Mr. Richard McLellan reports

CANEXUS PROVIDES CONTRACT UPDATE FOR ITS NATO UNIT TRAIN FACILITY

The transportation and terminalling services agreement between the mid-stream logistics and marketing company and Canexus Corp., announced on Dec. 5, 2013, has been terminated. Considering this termination, the North American terminal operations (NATO) unit train facility has contracted volumes for up to four unit trains per week, representing approximately 40 per cent of the planned capacity of 10.5 unit trains per week. Both customers with contracted volumes have nominated to deliver bitumen blend to NATO during the fourth quarter.

"We are very disappointed that the delay in the tie-in of the Cold Lake pipeline system to the unit train facility triggered the termination right under this agreement that was exercised," stated Doug Wonnacott, Canexus's president and chief executive officer. "However, the customer who cancelled the agreement has indicated they remain interested in discussing a mutually acceptable relationship with Canexus. NATO remains an attractive asset, which is evident from the significant interest we have had in the facility since placing it up for sale," added Mr. Wonnacott.

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