Western Oil Sands Participates in Expansion 2 Feasibility Study


    CALGARY, Aug. 22 /CNW/ - Western Oil Sands Inc. (TSX: WTO) ("Western") is
pleased to announce its participation in a feasibility study of Expansion 2 of
the Athabasca Oil Sands Project ("AOSP"). The study, proposed by Shell Canada
Energy, is open to participation by all Joint Venture Owners for their
proportionate share.
    The feasibility study will evaluate Expansion 2 to increase production
from the Jackpine Mine on the east area of Lease 13 and the extension of that
mine to adjacent leases. The first phase of the Jackpine Mine is currently
under construction as part of the first 100,000 barrel per day expansion. The
Expansion 2 study will evaluate a bitumen mining, recovery and blending
project expected to produce approximately 100,000 barrels per day of dry
bitumen which will then be blended with other lighter hydrocarbon materials to
produce a marketable bitumen blend product. The bitumen is anticipated to be
transported from the AOSP mine site via pipeline to the Scotford area for
bitumen blending. Each Joint Venture Owner will then take its bitumen in kind
for further downstream processing.
    The proposed scope of the Expansion 2 study includes seeking the
regulatory approvals required for the Jackpine Mine Expansion, as detailed in
the January 2007 "Shell Canada Oil Sands Expansion: Jackpine Mine Expansion &
Pierre River Mine Public Disclosure." This document is available on Western's
website at www.westernoilsands.com.

    This news release contains forward-looking information, including
information relating to Western's future development and expansion plans.
Forward-looking information typically contains statements with words such as
"anticipate", "estimate", "expect", "potential", "could", or similar words
suggesting future outcomes. We caution readers and prospective investors of
the Company's securities to not place undue reliance on forward-looking
information as by its nature, it is based on current expectations regarding
future events that involve a number of assumptions, inherent risks and
uncertainties, which could cause actual results to differ materially from
those anticipated by Western. These risks include, but are not limited to,
risks associated with the extraction, treatment and upgrading of mineable oil
sands deposits; risks surrounding the level and timing of capital expenditures
required to fulfill the Project's growth strategy; risks of financing these
growth initiatives at commercially attractive levels; risks of being unable to
participate in expansion and corresponding loss of voting rights in the AOSP;
risks relating to the execution of the Project's optimization strategy; risks
involving the uncertainty of estimates involved in the reserve and resource
estimation process, risk of commodity price and foreign exchange rate
fluctuations; risks and uncertainties associated with securing the necessary
regulatory approvals for expansion initiatives.

For further information:

For further information: David Dyck, Senior Vice President and Chief
Financial Officer, (403) 233-1700; Dorreen Miller, Manager, Investor Relations
and Communications, (403) 233-1757

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