Canada

The Athabasca oil sands of the Western Canadian Sedimentary Basin are home to Ivanhoe Energy's Tamarack Project and represent a significant and strategic growth area for the development of Ivanhoe Energy's integrated HTL heavy-oil production.

Integrated HTL heavy-oil production represents a new and innovative approach to Athabasca oil sands development, an approach Ivanhoe believes will result in lower financial risk and higher financial returns, as well as significant environmental and socio-economic benefits for the Province of Alberta and Canada.

In mid-2008, Ivanhoe Energy closed its first transaction in Western Canada, acquiring Leases 10 and 6 from Talisman Energy Canada. Lease 10, renamed the Tamarack Project, is the proposed home for Ivanhoe Energy's first integrated HTL heavy-oil project in Canada.

Tamarack is a 6,880-acre contiguous block located approximately 10 miles (16 km) northeast of Fort McMurray, immediately south of Suncor's operating Steepbank and Millennium projects. The block adjoins leases held by ExxonMobil, Laricina Energy and E-T Energy.

A March 2009 reserves evaluation conducted by GLJ Petroleum Consultants Ltd. (GLJ), independent reservoir engineers, estimated that Ivanhoe Energy's Tamarack Project contains best-estimate contingent resources of 441 million barrels of bitumen. This would support a project with an estimated capacity of approximately 50,000 barrels per day for 30 years. Ivanhoe Energy holds a 100% working interest in Tamarack. Talisman Energy Canada has back-in rights of up to 20% in Tamarack for a period ending in mid-2011.

The execution of the Tamarack Project will be led by Ivanhoe Energy's experienced Calgary-based, thermal heavy-oil team. This team includes veteran heavy-oil experts with experience working in firms such as PetroCanada, Encana, ConocoPhillips, Synenco, Imperial Oil and Purvin & Gertz, complemented by Ivanhoe Energy's thermal experts from California.