6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

Pursuant to Section 13a-16 or 15d-16 of the

Securities Exchange Act of 1934

Press Releases November, 2008

Commission File Number: 1-8795

CANADIAN NATURAL RESOURCES LIMITED

(Exact name of registrant as specified in its charter)

2500, 855 – 2nd Street S.W., Calgary, Alberta, Canada T2P 4J8

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F       Form 40-F  X 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1). ____

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes       No  X 

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-______

Exhibit Number	Description
	Press Releases dated November 6, 2008
99.1	Canadian Natural Resources Limited Announces Dividend
99.2	Canadian Natural Resources Limited Announces 2009 Budget
99.3	Canadian Natural Resources Limited Announces Third Quarter 2008 Update on the Progress of the Horizon Oil Sands Project
99.4	Canadian Natural Resources Limited Announces 2008 Third Quarter Results

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

CANADIAN NATURAL RESOURCES LIMITED

(Registrant)

Date:	November 6, 2008	/s/ B. E. McGrath
		B. E. McGRATH
		Corporate Secretary

EX-99

EXHIBIT 99.1

CANADIAN NATURAL RESOURCES LIMITED

ANNOUNCES DIVIDEND

CALGARY, ALBERTA – NOVEMBER 6, 2008 – FOR IMMEDIATE RELEASE

Canadian Natural Resources Limited announces its Board of Directors has declared a quarterly cash dividend on its common shares of C$0.10 (ten cents) per common share. The dividend will be payable January 1, 2009 to shareholders of record at the close of business on December 12, 2008.

Canadian Natural is a senior oil and natural gas production company, with continuing operations in its core areas located in Western Canada, the U.K. portion of the North Sea and Offshore West Africa.

CANADIAN NATURAL RESOURCES LIMITED

2500, 855 – 2^nd Street S.W.

Calgary, Alberta

T2P 4J8

Telephone:       (403) 514-7777 Facsimile:         (403) 514-7888 Email: ir@cnrl.com Website:            www.cnrl.com
Trading Symbol - CNQ
Toronto Stock Exchange
New York Stock Exchange ALLAN P. MARKIN
Chairman   JOHN G. LANGILLE
Vice-Chairman   STEVE W. LAUT
President and
Chief Operating Officer   DOUGLAS A. PROLL
Chief Financial Officer and
Senior Vice-President, Finance   COREY B. BIEBER
Vice-President,
Finance and Investor Relations

Certain information regarding the Company contained herein may constitute forward-looking statements under applicable securities laws. Such statements are subject to known or unknown risks and uncertainties that may cause actual results to differ materially from those anticipated or implied in the forward-looking statements.

EX-99

EXHIBIT 99.3

CANADIAN NATURAL RESOURCES LIMITED ANNOUNCES

THIRD QUARTER 2008 UPDATE ON THE PROGRESS OF

THE HORIZON OIL SANDS PROJECT

CALGARY, ALBERTA – NOVEMBER 6, 2008 – FOR IMMEDIATE RELEASE

Canadian Natural Resources Limited’s (“Canadian Natural” or the “Company”) is pleased to provide its regular quarterly update on the Horizon Oil Sands Project (“Horizon Project” or the “Project”).

Steve Laut, President and Chief Operating Officer of Canadian Natural commented, “Canadian Natural continues with the completion of the construction, commissioning and staged start up of the Horizon Project where we have made significant progress. We are encountering and overcoming challenges in our drive to complete the Project and commence production of Synthetic Crude Oil. These challenges are primarily related to commissioning and startup of the more complex components of the Project. We have resolved these challenges in the Delayed Coker, the Co-generation Plant and the Hydrogen Plant. We are currently in the process of resolving outstanding matters in the Naphtha Hydrotreater and Gas Oil Hydrotreater in the Secondary Upgrading process. We continue to target first Synthetic Crude Oil production in 2008, but recognize that there must not be any further delays in the completion or commissioning of these complex components of the Project. The construction and operations teams in all areas continue to work together to resolve issues and continue to test and prepare for operations.”

Canadian Natural is continuing with the staged start up of the Horizon Project. The seven stages to the start up of the Horizon Project, as outlined in the second quarter update release, and the associated targeted start up dates are as follows:

Stage 1 - Mining

• The Mining Operation is ready and continues to move overburden. The mining team has already delivered over 300,000 tonnes of mined oil sands to the Plant for test purposes.

Stage 2 - Steam Supply

• As previously targeted, the utility plants have been supplying low, medium and high pressure steam for commissioning and start up purposes since July of this year.

Stage 3 - Bitumen Crude Oil Production

• The Bitumen Crude Oil Production operations are fully commissioned except for Froth Treatment. The delays encountered in Froth Treatment have now been resolved. The necessary re-work has been completed and commissioning is well underway. As previously targeted, first bitumen crude oil production of approximately 160,000 barrels for test purposes was achieved in September.

2

Stage 4 - Electricity Generation

• The Co-generation Plant has been producing steam since late July. Electricity generation has been commissioned and is ready for operations.

Stage 5 - Sulphur Plant/Sour Gas Treating

• The Sulphur Plant is complete and being turned over to operations for commissioning.

Stage 6 - Partially Upgraded Crude Oil Production

• The Delayed Coker / Diluent Recovery Unit Plants were completed in late October and have been turned over to operations for commissioning and are currently circulating diesel and waiting for Secondary Upgrading (Hydrotreaters) to start up.

Stage 7 - 34°API, Light Sweet Synthetic Crude Oil Production

• The Naphtha Hydrotreating Plant (Plant 41) is completed and currently being commissioned.

• The Gas Oil Hydrotreating Plant (Plant 43) is completing electrical heat tracing and insulation concurrent with commissioning.

• With an estimated start up capacity of 70,000 bbl/d, first delivery of 34˚ API, light sweet SCO to the sales pipeline is currently targeted for late in the fourth quarter of 2008.

• The Distillate Hydrotreating Plant (Plant 42) is mechanically complete except for electrical heat tracing and insulation. First product output through Plant 42 is currently targeted for the latter part of Q1/09 enabling production to start ramping up to targeted facility capacity of 110,000 bbl/d.

• Targeted production ramp up would see 50-60% of facility capacity by the end of Q1/09 and reach full targeted facility capacity later in 2009.

Commenting on third quarter progress, Real Doucet, Senior Vice President, Oil Sands, stated “The majority of the processing plants are either fully commissioned or well into commissioning. The remaining work is being carefully managed, to ensure a successful project by having all the necessary systems operational for cold weather. The safety and well-being of our contractors and operations staff remains a priority. Our on-site manpower is ramping down as we have reduced our construction workforce by over 50% during Q3/08 to approximately 2,500 tradesmen currently on site. The necessary operators required for start up and a strong management team are all in place.”

A high level overview of progress by major plant facility at the Horizon Project is as follows:

§ Mining – Completed, ready for oil sands mining operation, continues to move overburden

§ Ore Preparation Plant – Completed, ready for operation

§ Hydrotransport – Completed, ready for operation

§ Piperack – Completed, live and operational

§ Extraction – Completed, ready for operation

§ Froth Treatment – Completed, in commissioning and testing

§ Delayed Coker / Diluent Recovery Unit – Completed, circulating diesel and ready for operation

§ Co-generation – Completed, producing steam and power

§ Sulphur Plant – Completed, turned over to operations for commissioning and testing

§ Tankage – Completed, ready for operation

§ Main Control Room – Completed, live and operational

§ Utilities & Services – Completed, live and operational

3

§ SCO Pipeline (third party owned and operated) – Completed, ready for operation

§ Hydrogen Plant – Completed, turned over to operations for commissioning and testing

§ Hydrotreaters – Plant 41 has been completed and turned over to operations for commissioning and testing. Plant 43 is completing electrical heat tracing and insulation while starting commissioning. Plant 42 is mechanically complete with electrical heat tracing and insulation to be completed before turning over to operations for commissioning and testing.

The delays experienced and extended commissioning schedule has lead to an increase of $441 million to the Project forecast construction costs. This results in the revised total cost estimate for Phase 1 of the Horizon Project to be approximately $9.7 billion. The targeted on-stream cost estimate is $88,200 bbl/d capacity, including the benefits of the significant pre-build capital invested for future phases. Although Canadian Natural is disappointed with the increase to the overall targeted project cost, the Company wants to ensure that it is done right, with the safety of the staff and contractors, along with the quality of the operation, always in mind.

A picture gallery providing visual updates on construction progress is available on the Company’s website (http://www.cnrl.com/horizon/about_horizon/photo_gallery.html).

The Company’s results for the third quarter of 2008 will be released on November 6th, 2008. A conference call will be held on that day at 7:00 a.m. Mountain Daylight Time, 9:00 a.m. Eastern Daylight Time.

Canadian Natural is a senior oil and natural gas production company, with continuing operations in its core areas located in Western Canada, the U.K. portion of the North Sea and Offshore West Africa.

4

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements in this document or documents incorporated herein by reference constitute forward-looking statements or information (collectively referred to herein as “forward-looking statements”) within the meaning of applicable securities legislation. Forward-looking statements can be identified by the words “believe”, “anticipate”, “expect”, “plan”, “estimate”, “target”, “continue”, “could” “intend”, “may”, “potential”, “predict”, “should”, “will”, “objective”, “project”, “forecast”, “goal”, “guidance”, “outlook”, “effort” “seeks”, “schedule” or expressions of a similar nature suggesting future outcome or statements regarding an outlook. Statements relating to “reserves” are deemed to be forward-looking statements as they involve the implied assessment based on certain estimates and assumptions that the reserves described can be profitably produced in the future. There are numerous uncertainties inherent in estimating quantities of proved crude oil and natural gas reserves and in projecting future rates of production and the timing of development expenditures. The total amount or timing of actual future production may vary significantly from reserve and production estimates. In addition, these statements are not guarantees of future performance and are subject to certain risks and the reader should not place undue reliance on these forward-looking statements as there can be no assurance that the plans, initiatives or expectations upon which they are based will occur.

