North West Upgrading Enters Sales Agreement with Leading Alberta-Based Diesel Distributor

    Commercial Contract will Enable Upgrader to Meet the Demands of the
    Western Canadian Market

    CALGARY, Sept. 16 /CNW/ - North West Upgrading (North West), an
Alberta-based company building an independent, heavy oil Upgrader in Sturgeon
County, Alberta, today announced a long term sales agreement with a large,
independent, Alberta-based distributor for its high quality Ultra Low Sulphur
Diesel (ULSD).
    North West's upgrading facility is designed to maximize the production of
clean ULSD which is in short supply. North West will produce a low temperature
ULSD suitable for the extremes of the prairie winter, and a high quality
export ULSD that meets the low carbon and high cetane requirements of the U.S.
market. By integrating the best process technologies with gasification and
carbon capture and storage, North West will produce enough clean diesel to
help supply the increasing demands of Alberta's growing economy while
significantly reducing the carbon footprint of upgrading/refining and adding
value in the province.
    "The Alberta and Western Canadian markets are short of diesel with
current demand being met by costly imports from the U.S.," said Robert Pearce,
Senior Vice President, Corporate Development, North West Upgrading. "Through
this strategic sales agreement, North West will meet a critical need for clean
diesel in Alberta and help eliminate expensive imports."

    About North West Upgrading

    North West Upgrading Inc. is an Alberta-based company building an
independent, heavy oil upgrader in Alberta's Industrial Heartland. The
Upgrader will significantly increase the economic value of Alberta's bitumen
and heavy oil production by producing light, low sulphur product, 85% of which
is Ultra Low Sulphur Diesel and diluent. North West's process eliminates
production of coke, uses gasification to make hydrogen from the heaviest
components of bitumen and enables the capture of pure carbon dioxide. A
commercial arrangement to sell carbon dioxide for Enhanced Oil Recovery makes
North West the only upgrader designed with an integrated CO2 management
solution. The North West Upgrader will have a total processing capacity of
231,000 barrels per day of blended feedstock over three phases. Site
preparation is complete and the first phase of operations is expected to
commence in 2012. Please see:

For further information:

For further information: Editorial contact: Shauna MacDonald for North
West Upgrading, P: (403) 538-5645, C: (403) 585-4570,

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North West Upgrading Inc.

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