The financing was led by a combination of new and existing shareholders. The new shareholder group was led by KERN Partners and included Government of Singapore Investment Corporation (GIC) and two large Canadian institutional investors, while existing major shareholders Warburg Pincus LLC and Blackstone Capital Partners participated for a significant portion of the financing. The placement also included a substantial investment by funds and accounts under management by BlackRock Financial Management Inc.

The placement will consist of 21.2 million common shares at $12.50 per share for total gross proceeds of approximately $265 million as well as 18.8 million callable common share purchase warrants, each exercisable into one common share at any time without conditions by Osum, at a price of $12.50 per common share for additional aggregate gross proceeds of $235 million. Funding is expected to occur on or about 18 January 2012 subject to satisfaction of customary conditions. Upon completion of this placement, Osum will have raised in excess of $1 billion in private equity since inception.

The proceeds from this financing, together with Osum’s existing working capital, will be used to fund ongoing Saleski pilot operating and capital costs, fully fund Osum’s share of the 10,700 barrel per day commercial demonstration project on the Saleski Joint Venture lands, this winter’s delineation program on the Company’s 100% projects at Saleski and certain pre-sanction commercial preparation costs at Taiga.

Osum added more than 82,000 net acres of land and nearly 1.1 billion barrels (net) of Best Estimate Contingent Resources through both acquisitions and additional geological and reservoir work in 2011. These additions have brought Osum’s total land position in the Saleski region to more than 173,000 net acres and total Best Estimate Contingent Resources to approximately 3.4 billion barrels (net), ranking it third in the area next to Husky Energy and Shell Canada.

The SAGD (steam assisted gravity drainage) pilot project at Saleski began operations in December 2010. The results are providing insights into how to best develop the Grosmont carbonate resource. Preparatory work for a second commercial project in the region is also ongoing with an extensive core well and seismic program planned on both the Saleski East and West project areas for this winter.

Osum’s Taiga project in the prolific Cold Lake region continues to advance towards commercialization. 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 is targeting regulatory approval in 2012. With the submission of this application and as a result of the proximity of the project to existing in situ production of 340,000 barrels per day, Osum was assigned 359 million barrels of proved plus probable reserves by its independent reserve auditors. In anticipation of regulatory approval, the Company continues to advance its detailed and long-lead engineering with completion expected in 2012.

Credit Suisse Securities (Canada), Inc., Scotia Waterous Inc. and Barclays Capital Canada Inc. acted as placement agents for Osum. McCarthy Tetrault LLP acted as Canadian legal counsel while Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as United States legal counsel to Osum. Stikeman Elliot LLP acted as legal counsel to the KERN led shareholder group.