The forward-looking statements are based on current expectations, estimates and projections about Canadian Natural Resources Limited (the “Company”) and the industry in which the Company operates, which speak only as of the date such statements were made or as of the date of the report or document in which they are contained and are subject to known and unknown risks, uncertainties and other factors that could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others: general economic and business conditions which will, among other things, impact demand for and market prices of the Company’s products; volatility of and assumptions regarding crude oil and natural gas prices; fluctuations in currency and interest rates; assumptions on which the Company’s current guidance is based; economic conditions in the countries and regions in which the Company conducts business; political uncertainty, including actions of or against terrorists, insurgent groups or other conflict including conflict between states; industry capacity; ability of the Company to implement its business strategy, including exploration and development activities; impact of competition; the Company’s defense of lawsuits; availability and cost of seismic, drilling and other equipment; ability of the Company and its subsidiaries to complete its capital programs; the Company’s and its subsidiaries’ ability to secure adequate transportation for its products; unexpected difficulties in mining, extracting or upgrading the Company’s bitumen products; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; ability of the Company to attract the necessary labour required to build its thermal and oil sands mining projects; operating hazards and other difficulties inherent in the exploration for and production and sale of crude oil and natural gas; availability and cost of financing; the Company’s and its subsidiaries’ success of exploration and development activities and their ability to replace and expand crude oil and natural gas reserves; timing and success of integrating the business and operations of acquired companies; production levels; imprecision of reserve estimates and estimates of recoverable quantities of crude oil, bitumen, natural gas and liquids not currently classified as proved; actions by governmental authorities; government regulations and the expenditures required to comply with them (especially safety and environmental laws and regulations and the impact of climate change initiatives on capital and operating costs); asset retirement obligations; the adequacy of the Company’s provision for taxes; and other circumstances affecting revenues and expenses. Certain of these factors are discussed in more detail under the heading “Risk Factors”. The Company’s operations have been, and at times in the future may be affected by political developments and by federal, provincial and local laws and regulations such as restrictions on production, changes in taxes, royalties and other amounts payable to governments or governmental agencies, price or gathering rate controls and environmental protection regulations. Should one or more of these risks or uncertainties materialize, or should any of the Company’s assumptions prove incorrect, actual results may vary in material respects from those projected in the forward-looking statements. The impact of any one factor on a particular forward-looking statement is not determinable with certainty as such factors are dependent upon other factors, and the Company’s course of action would depend upon its assessment of the future considering all information then available.

Readers are cautioned that the foregoing list of important factors is not exhaustive. Unpredictable or unknown factors not discussed in this report could also have material adverse effects on forward-looking statements. Although the Company believes that the expectations conveyed by the forward-looking statements are reasonable based on information available to it on the date such forward-looking statements are made, no assurances can be

5

given as to future results, levels of activity and achievements. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Except as required by law, the Company assumes no obligation to update forward-looking statements should circumstances or Management’s estimates or opinions change.

6

For further information, please contact:

CANADIAN NATURAL RESOURCES LIMITED

2500, 855 – 2^nd Street S.W.

Calgary, Alberta

T2P 4J8

Telephone:       (403) 514-7777 Facsimile:         (403) 514-7888 Email:               ir@cnrl.com Website:           www.cnrl.com
Trading Symbol - CNQ
Toronto Stock Exchange
New York Stock Exchange ALLAN P. MARKIN
Chairman   JOHN G. LANGILLE
Vice-Chairman   STEVE W. LAUT
President and
Chief Operating Officer   DOUGLAS A. PROLL Chief Financial Officer and
Senior Vice-President, Finance   COREY B. BIEBER
Vice-President, Finance and Investor Relations

EX-99

                                                                   EXHIBIT 99.4
                                                                   ------------


- --------------------------------------------------------------------------------
                                                         |
[GRAPHICS OMITTED - PHOTOGRAPHS]                         |   CANADIAN NATURAL
                                                         |
- -------------  --------------------   ------------------ | ---------------------
 diverse                                                 |
asset base   |  disciplined growth  |  strong leadership |     NEWS RELEASE
                                                         |
- --------------------------------------------------------------------------------

                  CANADIAN NATURAL RESOURCES LIMITED ANNOUNCES
                           2008 THIRD QUARTER RESULTS
           CALGARY, ALBERTA - NOVEMBER 6, 2008 - FOR IMMEDIATE RELEASE

Commenting on the third quarter 2008 results, Canadian Natural Resources Limited
("Canadian  Natural" or the  "Company")'s  Chairman,  Allan Markin stated,  "The
Company delivered strong results in the third quarter,  clearly illustrating how
Canadian  Natural is  strategically  positioned  to weather the ups and downs of
economic  uncertainty.  Our fundamental approach to business does not change due
to market conditions and the true strength of the Company lies in our ability to
create  value  in both  good  economic  times  and  bad.  As the  third  quarter
experienced  volatile commodity pricing,  our results serve as an example of how
our  strategy of capital  allocation,  balance and cost  control has led us to a
history of creating value for our shareholders. Canadian Natural is committed to
"doing it right" for all  stakeholders.  We remain  active  participants  in the
communities  in which we operate to ensure we conduct our  business  safely,  to
maximize  economic  return,  and participate  with  communities both locally and
regionally, while minimizing impact to the environment."

John  Langille,  Vice-Chairman  of Canadian  Natural  continued,  "Third quarter
results show the discipline of Canadian Natural as cash flow from operations and
capital  expenditures  were balanced for the quarter.  Our hedging  program is a
reflection of our commitment to internally fund our capital  projects.  As such,
we have  added to our  hedges  for 2009 for both  crude oil and  natural  gas at
strong prices. Our major projects in Alberta and Offshore West Africa are either
onstream or will be onstream by the first  quarter of 2009 and as such,  capital
spending on these projects will decrease  markedly.  The cash flow that has been
going towards these projects,  along with the cash flow they will generate, will
provide  free cash flow which will first go towards  paying  down debt,  further
strengthening our balance sheet."

President and Chief Operating Officer,  Steve Laut,  commented,  "Balance in our
asset  base  provides  us the  ability to  optimize  capital  allocation.  These
projects  continue  to  center on heavy  crude oil as a result of the  favorable
heavy crude oil differential and Canadian  Natural's ability to execute on these
projects.  The  Primrose  East  expansion,  which will  contribute  up to 40,000
barrels  per day of thermal  crude  oil,  has come in ahead of  schedule  and on
budget.  We achieved  first steam in September  and the project  achieved  first
production  in October.  The Olowi  project in Offshore  West Africa  which will
deliver  20,000  barrels per day of light  crude oil and is  targeted  for first
production  in the  first  quarter  of 2009.  The  Horizon  Project  is  nearing
completion  with  first  synthetic  crude oil  targeted  for late in the  fourth
quarter.  First bitumen crude oil production was achieved in early September and
since then we have produced  approximately  160,000  barrels of bitumen for test
purposes. The majority of the processing plants are either fully commissioned or
well into  commissioning,  and our on-site manpower has been reduced by over 50%
during the quarter.  As we look forward to the imminent  increase in  production
coming from Primrose  East, the Horizon  Project,  Olowi,  and Baobab,  Canadian
Natural emerges as a stronger, more diversified and robust company."





HIGHLIGHTS
                                                               Three Months Ended                      Nine Months Ended
                                                 ---------------                                ---------------
                                                         SEP 30          Jun 30         Sep 30          SEP 30          Sep 30
($ millions, except as noted)                              2008            2008           2007            2008            2007
- ---------------------------------------------------------------- --------------- -------------- --------------- ---------------
                                                                                                   
Net earnings (loss)                               $       2,835   $        (347)  $        700   $      3,215     $     1,810
     per common share, basic and diluted          $        5.25   $       (0.65)  $       1.30   $       5.95     $      3.36
Adjusted net earnings from operations (1)         $         963   $        960    $        644   $      2,795     $     1,860
     per common share, basic and diluted          $        1.78   $       1.78    $       1.19   $       5.17     $      3.44
Cash flow from operations (2)                     $       1,815   $      1,859    $      1,577   $      5,399     $     4,712
     per common share, basic and diluted          $        3.36   $       3.44    $       2.92   $       9.99     $      8.74
Capital expenditures, net of dispositions         $       1,744   $      2,127    $      1,442   $      5,624     $     4,911

Daily production, before royalties
     Natural gas (mmcf/d)                                 1,490          1,526           1,647          1,518           1,695
     Crude oil and NGLs (bbl/d)                         306,970        319,077         333,062        317,715         329,208
     Equivalent production (boe/d)                      555,356        573,437         607,484        570,704         611,665
===============================================================================================================================

(1)  ADJUSTED  NET  EARNINGS  FROM  OPERATIONS  IS A NON-GAAP  MEASURE  THAT THE
     COMPANY  UTILIZES TO  EVALUATE  ITS  PERFORMANCE.  THE  DERIVATION  OF THIS
     MEASURE IS DISCUSSED IN THE MANAGEMENT'S DISCUSSION AND ANALYSIS ("MD&A").

