UTS reports Environmental Impact Assessment Terms of Reference finalized for Frontier and Equinox Projects



    
    /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE
    UNITED STATES/
    

    TSX Trading Symbol: UTS

    CALGARY, Feb. 20 /CNW/ - Alberta Environment has issued the final Terms
of Reference for the Environmental Impact Assessment ("EIA") for each of UTS
Energy Corporation's ("UTS") Frontier and Equinox Oil Sands Mine Projects (the
"Frontier Project" and "Equinox Project", respectively). The next step in the
regulatory process is the completion of the EIA report for submission to
Alberta Environment for review and approval.
    Following the release of the public disclosure document in March 2008,
UTS and its partner Teck Cominco Limited ("Teck") have been working closely
with the communities of Fort Chipewyan and Fort McKay to develop thorough and
comprehensive content for the mine applications.
    "We are pleased to have reached this important milestone on these
projects," said William Roach, President and Chief Executive Officer. "We have
made considerable progress on the Equinox and Frontier Projects since we first
explored and delineated these properties just a few years ago. Thanks to the
constructive input we had from the communities of Fort Chipewyan and Fort
McKay, we have now completed this step. We will continue to work alongside our
partner and the local communities as we go forward to design the projects so
that the environmental effects are well understood and managed."
    Lisa Schaldemose, Executive Director of Fort McKay Industry Relations
Corporation said "We're happy with the process that we have with UTS and Teck.
We are pleased that our input has been incorporated and we are looking forward
to working with them as they take their projects through to the next phase."
    The proposed Equinox Project consists of a mining and bitumen extraction
and processing facility on the UTS/Teck jointly owned Lease 14. The Equinox
Project may be developed as either a 50,000 barrel per day stand-alone project
or a satellite bitumen froth production operation to the Frontier Mine. The
Equinox Project is located on the west side of the Athabasca River directly
across from the Fort Hills Project and 10 kilometres to the south of the
Frontier Project in Township 98, Ranges 10 and 11 W4M.
    The proposed Frontier Project consists of a mining and bitumen extraction
and processing facility to be developed in phases. Current plans are for Phase
1 of the Frontier Project to be located on the UTS/Teck jointly owned Leases
311, 468, 470, 477 and 610 on the west side of the Athabasca River in
Townships 100 and 101 Range 11 W4M. The proposed mining area of the Frontier
Project is 10 to 20 kilometres northwest of the Fort Hills Project and is
bordered to the south and east by Shell Canada Limited's proposed Pierre River
project. Initial production rate of the Frontier Project is expected to be in
the range of 100,000 to 160,000 barrels per day. Additional mining operations
for expansion of the initial phase are being considered on Leases 513, 514 and
840 and are dependent on the results of further exploration.

    About UTS

    UTS is focused on the creation of shareholder value through exploration,
development and production of hydrocarbon resources, mainly mineable oil sands
deposits from the Athabasca Oil Sands Area in north-eastern Alberta.
    UTS was instrumental in re-establishing the Fort Hills Oil Sands Project
and is the principal founder of the Fort Hills Energy Limited Partnership. UTS
holds a 20 per cent working interest in the Fort Hills Project, a mature
mining project, located north of Fort McMurray. Beyond the Fort Hills Project,
UTS has expanded the scope of its opportunities through a successful and
continuing lease acquisition and exploration program. These other leases are
expected to provide organic growth opportunities and future funding
flexibility for UTS.
    The three year exploration program has resulted in identifying two
additional oil sands mining projects: the Equinox Project and Frontier oil
sands project, in both of which UTS holds a 50 per cent working interest and
Teck holds the other 50 per cent. Further, UTS holds a 50 per cent working
interest in an additional 97,024 hectares (242,560 acres) of prospective oil
sands leases.
    On February 6, 2009, UTS announced preliminary results from its 2009
drilling program, conducted jointly with Teck, in the Lease 421 Area, located
east of the Firebag River in north-eastern Alberta. The drilling results
announced to date show that of the 13 core holes drilled, 11 wells encountered
high grade oil sands. Additional results from the drilling program will be
released this quarter.
    UTS is committed to responsible resource development by conducting its
business in a manner that reduces environmental effects, protects workers' and
communities' health and safety and recognizes stakeholder interests.

    UTS Energy Corporation is based in Calgary, Alberta. The Company's common
shares (UTS) are traded on the Toronto Stock Exchange.

    FORWARD-LOOKING INFORMATION: Except for statements of historical fact
relating to the Company, this news release contains "forwarding-looking
information" within the meaning of applicable securities law. The
forward-looking statements in this press release relate to, but are not
limited to, statements with respect to the Company's anticipated mine plan,
drilling results, capital expenditures, drilling plans, estimated resources
and production estimates of bitumen resources are based on the opinions and
estimates of management at the date the statements are made, and are subject
to a variety of risks and uncertainties and other factors that could cause
actual events or results to differ materially from those anticipated in the
forward-looking statements. There are numerous uncertainties inherent in
estimating bitumen, including many factors beyond the Company's control, and
no assurance can be given that the indicated level of bitumen or the recovery
thereof will be realized. In general, estimates of bitumen are based upon a
number of factors and assumptions made as of the date on which the resource
estimates were determined, such as geological and engineering estimates,
certain TV:BIP ratios and pit boundaries, which have inherent uncertainties.
Forward-looking information is frequently characterized by words such as
"plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and
other similar words, or statements that certain events or conditions "may" or
"will" occur. Forward-looking information is based on the opinions and
estimates of management at the date the statements are made, and are subject
to a variety of risks and uncertainties and other factors that could cause
actual events or results to differ materially from those anticipated in the
forward-looking statements. The Company undertakes no obligation to update
forward-looking information if circumstances or management's estimates or
opinions should change except as required by law. The reader is cautioned not
to place undue reliance on forward looking information.





For further information:

For further information: Dr. William J. F. Roach, President and Chief
Executive Officer at (403) 538-7030

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UTS ENERGY CORPORATION

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