Update on Nova Scotia Resources Ltd. Sale

The following is a statement by Steve Parker, chair, Nova Scotia Resources Limited:

On June 14, 2000, the Government of Nova Scotia requested the board of Nova Scotia Resources Limited (NSRL) to begin a commercial sale process. The investment advisory firm Scotia Capital was retained to assist in the management of this process.

The government has indicated that, assuming a reasonable price can be obtained for the company, it does not wish to retain a government-owned offshore exploration and development company.

Expressions of interest have now been received from a number of organizations. Those that have signed confidentiality agreements are currently reviewing detailed data on the company. When this phase is completed, bids will be invited.

To date, the process is proceeding as planned and anticipated.

Our current outlook is that the board of NSRL will be in a position to make a final recommendation to the government during the first quarter of next year. However, timing is subject to a number of factors including the number of bidders and the length of time required for detailed negotiations and due diligence.

This is a deliberate process designed to give interested parties an opportunity to assess the market value of NSRL and to enable them to put together the highest-value bid for NSRL.