Husky Energy Inc. (Husky) is a Canadian-based integrated energy and energy-related company headquartered in Calgary, Alberta. Husky has oil and gas operations in Western Canada, offshore Canada's East Coast, the United States, China, Indonesia and Greenland. Husky employs approximately 4,000 people and had a market value of approximately CAD26 billion (as of 31 December 2009).

Husky is listed on the Toronto Stock Exchange under the symbol HSE, and is included in the S&P/TSX Composite, S&P/TSX Capped Energy Index, and S&P/ TSX 60 indices.

Operations
Husky's operations can be divided into three distinct business segments:

Upstream
Upstream operations include the exploration, development and production of crude oil, bitumen and natural gas in Western Canada, offshore Canada's East Coast, the United States, China, Indonesia and Greenland.

Midstream
Midstream operations include heavy oil upgrading, pipeline transportation, storage, processing, power cogeneration, and the marketing of crude oil, natural gas, natural gas liquids, sulphur and petroleum coke.

Downstream
Downstream includes the refining, distribution and retail marketing of gasoline, aviation fuel, diesel, asphalt, ethanol and related products and services.

Upstream Operations

Western Canada Conventional Oil and Gas
New production and drilling technologies are dramatically transforming the oil and gas industry in North America. Reserves once thought to be too difficult or uneconomical to tap are now being unlocked and new techniques are making it possible to achieve more production from existing reservoirs. The Western Canadian Sedimentary Basin (WCSB), where Husky has extensive holdings, is benefiting from these technological innovations.

The Company has a land base of approximately 28,000 square kilometres in Western Canada, representing significant opportunities for new reserves and production from exploration and development.

Husky's assets in Western Canada are responsible for the largest per centage of Husky's overall production and the Company actively works to optimize crude oil and natural gas production with commodity prices.

Western Canada Heavy Oil
Husky pioneered the production of heavy oil in Western Canada and the resource continues to play a significant role in its operations. With production of approximately 100,000 barrels of oil per day, Husky is an industry leader in the region. Its heavy oil upgrader and asphalt refinery are creating valuable synergies, while advances in enhanced oil recovery (EOR) technologies are further unlocking the huge potential of this resource.

Western Canada Oil Sands
Husky is one of the top holders of oil sands resource in Alberta with more than 2,700 square kilometres of oil sands leases. Most are located in the resource-rich areas of Athabasca and Cold Lake, with smaller land holdings in the Peace River deposit. The Company holds 49.4 billion barrels of oil sands discovered petroleum-initially-in-place (PIIP) estimated as of 31 December 2009.

The Sunrise Energy Project (jointly owned by Husky and BP PLC) is an in-situ oil sands development located 60 kilometres northeast of Fort McMurray, Alberta. In 2008, Husky and BP formed two 50/50 partnerships, a Canadian oil sands partnership (operated by Husky) and a US refining limited liability corporation (operated by BP). The joint venture integrates the production of bitumen with existing refining, a North American energy solution that is low cost, efficient and represents a responsible approach to resource stewardship. Husky's 50 per cent of the Sunrise oil sands lease holds an estimated 1.85 billion barrels of bitumen reserves (63.7 million barrels proved, 947.8 million barrels probable and 842.5 million barrels possible reserves), as of 31 December 2009. Front-end engineering and design for Phase 1 is complete and Husky expects to produce 60,000 barrels per day of bitumen using SAGD technology starting in 2014. Peak production of 200,000 barrels per day is anticipated in the 2020 timeframe. Sunrise has the potential to produce up to 400,000 barrels per day.

Canada's East Coast
Husky Energy has positioned itself as a major player as the search for energy expands into new and emerging opportunities off Canada's East Coast.

Husky has been active in the region for more than 25 years and has a proven track record in creating value and successfully operating in a harsh environment.

Offshore Newfoundland & Labrador, Husky's development program has focused primarily on the Jeanne d'Arc Basin, which is home to the White Rose, Hibernia and Terra Nova oil fields. The Company has a significant number of exploration opportunities in the region with 17 exploration licences, and interests in 23 Significant Discovery Areas (SDAs) in the Jeanne d' Arc Basin, Flemish Pass, and offshore Labrador.

In May 2010, Husky announced that it had achieved oil production from the North Amethyst field offshore Newfoundland & Labrador. North Amethyst is the first satellite development at the White Rose project and was brought on production less than four years after discovery. It is also the first subsea tieback project in Canada.

Greenland
Husky holds exploration rights in three licences off the west coast of Disko Island, Greenland, totalling 35,000 square kilometres. It has an 87.5 per cent interest in Blocks 5 and 7 and a 43.75 per cent interest in Block 6. The geology and operating conditions are very similar to those on the East Coast of Canada.

In 2008, Husky acquired 7,000 kilometres of 2-D seismic over Blocks 5 and 7. The Company participated in the acquisition of 3,000 kilometres of 2-D over Block 6. In addition, 29,000 kilometres of high-resolution aero-magnetic and gravity data were acquired. Evaluation of the data is ongoing. On Block 7, Husky completed the aero-gravity and magnetic survey in 2009, and plans to acquire a 1,000 square kilometres 3-D seismic survey in 2010.

