Invested In Our Energy Future CANADIAN OIL SANDS LIMITED ANNUAL INFORMATION FORM For the Year Ended December 31, 2010 March 10, 2011 TABLE OF CONTENTS GLOSSARY ................................................................................................................................................. 1 NON-GAAP FINANCIAL MEASURES ..................................................................................................... 4 FORWARD-LOOKING INFORMATION ADVISORY ............................................................................. 5 ORGANIZATIONAL STRUCTURE........................................................................................................... 6 Canadian Oil Sands Structure .......................................................................................................... 6 Intercorporate Relationships ............................................................................................................ 7 GENERAL DEVELOPMENT OF THE BUSINESS ................................................................................... 7 Overview .......................................................................................................................................... 7 Canadian Oil Sands Three Year History .......................................................................................... 8 Syncrude Overview ........................................................................................................................ 10 Syncrude Three Year History ........................................................................................... 12 Capital Investments in 2011 and Beyond ......................................................................... 12 NARRATIVE DESCRIPTION OF THE BUSINESS ................................................................................ 14 Syncrude ........................................................................................................................................ 14 Mining ............................................................................................................................... 16 Extraction .......................................................................................................................... 17 Upgrading ......................................................................................................................... 19 Utilities and Offsites ......................................................................................................... 20 Marketing ....................................................................................................................................... 20 Competition ................................................................................................................................... 22 Seasonal Factors ............................................................................................................................ 22 Environmental Protection .............................................................................................................. 23 Regulation of Operations ............................................................................................................... 29 Lease Tenure .................................................................................................................................. 31 Royalties and Taxes ....................................................................................................................... 31 Employees ...................................................................................................................................... 33 RISK FACTORS ........................................................................................................................................ 33 Risks Relating To Canadian Oil Sands’ Business ......................................................................... 33 Risks Relating to the Corporation or Common Shares .................................................................. 43 RESERVES DATA AND OTHER INFORMATION ................................................................................ 45 Summary of Reserves as at December 31, 2010 ............................................................................ 46 Forecast Prices Used in Estimates ................................................................................................. 47 Reconciliation of Reserves by Principal Product Type Based on Forecast Prices and Costs ........ 48 Undeveloped Reserves by Principal Product Type Based on Forecast Prices and Costs .............. 49 Future Development Costs ............................................................................................................. 49 Other Oil and Gas Information ...................................................................................................... 50 Costs Incurred ................................................................................................................... 50 Abandonment and Reclamation Costs .............................................................................. 50 Tax Horizon ...................................................................................................................... 50 Crown Royalty Changes ................................................................................................... 51 Production Estimates ........................................................................................................ 51 Production History ............................................................................................................ 51 Reserve Life Index ............................................................................................................ 52 Resources ....................................................................................................................................... 52 DIVIDENDS ............................................................................................................................................... 53 Distribution and Dividend History ................................................................................................. 54 DESCRIPTION OF CAPITAL STRUCTURE .......................................................................................... 54 General Description ....................................................................................................................... 54 Shareholder Rights Plan ................................................................................................................. 54 Ratings .......................................................................................................................................... 56 MARKET FOR SECURITIES ................................................................................................................... 57 Price Range and Trading Volumes of Trust Units ......................................................................... 57 - i - Price Range and Trading Volumes of Common Shares ................................................................ 58 DIRECTORS AND OFFICERS ................................................................................................................. 58 Directors ......................................................................................................................................... 58 Officers .......................................................................................................................................... 59 Security Holdings .......................................................................................................................... 60 AUDIT COMMITTEE INFORMATION .................................................................................................. 61 Audit Committee Charter ............................................................................................................... 61 Audit Committee Composition ...................................................................................................... 61 Audit Committee Pre-Approval Policies for Non-Audit Services ................................................. 62 Audit Committee Oversight ........................................................................................................... 62 Fees Paid to Auditors ..................................................................................................................... 62 INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS.......................... 63 LEGAL PROCEEDINGS AND REGULATORY ACTIONS ................................................................... 63 TRANSFER AGENT AND REGISTRARS ............................................................................................... 63 INTEREST OF EXPERTS ......................................................................................................................... 63 PricewaterhouseCoopers LLP ........................................................................................................ 63 GLJ Petroleum Consultants Ltd. .................................................................................................... 64 Burnet, Duckworth & Palmer LLP ................................................................................................ 64 Paul, Weiss, Rifkind, Wharton & Garrison LLP ..........................................................................