ELE Elemental Altus Royalties Corp

Excelsior Energy Limited (TSX VENTURE:ELE) ("Excelsior" or the "Company") Over
the past year Excelsior has investigated various bitumen recovery mechanisms
that could potentially reduce the large requirements for capital, fuel gas and
process water associated with thermal recovery. As a result the Company is
pleased to announce that it has redirected its oil sands strategy to deploy a
proprietary in situ combustion bitumen-recovery process ("Combustion Overhead
Gravity Drainage" or "COGD") at its Hangingstone oil sands property. Excelsior
has developed the COGD process in cooperation with Hot-Tec Energy Inc.
("Hot-Tec"), a private company affiliated with members of the In-situ Combustion
Research Group from the Department of Chemical and Petroleum Engineering at the
Schulich School of Engineering, University of Calgary. The In-situ Combustion
Research Group is a global leader in the application of in situ combustion
recovery processes.


Excelsior expects that the application of the COGD recovery process could result
in significantly improved bitumen economics through both enhanced recovery gains
and substantial reductions in the amount of required water, fuel gas and
diluent. As a result, the Company will be focussing its resources towards an
experimental in situ COGD pilot project. A project application will be submitted
in Q2 2009 with anticipated regulatory approval in approximately one year for
the subsequent implementation and commissioning of the pilot in Q1 2011.


"We are excited by the potential opportunity to test COGD in a field-level
experimental project." commented Robert Bailey, Excelsior's Chief Operating
Officer. "COGD is a proprietary recovery process designed by Excelsior and its
advisors to address the key economic, environmental and investment issues
confronting the development of the Athabasca oil sands. A successful pilot
project would transform the thermal recovery of bitumen and position Excelsior
as a leader in the successful development and application of in situ combustion
bitumen recovery." 


Combustion Overhead Gravity Drainage Process

The COGD process has been designed to address key economic, environmental and
investment factors facing bitumen producers today; specifically, high capital
and operating costs, and the use of large quantities of water, fuel gas and
diluent. These key factors will be addressed by:


1. A significant reduction in water usage for steam generation by up to 80%
compared to a similar sized SAGD process.


2. A significant reduction in fuel gas consumption for steam generation by up to
80% compared to a similar sized SAGD process, as COGD uses the in situ energy of
the bitumen which would otherwise be unrecoverable.


3. A significant reduction in diluent demand as a result of potential in situ
bitumen upgrading. 


4. A reduced environmental impact through decreased water draw and water
recycling, decreased fuel gas and diluent demand.


5. Significantly improved project economics as COGD recoveries are estimated to
be as much as 50% greater than SAGD recoveries, and capital and operating costs
are estimated to be considerably lower than comparable SAGD projects.


COGD employs an array of vertical air injector ignition wells above a horizontal
production well located at the base of the bitumen pay zone. A short initial
period of steaming prepares the cold bitumen for ignition and develops enhanced
bitumen mobility in the reservoir. Upon ignition a combustion chamber develops
above and along the length of the horizontal well with combustion gases
segregated in the upper part of the reservoir and hot bitumen flowing by gravity
into the horizontal production well. 


The Company is in the final stages of preparing an application to the Alberta
Energy Resources Conservation Board ("ERCB") and Alberta Environment ("AENV")
for an experimental pilot project. The experimental project will seek approval
to operate three COGD well arrays with a production target of up to 1,000
barrels of bitumen per day. Excelsior will also seek Confidential Status from
the ERCB for the experimental pilot operating results. Through its bitumen-core
drilling program this winter Excelsior has obtained all the necessary
information to support an experimental pilot application. Upon a successful
pilot project, an application would then be made for a commercial-scale 10,000
barrel per day development project. As a result of the redirected strategy the
Hangingstone 10,000 bopd SAGD demonstration project application has been
suspended given the more attractive economic potential of a successful COGD
bitumen recovery pilot.


Excelsior has also applied for IETP (Innovative Energy Technology Program)
funding for its proprietary COGD technology. If successful the funding will be
in the form of a royalty credit to be used against future production.
Opportunities to attract Federal funding targeting energy research and
sustainable development are also under review. Excelsior is currently funded to
complete the pilot project application and sustain project development efforts
through 2010.


About Excelsior Energy

Excelsior is active in oil sands exploration and appraisal in the Hangingstone
and West Surmont areas near Fort McMurray, Alberta and will hold a 75% working
interest in 58 contiguous sections on completion of its farm-in obligations. The
Company also indirectly holds a 75% working interest in Blocks 16/1a and 16/6c
in the UK North Sea and a minor interest in gas production in Alberta.
Excelsior's strategy is to capture oil and gas appraisal and development
opportunities where we can leverage Management's diverse international
experience and field development expertise. This includes heavy oil reservoir
engineering and development of complex fields. 


Forward Looking Statements
 
This press release contains forward-looking statements. Management's assessment
of future plans and operations, expected production levels, operating costs,
capital expenditures, the nature of capital expenditures, methods of financing
capital expenditures, future engineering reports and the timing of increases in
production may constitute forward-looking statements under applicable securities
laws and necessarily involve risks including, without limitation, risks
associated with oil and gas exploration, development, exploitation, production,
marketing and transportation, loss of markets, volatility of commodity prices,
currency fluctuations, imprecision of reserve estimates, environmental risks,
competition from other producers, inability to retain drilling rigs and other
services, incorrect assessment of the value of acquisitions, failure to realize
the anticipated benefits of acquisitions, delays resulting from or inability to
obtain required regulatory approvals and ability to access sufficient capital
from internal and external sources. As a consequence, the Company's actual
results may differ materially from those expressed in, or implied by, the
forward-looking statements. Readers are cautioned that the foregoing list of
factors is not exhaustive. Additional information on these and other factors
that could effect the Company's operations and financial results are included in
reports on file with Canadian securities regulatory authorities and may be
accessed through the SEDAR website (www.sedar.com). Furthermore, the forward
looking statements contained in this press release are made as at the date of
this press release and the Company does not undertake any obligation to update
publicly or to revise any of the included forward looking statements, whether as
a result of new information, future events or otherwise, except as may be
required by applicable securities laws.

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