Calgary, AB., Nov. 1, 2006 (TSX – COS.UN) — Canadian Oil Sands Trust (“Canadian Oil Sands”, or the “Trust”) today announced that the Syncrude Joint Venture has approved its operator, Syncrude Canada Ltd., entering into a comprehensive management services agreement with Imperial Oil to provide operational, technical and business management services to Syncrude Canada Ltd.

Under the agreement, Imperial Oil, with the support of ExxonMobil, will provide global best practices in several areas including: maintenance and reliability, energy management, procurement, safety, health, and environmental performance with the expectation of delivering further sustainable improvement in Syncrude's operating performance.

The agreement is effective November 1, 2006 and has an initial term of 10 years with renewal provisions. Imperial Oil, ExxonMobil, Syncrude Canada Ltd. and the other Syncrude participants will form a team to conduct a comprehensive onsite assessment of the Syncrude operations, with a view to making specific recommendations in approximately six months from today in respect of the services to be provided by Imperial Oil. If the recommendations are not approved to the reasonable satisfaction of Imperial Oil, the management services agreement can be terminated by Imperial Oil. Either Syncrude or Imperial Oil has the option to cancel the agreement on 24 months notice for any reason.

Canadian Oil Sands will pay its pro-rata share of annual fixed service fees equivalent to about Cdn $17 million (Cdn $47 million gross to Syncrude) and its share of the direct costs that Imperial Oil incurs in providing the services. After the first three years, performance fee incentives will also apply if certain targets are achieved. Through higher production levels, savings in energy efficiency, lower sustaining capital costs, reduced maintenance and operating costs, and other efficiencies from new business control systems, we believe that the value to be captured should be a multiple of the fees paid.

“The Syncrude Joint Venture, after many months of careful analysis, has determined that this agreement provides incremental value to Syncrude. It will enable us to leverage the experience and skills of Syncrude's employees with the best practices and resources of a global leader in refining with the goal of capturing even better performance and profitability from the Syncrude operation," said Marcel Coutu, president and CEO of Canadian Oil Sands and chairman of the board of Syncrude Canada Ltd.

The agreement does not change the existing Ownership and Management Agreement between Syncrude Canada Ltd. and the Syncrude owners -- Syncrude Canada Ltd. remains the operator and employer of Syncrude's personnel. Ownership in the Syncrude Joint Venture remains unchanged, as does the proportionate ownership in Syncrude Canada Ltd. The oversight and strategic direction for Syncrude continues to come from the Syncrude owners’ Management Committee, which is comprised of senior representatives from each owner-company, and is currently chaired by Canadian Oil Sands.

Charles Ruigrok, CEO of Syncrude Canada Ltd., said: “Syncrude’s employees have made us a leader in the development of Canada’s oil sands. Our nearly 30 years of operating experience give us a strong foundation to build upon, and with the global expertise of Imperial Oil and ExxonMobil, we can further drive operational excellence. Syncrude remains committed to playing a major role in securing Canada's energy future."

The agreement also reconfirms the Syncrude Joint Venture owners’ commitment to further growth by engaging Imperial Oil and its global experts to undertake Syncrude’s volume expansion projects under the direction of a newly instituted Development Sub-Committee of the Management Committee, proposed to be chaired by Canadian Oil Sands. Referred to as Syncrude 21, these plans conceive of a Stage 3 debottleneck and Stage 4 expansion to grow productive capacity to about 500,000 barrels a day, gross to Syncrude.

"Syncrude's owners have invested more than $10 billion in Syncrude's expansions, including the recent Stage 3 project. Our high-quality mining resources base can support much further growth, and by optimizing our existing infrastructure, we can identify how best to fully capture that potential from our current investment and ideally position the operation for future growth," added Coutu.

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

CONFERENCE CALL NOTICE

Canadian Oil Sands Trust will host a conference call today to discuss the Syncrude Management Services Agreement.
Time: 3:45 p.m. Mountain Standard Time (5:45 p.m. EST)
Date: November 1, 2006
Call-in number (register starting at 3:30 p.m. MST): 1-888-458-1598
Pass code: 76845#
Media are invited to participate. Those unable to participate in the live call may listen to a recording approximately one hour after by calling 1-877-653-0545 and entering the conference reference code 340435#. The recording will be available for 48 hours.

The simultaneous audio webcast will be available on Canadian Oil Sands’ web site at www.cos-trust.com

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 expectation that the agreement between Syncrude and Imperial Oil will result in higher production levels and savings in energy efficiency and maintenance and operating costs as well as additional efficiencies from new business control systems; the expectation that the value captured by the agreement will exceed the fees payable by Syncrude to Imperial Oil; the expectations regarding future secondments, staff locations, future impact on the local community; the anticipated increase in production from implementing Stage 3 debottleneck and Stage 4; as well as any comments made regarding the impact of proposed tax changes announced on October 31.

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 any complex mining and upgrading operation; labour disruptions and disputes; the limitations in directing Imperial Oil and ExxonMobil’s processes and personnel in providing the services; regulatory requirements 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