Calgary, Sept. 22, 2005 (TSX – COS.UN) —Canadian Oil Sands Trust (the "Trust" or "Canadian Oil Sands") today announced that it has been selected for inclusion in the S&P/TSX Composite Index. In December 2005, the Trust will be included in the Index at 50 per cent of its full float adjusted weight and at full weighting in March 2006.

Canadian Oil Sands internalizes its crude oil marketing

After analyzing various alternatives, the Trust has decided to internalize the marketing of its share of Syncrude's crude oil production in 2006 following termination of the existing Marketing Services Agreement with EnCana Corporation.

“The decision to begin marketing our own crude oil volumes is a continuation of our efforts to actively manage our Syncrude investment. We believe a producer of our size will benefit from the market intelligence and relationships that result from having direct control of the marketing function,” said Marcel Coutu, President and Chief Executive Officer. “Over the coming months, we plan to build a first class marketing team with dedicated knowledge of crude oil markets to optimize the price we receive for our production and to help optimize our marketing strategy going forward.” 

The Trust previously announced the appointment of Mr. Trevor Roberts, Chief Operations Officer, who will be responsible for overseeing this function within the organization.

With the completion of Stage 3 expected by mid 2006, Canadian Oil Sands anticipates an increase in Syncrude’s annual productive capacity to 128 million barrels, or 45 million barrels net to the Trust. 

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 92.1 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 - Certain information regarding the Trust and Syncrude set forth above, including management's assessment of the Trust's future production and the impact of internalizing its crude oil marketing may constitute forward-looking statements under applicable securities law. Forward-looking statements often contain terms such as "may", "will", "should", "anticipate", "expects" and similar expressions. These statements represent management's current expectations and beliefs based on information known today. However, by their nature, forward-looking statements necessarily involve risks and uncertainties, known and unknown, which may cause actual performance and financial results in future periods to materially differ from the estimations or results expressed or implied by such forward-looking statements. In particular, Canadian Oil Sands' production is dependent upon the operation of various units at the Syncrude plant and upon the completion of the Stage 3 expansion.  Inherent risks in implementing engineering designs and labour shortages and productivity impact the ability of Syncrude to complete the Stage 3 project as currently anticipated.  Readers are directed to the advisory statement contained in the 2004 annual report of the Trust and the risk factors outlined in the annual information form dated March 15, 2005. The Trust assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.

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