Calgary, AB., Nov. 29, 2006 (TSX – COS.UN) — Canadian Oil Sands Trust (“Trust”) today announced that its wholly owned subsidiary, Canadian Oil Sands Limited (“Canadian Oil Sands”) has agreed, subject to certain conditions, to purchase from Talisman Energy Inc. (“Talisman”) its 1.25 per cent indirect interest in the Syncrude Joint Venture for approximately Cdn $475 million comprised of $237.5 million in cash and 8,189,655 Canadian Oil Sands Trust units.

The Trust will issue the equity to Talisman from treasury and will finance the cash portion through its existing credit facilities. This results in the acquisition being financed with approximately 50 per cent debt and 50 per cent equity.

“We are pleased to consolidate another piece of Syncrude. We consider Syncrude to be the best oil sands project today with its superior resource holdings, newly expanded production infrastructure and nearly 30 years of operating experience," said Marcel Coutu, President and CEO of Canadian Oil Sands. “The transaction is modestly accretive, increasing reserves and production per Trust unit outstanding by approximately two per cent. Furthermore, Talisman’s preference to retain some exposure to Syncrude through Canadian Oil Sands Trust’s equity leaves our balance sheet relatively unchanged.”

The indirect 1.25 per cent interest acquired is held through Talisman’s ownership of limited partnership units in Canadian Oil Sands Limited Partnership (“Partnership”), which holds a five per cent interest in the Syncrude Joint Venture. The Partnership is already controlled and 75 per cent owned by Canadian Oil Sands Limited.

Through this transaction, Canadian Oil Sands’ interest in Syncrude will rise from 35.49 per cent to 36.74 per cent with a commensurate increase in reserves and production.
The Trust anticipates releasing its 2007 Outlook in early December, which will provide a specific production target as well as other performance metrics for the year.

The transaction is effective December 1, 2006 and is expected to close on or before February 28, 2007. The acquisition is conditional upon Canadian Oil Sands being satisfied that the acquisition and issuance of equity is normal growth and not undue expansion under the proposed income trust tax legislation. The transaction is subject to TSX approval of the listing of the Trust units but is not subject to approval under the Competition Act or the Investment Canada Act. The purchase price is subject to closing adjustments.

CIBC World Markets Inc. acted as financial advisor to Canadian Oil Sands in this transaction.

The Syncrude Project is a Joint Venture undertaking among Canadian Oil Sands Limited (31.74 per cent), Canadian Oil Sands Limited Partnership (5 per cent), Imperial Oil Resources (25 per cent), Petro-Canada Oil and Gas (12 per cent), ConocoPhillips Oilsands Partnership II (9.03 per cent), Nexen Oil Sands Partnership (7.23 per cent), Mocal Energy Limited (5 per cent), and Murphy Oil Company Ltd. (5 per cent) as the project owners. Syncrude Canada Ltd. is the operator of the Syncrude Project.

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 make distributions on a tax-efficient basis. The Trust is managed by Canadian Oil Sands Limited and has approximately 468 million units outstanding, trading 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 with respect to: the expected timing to close the purchase and the receipt of regulatory comfort and TSX approval.

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: regulatory requirements, especially those impacting income trusts, and general economic conditions in Canada and in the Fort McMurray area in particular; and such other risks and uncertainties described from time to time in the reports and filings made with securities regulatory authorities by the Trust. We would refer you to the risks and assumptions 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
For further information:

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

Web site: www.cos-trust.com