CALGARY - Canadian Oil Sands Trust (the "Trust") today announced that the Syncrude Joint Venture ("Syncrude") is planning to invest an additional $400 million, or approximately $127 million net to the Trust, in an emission reduction program that is expected to significantly reduce total sulphur dioxide emissions. Other emissions, such as particulate matter and metals, will also be reduced.

The emission reduction program will involve retrofitting sulphur reduction technology into the operation of Syncrude's two existing cokers. Syncrude has completed the economic and technology feasibility studies for the project and is proceeding with regulatory filings. Approximately $12 to $15 million, or $3.8 to $4.8 million net to the Trust, is anticipated to be spent in 2003 on engineering work. The procurement and construction expenditures will occur post 2005 following completion of the Stage 3 expansion and will extend to 2009 as the tie-ins will be coordinated with equipment turnaround schedules to maintain normal production rates.

In addition, Syncrude is currently constructing a sulphur dioxide reduction unit as part of the Stage 3 upgrader expansion, which is included in the total estimated cost for the expansion of approximately $5.7 billion. The incorporation of sulphur reduction technology in the new coker together with the additional $400 million investment announced today is expected to reduce sulphur dioxide emissions by up to 60 per cent from today's approved levels of 245 tonnes per day.

"Syncrude's voluntary initiative in emissions reduction supports Syncrude's future growth and the sustainability of its operations, and maintains its long-term focus on environmental responsibility," said Marcel Coutu, Canadian Oil Sands Limited's President and Chief Executive Officer. "Today, as in the past, environmental investments remain as one of the foundations upon which Syncrude continues to expand its productive capacity."

Syncrude's current operations are now performing at full productive capacity of approximately 260,000 barrels per day following the completion of the scheduled turnaround of coker 8-2 on May 9, 2003.

Canadian Oil Sands Trust is an open-ended investment trust that generates income from its indirect 31.74 per cent working interest in the Syncrude Joint Venture. The Trust currently has approximately 79.5 million units outstanding, which trade on the Toronto Stock Exchange under the symbol COS.UN. The Trust is managed by Canadian Oil Sands Limited.

Canadian Oil Sands Limited

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