Complete the Algar Lake Project

The Algar Lake Project involves the drilling of SAGD production wells and the construction of a facility capable of producing 10,000 barrels a day of bitumen. Grizzly Oil Sands is working with industry consultants to develop the front end engineering and design study (FEED) for the Algar Lake Project. In August 2007 Grizzly began a one year environmental study in preparation for a formal project application with the Alberta Energy Resources Conservation Board (AERCB). As part of its 2007/08 winter drilling and seismic program, Grizzly drilled 55 delineation wells and conducted a 20.5 square kilometer (7.91 square mile) three-dimensional (3-D) seismic survey on its Algar Lake Prospect to expand its knowledge of the Project Area's reservoir. Grizzly is working with consultants to assist the Company with the AERCB approval process and intends to submit an application for the Algar Lake Project to the AERCB in the second half of 2008.

Evaluate and delineate Grizzly's existing leasehold base with the goal of increasing the Company's recoverable resources

Currently, Grizzly’s leasehold base consists of 511,765 acres (207,104 hectares) under lease from the government of Alberta. This leasehold base has been divided into 22 separate lease blocks. There have been approximately 230 historical wells drilled on the leasehold base prior to our acquisition of the leases. Grizzly drilled 62 delineation wells during the 2006/07 winter drilling season and drilled an additional 55 wells during the 2007/08 winter season. Grizzly believes that by drilling a combined program of infill drilling and exploratory drilling during each future winter drilling season, recoverable resources will be increased. Other Operators have licensed nearly 700 wells surrounding three sections of our leases over the past two years that will greatly increase Grizzly's subsurface knowledge base.

Identify sufficient resource bases to support bitumen production projects on other prospects

Grizzly intends to delineate and evaluate its acreage base in an effort to add additional 10,000 barrel a day projects. Grizzly expects to leverage the experience gained from the construction, development and operation of each bitumen production project to develop improved project economics, efficiencies and economies of scale for subsequent bitumen production projects. Grizzly also intends to further enhance project economics, efficiencies and economies of scale by opportunistically using new, commercially proven technological improvements in in-situ extraction techniques.

Make opportunistic acquisitions for oil sands leases held by others, or of companies holding such leases

Form joint ventures or swap leases with adjacent leaseholders

Opportunistically bid for and acquire any remaining attractive new oil sands leases at scheduled Alberta Crown oil sands lease auctions