OILSANDS CANADA CORPORATION ANNOUNCES NORMAL COURSE ISSUER BID

TORONTO, Sept. 2 /CNW/ - OilSands Canada Corporation (the "Fund") announced today its intention to make a normal course issuer bid for its equity shares through the facilities of the Toronto Stock Exchange (the "TSX").  This normal course issuer bid is intended to commence on September 7, 2010 and will terminate on September 6, 2011. 

The Fund had 1,859,402 equity shares issued and outstanding as at August 31, 2010.  OilSands may, during the 12 month period commencing September 7, 2010 purchase on the TSX up to 185,840 equity shares, being 10% of the public float of 1,858,402 equity shares and may not, in any 30 day period, purchase more than 37,188 equity shares, being 2% of the equity shares issued and outstanding.  As at August 31, 2010 OilSands had purchased 73,400 equity shares at an average price of $6.40 under its previously approved normal course issuer bid.  OilSands will cancel all equity shares purchased pursuant to the bid.  OilSands believes that its equity shares represent good value for the Fund and purchases under the normal course issuer bid may serve to enhance returns to shareholders.

OilSands trades on the Toronto Stock Exchange under the symbol "OCF".

For further information:

visit our website at www.middlefield.com or contact the undersigned:

Nancy Tham
Senior Vice President
[phone]