OSUM Oil Sands Corp. breaks the 1 billion barrel mark

    CALGARY, June 20 /CNW/ - OSUM Oil Sands Corp. ("OSUM"), a Calgary based
private oil sands company, is pleased to announce that an independent 3rd
party evaluation of OSUM's net recoverable resources has increased to over 1
billion barrels.
    GLJ Petroleum Consultants ("GLJ") have recently completed an updated
resource report following OSUM's winter drilling and seismic activities
whereby OSUM's net recoverable resources have increased from 843 million
barrels to 1.097 billion barrels, an increase of 30 percent. An eight percent
discounted after tax net present value associated with the increased
recoverable resources is now $988 million or $0.90 per recoverable barrel.
    In preparing its report, GLJ evaluated OSUM's Saleski Carbonate lands
(S.W. Athabasca region) in addition to OSUM's Marie Lake holdings (Cold Lake
region). Net recoverable resources for each property are 845 million barrels
and 252 million barrels respectively. GLJ did not evaluate other resource
properties owned by OSUM in preparing the report as the report focused on
OSUM's two core properties. Management is pleased with the updated GLJ
resource report as independent resource evaluations are moving closer to
management's internal view of OSUM's recoverable resources of 1.7 billion
    At Saleski, OSUM owns 103 gross (62.8 net) sections of oil sands leases
in the heart of the main trend associated with the emerging carbonate resource
play. 67 of those sections are jointly owned with Laricina Energy Ltd (OSUM 40
percent working interest) while OSUM has a 100 percent working interest in the
adjacent township (36 sections) to the east. The heart of the carbonate
resource play is dominated by a few key players including OSUM / Laricina,
Royal Dutch Shell and Husky.
    OSUM's Marie Lake holdings in the Cold Lake region represent 9.5 sections
of land (100 percent OSUM working interest) where the focus is currently on
thermal production from the Clearwater Formation. OSUM's Marie Lake property
is adjacent to over 200,000 barrels per day of thermal production from other
operators in the Cold Lake area, primarily Imperial Oil, Husky, Shell (the
former Blackrock Hilda Lake project) and CNRL. OSUM is the only junior oil
sand company with a material presence in what is North America's most prolific
thermal producing region.
    OSUM is currently planning on drilling over 30 delineation and core test
wells on its Marie Lake and Saleski properties in the next 9 months. Two
thermal applications are being prepared with filing anticipated in 2008. The
Marie Lake project will be operated by OSUM while the Saleski development will
be operated by Laricina.
    OSUM is currently completing a private equity financing of common and
flow thru shares led by Tristone and TD Securities to finance its upcoming
activities. Funds raised in this financing will carry OSUM through its planned
capital program to the pilot submittal stage. This financing is expected to
close in early July 2007.

    Cautionary Information and Forward Looking Statements

    Certain statements contained in this press release, including the
documents incorporated by reference, may contain projections and
"forward-looking statements" within the meaning of that phrase under Canadian
and U.S. securities laws. When used in this document, the words "may",
"would", "could", "will", "intend", "plan", "anticipate", "believe",
"estimate", "expect" and similar expressions may be used to identify
forward-looking statements. Those statements reflect our current views with
respect to future events or conditions, including prospective results of
operations, financial position, predictions of future actions or plans or
    Certain material factors and assumptions were applied in drawing our
conclusions and making those forward looking statements. By their nature,
those statements reflect management's current views, beliefs and assumptions
and are subject to certain risks, uncertainties, known and unknown, and
assumptions, including, without limitation, machinery development or
production delays, changing environmental regulations, the ability to attract
and retain business partners, the ability to exploit hydrocarbon resources
with our technology, future levels of government funding, the need to obtain
and maintain proprietary rights over our technology, competition from other
technologies, the ability to access the capital required for research,
technology development, operations and marketing, the need to generate
positive cash flow in the foreseeable future, changes in energy prices and
currency levels.
    Many factors could cause our actual results, performance or achievements
to be materially different from any future results, performance or
achievements that may be expressed or implied by these forward-looking
statements. Should one or more of these risks or uncertainties materialize, or
should the assumptions underlying our projections or forward-looking
statements prove incorrect, our actual results may vary materially from those
described in this press release as intended, planned, anticipated, believed,
estimated, or expected. We do not intend and do not assume any obligation to
update these forward-looking statements whether as a result of new
information, plans, events or otherwise.
    Our securities are not traded on any stock exchange in Canada and thus,
OSUM is not subject to regulation by any Canadian stock exchange. Our
securities are also not registered under the United States Securities Act of
1933 nor are they traded on any securities or stock exchange in the United
States. As a result, we are not presently subject to the reporting,
certification or other requirements imposed on U.S. registered issuers under,
among other things, U.S. Sarbanes-Oxley Act of 2002 ("SOX").

For further information:

For further information: Investor Relations Contacts: OSUM Oil Sands
Corp., 300, 1204 Kensington Rd. NW, Calgary AB, T2N 3P5, (403) 283-3224, Mr.
Richard Todd, Chairman and CEO, Dr. Peter Putnam, President and COO

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