Alberta oil sand(s) deposits
The four deposits, Athabasca, Peace River, Cold Lake and Wabasca, have total resource in place estimated at 1.7 trillion to 2.5 trillion barrels. The Athabasca Oil Sands deposit, Alberta's largest and most accessible source of bitumen, contains more than one trillion barrels of bitumen over an area encompassing more than 30,000 square kilometers.

Bitumen
The molasses-like substance that comprises up to 18 percent of oil sands. Bitumen, in its raw state, is black, asphalt-like oil. It requires upgrading or blending to make it transportable by pipeline and usable by conventional refineries.

Carbon dioxide (CO₂)
A non-toxic gas produced from decaying materials, respiration of plant and animal life, and combustion of organic matter, including fossil fuels; carbon dioxide is the most common greenhouse gas produced by human activities.

Cokers
Vessels in which bitumen is cracked into its fractions and from which coke is withdrawn in the process of converting bitumen to upgraded crude oil.

Conventional oil
Petroleum found in liquid form, flowing naturally, or capable of being pumped without further processing or dilution.

Debottleneck
An undertaking to systematically remove plant capacity limitations through modifications of existing facilities and/or addition of capital facilities; commonly provides a 10 to 20 percent capacity improvement versus a major capital intensive expansion.

Feedstock(s)
Raw material supplied to refinery, oil sands upgrader, or petrochemical plant.

Flue gas scrubber / desulphurizer
Equipment that removes sulphur dioxide and other emissions.

Fluid coking
A major part of the upgrading process whereby high temperatures in a coker break down the complex bitumen molecules, rejects carbon and causes bitumen molecules to reformulate into lighter fractions that become the main ingredients in upgraded crude oil.

Greenhouse gases
Any of various gases that contribute to the greenhouse effect.

Oil sand(s)
A composition of sand, bitumen, mineral rich clays and water.

Oil sand(s) lease
A long-term agreement with the provincial government which permits the leaseholder to extract bitumen, other metals and minerals contained in the oil sands in the specified lease area.

Ore grade
The percentage of bitumen by weight in the oil sands.

Sulphur dioxide (SO₂)
A compound of sulphur and oxygen produced by burning sulphur.

Synthetic crude oil
A high-quality product resulting from the mining, extraction and upgrading of bitumen.

Tailings
A combination of water, sand, silt and fine clay particles that is a by-product of removing bitumen from oil sand.

Tailings Systems
Separation of water from sand and clay to enable incorporation of solids into reclamation landscapes and recycling of water back into the operations.

Total volume to bitumen in place (TV/BIP)
The ratio of total ore plus overburden volume to total bitumen in place.

Turnaround
A unit shutdown essential for good maintenance of the mining, producing and upgrading facilities. A turnaround reduces production but does not usually halt it entirely as the various operating units are often duplicated.

Upgrading
The conversion of heavy bitumen into a lighter crude oil by increasing the ratio of hydrogen to carbon, either by removing carbon (coking) or adding hydrogen (hydroprocessing).

RESERVES AND RESOURCES DEFINITIONS:

Proved Reserves
Reserves that can be estimated with a high degree of certainty to be recoverable. NI 51-101 further identifies the certainty level for proved reserves as "at least a 90 percent probability that the quantities actually recovered will equal or exceed the estimated proved reserves".

Proved plus Probable Reserves
Additional reserves that are less certain to be recovered than proved reserves. NI 51-101 defines the certainty level as "at least a 50 percent probability that the quantities actually recovered will equal or exceed the sum of the estimated proved plus probable reserves." Therefore, under NI 51-101, the proved plus probable reserves represent a "best estimate" or "expected reserves".

Contingent Resources
Quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies.

Prospective Resources
Quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development.

Remaining Recoverable Resources
Sum of reserves, contingent resources and prospective resources.

See the "Reserve Data and Other Information" section of Canadian Oil Sands' Annual Information Form for additional information on reserves and resources.

FINANCIAL METRICS:

Netback
Net realized selling price, after hedging, less operating costs and Crown royalties.

Net debt to cash from operating activities
Net debt divided by cash from operating activities.

Net debt to total capitalization
Net debt divided by net debt plus Unitholders' equity.

Return on average Unitholders' equity
Net income divided by average Unitholders' equity.

Return on average productive capital employed
Comprehensive income before net interest expense, future income tax, and unrealized foreign exchange gains/losses divided by average productive capital employed, which excludes major expansion projects not yet in use.

ABBREVIATIONS:

American Petroleum Institute specific gravity: API

barrel(s): bbl, bbls

barrel(s)/day: bbl/d, bbls/d

carbon dioxide: CO₂

gigajoule: GJ

greenhouse gases: GHG(s)

millions of barrels: mmbbls

sulphur dioxide: SO₂

Syncrude crude oil: SCO

thousands of barrels: mbbls

West Texas Intermediate: WTI