South East Asia
Husky is active in South East Asia and has made significant progress in its objective to create a material oil and natural gas business in the region. Husky has promising exploration holdings offshore China and Indonesia. In Block 29/26, appraisal wells have confirmed the deepwater Liwan 3-1 discovery in the South China Sea to be one of China's largest offshore gas fields. New gas discoveries at Liuhua 34-2 and Liuhua 29-1 have further confirmed the resource potential of Block 29/26. The Liuhua fields can be developed in parallel with Liwan 3-1 and will share the same infrastructure. In Indonesia, Husky has an approved Plan of Development to produce natural gas from the BD gas field in the Madura Strait.

In May 2010, Husky announced results of the first appraisal well from the Liuhua 29-1 gas field. The Liuhua 29-1 field is the Company's third significant deepwater gas discovery in Block 29/26 in the South China Sea.

Midstream Operations

As an integrated company, Husky focuses on capturing value along the entire supply chain. Primary assets in Husky's Midstream operation are:

• A heavy oil upgrader in Lloydminster, Saskatchewan, with the capacity to process 82,000 barrels per day

• 2,100 kilometres of pipelines capable of carrying more than 720,000 barrels per day of blended heavy crude oil, diluent and synthetic crude oil

• 3.3 million barrels of hydrocarbon liquids storage capacity

• 33.2 billion cubic feet of natural gas storage capacity

• 50 per cent interest in two natural gas-fired electricity cogeneration (power and steam) stations generating a total of 305 megawatts

• Natural gas liquids extraction capacity of 327,000 cubic feet per day at three individual facilities

• 19 crude oil processing facilities

Husky commodity marketing managed 779,900 barrels of crude oil and natural gas liquids, and 2.1 billion cubic feet of natural gas per day in 2009, and a total of 460,000 tonnes of sulphur.

At the Company's Lloydminster heavy oil upgrader, Husky is assessing the economics of producing or blending ultra-low sulphur diesel which substantially lowers emissions of particulate matter from diesel engines.

Husky's owned and operated pipeline system supports operations in the Lloydminster area, moving feedstock and product from Upstream operations, terminals and refinery facilities.

The Hardisty (Alberta) Terminal operation is a strategic asset with connections to extensive infra - structure facilities and trunk lines. Twenty-five per cent of Canada's pipeline oil exports and 31 per cent of total Canadian heavy oil exports pass through this Husky facility. Additional connections to third-party pipelines increase the versatility of the terminal.

In 2009, Husky contributed crude oil to fill the new Keystone pipeline in preparation for shipping crude from Hardisty to markets in the U.S. Midwest, including Husky’s Lima, Ohio refinery.

The Midstream unit is developing a transportation solution to move bitumen from the Sunrise Oil Sands Project through its terminal facilities and across the U.S. border to the BP-Husky Refinery in Toledo, Ohio. Husky is examining several options and anticipates finalizing its transportation plans in 2010.

Downstream Operations

Husky Energy’s Downstream business includes refining crude oil and marketing gasoline, diesel, asphalt, ethanol and related products in Canada; and refining crude oil and marketing gasoline, diesel, jet fuel andrelated products in the United States.

Refineries
Husky and partner BP sanctioned a $400 million catalyst reformer upgrade at the BP-Husky Refinery in Toledo, Ohio. The upgrade will improve the 160,000 barrel-perday refinery's efficiency and competitiveness while reducing energy consumption and operating costs. Husky's Lima (Ohio) Refinery completed a six-week maintenance turnaround to increase production capacity, and improve safety and environmental performance.

Husky's Downstream segment is active in research, development and innovation. At the Prince George (British Columbia) refinery, Husky is working on a project to produce hydrogen-derived renewable diesel (HDRD). Husky believes HDRD has potential as a preferred renewable-diesel blend.

Ethanol
Husky is a leader in the production and marketing of ethanol and ethanol-blended fuel in Canada. At the University of Manitoba, three Husky Energy Biofuels Research Chairs are working to develop high-yield, disease-resistant winter wheat as an ethanol feedstock, maximize production efficiency, and develop a highvalue dried distillers' grain with solubles feedstock for livestock operations. Husky formed its own grain buying group in 2009, with offices at the Lloydminster,
Saskatchewan and Minnedosa, Manitoba, plants. The offices buy directly from local grain producers.

Asphalt
Husky is the largest producer of paving asphalts in western Canada with 39 per cent of the market. In addition, 36 per cent of its production is exported to the United States. Demand for Husky asphalt continues to grow as contractors and government agencies seek quality products for infrastructure projects.

Research is integral to Husky's continued strength in the asphalt industry. Through contributions from the NSERC/John Lau Husky Energy Industrial Research Chair in Bituminous Materials at the University of Calgary, Husky's 28,500 barrels per day Lloydminster, Alberta, refinery is producing more environmentally friendly and durable asphalt. In 2009, the refinery completed a major turnaround safely and efficiently.

Retail
The Company's 571 network of travel centres, full serve and self serve retail stations, commercial bulk plants and cardlocks stretches from British Columbia to the Ontario/Quebec border.

Husky Energy Inc.
707-8th Avenue SW
Box 6525, Station D
Calgary, Alberta
Canada T2P 3G7
Telephone: (403) 298 6111
Fax: (403) 298 7464
Website: www.huskyenergy.com