Osum Announces $40 million Private Placement

Posted: Mar. 29, 2011     Author: Osum Oil Sands Corp

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW.

March 29, 2011, Calgary, Canada – Osum Oil Sands Corp. (“Osum” or the “Company”) is pleased to announce that, as a follow-on to the $100 million private placement to Korea Investment Corporation (“KIC”) at $13.00 per common share in November 2010, it has closed a private placement of 3,076,923 common shares at $13.00 per common share for total gross proceeds of approximately $40 million. Funds managed by existing major shareholders Warburg Pincus LLC (“Warburg”), Blackstone Capital Partners (“Blackstone”) and Camcor Partners Inc. (“Camcor”) collectively subscribed for the entire private placement.

The proceeds from this financing, together with the $100 million of funding received from KIC on November 26, 2010, will be invested directly in the Company’s in situ projects in Cold Lake and the Saleski Carbonates and used for 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 in 2011. First oil from the Taiga Project is anticipated in 2014.

Osum also continues to drive forward on its other core area in the Grosmont Carbonate play at Saleski. A pilot project on the joint venture lands in Saleski began operations in December 2010. The results from this pilot are expected to provide valuable insights into how to best develop the Grosmont carbonate resource. Work towards commercializing the Company’s 100% acreage in the region is also ongoing with a 19 well core program completed this winter.

Steve Spence, Osum’s President & CEO, commented: “We are very pleased to have three of our existing major shareholders increase their stake in our Company. This additional endorsement signals their continued commitment to our management team and strategy”.

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.

Further information is available at osum2015.wpengine.com.

About Warburg Pincus
Warburg Pincus is a leading global private equity firm. The firm has more than $30 billion in assets under management. Its active portfolio of more than 110 companies is highly diversified by stage, sector and geography. Warburg Pincus is a growth investor and an experienced partner to management teams seeking to build durable companies with sustainable value. Founded in 1966, Warburg Pincus has raised 13 private equity funds which have invested more than $35 billion in over 600 companies in more than 30 countries.

Warburg Pincus has been the lead investor in numerous exploration and production companies providing over $3.0 billion of equity for early stage companies involved in oil and gas exploration and production, including: Antero Resources, Bill Barrett Corporation (NYSE: BBG), Broad Oak Energy, Kosmos Energy, Laredo Petroleum, MEG Energy (TSX:MEG), Newfield Exploration (NYSE: NFX), and Spinnaker Exploration. The firm has offices in Beijing, Frankfurt, Hong Kong, London, Mumbai, New York, San Francisco, São Paulo and Shanghai.

Further information is available at www.warburgpincus.com.

About Blackstone Capital Partners
Blackstone is one of the world’s leading investment and advisory firms and is an experienced and active investor in the energy and natural resources sector. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, the companies we advise and the broader global economy. We do this through the commitment of our extraordinary people and flexible capital. Our alternative asset management businesses include the management of private equity funds, real estate funds, hedge fund solutions, credit-oriented funds, collateralized loan obligation vehicles (CLOs) and closed-end mutual funds. The Blackstone Group also provides various financial advisory services, including mergers and acquisitions advisory, restructuring and reorganization advisory and fund placement services.

Further information is available at www.blackstone.com.

About Camcor Partner Inc.
Camcor is one of the top Calgary based private equity funds as measured by size, years investing, and track record. Camcor was founded in 1997 by Cameron McVeigh to pursue investments in Canadian hydrocarbon based energy companies and this focus continues today. Camcor pursues an active investment management strategy and seeks board of director representation in its investments. Camcor has raised in excess of $600 million over its 14-year history.

Further information is available at www.camcorpartners.com

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 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.

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For more information, please contact
Osum Oil Sands Corp.
Justin Robinson
Manager, Communications
jrobinson@osumcorp.com

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