Initial Public Offering - Exchange Option Extended to Permit Tax Deferred Rollover



    TORONTO, June 27 /CNW/ - Middlefield Group, on behalf of OilSands Canada
Corporation (the "Fund"), is pleased to announce that it has filed an
amendment to the preliminary prospectus to modify certain provisions of the
Exchange Option. Under the Exchange Option, individuals investing in OilSands
Canada Corporation may pay for Units by exchanging securities of certain
specified issuers. The amendment allows investors to tender securities under
the Exchange Option without triggering a capital gain. In addition, the Fund
has expanded the list of exchange eligible issuers whose securities will be
accepted by the Fund under the Exchange Option as set forth in the attachment
to this press release. By exchanging securities for Units of the Fund,
investors are able to achieve the benefits of diversification and professional
management. The new deadline for participation in the Exchange Option is
July 18th, 2007.
    OilSands Canada Corporation is a closed-end fund offering advised by
Middlefield Capital Corporation (the "Advisor"). The Fund has been created to
provide long-term capital appreciation by investing in an actively managed,
diversified portfolio comprised primarily of publicly-listed energy-related
equity securities of issuers that operate in or have exposure to the Canadian
oil sands sector. Additionally, up to 20% of the portfolio may be invested in
securities of private issuers operating in the oil sands sector which, in the
view of the Advisor, are acquisition targets or are likely to become
publicly-listed in the near to mid term, thereby offering the potential for
capital appreciation.
    Each Unit of the Fund purchased on the Initial Public Offering for $10.00
will consist of one Equity Share and one-half Equity Share Purchase Warrant.
Each whole Warrant is exercisable at a price of $10.25 and expires on July 31,
2010.
    Middlefield Capital Corporation will act as the Advisor responsible for
managing the Fund's investments, including asset mix and security selection.
With approximately $4.0 billion in assets under management, Middlefield has
specialized in the oil and gas and mining sectors for many years. Groppe, Long
& Littell (the "Special Advisor"), a Houston, Texas based oil and gas
consulting firm, will be Special Advisor to Middlefield, providing it with an
analysis of the global economic and political forces impacting the prices of
oil and natural gas. Henry Groppe, the founder of the Special Advisor, will be
the individual primarily involved in providing services to the Fund. Mr.
Groppe has over 50 years of experience in the oil, natural gas and
petrochemical industries.
    The syndicate of agents is being co-led by CIBC World Markets Inc. and
RBC Capital Markets, and includes BMO Nesbitt Burns Inc., National Bank
Financial Inc., Scotia Capital Inc., TD Securities Inc., Canaccord Capital
Corporation, Raymond James Ltd., Dundee Securities Corporation, HSBC
Securities (Canada) Inc., Blackmont Capital Inc., Wellington West Capital
Inc., Berkshire Securities Inc., Desjardins Securities Inc., Middlefield
Capital Corporation, Research Capital Corporation and Richardson Partners
Financial Ltd.

    A preliminary prospectus relating to these securities has been filed with
securities commissions or similar authorities in all of the provinces and
territories of Canada but has not yet become final for the purpose of a
distribution to the public. This material shall not constitute an offer to
sell or the solicitation of an offer to buy, nor shall there be any sale or
any acceptance of an offer to buy these securities in any province or
territory of Canada prior to the time a receipt for the final prospectus or
other authorization is obtained from the securities commission or similar
authority in such province or territory.

    
                         OilSands Canada Corporation
                     List of Exchange Eligible Securities
    

    Addax Petroleum Corporation
    Advantage Energy Income Fund
    AltaGas Income Trust
    ARC Energy Trust
    Baytex Energy Trust
    Bonavista Energy Trust
    Calfrac Well Services Ltd.
    Canadian Natural Resources Limited
    Canadian Oil Sands Trust
    Canetic Resources Trust
    Cathedral Energy Services Income Trust
    CCS Income Trust
    Celtic Exploration Ltd.
    CHC Helicopter Corporation - Class A
    CHC Helicopter Corporation - Class B
    Compton Petroleum Corp.
    Connacher Oil and Gas Ltd.
    ConocoPhillips
    Crescent Point Energy Trust
    Crew Energy Inc.
    Cyries Energy Inc.
    Daylight Resources Trust
    Duvernay Oil Corp.
    Enbridge Inc.
    EnCana Corporation
    Enerflex Systems Income Fund
    Enerplus Resources Fund
    Ensign Energy Services Inc.
    Enterra Energy Trust
    Fairborne Energy Trust
    Finning International Inc.
    First Calgary Petroleums Ltd.
    Flint Energy Services Ltd.
    Focus Energy Trust
    Fort Chicago Energy Partners LP
    Freehold Royalty Trust
    Galleon Energy Inc. - Class A
    Harvest Energy Trust
    Highpine Oil & Gas Ltd.
    Husky Energy Inc.
    Imperial Oil Limited
    Inter Pipeline Fund
    InterOil Corporation
    Keyera Facilities Income Fund
    Mullen Group Income Fund
    NAL Oil & Gas Trust
    Newalta Income Fund
    Nexen Inc.
    Niko Resources Ltd.
    NuVista Energy Ltd.
    Occidental Petroleum Corporation
    Oilexco Incorporated
    OPTI Canada Inc.
    Paramount Energy Trust
    Paramount Resources Ltd.
    Pantera Drilling Income Trust
    Pason Systems Inc.
    Pearl Exploration and Production Ltd.
    Peerless Energy Inc. - Class A
    Pembina Pipeline Income Fund
    Pengrowth Energy Trust
    Penn West Energy Trust
    Petrobank Energy and Resources Ltd.
    Petro-Canada
    Peyto Energy Trust
    Pogo Producing Company
    Precision Drilling Trust
    PrimeWest Energy Trust
    ProEx Energy Ltd.
    Progress Energy Trust
    ProspEx Resources Ltd.
    Provident Energy Trust
    Pure Energy Services Ltd.
    Savanna Energy Services Corp.
    ShawCor Ltd.
    Shiningbank Energy Income Fund
    Stoneham Drilling Trust
    Suncor Energy Inc.
    Synenco Energy Inc.
    Talisman Energy Inc.
    Teck Cominco Limited
    Tesco Corporation
    Total Energy Services Trust
    TransCanada Corp.
    Trican Well Service Ltd.
    Trilogy Energy Trust
    Trinidad Energy Services Income Trust
    True Energy Trust
    UTS Energy Corp.
    Vermilion Energy Trust
    Western Oil Sands, Inc.
    Zedi Inc.
    Zargon Energy Trust





For further information:

For further information: please visit our website at www.middlefield.com
or contact Nancy Tham, Senior Vice-President, at (416) 847-5349 or toll free
at 1-888-890-1868

Organization Profile

OILSANDS CANADA CORPORATION

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