Moves Ahead With 80,000 BBL Per Day Carmon Creek Project

Shell moves ahead with 80,000 barrel per day Carmon Creek project October 31, 2013 - Calgary, AB - Royal Dutch Shell plc (Shell) today announcedits decision to proceed with its Carmon Creek project in Alberta, Canada,expected to produce up to 80,000 barrels of oil per day. Carmon Creek is athermal in situ project that is 100 per cent Shell owned and will be part ofthe company's broader production, refining and marketing business across thefull value chain in North America. "I'm pleased we're moving ahead with this important project," said LorraineMitchelmore, Executive Vice President Heavy Oil. "Shell's Peace River oilleases represent a significant development opportunity. Our decision to investin Carmon Creek has been carefully studied with the goal of designing a projectthat is competitive from a commercial, technological and environmentalperspective." At Carmon Creek, Shell combined its global procurement reach and technologywith access to local expertise to design a facility that is both commerciallyviable and minimizes environmental impacts. This design includes a novel welldelivery system and the use of cogeneration that will also feed power into theAlberta grid; enough to power half a million homes. Once the project is up andrunning the aim is to virtually eliminate the need for freshwater use for steamgeneration through recycling of water produced with the oil. Carmon Creek will build on Shell's more than 30 years of experience developingits Peace River heavy oil leases and established relationships with localcommunities and First Nations. It is expected to employ more than 1,000 localtrades and contractors during peak construction periods. Shell submitted its regulatory application for Carmon Creek in 2010 andreceived approval from the Alberta Energy Regulator in April 2013, following arigorous and transparent review process. The project is expected to provide asecure, reliable energy source and benefits to Alberta and Canada for more than35 years. Notes to Editors: * For the startup of Phase One and Two, Carmon Creek will produce from 13 well pads. An inter field pipeline system will transport steam to the wells and produce bitumen, water and natural gas that will be sent to central processing facilities. The central processing facilities will separate bitumen from water and natural gas, which can then be used to produce steam. Diluted bitumen is expected to be exported to existing North American refineries. * Cogeneration units are expected to produce an annual average of up to 630 megawatts (MW) of electricity, of which about 500 MW is expected to be sold to the northwest Alberta power grid. * Shell is taking a well manufacturing approach to drill and complete the wells using the Sirius Well Manufacturing Services joint venture. This approach is based on standardization of components, and allows quicker and repeatable operations that provides opportunities to reduce costs. * To minimize surface disturbance, approximately 48 wells will be closely spaced on each well pad. Each well pad will have a life of 10 to 15 years and as pads come to the end of their life the well pad equipment will be refurbished and reused on new pads and the land will be reclaimed to minimize project footprint. . * As is common in heavy oil construction, modules will be built elsewhere and transported to site for final assembly and commissioning. # # # Enquiries: Media:Shell Canada Media Relations +1 877 850 5023 or [email protected] Shell US Media Relations +1 713 241 4544Shell International Media Relations +44 (0) 20 7934 5550 Investor Relations: North America +1 713 241 1042International + 31 (0) 70 377 4540 Cautionary Note The companies in which Royal Dutch Shell plc directly and indirectly ownsinvestments are separate entities. In this announcement "Shell", "Shell group"and "Royal Dutch Shell" are sometimes used for convenience where references aremade to Royal Dutch Shell plc and its subsidiaries in general. Likewise, thewords "we", "us" and "our" are also used to refer to subsidiaries in general orto those who work for them. These expressions are also used where no usefulpurpose is served by identifying the particular company or companies.``Subsidiaries'', "Shell subsidiaries" and "Shell companies" as used in thisannouncement refer to companies over which Royal Dutch Shell plc eitherdirectly or indirectly has control. Companies over which Shell has jointcontrol are generally referred to "joint ventures" and companies over whichShell has significant influence but neither control nor joint control arereferred to as "associates". In this announcement, joint ventures andassociates may also be referred to as "equity-accounted investments". The term"Shell interest" is used for convenience to indicate the direct and/or indirect(for example, through our 23% shareholding in Woodside Petroleum Ltd.)ownership interest held by Shell in a venture, partnership or company, afterexclusion of all third-party interest. This announcement contains forward-looking statements concerning the financialcondition, results of operations and businesses of Royal Dutch Shell. Allstatements other than statements of historical fact are, or may be deemed tobe, forward-looking statements. Forward-looking statements are statements offuture expectations that are based on management's current expectations andassumptions and involve known and unknown risks and uncertainties that couldcause actual results, performance or events to differ materially from thoseexpressed or implied in these statements. Forward-looking statements include,among other things, statements concerning the potential exposure of Royal DutchShell to market risks and statements expressing management's expectations,beliefs, estimates, forecasts, projections and assumptions. Theseforward-looking statements are identified by their use of terms and phrasessuch as ``anticipate'', ``believe'', ``could'', ``estimate'', ``expect'',``goals'', ``intend'', ``may'', ``objectives'', ``outlook'', ``plan'',``probably'', ``project'', ``risks'', "schedule", ``seek'', ``should'',``target'', ``will'' and similar terms and phrases. There are a number offactors that could affect the future operations of Royal Dutch Shell and couldcause those results to differ materially from those expressed in theforward-looking statements included in this announcement, including (withoutlimitation): (a) price fluctuations in crude oil and natural gas; (b) changesin demand for Shell's products; (c) currency fluctuations; (d) drilling andproduction results; (e) reserves estimates; (f) loss of market share andindustry competition; (g) environmental and physical risks; (h) risksassociated with the identification of suitable potential acquisition propertiesand targets, and successful negotiation and completion of such transactions;(i) the risk of doing business in developing countries and countries subject tointernational sanctions; (j) legislative, fiscal and regulatory developmentsincluding regulatory measures addressing climate change; (k) economic andfinancial market conditions in various countries and regions; (l) politicalrisks, including the risks of expropriation and renegotiation of the terms ofcontracts with governmental entities, delays or advancements in the approval ofprojects and delays in the reimbursement for shared costs; and (m) changes intrading conditions. All forward-looking statements contained in thisannouncement are expressly qualified in their entirety by the cautionarystatements contained or referred to in this section. Readers should not placeundue reliance on forward-looking statements. Additional risk factors that mayaffect future results are contained in Royal Dutch Shell's 20-F for the yearended December 31, 2012 (available at www.shell.com/investorand www.sec.gov ).These risk factors also expressly qualify all forward looking statementscontained in this announcement and should be considered by the reader. Eachforward-looking statement speaks only as of the date of this announcement,October 31, 2013. Neither Royal Dutch Shell plc nor any of its subsidiariesundertake any obligation to publicly update or revise any forward-lookingstatement as a result of new information, future events or other information.In light of these risks, results could differ materially from those stated,implied or inferred from the forward-looking statements contained in thisannouncement. We may have used certain terms, such as resources, in this announcement thatUnited States Securities and Exchange Commission (SEC) strictly prohibits usfrom including in our filings with the SEC. U.S. Investors are urged toconsider closely the disclosure in our Form 20-F, File No 1-32575, available onthe SEC website www.sec.gov. You can also obtain these forms from the SEC bycalling 1-800-SEC-0330.