North West Upgrading annnounces private placement closing


    CALGARY, June 12 /CNW/ - North West Upgrading Inc. ("North West") is
pleased to announce that it has closed a $153 million private placement of
common shares at a price of $4.25 per share.
    Net proceeds from the offering will be used to fund procurement of long
lead time equipment, continued engineering, on-site construction such as site
grading and other project development costs. "This closing marks a significant
milestone for North West," said Robert Pearce, President and CEO of North West
Upgrading. "With the closing of this financing, early equipment purchases in
place and detailed engineering starting, North West is well positioned to
progress the project through to beginning construction in late 2007."
    The offering was completed by a syndicate of agents, led by RBC Capital
Markets and Tristone Capital Inc., and including Peters & Co. Limited.

    This press release shall not constitute an offer to sell or the
solicitation of an offer to buy the securities in any jurisdiction. The
securities will not be and have not been registered under the United States
Securities Act of 1933 and may not be offered or sold in the United States
absent registration or an applicable exemption from the registration

    About North West Upgrading

    North West Upgrading Inc. is a Calgary-based, privately-owned company
committed to building an independent, heavy oil upgrader in Alberta's
Industrial Heartland. The Upgrader will enhance the economic value of
Alberta's bitumen and heavy oil production by producing light, low sulphur
products and diluent. The Upgrader will have a total processing capacity of
231,000 barrels per day of blended feedstock (150,000 barrels per day of crude
bitumen) over three phases. North West anticipates it will receive regulatory
approval in 2007, with construction to begin immediately thereafter to achieve
start up for the first phase in 2010. All three phase are expected to be
operating by 2015.

For further information:

For further information: Jennifer Peters for North West Upgrading, P:
(403) 538-5641 ext. 102, C: (403) 542-6751,

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North West Upgrading Inc.

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