(2)  CASH FLOW FROM OPERATIONS IS A NON-GAAP MEASURE THAT THE COMPANY  CONSIDERS
     KEY AS IT DEMONSTRATES THE COMPANY'S  ABILITY TO FUND CAPITAL  REINVESTMENT
     AND REPAY DEBT. THE DERIVATION OF THIS MEASURE IS DISCUSSED IN THE MD&A.

o    Total  crude oil and NGLs  production  for Q3/08 was 306,970  bbl/d.  Q3/08
     crude oil production  volumes decreased 4% from Q2/08 of 319,077 bbl/d, and
     decreased  8% from Q3/07 of 333,062  bbl/d.  Volumes in Q3/08  reflect  the
     transition  between steam and production cycles for Primrose thermal wells,
     and continued  conversion of production wells to polymer injection wells at
     Pelican  Lake,  along  with  scheduled  turnarounds  in the  North  Sea and
     Offshore West Africa.

o    Natural gas production volumes for the third quarter represented 45% of the
     Company's total production. Natural gas production for Q3/08 averaged 1,490
     mmcf/d,  down 2% from 1,526 mmcf/d for Q2/08 and down 10% from 1,647 mmcf/d
     for Q3/07.  The  decrease  in volumes  for Q3/08 from Q3/07  reflected  the
     reallocation of capital towards higher return crude oil projects.  However,
     the quarter  once again saw a very  successful  North  America  natural gas
     drilling program.

o  Quarterly cash flow from  operations  was over $1.8 billion,  a 2% decrease
     from Q2/08 and an  increase  of 15% from  Q3/07.  The  increase  from Q3/07
     primarily   reflected  higher  crude  oil  and  natural  gas  realizations,
     partially  offset  by  higher  realized  risk  management  losses,   higher
     royalties and lower sales  volumes.  The decrease from Q2/08 is primarily a
     result of decreased sales volumes and higher production  costs,  offsetting
     lower realized risk management losses and lower royalties.

o  Quarterly  net earnings  for Q3/08 of $2.8 billion  includes the effects of
     unrealized  risk  management   activity,   stock  based   compensation  and
     fluctuations in foreign exchange. Excluding these items, quarterly adjusted
     net earnings from operations for Q3/08 were $963 million.

o  Maintained a strong  undeveloped  conventional  core land base in Canada of
     11.7 million net acres - a key asset for continued value growth.

o  Improvements  at the Pelican Lake Field  continue  with the  conversion  of
     water  flood  wells to  polymer  flood  wells,  with  production  averaging
     approximately 37,000 bbl/d.


2                                            CANADIAN NATURAL RESOURCES LIMITED
===============================================================================


o    The  Primrose  East  Expansion,  which is targeted  to add 40,000  bbl/d of
     capacity, has made significant progress. First steam commenced in September
     of this year, coming in ahead of schedule. First production was achieved in
     late October 2008 versus a previous target of Q1/09.

o    Drilling has started at Baobab in Offshore Cote d'Ivoire. The equipment was
     mobilized  in early Q2/08,  enabling  work to begin on the  restoration  of
     shut-in  production  with the first well brought on stream in Q3/08.  It is
     targeted that 3 of the 5 wells will be brought on stream over the course of
     2008 and 2009.

o    The  Olowi  Project  in  Offshore  Gabon  has  experienced  some  delays in
     construction  of the FPSO and first oil is now  expected  in Q1/09.  During
     Q3/08, construction of the Conductor Supported Platform Deck was completed.
     Two  appraisal  wells have been drilled and  development  is  continuing as
     planned.

o    Construction and  commissioning of the Horizon Oil Sands Project  ("Horizon
     Project" or the "Project")  continued in Q3/08 with first bitumen crude oil
     production for testing purposes commencing in early September.  First 34(0)
     API, light sweet  synthetic  crude oil  production  ("SCO") is targeted for
     late Q4/08.

o    Committed  to ship  120,000  bbl/d of heavy  crude  oil for 20 years on the
     proposed Keystone  pipeline US Gulf Coast expansion from Hardisty,  Alberta
     to Port Arthur, Texas.

o    Committed to a 100,000 bbl/d heavy crude oil supply  agreement with a major
     US refiner to supply  refineries  in the Gulf Coast at market prices for 20
     years.

o    Declared a quarterly  cash  dividend on common  shares of C$0.10 per common
     share, payable January 1, 2009.



CANADIAN NATURAL RESOURCES LIMITED                                            3
===============================================================================


OPERATIONS REVIEW AND CAPITAL ALLOCATION

In order to  facilitate  efficient  operations,  Canadian  Natural  focuses  its
activities   in  core   regions   where  it  can  dominate  the  land  base  and
infrastructure. Undeveloped land is critical to the Company's ongoing growth and
development within these core regions. Land inventories are maintained to enable
continuous  exploitation of play types and geological  trends,  greatly reducing
overall exploration risk. By dominating  infrastructure,  the Company is able to
maximize  utilization of its production  facilities,  thereby increasing control
over production costs.  Further, the Company maintains large project inventories
and production diversification among each of the commodities it produces; namely
natural  gas,  light/medium  crude  oil,  heavy  crude  oil  and  NGLs.  A large
diversified  project  portfolio  enables the effective  allocation of capital to
higher return opportunities.

OPERATIONS REVIEW



ACTIVITY BY CORE REGION
                                                          ----------------------------------------------------
                                                               NET UNDEVELOPED LAND          DRILLING ACTIVITY
                                                                              AS AT          NINE MONTHS ENDED
                                                                       SEP 30, 2008               SEP 30, 2008
                                                           (THOUSANDS OF NET ACRES)            (NET WELLS) (1)
- --------------------------------------------------------------------------------------------------------------
                                                                                       
Canadian conventional
     Northeast British Columbia                                               2,284                      24.2
     Northwest Alberta                                                        1,379                      69.7
     Northern Plains                                                          6,563                     479.1
     Southern Plains                                                            854                      91.2
     Southeast Saskatchewan                                                     124                      47.0
     In-situ Oil Sands                                                          497                      72.0
- --------------------------------------------------------------------------------------------------------------
                                                                             11,701                     783.2
Horizon Oil Sands Project                                                       115                         -
United Kingdom North Sea                                                        268                       4.1
Offshore West Africa                                                            207                       3.0
- --------------------------------------------------------------------------------------------------------------
                                                                             12,291                     790.3
==============================================================================================================

(1)  DRILLING ACTIVITY INCLUDES STRATIGRAPHIC TEST AND SERVICE WELLS



DRILLING ACTIVITY (NUMBER OF WELLS)
                                                                                 Nine Months Ended Sep 30
                                                                     -----------------------
                                                                         2008                           2007
                                                                        GROSS           NET            Gross             Net
- -----------------------------------------------------------------------------------------------------------------------------
                                                                                                             
Crude oil                                                                 529           500              458             423
Natural gas                                                               304           228              386             303
Dry                                                                        32            28               89              77
- -----------------------------------------------------------------------------------------------------------------------------
Subtotal                                                                  865           756              933             803
Stratigraphic test / service wells                                         36            34              250             248
- -----------------------------------------------------------------------------------------------------------------------------
Total                                                                     901           790            1,183           1,051
- -----------------------------------------------------------------------------------------------------------------------------
    Success rate (excluding stratigraphic test / service wells)                         96%                              90%
=============================================================================================================================



4                                            CANADIAN NATURAL RESOURCES LIMITED
===============================================================================


NORTH AMERICA CONVENTIONAL



NORTH AMERICA NATURAL GAS
                                                          Three Months Ended                       Nine Months Ended
                                            --------------                                ----------------
                                                   SEP 30          Jun 30         Sep 30          SEP 30          Sep 30
                                                     2008            2008           2007            2008            2007
- -------------------------------------------------------------------------------------------------------------------------
                                                                                                    
Natural gas production (mmcf/d)                     1,467           1,501          1,622           1,494           1,670
- -------------------------------------------------------------------------------------------------------------------------

Net wells targeting natural gas                        62               8            106             237             358
Net successful wells drilled                           62               5             96             228             303
- -------------------------------------------------------------------------------------------------------------------------
         Success rate                                100%             63%            91%             96%             85%
=========================================================================================================================

o    Q3/08 North  America  natural gas  production  decreased  2% from Q2/08 and
     decreased  10% from Q3/07.  The year over year decrease  reflected  natural
     declines in base  production  due to the  Company's  strategic  decision to
     reduce spending on natural gas drilling.

o    Canadian  Natural  targeted 62 net natural gas wells in Q3/08. In Northeast
     British Columbia,  2 net wells were drilled,  while in Northwest Alberta, 7
     net wells were drilled.  In the Northern Plains, 38 net wells were drilled,
     with 15 net wells drilled in the Southern Plains.

o    Planned drilling  activity for Q4/08 includes 31 natural gas wells compared
     to drilling activity for Q4/07 of 92 net natural gas wells.

o    Inflationary  pressure  continues to affect  capital and service  costs for
     natural gas drilling.  Cost control and maximizing shareholder value remain
     priorities within this business environment.



