US Oil Sands Inc. (company) announced that it has closed the company's previously announced USD 7.5 million financing with ACMO S.à R.L. (ACMO), the company's shareholder, allowing re-engagement of its employees and necessary contractors to complete and operate the PR Spring Project. The USD 7.5 million senior secured loan facility carries a 15% annual interest rate, is repayable after one year and is extendible for an additional 12 months if, by the end of the initial 12-month term, the company has produced an average of 1,500 barrels per day for 30 consecutive days at a cost of less than USD 45.00 per barrel, inclusive of all operating, transportation and marketing costs, together with corporate G&A; essentially a cash-basis corporate cost. Security is a first priority interest on all present and future property, assets of the company and its wholly owned subsidiary, US Oil Sands (Utah) Inc. A provision allows the company to market and obtain a USD 3.0 million loan facility using accounts receivable and inventory as security, where ACMO will postpone its security in favour of a first place position. The company will immediately look to secure such AR Facility in order to add additional working capital resources to the balance sheet.

The financing provides for ACMO to increase its board representation to three members and allows the company to appoint a further three, thereby reducing the board form its current eight members to six members. ACMO nominees will include current board members Stephen Lehner and Mark Brown, as well as the addition of Harry F. Quarls to the board. Mr. Quarls currently sits as an observer to the board. Mr. Quarls currently serves as a Managing Director at Global Infrastructure Partners. Mr. Quarls was recently appointed Chairman of the Board for Penn Virginia Corporation upon emergence from restructuring. Additionally, he currently serves as the Chairman of the Board of Woodbine Holdings LLC, as well as a member of the Board of Managers of Opal Resources LLC, all of which are private equity backed exploration and production companies.