March 4, 2014

NEWS RELEASE www.jogmec.go.jp Japan Oil, Gas & Metals National Corporation Contact: Project Department TEL：+81-3-6758-8668 Media Relations: Public Relation Division TEL：+81-3-6758-8106

JOGMEC Provides Loan Guarantee for JAPEX’s Hangingstone Project in Canada

JOGMEC (President : Hirobumi Kawano) announced today that it signed loan guarantee agreements on February 28, 2014 to support Japan Canada Oil Sands Limited (“JACOS”), a Canadian subsidiary of Japan Petroleum Exploration Co.,Ltd. (“JAPEX”), for the oil sands development project in the Hangingstone area in the Province of , Canada (“Hangingstone Project”).

In December 2012, JACOS started the full-scale development of the Hangingstone Project, building on the success of the demonstration project which has been operated since 1999 using the steam-assisted gravity drainage (“SAGD”*) method and is currently producing 6,000 to 7,000 barrels per day of bitumen (ultra extracted from oil sands).

*:SAGD uses hot steam to heat the bitumen and allow it to flow. The steam is delivered to the reservoir through a long horizontal well drilled from the surface. The hot bitumen is brought up through a second horizontal well located approximately 5 meters below the injection well.

JACOS holds an operating 75% participating interest in the Hangingstone Project, while Nexen Energy ULC, a wholly-owned subsidiary of CNOOC Limited holds the remaining 25%. The initial stage production is targeted for the first half of 2016 with the capacity of around 20,000 barrels per day of bitumen, envisaging potential expansion of the facilities up to 30,000 barrels per day.

JACOS was established in 1978 as a wholly owned subsidiary of Canada Oil Sands Co., Ltd. (“CANOS”), an investment vehicle jointly established by the former Japan National Oil Corporation (“JNOC”) and 62 Japanese companies. Since the sales of JNOC’s shareholding in CANOS in 2005, JAPEX has played the leading role in JACOS activities.

JOGMEC’s guarantee will cover up to US$ 300 million financed by the major Japanese commercial banks, corresponding to 50% of a total of US$ 600 million loan they will co-finance with the Japan Bank for International Cooperation.

The Hangingstone Project is expected to strengthen JAPEX’s oil sands business being one of its core business areas, as well as to further enhance Japan’s energy security in terms of the diversification of petroleum sources.

■ Background Information

1.Corporate Data of Japan Canada Oil Sands Limited (JACOS) Date of Establishment: August 4, 1978 Head Office: Alberta, Canada. President & CEO: Mr. Toshiyuki Hirata Shareholder: Canada Oil Sands Co.,Ltd

2．JOGMEC Assistance Date of Approval: 20 February, 2014 Note: Approval has been made in accordance with JOGMEC’s technical, economic, and business-environment criteria and the consent from the Minister of Economy, Trade and Industry has been obtained.