UTS announced the sale of the Company to Total E&P Canada Ltd. (“Total”) for $1.5 billion just after the end of the second quarter. We believe this sale offers UTS shareholders an attractive near-term return on investments, while also enabling continued participation in exciting long-term oil sands growth opportunities. The Plan of Arrangement (“Plan”) marks a successful conclusion to our ongoing efforts to ensure that UTS investors are adequately compensated both for the Fort Hills Project and for the value of the barrels in the ground that we have established through our ongoing exploration and delineation activity.

Under this Plan, UTS shareholders will receive $3.08 per share in cash, as well as shares in a new company called SilverBirch Energy Corporation (“SilverBirch”). SilverBirch will own a 50 percent share in the Frontier and Equinox Projects as well as all of the exploration land in the UTS portfolio. SilverBirch will also be initially funded with approximately $50 million in working capital.

It is the view of UTS, that the proposed transaction is in the best interest of UTS shareholders. The cash price alone of $3.08 represents a premium of approximately 46 percent to the closing trading price of UTS on July 6, 2010, the day before the announcement of the transaction, and an increase of approximately 36 percent to the 30 day volume weighted average trading price of UTS for the period ending July 6, 2010. The future growth potential of SilverBirch is over and above those return figures. The UTS Board of Directors is unanimously recommending that shareholders tender to the offer from Total. Full information for shareholders will be provided in the Information Circular, to be mailed in early September.

An initial public listing is currently being sought for SilverBirch and it is hoped to obtain such listing by the time of the closing of the Plan. We are confident that former UTS shareholders will want to continue to hold their SilverBirch shares, because the assets that will be in the SilverBirch portfolio offer a unique opportunity for investors. The SilverBirch management team will be comprised of a high quality group of individuals with immense experience and knowledge with respect to the Frontier and Equinox Projects as well as the other assets to be acquired by SilverBirch upon completion of the Plan. The management team will be led by Mr. Howard Lutley, P.Eng as President and Chief Executive Officer. Howard has been the Vice President of Mining and Extraction of UTS since September 2004. Prior to joining UTS, Howard was the President and Chief Executive Officer of Norwest Corporation, an internationally recognized leader in providing consulting expertise in the energy, mining and natural resource industries. This team will provide the management and operational expertise necessary to unlock the intrinsic value of SilverBirch’s portfolio of existing assets and undeveloped lands through organic growth.

With 891 million barrels of best-case contingent resources, SilverBirch will also have the only undeveloped oil sands mining project not held by a major company. It is anticipated that filing for regulatory approval of the Frontier and Equinox Projects will be in the second quarter of 2011. At the same time, SilverBirch will continue to explore and add value, as UTS has done consistently in the past, to the extensive exploration lands in the portfolio (which include lands with both mining and in situ potential, some held with 50 percent ownership and some held with 100 percent ownership).
 
Our confidence in the future of the oil sands industry remains strong, based on the growing global need for reliable, affordable energy. While the environmental scrutiny presently being applied to the oil sands industry is intense, observers are also increasingly noting the progress that the industry is making in reducing environmental impacts and addressing the most pressing issues, such as tailings ponds, greenhouse gas emissions, and water use. The SilverBirch team is determined to deliver environmentally and socially responsible oil sands production, and we firmly believe that this objective is both feasible and imperative.

As we move forward in the third quarter to complete the transaction with Total and to advance the development plans on the SilverBirch assets, I want to pay particular tribute to the employees of UTS. The last 18 months have been challenging, as we first responded to an inadequate bid for the Company and then pursued alternative means to deliver value for our shareholders, all while continuing to run the business. Such times of uncertainty are stressful for any organization, but our UTS employees have remained entirely professional throughout this process. I am grateful to all the UTS employees for their commitment and dedication to this Company and its vision.

I intend to remain with UTS through completion of the Plan and to assist Howard as he transitions into the role of President and Chief Executive Officer of SilverBirch. I am leaving the new company in good hands. Howard Lutley is a seasoned executive and will be an excellent leader for SilverBirch.

I must also thank you, the UTS shareholders, for your support for the Company. We appreciate your ongoing interest, and trust that the proposed Plan will meet your own investment objectives just as well as it meets our long-time corporate strategic objectives.

Signed  
William Roach  
President and Chief Executive Officer
Calgary, Alberta, Canada
August 3, 2010