NORTH AMERICA CRUDE OIL AND NGLS
                                                         Three Months Ended                       Nine Months Ended
                                             -------------                                --------------
                                                   SEP 30        Jun 30          Sep 30          SEP 30          Sep 30
                                                     2008          2008            2007            2008            2007
- ------------------------------------------------------------------------------------------------------------------------
                                                                                                 
Crude oil and NGLs production (bbl/d)             239,973       245,616         252,095         244,832         243,388
- ------------------------------------------------------------------------------------------------------------------------

Net wells targeting crude oil                         244            94             153             514             438
Net successful wells drilled                          233            92             150             496             416
- ------------------------------------------------------------------------------------------------------------------------
         Success rate                                 95%           98%             98%             96%             95%
========================================================================================================================

o    Q3/08 North America crude oil and NGLs  production  decreased 2% from Q2/08
     and  decreased 5% from Q3/07  levels.  The  decreases  are a reflection  of
     transitioning off the production cycle peaks at Primrose pads and continued
     polymer conversion at Pelican Lake.

o    The Primrose East Expansion,  a new facility located 15 kilometers from the
     existing  Primrose  South steam plant and 25 kilometers  from the Wolf Lake
     central  processing  facility,  is targeted to add  production  capacity of
     approximately 40,000 bbl/d of crude oil. Drilling and facility construction
     is complete,  with first steam  achieved in September and first  production
     achieved  in  October  versus  the  scheduled  production  target of Q1/09.
     Primrose  East is the second  phase of the  325,000  bbl/d  thermal  growth
     expansion  plan  identified  to unlock  the value from  Canadian  Natural's
     thermal crude oil resource base.

o    In early 2007,  Canadian Natural  announced its proposed third phase of the
     thermal growth plan with a development plan for the production  capacity of
     45,000 bbl/d Kirby In-Situ Oil Sands Project  located  approximately  85 km
     northeast of Lac La Biche in the Regional Municipality of Wood Buffalo. The
     Company  has filed its formal  regulatory  application  documents  for this
     project as part of the Company's normal course of business.


CANADIAN NATURAL RESOURCES LIMITED                                            5
===============================================================================


o    Development  of new pads and  secondary  recovery  conversion  projects  at
     Pelican Lake continued as expected  throughout Q3/08. In Q3/08, the Company
     drilled 35 horizontal wells with plans to drill an additional 18 horizontal
     wells  throughout the remainder of 2008.  Pelican Lake production  averaged
     approximately 37,000 bbl/d for Q3/08 compared to approximately 35,000 bbl/d
     for Q3/07 and  approximately  37,000 bbl/d for Q2/08. The response from the
     polymer  flood  project  continues to be positive and the Company is moving
     forward on converting  regions  currently under waterflood to polymer flood
     and expanding the polymer flood to new areas.

o    Conventional  heavy crude oil production volumes remained constant in Q3/08
     compared to Q2/08, with volumes as expected.

o    During Q3/08,  drilling activity targeted 244 net crude oil wells including
     152 wells targeting heavy crude oil, 35 wells targeting  Pelican Lake crude
     oil, 16 wells  targeting  thermal  crude oil and 41 wells  targeting  light
     crude oil.

o    Planned  drilling  activity  for Q4/08  includes  222 net crude oil  wells,
     excluding stratigraphic test and service wells.

o    Inflationary  pressure  continues to affect  capital and service  costs for
     crude oil drilling.  Cost control and maximizing  shareholder  value remain
     priorities within this business environment.



INTERNATIONAL

                                                              Three Months Ended                        Nine Months Ended
                                              ------------------                                ---------------
                                                         SEP 30          Jun 30          Sep 30         SEP 30         Sep 30
                                                           2008            2008            2007           2008           2007
- ------------------------------------------------------------------------------------------------------------------------------
                                                                                                        
Crude oil production (bbl/d)
         North Sea                                       42,760          45,830          52,013         46,041         57,020
         Offshore West Africa                            24,237          27,631          28,954         26,842         28,800
- ------------------------------------------------------------------------------------------------------------------------------
Natural gas production (mmcf/d)
         North Sea                                            9              10              10             10             13
         Offshore West Africa                                14              15              15             14             12
- ------------------------------------------------------------------------------------------------------------------------------
Net wells targeting crude oil                               0.6             1.6             2.2            4.4            7.3
Net successful wells drilled                                0.6             0.8             2.2            3.6            7.3
- ------------------------------------------------------------------------------------------------------------------------------
         Success rate                                      100%             50%            100%            82%           100%
==============================================================================================================================


NORTH SEA

o    At the end of the quarter 0.9 net crude oil wells were in  progress.  Crude
     oil  production  was down 7% in Q3/08 to 42,760  bbl/d from 45,830 bbl/d in
     Q2/08 as a result  of  planned  shutdowns  for  maintenance  at  Murchison,
     T-Block and Banff.

o    Focus  continues  on infill  drilling  and  workover  opportunities  with a
     workover  completed at Murchison during the quarter.  A further workover at
     Columba  E and an oil well at  Ninian  were in  progress  at the end of the
     quarter.

o    Focus on waterflood  optimization at Ninian  continues with water injection
     volumes in the quarter being the highest  since  Canadian  Natural  assumed
     operatorship in 2002.


6                                            CANADIAN NATURAL RESOURCES LIMITED
===============================================================================


OFFSHORE WEST AFRICA

o    Offshore  West  Africa's  crude oil  production  decreased  12% in Q3/08 to
     24,237 bbl/d from 27,631 bbl/d in Q2/08. A planned  shutdown was undertaken
     at Baobab  during the quarter for  maintenance  and tie in of the first new
     well from the drilling program.  Espoir production declined due to the loss
     of two wells during the quarter;  however a  successful  well  intervention
     program restored production at one well during Q3/08 and the second well in
     early Q4/08.

o    Progress on the Facility Upgrade Project at Espoir to increase  capacity of
     the Floating,  Production, Storage and Offtake Vessel ("FPSO") continues to
     progress  ahead of schedule and is expected to be  completed  in Q3/09,  an
     acceleration of 3 months from the original estimate.

o    At Baobab,  the Company  continued with the deep water drilling  program in
     order to  restore  shut-in  production  with one well  brought on stream in
     Q3/08.  Based on  progress  to date it is  expected  that 3 of the 5 Baobab
     wells will come on stream over the course of 2008 and 2009.

o    The Olowi Project in Offshore Gabon has experienced a delay in construction
     of  the  FPSO  and  first  oil  is  expected  during  Q1/09.  During  Q3/08
     construction  of the  Conductor  Supported  Platform  Deck was completed in
     November of 2008. Two appraisal  wells have been drilled and development is
     continuing as planned.

HORIZON PROJECT

o    Canadian   Natural   continues   the   completion   of  the   construction,
     commissioning  and staged start up of the Horizon Project.  There have been
     some  challenges  encountered  and  overcome in the drive to  complete  the
     Project and commence  production of SCO.  These  challenges  have primarily
     related to commissioning and start up of the more complex components of the
     Project.  The  challenges  have been  resolved  in the Delayed  Coker,  the
     Co-generation  Plant  and  the  Hydrogen  Plant.  Outstanding  matters  are
     currently  being  resolved  in  the  Naphtha   Hydrotreater   and  Gas  Oil
     Hydrotreater in the Secondary Upgrading process.

o    First SCO production is targeted for late in the fourth quarter of 2008 but
     the Company  recognizes  that there must not be any  further  delays in the
     completion or commissioning of these complex components of the Project. The
     construction and operations teams in all areas continue to work together to
     resolve issues and continue to test and prepare the site for operations.

o    Canadian  Natural is  continuing  with the staged  start up of the  Horizon
     Project.  The  seven  stages  to the start up of the  Horizon  Project,  as
     outlined in the second quarter update release,  and the associated targeted
     start up dates are as follow:

     -   STAGE 1 - Mining.  The Mining  Operation is ready and continues to move
         overburden.  The mining team has already  delivered over 300,000 tonnes
         of mined oil sands to the Plant for test purposes.

     -   STAGE 2 - Steam Supply. As previously targeted, the utility plants have
         been  supplying low,  medium and high pressure steam for  commissioning
         and start up purposes since July of this year.

     -   STAGE  3  -  Bitumen  Crude  Oil  Production.  The  Bitumen  Crude  Oil
         Production   operations  are  fully   commissioned   except  for  Froth
         Treatment.  The delays  encountered  in Froth  Treatment  have now been
         resolved.  The necessary re-work is completed and commissioning is well
         underway. As previously targeted, first bitumen crude oil production of
         approximately  160,000  barrels  for  test  purposes  was  achieved  in
         September.

     -   STAGE 4 -  Electricity  Generation.  The  Co-generation  Plant has been
         producing  steam  since  late  July.  Electricity  generation  has been
         commissioned and is ready for operations.

     -   STAGE 5 -  Sulphur  Plant/Sour  Gas  Treating.  The  Sulphur  Plant is
         complete and is being turned over to operations for commissioning.

     -   STAGE  6  -  Partially  Upgraded  Crude  Oil  Production.  The  Delayed
         Coker/Diluent Recovery Unit Plants were completed in late October, have
         been turned over to  operations  for  commissioning  and are  currently
         circulating diesel and waiting for Secondary Upgrading to start up.


