Calgary, Sept. 2, 2004 (TSX – COS.UN) —Canadian Oil Sands Trust (the “Trust” or “Canadian Oil Sands”) today advises that the expected start-up of the L-C Finer,  an upgrading unit at Syncrude’s oil sands facility that was undergoing a scheduled turnaround, has been delayed by 15 days as a result of an unanticipated rebuild of a leaking heat exchanger. As a result, Canadian Oil Sands is revising its third quarter production forecast modestly to 22.5 million barrels from the previous 23 million barrels, gross to Syncrude. The Trust’s 2004 production outlook for Syncrude of 87 million barrels, or 31 million barrels net to the Trust, and the operating cost estimate of $18.25 per barrel, including energy costs, remain unchanged due to otherwise strong operating performance. Shipments of Syncrude Sweet Blend (SSB) in July and August totaled 15.3 million barrels.

Canadian Oil Sands provides monthly updates on production volumes and outlook on the Trust’s Web site at www.cos-trust.com under “the Syncrude Asset”, “SSB Production”. This press release is to notify investors and the media to consult the Web site in the future for information of this nature.

Canadian Oil Sands Trust is an open-ended investment trust that generates income from its indirect 35.49 per cent working interest in the Syncrude Joint Venture. The Trust currently has approximately 91.1 million units outstanding, which trade on the Toronto Stock Exchange under the symbol COS.UN. The Trust is managed by Canadian Oil Sands Limited.
 
Advisory: in the interest of providing Canadian Oil Sands Trust (“Canadian Oil Sands” 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 release contain “forward-looking statements” under applicable securities law.  Forward-looking statements in this release include, but are not limited to, statements with respect to: the expected production and operating costs for 2004. 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 release include, but are not limited to: labour productivity; general economic, business and market conditions; commodity prices; and such other risks and uncertainties described from time to time in the reports and filings made with securities regulatory authorities by the Trust. You are cautioned that the foregoing list of important factors is not exhaustive.  Furthermore, the forward-looking statements contained in this release are made as of the date of this release, and the Trust does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise.  The forward-looking statements contained in this release are expressly qualified by this cautionary statement.

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Canadian Oil Sands Limited
Marcel Coutu
President & Chief Executive Officer

Units Listed – Symbol: COS.UN
Toronto Stock Exchange
 For further information:

Siren Fisekci
Director, Investor Relations
(403) 218-6228
investor_relations@cos-trust.com

Web site: www.cos-trust.com