UTS’ principal focus is on the creation of shareholder value through the production and upgrading of bitumen from the oil sands deposits associated with the Fort Hills oil sands project (“Fort Hills Project” or “FHP”) and the development of our other lands. UTS holds a 20% interest in the Fort Hills Project through its interests in Fort Hills Energy Corporation (“FHEC”) and the Fort Hills Energy Limited Partnership (“Fort Hills Partnership”). The other Fort Hills Partners are Petro-Canada with a 60% interest and Teck Cominco Limited (“Teck Cominco”) with a 20% interest. Petro-Canada Oil Sands Inc. (“PCOSI”) is the contract operator for the Fort Hills Project.

Beyond the Fort Hills Project, UTS has expanded the scope of its opportunities through exploration and continued evaluation of the development potential of its other leases acquired jointly with Teck Cominco. These other leases are expected to provide organic growth opportunities and future funding flexibility for UTS. Accordingly, on March 25, 2008, UTS released its preliminary development plans for the new Equinox and Frontier oil sands mining projects. Further, UTS believes that the right to participate in future expansions of the Sturgeon Upgrader makes it a strategic asset for the development of its other leases and potentially for processing third party bitumen on a merchant basis.

Together with our partners Petro-Canada and Teck Cominco, we plan to develop, mine, extract, upgrade, and market synthetic crude oil from the oil sands underlying Leases 5, 8, and 52 (the “FHP Leases”), which encompass approximately 46,000 contiguous acres approximately 90 kilometers north of Fort McMurray, Alberta. These Leases are adjacent to Syncrude’s North Aurora Mine and north of Albian’s Muskeg River Mine. The Fort Hills Project is one of the last major undeveloped oil sands mining resources. The resource is well defined, with a 4.0 billion barrel resource estimate (Sproule Associates Limited (“Sproule”) 2007 Best Estimate) and attractive development options. In addition, the Partnership holds Leases 437, 438 and 634 underlying approximately 14,400 acres contiguous to the Fort Hills Project.