CANADIAN NATURAL RESOURCES LIMITED                                            7
===============================================================================


     -   STAGE 7 -  34(degree)API,  Light Sweet  Synthetic Crude Oil Production.
         The Naphtha  Hydrotreating  Plant (Plant 41) is completed and currently
         being  commissioned.  The Gas Oil  Hydrotreating  Plant  (Plant  43) is
         completing  electrical  heat  tracing and  insulation  concurrent  with
         commissioning.  With an  estimated  start up capacity of 70,000  bbl/d,
         first delivery of 34(degree) API, light sweet SCO to the sales pipeline
         is  currently  targeted  for late in the fourth  quarter  of 2008.  The
         Distillate  Hydrotreating  Plant  (Plant 42) is  mechanically  complete
         except for electrical heat tracing and insulation. First product output
         through  Plant 42 is  currently  targeted for the latter part of Q1/09,
         enabling  production start to ramp up to targeted  facility capacity of
         110,000 bbl/d of SCO.  Targeted  production ramp up would see 50-60% of
         facility  capacity by the end of Q1/09 and reach full targeted facility
         capacity by later in 2009.

o    The majority of the processing plants are either fully commissioned or well
     into commissioning. The remaining work is being carefully managed, ensuring
     a successful  project by having all the necessary  systems  operational for
     cold  weather.

o    The safety and well-being of the Horizon Project  contractors and operation
     staff remains a priority.  On-site manpower is ramping down and the Company
     has  reduced  its  construction  workforce  by over  50%  during  Q3/08  to
     approximately  2,500 tradesmen  currently on site. The necessary  operators
     required for start up and a strong management team are all in place.

o    A high level  overview of  progress by major plant  facility at the Horizon
     Project is as follows:

     -    MINING - Completed, ready for oil sands mining operation, continues to
          move overburden

     -    ORE PREPARATION PLANT - Completed, ready for operation

     -    HYDROTRANSPORT - Completed, ready for operation

     -    PIPERACK - Completed,  live and  operational

     -    EXTRACTION - Completed, ready for operation

     -    FROTH TREATMENT - Completed, in commissioning and testing

     -    DELAYED  COKER/DILUENT  RECOVERY UNIT - Completed,  circulating diesel
          and ready for operation

     -    CO-GENERATION - Completed, producing steam and power

     -    SULPHUR PLANT - Completed, turned over to operations for commissioning
          and testing

     -    TANKAGE - Completed, ready for operation

     -    MAIN CONTROL ROOM - Completed, live and operational

     -    UTILITIES & SERVICES - Completed, live and operational

     -    SCO PIPELINE  (THIRD PARTY OWNED AND OPERATED) - Completed,  ready for
          operation

     -    HYDROGEN   PLANT  -   Completed,   turned  over  to   operations   for
          commissioning and testing

     -    HYDROTREATERS  -  Plant  41 has  been  completed  and  turned  over to
          operations  for  commissioning  and  testing.  Plant 43 is  completing
          electrical  heat tracing and insulation  while starting  commissioning
          and testing.  Plant 42 is  mechanically  complete with electrical heat
          tracing and  insulation to be completed  before turning the plant over
          to operations for commissioning and testing.

o    Delays and an  extended  commissioning  schedule  has led to an increase of
     $441 million to the Project forecast  construction  costs.  This results in
     the revised  total  construction  cost  estimate for Phase 1 of the Horizon
     Project to be  approximately  $9.7  billion.  The targeted  on-stream  cost
     estimate  is  $88,200  bbl/d  capacity,   including  the  benefits  of  the
     significant pre-build capital invested for future phases.


8                                            CANADIAN NATURAL RESOURCES LIMITED
===============================================================================




MARKETING

                                                             Three Months Ended                       Nine Months Ended
                                                 -------------                                 ---------------
                                                       SEP 30          Jun 30          Sep 30          SEP 30          Sep 30
                                                         2008            2008            2007            2008            2007
- ------------------------------------------------------------------------------------------------------------------------------
                                                                                                  
Crude oil and NGLs pricing
   WTI (1) benchmark price (US$/bbl)              $    118.13   $      124.00    $      75.33   $      113.38    $      66.26
   Western Canadian Select blend
   differential(2) from WTI (%)                           15%             17%             30%             18%             29%
   Corporate average pricing before risk
   management (C$/bbl)                            $    102.30   $      103.73    $      58.10   $       94.72    $      54.57
Natural gas pricing
   AECO benchmark price (C$/GJ)                   $      8.78   $        8.86    $       5.32   $        8.16    $       6.46
   Corporate average pricing before risk
   management (C$/mcf)                            $      8.82   $        9.89    $       5.87   $        8.83    $       7.03
==============================================================================================================================

(1)  REFERS TO WEST TEXAS INTERMEDIATE (WTI) CRUDE OIL BARREL PRICED AT CUSHING,
     OKLAHOMA.

(2)  BEGINNING IN Q1 2008,  THE COMPANY HAS  QUANTIFIED  THE HEAVY  DIFFERENTIAL
     USING THE  WESTERN  CANADIAN  SELECT  ("WCS")  BLEND AS THE HEAVY CRUDE OIL
     MARKER. PRIOR PERIOD AMOUNTS HAVE BEEN RECLASSIFIED.

o    In Q3/08, the WCS heavy crude oil differential as a percent of WTI was 15%,
     compared to 17% in Q2/08.  Heavy crude oil differentials  improved in Q3/08
     due to a strong  worldwide  demand for diesel and low crack  spreads,  with
     overall high demand for crude oil products.  Combined with declining  heavy
     crude oil production in Mexico,  and increased  Venezuelan supply shipments
     to the Asian  markets,  US demand has been strong for Canadian  heavy crude
     oil.

o    The Company  continues its efforts with other industry  players to find new
     markets and to ease the logistical  constraints in getting Western Canadian
     heavy  crude oil to new  markets,  such as the US Gulf  Coast.  Plans  were
     recently  announced  to  expand  the  Keystone  crude oil  pipeline  system
     providing  additional  capacity  to the US Gulf  Coast  by  2012.  Canadian
     Natural  sees  this as an  important  step  in its  marketing  strategy  by
     allowing Canadian heavy crude oil into the US Gulf Coast market and as such
     has  committed  120,000  bbl/d  to the  Keystone  Pipeline  US  Gulf  Coast
     Expansion  for a 20  year  period,  subject  to  regulatory  approval.  The
     agreement also includes an option for Canadian Natural to acquire an equity
     interest in the Keystone Pipeline.

o    Canadian  Natural has also entered into a 20 year supply  agreement  with a
     major US  refiner  for  100,000  bbl/d of heavy  crude oil to US Gulf Coast
     refineries.  These  agreements  represent  a step  forward  in the  defined
     marketing plan of Canadian  Natural to improve the margins on the Company's
     heavy  crude oil  production  and to  reduce  the  volatility  historically
     experienced  in the heavy crude oil market.  With the  Keystone  agreement,
     Canadian  Natural will retain full  ownership of the resource while gaining
     access to a key market for Canadian heavy crude oil. The refining  capacity
     in the US Gulf Coast area is approximately 7.5 million bbl/d. The long term
     supply  agreement with a US refiner,  which is contingent on the completion
     of the Keystone Pipeline US Gulf Coast Expansion, ensures a customer at the
     end of the  Keystone  Pipeline  for a large  portion of Canadian  Natural's
     heavy  crude oil that is shipped  at  prevailing  US Gulf  Coast  heavy oil
     market prices at the points of delivery.

o    The  Company  sees this as a  strategic  component  to its heavy  crude oil
     development  which  targets  an  increase  to heavy  crude  oil  production
     capacity from just over 200,000 bbl/d today, to over 500,000 bbl/d over the
     course of the next 15 years.  Canadian heavy crude oil is very  competitive
     against  other  international  grades  available in the US Gulf Coast.  For
     Q3/08, the  differential  for the heavy crude oil marker,  Mayan grade, was
     US$11.47/bbl or 10%.

o    During Q3/08, the Company  contributed  approximately  147,000 bbl/d of its
     heavy crude oil streams to the WCS blend as market  conditions  resulted in
     this strategy offering the optimal pricing for bitumen crude oil.

o    Natural  gas  pricing  for Q3/08 was  volatile  compared  to prior  periods
     primarily as a result of fluctuations  in demand and storage levels.  North
     America natural gas inventory  levels  increased  significantly  during the
     third  quarter due to increased  shale gas  production  in the US and lower
     weather related demand.


CANADIAN NATURAL RESOURCES LIMITED                                            9
===============================================================================



FINANCIAL REVIEW

o    The current  worldwide  credit events have resulted in  disruptions  in the
     availability of credit on commercially  acceptable terms. In light of these
     credit  challenges,  the Company has  undertaken  a thorough  review of its
     liquidity  sources  as  well  as its  exposure  to  counterparties  and has
     concluded that its capital  resources are sufficient to meet ongoing short,
     medium and long-term  commitments.  Specifically,  the Company continues to
     believe that its internally  generated cash flow from operations  supported
     by the  implementation of its hedge policy,  the flexibility of its capital
     expenditure  programs  supported by its  multi-year  financial  plans,  its
     existing   credit   facilities  and  its  ability  to  raise  new  debt  on
     commercially acceptable terms, will provide sufficient liquidity to sustain
     its  operations  in the short,  medium and long-term and support its growth
     strategy.  Further, the Company believes that its counterparties  currently
     have the financial capacity to settle outstanding obligations in the normal
     course of business. A brief summary of the Company's strengths are:

     -    A diverse  asset base  geographically  and by  product -  produced  in
          excess of  555,000  boe/d in Q3/08,  comprised  of  approximately  45%
          natural gas and 55% crude oil - with 95% of  production  located in G8
          countries with stable and secure economies.

     -    Financial  stability and liquidity - cash flow from operations of $1.8
          billion for Q3/08, with available unused bank lines of $2.4 billion at
          September 30, 2008.

     -    Reduced volatility of commodity prices - a proactive commodity hedging
          program to reduce the downside risk of volatility in commodity  prices
          supporting cash flow for its capital expenditure program.

     -    A strengthening  balance sheet with debt to book capitalization of 41%
          and debt to EBITDA of 1.7 times, both within targeted ranges.

o    In 2007 and 2008,  the Province of Alberta  issued  certain  details of its
     proposed  changes to the Alberta crude oil and natural gas royalty  regime,
     effective January 1, 2009. The Company is currently  awaiting  finalization
     and government approval of the royalty regulations, however it expects that
     its 2009 and future Alberta  royalty  payments will increase as a result of
     the proposed  royalty  changes and that its level of activity in Alberta in
     aggregate  will be reduced  from what it  otherwise  would have been in the
     absence of such royalty changes.

o    Declared a quarterly  cash  dividend on common  shares of C$0.10 per common
     share, payable January 1, 2009.


