C A N A D A S O U T H E R N P E T R OL E U M LTD.
_____________, 2000
Dear Fellow Shareholders:
Canada Southern Petroleum Ltd. (the "Company") is offering for sale, to
its shareholders, a total of ______ shares of its Limited Voting Stock. For
every one share of Limited Voting Stock held of record by a shareholder at the
close of business on ________, 2000 that shareholder will receive one
transferable right to purchase additional Limited Voting Shares. ___ rights are
required to purchase one share of the Company's Limited Voting Shares (the
"Guaranteed Allotment") at the subscription price of $____ (U.S.) or $____
(Can.). In addition, each shareholder who purchases his entire Guaranteed
Allotment will be permitted (at the same time) to subscribe for the purchase of
additional shares which are unsubscribed for by other shareholders (the
"Contingent Allotment"). The Contingent Allotment may not exceed two times the
amount of the Guaranteed Allotment. No fractional shares will be issued.
Enclosed with this letter are:
1.) The PROSPECTUS, by which your Company is offering to its shareholders
the right to subscribe to its Limited Voting Shares.
2.) A RIGHTS CERTIFICATE which should be completed and returned to the
Company's Agent in the enclosed REPLY ENVELOPE, if you wish to purchase
shares of the Company's Limited Voting Shares.
3.) INSTRUCTIONS for completing the RIGHTS CERTIFICATE.
THE ENCLOSED RIGHTS CERTIFICATE IS VALUABLE. PLEASE NOTE THAT YOUR
RIGHTS WILL EXPIRE AT 4:30 P.M., EASTERN STANDARD TIME ON _____________, 2000.
Subscription information and additional copies of the offering
materials are available from Xxxxxx and Co., Inc. CALL TOLL-FREE
(000) 000-0000.
ON BEHALF OF THE BOARD OF DIRECTORS
By:________________________________
Xxx X. Xxxxxxxx, President
