US Oil Sands Inc. announced expansion plans. Based on the results of the company's coring programs, several new project areas have been identified for development on the PR Spring Development Block. The company is developing engineering mine plans for these areas and intends to apply for permits to expand the project.

The company plans to use the existing Phase 1 plant site to increase targeted processing capacity to a total of 20,000 BPD by 2017. Notable synergies will be gained through the use of existing infrastructure at the Phase 1 site, and the company's concurrent mine reclamation practices are expected to result in a minimal increase to the project footprint. Through construction of this project, the company expects to invest approximately $300 million in development.

This investment will have a significant positive impact on the Utah and US economies. Through the resulting increase in energy production, Utah will benefit from job creation, taxes and royalty revenues which the State directs to public education through the School and Institutional Trust Lands Administration. For the remainder of 2012, the company will continue to focus on advancing the PR Spring Project towards a robust field/mine construction program in 2013.

More specifically, additional engineering, procurement of major equipment, and final site design of the PR Spring Project Area are all expected to take place during the balance of 2012. The majority of process equipment fabrication and mine construction on the Phase 1 project will occur in 2013.