AUGUST 3, 2010

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.

UTS and Teck are assessing development options for an oil sands mine and bitumen production facility with an estimated production capacity of 240,000 bbl/d. A Public Disclosure Document released on March 25, 2008 describes the Frontier Project and initiated the regulatory process.

Frontier PROJECT - Contingent Bitumen Resources*

Following extensive infill drilling during the 2008 winter season, an independent geological evaluation established a best estimate contingent resource of 1.45 billion barrels. To view the contingent bitumen resources of UTS’ effective December 31, 2009, please refer to “Oil Sands Resource Estimates” in UTS’ AIF dated March 23, 2010 available on SEDAR at www.sedar.com.

FRONTIER PROJECT – Project Activities

A preliminary mine plan and scoping engineering study were completed during 2009 under Teck’s direction using a combination of in-house and externally contracted resources. The study evaluated the ultimate production capacity of the Frontier mine and included development of a preliminary mine production schedule as well as screening options for location of extraction facilities, tailings ponds, and overburden storage areas; and development of a conceptual tailings management and reclamation plan. UTS and Teck awarded contracts for completion of a DBM study for the Frontier Project during first quarter of 2010, with the goal of preparing a regulatory application to be filed in early 2011. The DBM study has been progressing during the first half of 2010 focusing on selection of tailings technology facilities locations and overall project configuration. A field program was also conducted during the 2009/2010 winter drilling season to acquire additional data related to site geotechnical and hydrogeological conditions to support engineering and environmental matters in support of the regulatory application.

Environmental baseline studies were conducted during 2008 and are being completed in 2010. The studies included collection of data related to existing wildlife, vegetation, soils, surface water, groundwater, and historical resources in the area. Additional groundwater monitoring and wildlife information is being collected in the expanded footprint area for the extraction facilities and tailings pond areas that were identified during the scoping engineering study.

An Aboriginal Consultation Plan for the Frontier Project was also prepared and accepted by the Government of Alberta. Consultation with local Aboriginal and Metis communities in Fort McKay and Fort Chipewyan on developments on the Frontier Project is ongoing.

Formal approval of the Environmental Impact Assessment’s Terms of Reference was received February 11, 2009. UTS and Teck consulted with government regulators and the local communities of Fort McKay and Fort Chipewyan during the first half of 2010 on project developments. Regular project update meetings were held with community representatives to review the progress of engineering and mine planning. Several studies with the local aboriginal communities on Traditional Land Use have been initiated to support the preparation of the Environmental Impact Assessment. A team of environmental and regulatory experts has been retained to prepare the Environmental Impact Assessment and Regulatory Application for the Frontier Project. The team has been working alongside the engineering and mine planning teams throughout the first half of the year.

At present, no decisions have been made regarding product quality specifications, marketing and transportation arrangements, or joint development with other area operators. In parallel with the above activities, UTS continues to assess other strategic options for maximizing the value of the Frontier Project.

For further details please see UTS’ Q2 Interim Report (as at August 3, 2010)