OUTLOOK

The Company forecasts 2008 production levels before royalties to average between
1,492 and 1,506 mmcf/d of natural gas and between  313,000 and 318,000  bbl/d of
crude oil and NGLs.  Q4/08  production  guidance before royalties is forecast to
average  between  1,430 and 1,455 mmcf/d of natural gas and between  300,000 and
316,000 bbl/d of crude oil and NGLs.  Detailed  guidance on  production  levels,
capital  allocation and operating costs can be found on the Company's website at
HTTP://WWW.CNRL.COM/INVESTOR_INFO/CORPORATE_GUIDANCE/.


10                                            CANADIAN NATURAL RESOURCES LIMITED
===============================================================================


MANAGEMENT'S DISCUSSION AND ANALYSIS

FORWARD-LOOKING STATEMENTS
Certain  statements  in  this  document  or  documents  incorporated  herein  by
reference  constitute  forward-looking  statements or information  (collectively
referred  to herein as  "forward-looking  statements")  within  the  meaning  of
applicable securities legislation.  Forward-looking statements can be identified
by the words "believe",  "anticipate",  "expect", "plan", "estimate",  "target",
"continue", "could", "intend", "may", "potential",  "predict", "should", "will",
"objective",  "project",  "forecast",  "goal", "guidance",  "outlook", "effort",
"seeks", "schedule" or expressions of a similar nature suggesting future outcome
or  statements  regarding  an outlook.  Disclosure  related to  expected  future
commodity  pricing,  production  volumes,  royalties,  operating costs,  capital
expenditures and other guidance provided throughout this Management's Discussion
and Analysis  ("MD&A"),  constitutes  forward-looking  statements.  In addition,
statements relating to "reserves" are deemed to be forward-looking statements as
they involve the implied  assessment based on certain  estimates and assumptions
that the reserves described can be profitably produced in the future.  There are
numerous uncertainties inherent in estimating quantities of proved crude oil and
natural gas reserves and in projecting future rates of production and the timing
of  development  expenditures.  The total  amount  or  timing  of actual  future
production may vary significantly from reserve and production estimates.

These  statements  are not guarantees of future  performance  and are subject to
certain  risks  and  the  reader  should  not  place  undue  reliance  on  these
forward-looking  statements  as  there  can  be no  assurance  that  the  plans,
initiatives or expectations upon which they are based will occur.

The forward-looking statements are based on current expectations,  estimates and
projections  about Canadian  Natural  Resources  Limited (the "Company") and the
industry  in which the  Company  operates,  which speak only as of the date such
statements  were made or as of the date of the report or  document in which they
are  contained,  and are subject to known and unknown risks,  uncertainties  and
other factors that could cause the actual  results,  performance or achievements
of the Company to be materially  different from any future results,  performance
or achievements  expressed or implied by such forward-looking  statements.  Such
factors include,  among others:  general economic and business  conditions which
will,  among other things,  impact demand for and market prices of the Company's
products;  volatility  of and  assumptions  regarding  crude oil and natural gas
prices;  fluctuations in currency and interest  rates;  assumptions on which the
Company's  current guidance is based;  economic  conditions in the countries and
regions in which the Company conducts business; political uncertainty, including
actions of or against  terrorists,  insurgent groups or other conflict including
conflict between states; industry capacity;  ability of the Company to implement
its business strategy, including exploration and development activities;  impact
of  competition;  the Company's  defense of lawsuits;  availability  and cost of
seismic,  drilling  and  other  equipment;   ability  of  the  Company  and  its
subsidiaries   to  complete  its  capital   programs;   the  Company's  and  its
subsidiaries'  ability  to  secure  adequate  transportation  for its  products;
unexpected difficulties in mining, extracting or upgrading the Company's bitumen
products;  potential  delays or changes in plans with respect to  exploration or
development projects or capital expenditures;  ability of the Company to attract
the  necessary  labour  required  to build  its  thermal  and oil  sands  mining
projects;  operating hazards and other difficulties  inherent in the exploration
for and production and sale of crude oil and natural gas;  availability and cost
of financing;  the Company's and its  subsidiaries'  success of exploration  and
development  activities  and their  ability to replace and expand  crude oil and
natural  gas  reserves;  timing and  success of  integrating  the  business  and
operations of acquired  companies;  production  levels;  imprecision  of reserve
estimates and estimates of recoverable quantities of crude oil, bitumen, natural
gas and liquids not  currently  classified  as proved;  actions by  governmental
authorities; government regulations and the expenditures required to comply with
them (especially safety and environmental laws and regulations and the impact of
climate change  initiatives on capital and operating  costs);  asset  retirement
obligations;  the  adequacy  of the  Company's  provision  for taxes;  and other
circumstances  affecting  revenues and expenses.  The Company's  operations have
been, and at times in the future may be, affected by political  developments and
by federal,  provincial and local laws and  regulations  such as restrictions on
production, changes in taxes, royalties and other amounts payable to governments
or  governmental  agencies,  price or gathering rate controls and  environmental
protection  regulations.  Should  one or more of these  risks  or  uncertainties
materialize,  or should any of the Company's assumptions prove incorrect, actual
results   may  vary  in  material   respects   from  those   projected   in  the
forward-looking  statements.  The  impact  of any  one  factor  on a  particular
forward-looking statement is not determinable with certainty as such factors are
dependent  upon other factors,  and the Company's  course of action would depend
upon its assessment of the future considering all information then available.



CANADIAN NATURAL RESOURCES LIMITED                                            11
===============================================================================


Readers  are  cautioned  that the  foregoing  list of  important  factors is not
exhaustive.  Unpredictable or unknown factors not discussed in this report could
also have material adverse effects on forward-looking  statements.  Although the
Company  believes  that  the  expectations   conveyed  by  the   forward-looking
statements are reasonable based on information  available to it on the date such
forward-looking  statements  are made, no  assurances  can be given as to future
results,  levels of activity and  achievements.  All subsequent  forward-looking
statements,  whether  written or oral,  attributable  to the  Company or persons
acting  on its  behalf  are  expressly  qualified  in  their  entirety  by these
cautionary  statements.  Except as  required  by law,  the  Company  assumes  no
obligation  to  update   forward-looking   statements  should  circumstances  or
Management's estimates or opinions change.

MANAGEMENT'S DISCUSSION AND ANALYSIS

Management's  Discussion and Analysis of the financial  condition and results of
operations  of the  Company  should be read in  conjunction  with the  unaudited
interim  consolidated  financial  statements for the nine and three months ended
September  30,  2008  and  the  MD&A  and  the  audited  consolidated  financial
statements for the year ended December 31, 2007.

All dollar amounts are referenced in millions of Canadian dollars,  except where
noted otherwise.  The financial statements have been prepared in accordance with
Canadian generally accepted accounting  principles ("GAAP").  This MD&A includes
references to financial  measures commonly used in the crude oil and natural gas
industry,  such as adjusted  net  earnings  from  operations  and cash flow from
operations.  These financial  measures are not defined by GAAP and therefore are
referred to as non-GAAP measures.  The non-GAAP measures used by the Company may
not be comparable to similar measures presented by other companies.  The Company
uses these non-GAAP measures to evaluate its performance.  The non-GAAP measures
should not be considered an alternative to or more meaningful than net earnings,
as  determined  in  accordance  with GAAP,  as an  indication  of the  Company's
performance.  The non-GAAP  measures  adjusted net earnings from  operations and
cash flow from  operations  are  reconciled  to net  earnings,  as determined in
accordance  with GAAP, in the "Financial  Highlights"  section of this MD&A. The
Company also presents certain non-GAAP  financial ratios and their derivation in
the "Liquidity and Capital Resources" section of this MD&A.

The  calculation of barrels of oil  equivalent  ("boe") is based on a conversion
ratio of six thousand cubic feet ("mcf") of natural gas to one barrel ("bbl") of
crude  oil  to  estimate  relative  energy  content.   This  conversion  may  be
misleading,  particularly when used in isolation, since the 6 mcf:1 bbl ratio is
based on an energy  equivalency  at the  burner tip and does not  represent  the
value equivalency at the wellhead.

Production  volumes are presented  throughout this MD&A on a "before royalty" or
"gross"  basis,  and  realized  prices  exclude  the  effect of risk  management
activities and transportation and blending costs,  except where noted otherwise.
Production  on  an  "after  royalty"  or  "net"  basis  is  also  presented  for
information purposes only.

The following discussion refers primarily to the Company's financial results for
the nine and three months ended September 30, 2008 in relation to the comparable
periods in 2007 and the second quarter of 2008. The accompanying  tables form an
integral  part of this MD&A.  This MD&A is dated  November  4, 2008.  Additional
information  relating to the Company,  including its Annual Information Form for
the year ended December 31, 2007, is available on SEDAR at www.sedar.com.




