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USOIL SANDS INC.

SUITE 1600,5213RDAVENUE SW

CALGARY,AB T2P3T3

USOilSandsInc.AwardsUtahProjectandConstructionManagementContract

CALGARY,ALBERTAJanuary20,2014USOilSandsInc.("USOilSands"orthe"Company")(TSXV:USO),acompanyfocusedonoilsandsexplorationandproductioninUtah,ispleasedtoannouncethatithas

selectedKellogg

Brown

&

Root

LLC

(KBR)

to

provide

project

and

construction

management

services

for

theCompanysPRSpringProject. WorkingjointlywithUSOilSands,KBRwillwork tobringboth the

extractionfacilitiesandminedevelopmentintocommercialproduction.

HavingKBRsSaltLakeCityteamsupportingourprojectaddstremendousreachtoourcurrentpoolof

expertise,saidCameronTodd,CEOofUSOilSands.WewillbeabletodrawonKBRssignificantoil

sands,mining,equipmentmoduleandplantconstructionexperiencetoensurethatbudgetsandtimelines

aretightlycontrolledandthattheprojectisdeliveredinaccordancewithourshareholdersexpectations.

Weremain100%committedtomakingthisflagshipoilsandsprojectonethattheStateofUtahwillbe

proud of, especially as it relates to environmental leadership, sustainable energy development, and

beneficial

economic

contribution

for

the

citizens

of

Utah.

Havingclosedan$81millionfinancinginOctober2013,theCompanysPRSpringProjectisfullyfunded

thereby allowing theCompany to focus its immediate attentiononproject execution. In addition to

aligningitselfwithoneoftheworldsmostrespectedengineeringfirmstostewardtheprojectthroughto

commercialcommissioningandstartup,theCompanyhasalsobeenactive inbuildingout its internal

capabilities. TheCompanywillalsoseek to leverage the technicalexpertiseof itsdirectors, including

RonaldPantinofPacificRubialesEnergyCorp.(TSX:PRE;BVC:PREC;BOVESPA:PREB)andRodLewisof

LewisEnergywhositontheCompanysTechnicalCommittee.

USOil Sands has recently opened an office in Salt Lake City fromwhich process engineering,mine

engineering,healthsafetyandenvironment,andregulatory/governmentaffairswillbeconducted.

KBRiscurrentlyworkingcloselywithFLSmidth,oneoftheCompanyskeyprocessdesignandequipment

suppliers. With thedetailedengineering stageunderwayand theplacementof long leadequipment

ordersimminent,bothKBRandFLSmidthwillworktoensureattainmentoftheCompanysmandateof

bestinclass business and operating performance, and environmental outcomes. While significantly

reducingcapitalcost,USOilSandsinnovativeapproachtooilsandsdevelopmentusesanontoxicbio

solventthateliminatestheneedfortailingspondsandfacilitatesconcurrentandrapidminereclamation.

Duringthisprocess,theCompanybelievesitsfullscaleproductionplantwillachieveanindustryleading

95%waterrecycleratioanda96%oilextractionrate.

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