SNC-Lavalin Awarded Engineering Design Contract By North West Upgrading In Alberta

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August 8, 2006

SNC-Lavalin is pleased to announce that it has signed an engineering services contract with North West Upgrading Inc. for a total estimated value of CAN$27.5 million to complete engineering design specifications for the proposed North West upgrader in Sturgeon County, Alberta.

The first phase of the Upgrader facility is scheduled for operation early in 2010 with a capacity of 50,000 barrels of bitumen per day. The facility will treat bitumen, turning it into light, low sulphur products and diluent, which is used to keep bitumen flowing in a pipeline.

"This award demonstrates SNC-Lavalin’s commitment to processing the bitumen and heavy oil production from the vast oil sands deposits in Alberta, and demonstrates the downstream and front end process capabilities of our team," said Jean Beaudoin Executive Vice-President, SNC-Lavalin Group Inc. "We are particularly pleased with this project, and the opportunity to carry out future activities associated with its development."

"The engineering design specifications are a critical component for the North West upgrader," said Robert Pearce, President and CEO of North West Upgrading. "SNC-Lavalin is highly capable and respected in this regard and we are pleased to have them join our team as we work together to build this independent upgrader."

Design work will commence immediately, and continue for a period of one year.

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