11                                            CANADIAN NATURAL RESOURCES LIMITED
===============================================================================




FINANCIAL HIGHLIGHTS

($ millions, except per common share amounts)
                                                                 Three Months Ended                        Nine Months Ended
                                                  ----------------                                ----------------
                                                           SEP 30          Jun 30         Sep 30           SEP 30           Sep 30
                                                             2008            2008           2007             2008             2007
- -----------------------------------------------------------------------------------------------------------------------------------
                                                                                                    
Revenue, before royalties                         $         4,583    $      5,112   $      3,073  $        13,662  $         9,343
Net earnings (loss)                               $         2,835    $       (347)  $        700  $         3,215  $         1,810
     Per common share      - basic and diluted    $          5.25    $      (0.65)  $       1.30  $          5.95  $          3.36
Adjusted net earnings from operations (1)         $           963    $        960   $        644  $         2,795  $         1,860
     Per common share      - basic and diluted    $          1.78    $       1.78   $       1.19  $          5.17  $          3.44
Cash flow from operations (2)                     $         1,815    $      1,859   $      1,577  $         5,399  $         4,712
     Per common share      - basic and diluted    $          3.36    $       3.44   $       2.92  $          9.99  $          8.74
Capital expenditures, net of dispositions         $         1,744    $      2,127   $      1,442  $         5,624  $         4,911
===================================================================================================================================

(1)  ADJUSTED NET EARNINGS FROM OPERATIONS IS A NON-GAAP MEASURE THAT REPRESENTS
     NET EARNINGS  ADJUSTED FOR CERTAIN ITEMS OF A NON-OPERATIONAL  NATURE.  THE
     COMPANY  EVALUATES  ITS  PERFORMANCE  BASED ON ADJUSTED NET  EARNINGS  FROM
     OPERATIONS.  THE  RECONCILIATION  "ADJUSTED NET EARNINGS  FROM  OPERATIONS"
     PRESENTED  BELOW  LISTS  THE  AFTER-TAX  EFFECTS  OF  CERTAIN  ITEMS  OF  A
     NON-OPERATIONAL  NATURE  THAT  ARE  INCLUDED  IN  THE  COMPANY'S  FINANCIAL
     RESULTS.  ADJUSTED NET EARNINGS  FROM  OPERATIONS  MAY NOT BE COMPARABLE TO
     SIMILAR MEASURES PRESENTED BY OTHER COMPANIES.

(2)  CASH FLOW  FROM  OPERATIONS  IS A  NON-GAAP  MEASURE  THAT  REPRESENTS  NET
     EARNINGS  ADJUSTED FOR NON-CASH ITEMS BEFORE WORKING  CAPITAL  ADJUSTMENTS.
     THE COMPANY  EVALUATES ITS PERFORMANCE  BASED ON CASH FLOW FROM OPERATIONS.
     THE  COMPANY  CONSIDERS  CASH  FLOW FROM  OPERATIONS  A KEY  MEASURE  AS IT
     DEMONSTRATES  THE COMPANY'S  ABILITY TO GENERATE THE CASH FLOW NECESSARY TO
     FUND FUTURE  GROWTH  THROUGH  CAPITAL  INVESTMENT  AND TO REPAY  DEBT.  THE
     RECONCILIATION  "CASH FLOW FROM  OPERATIONS"  PRESENTED BELOW LISTS CERTAIN
     NON-CASH ITEMS THAT ARE INCLUDED IN THE COMPANY'S  FINANCIAL RESULTS.  CASH
     FLOW FROM OPERATIONS MAY NOT BE COMPARABLE TO SIMILAR MEASURES PRESENTED BY
     OTHER COMPANIES.



     ADJUSTED NET EARNINGS FROM OPERATIONS
                                                                              THREE MONTHS ENDED               NINE MONTHS ENDED
                                                                     ------------                        -------------
                                                                         SEP 30      JUN 30     SEP 30        SEP 30      SEP 30
    ($ MILLIONS)                                                           2008        2008       2007          2008        2007
    ------------------------------------------------------------------------------------------------------------------------------
                                                                                                       
    NET EARNINGS (LOSS) AS REPORTED                                  $    2,835  $     (347) $      700   $    3,215  $    1,810
    STOCK-BASED COMPENSATION (RECOVERY) EXPENSE, NET OF TAX (A)           (221)         328          54          107         145
    UNREALIZED RISK MANAGEMENT  (GAIN) LOSS, NET OF TAX (B)             (1,750)         997          57        (677)         384
    UNREALIZED FOREIGN EXCHANGE LOSS (GAIN), NET OF TAX (C)                  99         (18)      (167)          191       (408)
    EFFECT OF STATUTORY TAX RATE AND OTHER LEGISLATIVE CHANGES ON
        FUTURE INCOME TAX LIABILITIES (D)                                     -           -           -         (41)        (71)
    ------------------------------------------------------------------------------------------------------------------------------
    ADJUSTED NET EARNINGS FROM OPERATIONS                            $      963  $      960  $      644   $    2,795  $    1,860
    ==============================================================================================================================

    (A)  THE COMPANY'S  EMPLOYEE  STOCK OPTION PLAN PROVIDES FOR A CASH PAYMENT
         OPTION. ACCORDINGLY, THE INTRINSIC VALUE OF OUTSTANDING VESTED OPTIONS
         IS RECORDED AS A LIABILITY ON THE COMPANY'S BALANCE SHEET AND PERIODIC
         CHANGES IN THE INTRINSIC  VALUE ARE  RECOGNIZED IN NET EARNINGS OR ARE
         CAPITALIZED  AS PART OF THE  HORIZON  OIL  SANDS  PROJECT  DURING  THE
         CONSTRUCTION PERIOD.

    (B)  DERIVATIVE  FINANCIAL  INSTRUMENTS  ARE  RECORDED AT FAIR VALUE ON THE
         BALANCE  SHEET,  WITH CHANGES IN FAIR VALUE OF  NON-DESIGNATED  HEDGES
         RECOGNIZED IN NET  EARNINGS.  THE AMOUNTS  ULTIMATELY  REALIZED MAY BE
         MATERIALLY DIFFERENT THAN REFLECTED IN THE FINANCIAL STATEMENTS DUE TO
         CHANGES IN PRICES OF THE UNDERLYING ITEMS HEDGED,  PRIMARILY CRUDE OIL
         AND NATURAL GAS.

    (C)  UNREALIZED FOREIGN EXCHANGE GAINS AND LOSSES RESULT PRIMARILY FROM THE
         TRANSLATION  OF US DOLLAR  DENOMINATED  LONG-TERM  DEBT TO  PERIOD-END
         EXCHANGE RATES,  OFFSET BY THE IMPACT OF CROSS CURRENCY SWAPS, AND ARE
         RECOGNIZED IN NET EARNINGS.

    (D)  ALL SUBSTANTIVELY  ENACTED  ADJUSTMENTS IN APPLICABLE INCOME TAX RATES
         AND OTHER  LEGISLATIVE  CHANGES ARE APPLIED TO  UNDERLYING  ASSETS AND
         LIABILITIES ON THE COMPANY'S CONSOLIDATED BALANCE SHEET IN DETERMINING
         FUTURE INCOME TAX ASSETS AND LIABILITIES. THE IMPACT OF THESE TAX RATE
         AND OTHER  LEGISLATIVE  CHANGES IS RECORDED IN NET EARNINGS DURING THE
         PERIOD  THE  LEGISLATION  IS  SUBSTANTIVELY  ENACTED.  INCOME TAX RATE
         CHANGES IN THE FIRST QUARTER OF 2008 RESULTED IN A REDUCTION OF FUTURE
         INCOME TAX LIABILITIES OF  APPROXIMATELY  $19 MILLION IN NORTH AMERICA
         AND $22 MILLION IN COTE  D'IVOIRE,  OFFSHORE  WEST AFRICA.  INCOME TAX
         RATE CHANGES IN THE SECOND  QUARTER OF 2007 RESULTED IN A REDUCTION OF
         FUTURE INCOME TAX  LIABILITIES OF  APPROXIMATELY  $71 MILLION IN NORTH
         AMERICA.



CANADIAN NATURAL RESOURCES LIMITED                                            13
===============================================================================




   CASH FLOW FROM OPERATIONS
                                                                       THREE MONTHS ENDED                    NINE MONTHS ENDED
                                                          --------------                                --------------
                                                                SEP 30          JUN 30        SEP 30          SEP 30       SEP 30
    ($ MILLIONS)                                                  2008            2008          2007            2008         2007
    ------------------------------------------------------------------------------------------------------------------------------
                                                                                                        
    NET EARNINGS (LOSS)                                   $      2,835   $        (347)  $       700    $      3,215   $    1,810
    NON-CASH ITEMS:
       DEPLETION, DEPRECIATION AND AMORTIZATION                    659             670           715           2,017        2,144
       ASSET RETIREMENT OBLIGATION ACCRETION                        18              17            18              52           53
       STOCK-BASED COMPENSATION (RECOVERY) EXPENSE                (308)            459            78             151          209
       UNREALIZED RISK MANAGEMENT (GAIN) LOSS                   (2,506)          1,415            76            (983)         555
       UNREALIZED FOREIGN EXCHANGE LOSS (GAIN)                     113             (20)         (195)            219         (477)
       DEFERRED PETROLEUM REVENUE TAX (RECOVERY) EXPENSE            (7)            (34)           10             (62)          27
       FUTURE INCOME TAX EXPENSE (RECOVERY)                      1,011            (301)          175             790          391
    ------------------------------------------------------------------------------------------------------------------------------
    CASH FLOW FROM OPERATIONS                             $      1,815   $       1,859   $     1,577    $      5,399   $    4,712
    ===============================================================================================================================


SUMMARY OF CONSOLIDATED NET EARNINGS AND CASH FLOW FROM OPERATIONS

Net earnings for the nine months ended  September  30, 2008 were $3,215  million
compared to $1,810  million for the nine months ended  September  30, 2007.  Net
earnings for the nine months ended  September 30, 2008  included net  unrealized
after-tax  income of $420  million  related to the  effects  of risk  management
activities,  changes in foreign exchange rates and stock-based compensation, and
the  impact of  statutory  tax rate  changes on future  income tax  liabilities,
compared to net unrealized after-tax expenses of $50 million for the nine months
ended  September  30, 2007.  Excluding  these items,  adjusted net earnings from
operations  for the nine months ended  September 30, 2008  increased to a record
$2,795 million  compared to $1,860  million for the nine months ended  September
30, 2007.  The increase in adjusted net earnings from the  comparable  period in
2007  was  primarily  due  to the  impact  of  higher  realized  pricing,  lower
depletion,  depreciation  and  amortization  expense,  and  lower  interest  and
administration  expense.  These factors were partially offset by higher realized
risk  management  losses,  higher  royalty and production  expense,  lower sales
volumes,  and the impact of the  stronger  Canadian  dollar  relative  to the US
dollar.

