UTS releases preliminary development plans for the new Frontier and Equinox oil sands projects


    TSX Trading Symbol: UTS

    CALGARY, March 25 /CNW/ - UTS Energy Corporation ("UTS") today announced
the release of a Public Disclosure Document describing the preliminary
development plans for the new Frontier oil sands mine, which includes Leases
311, 468, 470, 477 and 610 (the "Frontier Project") and the new Equinox oil
sands mine, previously referred to as Lease 14 (the "Equinox Project"). The
projects are jointly owned by UTS and Teck Cominco Limited ("Teck Cominco").
    The Public Disclosure Document describes the first phase of the Frontier
Project as having an estimated production capacity of between
100,000-160,000 barrels per day of de-asphalted bitumen. This may be followed
by an additional phase as the full extent of the bitumen resources are
delineated through additional exploration drilling programs. The Equinox
Project is a single phase development with an estimated production capacity of
50,000 barrels per day of de-asphalted bitumen. The Equinox Project could
proceed either as a stand-alone mine with dedicated bitumen production and
extraction facilities or as one where bitumen froth is exported to either the
Frontier Project or another neighboring project.
    "This is an important development for both of our companies," said
Will Roach, President and Chief Executive Officer of UTS. "Extensive
exploration programs over the last three years have identified the presence of
significant quantities of mineable oil sands in both project areas."
    Dr. Roach went on to say "the Public Disclosure Document outlines our
preliminary development plans and schedules for the development of the
resources. We also have a very clear commitment to environmental, health and
safety considerations and have spelled out a number of details of our
commitments in the document."
    The Frontier Project Phase 1 includes development of Leases 311, 468,
470, 477 and 610, west of the Athabasca River in Townships 100 and 101,
Range 11. The proposed mining area of the Frontier Project is about
10 to 20 kilometres northwest of the Fort Hills Project and is bordered to the
south and east by the Shell Canada Limited's proposed Pierre River Project.
The Equinox Project is west of the Athabasca River, directly across from the
Fort Hills Project and 10 kilometres south of the Frontier Project in
Township 98, Ranges 10 and 11, approximately 90 kilometres north of Fort
    "We are excited about advancing these two projects to the regulatory
phase," said Dr. Roach. "Our partner, Teck Cominco, brings a wealth of mining,
mineral processing and engineering experience that will provide a significant
benefit as we jointly plan out the operational phases of these projects in
more detail in the coming year."
    The filing of the Public Disclosure Document begins the formal regulatory
process for both projects. Alberta Environment has prepared Proposed Terms of
Reference for an Environmental Impact Assessment for each project and invites
public input on the Terms. Copies of the Public Disclosure Document and
Proposed Terms of Reference can be found on UTS' website (www.uts.ca), Teck
Cominco's website (www.teckcominco.com), at the Fort McMurray Public Library,
the Regional Municipality of Wood Buffalo municipal offices and in Edmonton at
Alberta Environment's Register of Environmental Assessment Information on the
Main Floor, 111 Twin Atria Building, 4999 - 98th Avenue, Attention: Melanie

    UTS is focused on the creation of shareholder value through exploration,
development, production and upgrading of bitumen from the Athabasca oil sands
deposits 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% working interest in the Fort Hills
Project located north of Fort McMurray and the Sturgeon Upgrader to be located
to the northeast of Edmonton. Beyond the Fort Hills Project, through land
acquisitions and exploration program, UTS holds 50% working interest in an
additional 113,964 hectares (284,907 acres) of oil sands prospective leases
located primarily on the west side of the Athabasca River. 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.
    Based in Calgary, Alberta, UTS' common shares (UTS) are traded on the
Toronto Stock Exchange.

    FORWARD-LOOKING INFORMATION: This news release contains certain
"forward-looking statements" and "forward-looking information" within the
meaning of applicable Canadian securities law reflecting management's
assessment of future plans and operations. These statements or information are
subject to certain risks and uncertainties that could cause actual results to
differ materially from those included in the forward-looking statements and
forward-looking information. The words "believe", "expect", "intend",
"estimate", "anticipate", "project", "scheduled", and similar expressions, as
well as future or conditional verbs such as "will", "should", "would", and
"could" often identify forward-looking statements and forward-looking
information. These statements and information are only predictions. Actual
events or results may differ materially. In addition, this document may
contain forward-looking statements and forward-looking information attributed
to third party industry sources. Undue reliance should not be placed on these
forward-looking statements and forward-looking information, as there can be no
assurance that the plans, intentions or expectation upon which they are based
will occur. By their nature, forward-looking statements and forward-looking
information involve numerous assumptions, known and unknown risks and
uncertainties, both general and specific that contributes to the possibility
that the predictions, forecasts, projections and other forward-looking
statements and forward-looking information will not occur. These risks and
uncertainties include, but are not limited to, fluctuations in oil prices and
the Canadian dollar, operating costs, capital costs, terms and conditions
attached to regulatory approvals, labour availability, supply of materials and
equipment, general economic conditions, changes in law or government policy
and other factors many of which are beyond the control of the company. Readers
are cautioned not to place undue reliance on forward-looking statements and
forward-looking information. Although UTS believes that the expectations
represented by such forward-looking statements and forward-looking information
are reasonable based on the information available to them on the date of this
document, there can be no assurance that such expectations will prove to be
correct. The Company undertakes no obligation to update forward-looking
statements or 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 statements or
forward-looking information.

For further information:

For further information: Dr. William J.F. Roach, President and Chief
Executive Officer, or Wayne I. Bobye, Vice President and Chief Financial
Officer, Tel: (403) 538-7030

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