The following table summarizes GLJ's determination of Grizzly's reserves and resources effective December 31, 2012.

Reserves and Resources Grizzly
  Working Interest
  Recoverable Volumes 
  (Millions of Barrels)
Proved Reserves 67
Probable Reserves 71
Proved + Probable (2P) Reserves 138
   
Best Estimate (P50) Contingent Resource 3,060

The GLJ reserve and resource assessment report was prepared in accordance with National Instrument 51-101 using the best practices detailed in the Canadian Oil and Gas Evaluation Handbook. For important qualifications and limitations relating to these oil sands reserves and resources, please see "Oil Sands Reserves & Resources Notes" below.

Activities

In the Canadian Oil Sands, Grizzly's Algar Lake SAGD Project is currently in the final stages of construction and Grizzly expects to begin commissioning by the end of the first quarter of 2013 with first production mid-year 2013. 

Grizzly is currently conducting a 25 well delineation program at May River, with 14 wells completed to date. Following the 2012/2013 winter exploration program, Grizzly's May River property will have been explored to a sufficient level so as to support the filing of an initial 12,000 barrel per day ("bpd") SAGD project regulatory application.

Grizzly has entered into a memorandum of understanding that outlines the rate structure for a 10 year agreement with Canadian National Railway Company ("CN") to transport its bitumen to the U.S. Gulf Coast via CN's rail network. This arrangement is expected to provide consistent access to Brent-based pricing from Grizzly's Algar Lake project.

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