Suncor Energy Inc.

Suncor Energy Inc.

January 30, 2008 00:00 ET

Suncor Energy Board approves 2008 capital spending plan

(All financial figures are approximate and in Canadian dollars unless otherwise noted.)

Calgary, Alberta (January 30, 2008) — Suncor Energy Inc. announced today that its Board of Directors has approved the company's $7.5 billion capital spending plans for 2008. Of this total, approximately $6 billion, or about 80% of the total capital budget, is expected to be targeted to growth, primarily oil sands projects. Approximately $1.5 billion is planned for sustaining existing operations company-wide.

"This year marks a major ramp-up of capital spending directed toward our goal of producing more than half a million barrels of oil per day," said Rick George, president and chief executive officer. "As we increase growth spending, we're also targeting a substantial increase to sustaining capital to help ensure our operations are running safely and reliably and contributing to a strong financial foundation over the coming years."

Suncor's growth capital budget is aimed at supporting the planned expansion of in-situ bitumen production and the construction of a third upgrader as part of the company's plans to increase oil sands production capacity to 550,000 barrels per day (bpd) in 2012 (see separate news release also issued today). The balance of growth spending is planned primarily for completion of the expansion of production capacity to 350,000 bpd in 2008. The growth budget also includes about $275 million to be spent in Suncor's natural gas business to support the company's targeted production of 205 to 215 million cubic feet equivalent per day in 2008.

Of the planned $1.5 billion in sustaining capital, approximately $1.2 billion is targeted for Suncor's oil sands operation, including construction of the North Steepbank mine extension (which is expected to replace bitumen from mined-out areas), a planned maintenance shutdown of Upgrader 1 in the second quarter, and various projects intended to improve the reliability and productivity of oil sands assets. Investments in emission control equipment are also slated for 2008.

In Suncor's downstream operations, plans call for sustaining capital of approximately $225 million to be spent in 2008, aimed at maintaining safe and reliable operations following major growth projects at both the Sarnia, Ontario refinery and the Commerce City, Colorado refinery during the past two years.

Suncor expects similar levels of company-wide capital spending over the next several years. However, some projects, including components of Suncor's planned in-situ expansion, are subject to regulatory approval and the outcome may impact project details and related budgets.

Suncor's capital spending plan is expected to be financed through cash flow from operations, credit facilities and access to debt capital markets.

This news release contains forward-looking statements that address goals, expectations or projections about the future. These statements are based on Suncor's current goals, expectations, estimates, projections and assumptions, as well as its current budgets and plans for capital expenditures. Estimating and budgeting for major capital projects is a process that involves uncertainties and that evolves in stages, each with progressively more refined data and a correspondingly narrower range of uncertainty. At very early stages, when broad engineering design specifications are developed, the level of uncertainty can result in price ranges with -30% / +50% (or similar levels) of uncertainty. As project engineering progresses, vendor bids are studied, goods and materials ordered and as the company moves closer to the build stage, the level of uncertainty narrows. Generally, when projects receive final Board of Directors approval, cost estimates have a range of uncertainty that has narrowed to the -10% / +10% or similar range. These ranges establish an expected high and low capital cost estimate for a project. When Suncor says that a project is "on budget", it means Suncor still expects the final project capital cost to fall within the current range of uncertainty for the project. Even at this stage, the uncertainties in the estimating process and the impact of future events, can and will cause actual results to differ, in some cases materially, from our estimates. Some of the forward-looking statements in this document may be identified by words like "plans", "expected", "targeted", "help ensure", "intended" "goal", "aimed", "may" and similar expressions. These statements are not guarantees of future performance. Actual results could differ materially, as a result of factors, risks and uncertainties, known and unknown, to which Suncor's business is subject. These could include: changes in general economic, market and business conditions; fluctuations in supply and demand for Suncor's products; fluctuations in commodity prices and currency exchange rates; the impact of stakeholder consultation; the regulatory process; technical issues; environmental issues; technological capabilities; new legislation; actions by governmental authorities including the imposition of taxes or changes to fees and royalties, the occurrence of unexpected events; Suncor's capability to execute and implement its future plans; and changes in current plans. Further discussion of the risks, uncertainties and other factors that could affect these plans, and any actual results, is included in Suncor's annual report to shareholders and other documents filed with regulatory authorities.

Suncor Energy Inc. is an integrated energy company headquartered in Calgary, Alberta. Suncor's oil sands business, located near Fort McMurray, Alberta, extracts and upgrades oil sands and markets refinery feedstock and diesel fuel, while operations throughout western Canada produce natural gas. Suncor operates a refining and marketing business in Ontario with retail distribution under the Sunoco brand. U.S.A. downstream assets include pipeline and refining operations in Colorado and Wyoming and retail sales in the Denver area under the Phillips 66® brand. Suncor's common shares (symbol: SU) are listed on the Toronto and New York stock exchanges.

Suncor Energy (U.S.A.) Inc. is an authorized licensee of the Phillips 66® brand and marks in the state of Colorado. Sunoco in Canada is separate and unrelated to Sunoco in the United States, which is owned by Sunoco, Inc. of Philadelphia.

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For further information, contact:

Media: Brad Bellows at (403) 269-8717
Investors: John Rogers at (403) 269-8670