Syncrude production update for quarter and year



    CALGARY, March 17 /CNW/ - (TSX - COS.UN) - Canadian Oil Sands Trust
("Canadian Oil Sands") today announced that crude oil production from the
Syncrude facility is expected to average about 265,000 barrels per day
(97,000 barrels per day net to the Trust) for the first quarter of 2008. While
Syncrude has been undergoing various initiatives with a view to achieving
higher production, the reduced production to date following the disruption at
the end of January/early February has resulted in a shortfall of about
5 million barrels, gross to Syncrude. The planned turnaround of the first of
two cokers is still scheduled to occur in early April with a second coker
turnaround planned for later in the year. Given the production shortfall to
date, we are revising our estimated production for the quarter from 29 million
to 24 million barrels and also adjusting our annual production target from
115 million barrels to a new target of 108 million barrels. The expected
annual production range for 2008 has been reduced from 110 to 120 million
barrels (gross to Syncrude) to 105 to 112 million barrels. The impact of this
lower 2008 production on operating costs and capital expenditures is being
assessed and updated guidance for the year is expected to be provided at the
time first quarter results are released in late April.

    Located near Fort McMurray, Alberta, Syncrude Canada operates large
oil-sands mines and an upgrading facility that produces a light, sweet crude
oil on behalf of its joint venture owners, which include Canadian Oil Sands
Limited, ConocoPhillips Oilsands Partnership II, Imperial Oil Resources, Mocal
Energy Limited, Murphy Oil Company Ltd., Nexen Oil Sands Partnership, and
Petro-Canada Oil and Gas.

    Canadian Oil Sands provides a pure investment opportunity in the Syncrude
Project through its 36.74 per cent working interest. The Trust is an
open-ended investment trust managed by Canadian Oil Sands Limited and has
approximately 479.4 million units outstanding, trading on the Toronto Stock
Exchange under the symbol COS.UN.

    Advisory: in the interest of providing Canadian Oil Sands Trust
("Canadian Oil Sands" or the "Trust") unitholders and potential investors with
information regarding the Trust, including management's assessment of the
Trust's future plans and operations, certain statements throughout this
release contain "forward-looking statements" under applicable securities law.
Forward-looking statements in this release include, but are not limited to,
statements with respect to: the expected production at Syncrude for the first
quarter and the year; the continued work that Syncrude is undertaking to
obtain higher production levels; any impact that this lower production will
have on operating costs or capital expenditures and the timing for Canadian
Oil Sands to provide updated guidance. You are cautioned not to place undue
reliance on forward-looking statements, as there can be no assurance that the
plans, intentions or expectations upon which they are based will occur. By
their nature, forward-looking statements involve numerous assumptions, known
and unknown risks and uncertainties, both general and specific, that
contribute to the possibility that the predictions, forecasts, projections and
other forward-looking statements will not occur. Although the Trust believes
that the expectations represented by such forward-looking statements are
reasonable, there can be no assurance that such expectations will prove to be
correct. Some of the risks and other factors which could cause results to
differ materially from those expressed in the forward-looking statements
contained in this release include, but are not limited to: the difficulties of
operating a complex, integrated facility, especially in extremely cold
temperatures and such other risks and uncertainties described from time to
time in the reports and filings made with securities regulatory authorities by
the Trust. You are cautioned that the foregoing list of important factors is
not exhaustive. Furthermore, the forward-looking statements contained in this
release are made as of the date of this release, and the Trust does not
undertake any obligation to update publicly or to revise any of the included
forward-looking statements, whether as a result of new information, future
events or otherwise. The forward-looking statements contained in this release
are expressly qualified by this cautionary statement.

    Canadian Oil Sands Limited
    Marcel Coutu
    President & Chief Executive Officer

    Units Listed - Symbol: COS.UN
    Toronto Stock Exchange





For further information:

For further information: Scott Arnold, Assistant Treasurer, (403)
218-6206, investor_relations@cos-trust.com, Web site: www.cos-trust.com

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CANADIAN OIL SANDS TRUST

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