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Phase II – Commercial Project

Clearwater Phase II has potential production of 15,000-25,000 bpd. Production maintenance wells would be drilled to offset normal production declines after peak production is achieved. Basement wells would also be drilled.

The Phase II plant site could be located on the eastern side of the Company’s Clearwater lands near the current CN Rail terminal, farther from the airport than the Phase I plant. The Phase II facilities would be largely scaled-up versions of the Phase I plant design, with water recycling and similar safety and environmental protection systems as Phase I. There will also be additional well pads and satellite facilities. The overall surface footprint of facilities and well pads will remain small.