Osum Announces $100 Million Private Placement


Osum Oil Sands Corp. (“Osum” or the “Company”) is pleased to announce that it has entered into an agreement (an “Investment Agreement”) to issue, on a private placement basis, to a wholly-owned subsidiary of Korea Investment Corporation (“KIC”) 7,692,308 common shares at $13.00 per share for total gross proceeds of approximately $100 million. The Investment Agreement also provides KIC with the right to participate in future equity financings, board observer rights and, in the event that KIC holds more than 10% of the outstanding common shares, the right to designate a nominee of the board of directors of Osum. After giving effect to the private placement, KIC will hold less than 10% of the outstanding common shares. The transaction is expected to close on or about November 26th, 2010 subject to satisfaction of customary closing conditions.

The proceeds from this financing together with Osum’s existing working capital will be invested directly in the Company’s in situ projects and general corporate purposes.

Osum filed a commercial application and Environmental Impact Assessment for the 35,000 barrel per day Taiga Project at Cold Lake in December 2009 and expects to receive regulatory approval by mid-2011. First oil from the Taiga Project is anticipated in early 2014.

Osum also continues to drive forward on its other core area in the Saleski Carbonates. Construction of a pilot project on the joint venture lands in Saleski, where Osum is a 40% non-operating partner, is nearing completion with first steam anticipated prior to year end. The results from this pilot are expected to provide valuable insights into how to best develop the Grosmont Carbonate resource.

Credit Suisse Securities (Canada), Inc. acted as sole financial advisor to Osum while Macquarie Capital Markets Canada Ltd. acted as sole financial advisor to KIC.

About KIC

KIC is a government-owned investment management company established under statute in 2005 to manage assets of the Government of Korea and the Bank of Korea. KIC is headquartered in Seoul, Korea and has been designated to operate independently and on a commercial basis with the aim of investing and enhancing the sovereign wealth of the Republic of Korea and contributing to the development of its domestic industry. KIC invests in public and private equities, bonds, real-estate, alternative assets, foreign currencies and derivatives.

For more information about KIC, please visit www.kic.go.kr/en/.

About Osum

Osum is a privately held Alberta based company focused on the application of environmentally responsible in situ recovery technologies within Canada’s oil sands and carbonates. Additional information on the Company is available at www.osumcorp.com.

Cautionary Information and Forward Looking Statements

Certain statements contained in this press release 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, events or plans or strategies.

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, that the conditions to closing set out in the Investment Agreement will be satisfied as well as assumptions relating to machinery development or production delays, changing environmental regulations, the ability to obtain regulatory approval for our projects, 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”).

This release is provided for information purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the common shares in any jurisdiction (including the United States) in which such offer, solicitation or sale would be unlawful.



Osum Oil Sands Corp. – Media Inquiries
Justin Robinson
Manager, Communications


Osum Oil Sands Corp. – Business Inquiries
Jeff MacBeath
Vice President, Finance

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