Royalty Agreement For Suncor's New Oil Sands Mine

Business Wire, June 13, 1996

FORT MCMURRAY, Alberta--(BUSINESS WIRE)--June 13, 1996--The Provincial Government approved a memorandum of understanding yesterday with Suncor Inc., Oil Sands Group which outlines the principles for the royalty terms for the company's new oil sands mine.

Although details must still be finalized, Suncor's agreement with the Province is in accordance with the generic royalty terms announced by Premier Klein in November 1995. The new royalty agreement will become effective when Suncor's new oil sands mine is fully commissioned, around the turn of the century. The $360 million mine facility will enable Suncor to produce 105,000 barrels of oil a day.

The royalty terms agreed to are conditional on Suncor receiving the necessary regulatory approvals to proceed with its new mine project. Since 1967, Suncor has paid approximately $700 million in Crown royalties.

Suncor Inc. is a Canadian integrated oil and gas company operating an oil sands plant in Fort McMurray, AB, a conventional oil and gas business in Western Canada and a refining and marketing operation in Ontario and Quebec. Suncor common shares are listed on the Toronto, Montreal, Alberta, Vancouver and American stock exchanges (Stock Symbol SU).

CONTACT: Suncor Inc.

Patti Lewis, Media Inquiries, 403/743-6480

Pat O'Reilly, Investor Inquiries, 403/269-8703