August 5 , 2009

The Frontier Project, comprising 65,280 acres is owned equally by UTS and Teck. The Frontier Project is located on the west side of the Athabasca River, thirteen kilometres to the north of the Equinox Project and the Shell operated Pierre River Project.

FRONTIER PROJECT

Following extensive infill drilling during the 2008 winter season, an independent geological evaluation established a best estimate contingent resource of 1,550 million barrels.

UTS and Teck are assessing development options for an oil sands mine and bitumen production facility with an estimated production capacity of 160,000 barrels per day.

The finalization of 2010 budgeted expenditures should occur in the fourth quarter of 2009.

FRONTIER PROJECT - Contingent Bitumen Resources*

UTS engaged Sproule Unconventional Limited to prepare an independent opinion of the contingent bitumen resources of UTS effective as of December 31, 2008. Sproule conducted a geological evaluation of the Frontier Project and also reviewed the methodology used to estimate these volumes based on the preliminary pit design. The results of the report are tabulated below.

* Contingent resources are defined in the Canadian Oil and Gas Evaluation Handbook (“COGEH”) as “those 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”. Please see UTS’ website or recent Annual Information Form filed on SEDAR for Forward Looking Statements.

FRONTIER PROJECT – Project Activities

Environmental baseline studies were conducted during 2008 and included collection of data related to wildlife, vegetation, soils, groundwater, historical resources and archaeology in the area. Final collection of groundwater data from lease sites cannot be undertaken until completion of scoping engineering studies during 2009 to locate the proposed facilities.

Seventeen geo-technical auger holes were drilled to evaluate overburden characteristics. In addition a further 20 cores from the core hole drilling program were evaluated to determine geotechnical conditions associated with the ore zone and underlying pit floor.

The geological model has been updated with results from the 2008 winter season core holes and an initial mining assessment has been completed. Development of a preliminary mine plan and scoping engineering study is proceeding under Teck’s direction using a combination of in house and externally contracted resources.

UTS and Teck jointly intend to initiate a DBM for the Frontier Project later in 2009 with the ultimate goal of preparing a regulatory application to be filed either in late 2010 or early 2011.

At present, no decisions have been made regarding quality specifications, marketing and transportation arrangements, or joint development with other area operators.

FRONTIER PROJECT – Regulatory Activities

A Public Disclosure Document released on March 25, 2008 describes the Frontier Project and initiated the regulatory process.

UTS and Teck consulted with government regulators and the local communities of Fort McKay and Fort Chipewyan throughout the first half of 2009. Formal approval of the Environmental Impact Assessment’s Terms of Reference was received February 11, 2009.

FRONTIER PROJECT – Funding

Activities through to the fourth quarter of 2009 will be funded via proceeds receivable from the 2007 sale of 50 percent of the Equinox Project to Teck.