the extraction facilities and mine development into commercial production.

"Having KBR's Salt Lake City team supporting our project adds tremendous reach to our current pool of expertise," said Cameron Todd, CEO of US Oil Sands. "We will be able to draw on KBR's significant oil sands, mining, equipment module and plant construction experience to ensure that budgets and timelines are tightly controlled and that the project is delivered in accordance with our shareholder's expectations. We remain 100% committed to making this flagship oil sands project one that the State of Utah will be proud of, especially as it relates to environmental leadership, sustainable energy development, and beneficial economic contribution for the citizens of Utah."

Having closed an $81 million financing in October 2013, the Company's PR Spring Project is fully funded thereby allowing the Company to focus its immediate attention on project execution. In addition to aligning itself with one of the world's most respected engineering firms to steward the project through to commercial commissioning and start-up, the Company has also been active in building out its internal capabilities. The Company will also seek to leverage the technical expertise of its directors, including Ronald Pantin of Pacific Rubiales Energy Corp. and Rod Lewis of Lewis Energy who sit on the Company's Technical Committee.

US Oil Sands has recently opened an office in Salt Lake City from which process engineering, mine engineering, health safety and environment, and regulatory/government affairs will be conducted.

KBR is currently working closely with FLSmidth, one of the Company's key process design and equipment suppliers.  With the detailed engineering stage underway and the placement of long lead equipment orders imminent, both KBR and FLSmidth will work to ensure attainment of the Company's mandate of best-in-class business and operating performance, and environmental outcomes. While significantly reducing capital cost, US Oil Sands' innovative approach to oil sands development uses a non-toxic bio-solvent that eliminates the need for tailings ponds and facilitates concurrent and rapid mine reclamation. During this process, the Company believes its full scale production plant will achieve an industry leading 95% water-recycle ratio and a 96% oil extraction rate.

For more information, please visit www.kbr.com