Oil Sands Sector Fund completes C$430 million initial public offering

Date Closed: 3/15/2006

Value: C$430 million

On March 15, 2006, Oil Sands Sector Fund (the Trust), an investment trust, completed its initial public offering of 40 million trust units, representing 38,658,693 trust units purchased for cash, together with 1,341,307 trust units issued pursuant to an exchange option, at a price of $10 per trust unit for total gross proceeds of $400 million. An additional 3 million trust units were issued on March 28, 2006, pursuant to the exercise of the agents’ over-allotment option for additional gross proceeds of $30 million. The Trust has been created to provide investors with an opportunity to invest in equity securities of issuers participating in the Canadian oil sands sector and other issuers involved in the energy sector. The Trust’s investment objectives are to provide unitholders with (i) long term capital appreciation; and (ii) a stable stream of quarterly cash distributions targeted to be $0.125 per Trust unit ($0.50 per Trust unit per annum, representing a yield of 5 per cent per annum on the original issue price of $10 per Trust unit). The offering was made through a syndicate of agents, co-led by RBC Dominion Securities Inc. and CIBC World Markets Inc. and which included BMO Nesbitt Burns Inc., National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., Berkshire Securities Inc., Canaccord Capital Corporation, Dundee Securities Corporation, HSBC Securities (Canada) Inc., Desjardins Securities Inc., Raymond James Ltd., Research Capital Corporation, Blackmont Capital Inc. and Wellington West Capital Inc.

BLG acted for the Trust and Markland Street Asset Management Inc., the manager and trustee of the Trust, with a team that included Lynn McGrade, Dolores Di Felice, Adam Segal and Terence Lui (securities/corporate) and Stephen Fyfe (tax).