Syncrude restart of Coker 8-3 expected later in August

8/3/2006

Calgary, AB, August 3, 2006 (TSX – COS.UN) — Canadian Oil Sands Trust (the “Trust” or “Canadian Oil Sands”) today announced that Syncrude continues to progress its activities associated with the operation of its Flue Gas Desulphurization (“FGD”) unit, which is designed to significantly reduce the sulphur dioxide emissions from Coker 8-3.

However, Syncrude has advised that the initial bitumen feed into Coker 8-3 will be delayed from early August to later in August to help ensure a safe startup that meets the expectations of local stakeholders and Alberta Environment.  Syncrude is taking a phased approach as it gains experience in this new technology and establishes stable operation of the unit. This process is taking longer than first anticipated.


Further updates on the progress of the Coker 8-3 restart will be posted on the Trust’s website under the production report as further developments occur.


Canadian Oil Sands Trust provides a pure investment opportunity in the oil sands through its 35.49 per cent working interest in the Syncrude Project. Located near Fort McMurray, Alberta, Syncrude operates large oil sands mines and an upgrading facility that produces a light, sweet crude oil. Canadian Oil Sands is an open-ended investment trust, which allows it to distribute the free cash flow it generates from the Syncrude Project to Canadian Oil Sands’ investors on a tax-efficient basis. The Trust is managed by Canadian Oil Sands Limited and has approximately 466 million units outstanding, which trade on the Toronto Stock Exchange under the symbol COS.UN.


Advisory: In the interest of providing Canadian Oil Sands Trust (“Canadian Oil Sands”, “COS” or the “Trust”) unitholders and potential investors with information regarding the Trust, including management’s assessment of the Trust’s future plans and operations, certain statements throughout this press release contain “forward-looking statements”. Forward-looking statements in this release include, but are not limited to, statements and graphs (collectively “statements”) with respect to: the anticipated timing for all Stage 3 units to come on-line and begin full production.  You are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur. Although the Trust believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Some of the risks and other factors which could cause results to differ materially from those expressed in the forward-looking statements contained in this press release include, but are not limited to: ; the difficulties and risks involved in starting up new equipment and the additional risks and complexity of integrating a large project such as UE-1 into existing upgrading operations; labour productivity issues; and such other risks and uncertainties described from time to time in the reports and filings made with securities regulatory authorities by the Trust. The outlook expressed with regard to 2006 production, capital expenditures, operating costs and funds from operations are also all based on certain assumptions and risks outlined in the 2006 guidance posted on the Trust’s website and further outlined in the Trust’s annual information form and annual and quarterly financial reports.


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Canadian Oil Sands Limited
Marcel Coutu
President & Chief Executive Officer


Units Listed – Symbol: COS.UN
Toronto Stock Exchange