Japan Canada Oil Sands Limited announces expansion plans for its Hangingstone operations

    CALGARY, May 8 /CNW/ - Japan Canada Oil Sands Limited (JACOS) today
announced proposed expansion plans for its Hangingstone oil sands operation.
The new facilities will provide additional production capacity from the area
of up to 35,000 barrels per day over a projected life of 25 to 30 years.
    JACOS is the Operator with a 75% interest in the 72 sections of land that
make up the Hangingstone leases with Nexen Inc. as lessee of the remaining 25%
interest.
    The companies will seek regulatory approval in 2010 pending completion of
further engineering work and an Environmental Impact Assessment. Commissioning
and start-up of the facilities is expected in the third and fourth quarters of
2014.
    JACOS currently operates a Steam Assisted Gravity Drainage (SAGD)
demonstration project approximately 50 kilometres southwest of Fort McMurray,
Alberta, in Township 84, Range 11 W4M. This project is in its tenth year of
operation of a projected 20 to 25 year lifespan. It started producing bitumen
in July 1999 and production has increased to its current level of 8,000
barrels per day. Licensed maximum capacity is 11,000 barrels per day.
    JACOS holds the rights to leases covering approximately 46,000 net
hectares in the Athabasca region for future development. These leases include
the Hangingstone, Chard, Corner, Liege and Thornbury areas.

    Japan Canada Oil Sands Limited is a 100% owned Canadian subsidiary of
Canada Oil Sands Co. Ltd. (CANOS), a Japanese subsidiary of Japan Petroleum
Exploration Co., Ltd. (JAPEX). JAPEX is a petroleum exploration and production
company traded on the Tokyo Stock Exchange (Securities Code Number 1662).
    The Public Disclosure Document outlining our plans will be posted on our
website today.

    Any information contained herein with respect to JACOS' plans, estimates,
strategies and other statements that are not historical facts are
forward-looking statements about the future performance of JACOS. These
statements are based on management's assumptions and beliefs in light of
information currently available. As such, these projections entail risks and
uncertainties. Readers should be aware that actual results and events may
differ substantially from these projections.

For further information: Yukio Kishigami, Executive Vice President,
Phone: (403) 264-9046, Fax: (403) 264-9102, Website: www.jacos.com