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Growth Strategy

AOS’s vision is to be recognized as a strategically-focused growth company. Currently AOS is intently focused on bringing its Clearwater SLP-SAGD oil sands project into development and expanding its oil sands development portfolio.

The Company’s development model can be described as a highly focused approach:

• Identify the highest-quality asset in the portfolio with the best-available known reservoir;
• Focus technical resources to develop high-quality project plans and regulatory applications in a timely manner;
• Secure funding from established financial, industry and technology partners;
• Bring the project to its operational phase as quickly as possible; and
• Thereby maximize the impact of invested capital and achieve early cash flow for reinvestment into project and corporate growth.

AOS’s strategy to move its Clearwater Project forward is as follows:

• Use current production technology adapted to the reservoir, in our case low-pressure SAGD enhanced with solvents (known as SLP-SAGD), in order to minimize technical risks and manage capital requirements;
• Confirm reservoir quality through extensive delineation drilling and rigorous technical evaluation, thereby establishing a high-quality resource base;
• Ensure operational integrity and minimize corporate risks through technically sound and safe design, monitoring and response planning;
• Maintain a positive community presence through sustained engagement with stakeholders;
• Pursue further technical enhancements in partnership with large, established technology companies that bear the technical and R&D investment risks;
• Validate the economic model and profitability;
• Move Phase I expeditiously through the development stages to operational status and to peak production in a timely manner and;
• Establish development partnerships and secure financing for Phase II.

Moving the Clearwater Project expeditiously through the development stages will also serve the strategic purpose of reducing the overall risk of the Company’s development model.

The Company will continue to add personnel (managers and technical expertise) as it progresses through the development stages towards project operations.