Saskatchewan applications for THAI

November 21, 2008 CALGARY -- Petrobank Energy and Resources Ltd. has entered into a royalty and technology license and a joint venture agreement with True Energy Trust to apply Petrobank's patented THAI heavy oil recovery technology on portions of True's Kerrobert heavy oil property in Saskatchewan.

Under the Agreement, Petrobank will initially earn a 50% working interest in three sections of land in the Kerrobert Mannville heavy oil pool. Subject to regulatory approval, Petrobank and True will develop a two well project to demonstrate the THAITM technology in the 10+ metre thick Mannville conventional heavy oil channel reservoir. Petrobank will earn an additional ten percent gross overriding technology royalty on True's share of all THAI production following a threshold reserve recovery.

Petrobank is also entitled to earn a 50% working interest in ten additional sections of True lands upon the expansion of the initial THAI project or development of another project on these lands, which Petrobank and True would develop jointly. In addition, Petrobank and True have established an area of mutual interest over thirty additional sections of land to jointly develop additional THAI projects.

Petrobank is excited about the opportunity to partner with True and bring the THAI technology to the conventional heavy oil resource base in Saskatchewan. Saskatchewan has billions of barrels of unrecovered heavy oil that, according to Petrbank, could be efficiently captured using THAI technology. This is Petrobank's second license agreement that expands THAI technology into conventional heavy oil reservoirs and into a jurisdiction in Saskatchewan that is proactive in encouraging project development and facilitating the application of advanced technologies. Petrobank project engineering and design has been advancing rapidly with respect to this project and, based on preliminary discussions with Saskatchewan government officials, the company expects to have a prompt approval of this initial project and future projects in the Province.

"This is indeed a welcome announcement, particularly in these uncertain economic times, and a vote of confidence in the future of Saskatchewan's energy sector," Saskatchewan Premier Brad Wall said. "I congratulate the team at Petrobank for moving ahead with this innovative technology that promises development of Saskatchewan's conventional heavy oil resources in an environmentally responsible and sustainable way."

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