Net earnings for the third  quarter of 2008 was $2,835  million  compared to net
earnings of $700  million  for the third  quarter of 2007 and a net loss of $347
million for the prior  quarter.  The net earnings for the third  quarter of 2008
included  net  unrealized  after-tax  income of $1,872  million  related  to the
effects of risk management  activities,  fluctuations in foreign exchange rates,
and  fluctuations  in  stock-based  compensation,  compared  to  net  unrealized
after-tax income of $56 million for the third quarter of 2007 and net unrealized
after-tax  expenses of $1,307  million for the prior  quarter.  Excluding  these
items,  adjusted  net earnings  from  operations  for the third  quarter of 2008
increased to $963 million compared to $644 million for the third quarter of 2007
and $960  million for the prior  quarter.  The increase in adjusted net earnings
from the  third  quarter  of 2007 was  primarily  due to the  impact  of  higher
realized pricing,  lower depletion,  depreciation and amortization  expense, and
lower interest and administration  expense.  These factors were partially offset
by higher  realized  risk  management  losses,  higher  royalty  and  production
expense, and lower sales volumes. The increase in adjusted net earnings from the
prior quarter was primarily due to the impact of lower  depletion,  depreciation
and amortization  expense,  lower realized risk management losses, lower royalty
expense,  lower interest expense,  and the impact of the weaker Canadian dollar,
partially  offset by the impact of lower  sales  volumes  and higher  production
expense.

The impacts of unrealized risk management activities,  stock-based  compensation
and changes in foreign  exchange rates are expected to continue to contribute to
significant  quarterly volatility in consolidated net earnings and are discussed
in detail in the relevant sections of this MD&A.

Cash flow from operations for the nine months ended September 30, 2008 increased
to a record $5,399 million  compared to $4,712 million for the nine months ended
September  30,  2007.  The  increase  from  the  comparable  period  in 2007 was
primarily due to the impact of higher realized  pricing,  and lower interest and
administration  expense,  partially  offset by higher  realized risk  management
losses,  higher  royalty  and  production  expense,  higher  current  income tax
expense,  lower sales volumes,  and the impact of the stronger  Canadian  dollar
relative to the US dollar.


14                                            CANADIAN NATURAL RESOURCES LIMITED
===============================================================================


Cash flow from  operations  for the third  quarter of 2008  increased  to $1,815
million  compared to $1,577  million for the third quarter of 2007 and decreased
slightly from $1,859 million for the prior quarter.  The increase from the third
quarter of 2007 was primarily due to the impact of higher realized pricing,  and
lower interest and administration  expense,  partially offset by higher realized
risk management losses,  higher royalty and production  expense,  higher current
income tax expense,  lower sales volumes and the impact of the stronger Canadian
dollar  relative  to the US dollar.  The  decrease  from the prior  quarter  was
primarily  due to the  impact  of lower  sales  volumes  and  higher  production
expense,  partially  offset by lower  realized  risk  management  losses,  lower
royalty expense, and the impact of the weaker Canadian dollar.

Total  production  before royalties for the nine months ended September 30, 2008
decreased 7% to average  570,704  boe/d from  611,665  boe/d for the nine months
ended September 30, 2007.  Production for the third quarter of 2008 decreased 9%
to 555,356  boe/d from 607,484  boe/d for the third  quarter of 2007 and 3% from
573,437 boe/d for the prior quarter.  Total  production for the third quarter of
2008 was within the Company's previously issued guidance.

For a discussion of the impact of current worldwide credit market events, please
refer to the "Liquidity and Capital Resources" section of this MD&A.

SUMMARY OF QUARTERLY RESULTS

The following is a summary of the Company's quarterly results for the eight most
recently completed quarters:



($ millions, except per common share amounts)              SEP 30              Jun 30              Mar 31                Dec 31
                                                             2008                2008                2008                  2007
- --------------------------------------------------------------------------------------------------------------------------------
                                                                                                 
Revenue, before royalties                       $           4,583   $           5,112    $          3,967    $            3,200
Net earnings (loss)                             $           2,835   $            (347)   $            727    $              798
Net earnings (loss) per common share
   - Basic and diluted                          $            5.25   $           (0.65)   $           1.35    $             1.48
================================================================================================================================

                                                           Sep 30              Jun 30              Mar 31                Dec 31
($ millions, except per common share amounts)                2007                2007                2007                  2006
- --------------------------------------------------------------------------------------------------------------------------------
Revenue, before royalties                       $           3,073   $           3,152    $          3,118    $            2,826
Net earnings                                    $             700   $             841    $            269    $              313
Net earnings per common share
   - Basic and diluted                          $            1.30   $            1.56    $           0.50    $             0.58
================================================================================================================================


Net earnings (loss) over the eight most recently  completed  quarters  generally
reflected   fluctuations   in  realized   crude  oil  and  natural  gas  prices,
fluctuations  in sales  volumes,  the  impact of  mark-to-market  accounting  of
financial instruments and stock-based  compensation,  fluctuations in depletion,
depreciation   and   amortization   charges  and  foreign  exchange  rates,  and
adjustments to future income tax liabilities due to statutory tax rate and other
legislative changes. More specifically, volatility in quarterly net earnings was
primarily due to:

o    Crude oil pricing

     Crude  oil  prices   reflected   strong  demand,   continued   geopolitical
     uncertainties and fluctuations in the Heavy Crude Oil Differential from WTI
     ("Heavy Differential") in North America.

o    Natural gas pricing

     Natural gas prices primarily  reflected  seasonal  fluctuations in both the
     demand for  natural  gas and  inventory  storage  levels,  fluctuations  in
     liquefied  natural  gas  imports  into  the US,  and  increased  shale  gas
     production in the US.

o    Crude oil and NGLs sales volumes

     Crude oil and NGLs sales volumes primarily reflected  increased  production
     from the Company's Primrose thermal projects,  the results from the Pelican
     Lake water and polymer flood projects, and development of the Espoir Field.
     Crude oil and NGLs sales volumes also reflected  fluctuations in production
     from the North Sea and  Offshore  West Africa due to timing of  maintenance
     activities and liftings and the impact of shut-in Baobab production.



CANADIAN NATURAL RESOURCES LIMITED                                            15
===============================================================================


o    Natural gas sales volumes

     Natural  gas sales  volumes  primarily  reflected  additional  natural  gas
     volumes as a result of internally  generated  growth.  These increases were
     offset by production  declines due to the Company's  strategic reduction in
     natural gas drilling activity.

o    Foreign exchange rates

     A general  strengthening  of the Canadian  dollar relative to the US dollar
     has decreased the realized price the Company received for its crude oil and
     natural gas sales,  as sales  prices are based  predominately  on US dollar
     denominated  benchmarks.  Similarly,  unrealized foreign exchange gains and
     losses were  recorded with respect to US dollar  denominated  debt balances
     and  the   re-measurement  of  North  Sea  future  income  tax  liabilities
     denominated in UK pounds  sterling to US dollars,  partially  offset by the
     impact of cross currency swaps.

o    Risk management

     Net  earnings  have  fluctuated  due to the  recognition  of  realized  and
     unrealized  gains  and  losses  from  the   mark-to-market  and  subsequent
     settlement of the Company's risk management activities.

o    Changes in income tax expense

     Income  tax  expense  fluctuations  include  statutory  tax rate and  other
     legislative  changes  enacted  or  substantively  enacted  in  the  various
     periods.

o    Stock-based compensation

     Net earnings have  fluctuated  due to the  mark-to-market  movements of the
     Company's  stock-based  compensation  liability.  Stock-based  compensation
     expense (recovery) reflected fluctuations in the Company's share price over
     the eight most recently completed quarters.

o    Production expense

     Production  expense has fluctuated company wide primarily due to the impact
     for the demand for  services,  industry-wide  inflationary  cost  pressures
     experienced in prior quarters in all segments, fluctuations in product mix,
     and the impact of seasonal costs that are dependent on weather.

o    Depletion, depreciation and amortization

     Depletion,  depreciation  and  amortization  expense has  fluctuated due to
     changes in sales volumes,  finding and  development  costs  associated with
     crude oil and  natural  gas  exploration,  and  estimated  future  costs to
     develop the Company's proved undeveloped reserves.


16                                            CANADIAN NATURAL RESOURCES LIMITED
===============================================================================




OPERATING HIGHLIGHTS
                                                               Three Months Ended                     Nine Months Ended
                                                 --------------                                 --------------
                                                        SEP 30          Jun 30          Sep 30         SEP 30           Sep 30
                                                          2008            2008            2007           2008             2007
- -------------------------------------------------------------------------------------------------------------------------------
                                                                                                  
CRUDE OIL AND NGLS ($/bbl) (1)
Sales price (2)                                   $     102.30    $     103.73   $       58.10   $      94.72    $       54.57
Royalties                                                14.17           14.82            6.65          12.49             5.69
Production expense                                       17.61           16.39           13.13          16.24            13.97
- -------------------------------------------------------------------------------------------------------------------------------
Netback                                           $      70.52    $      72.52   $       38.32   $      65.99    $       34.91
- -------------------------------------------------------------------------------------------------------------------------------
NATURAL GAS ($/mcf) (1)
Sales price (2)                                   $       8.82    $       9.89   $        5.87   $       8.83    $        7.03
Royalties                                                 1.55            1.86            0.89           1.59             1.16
Production expense                                        1.05            0.94            0.88           1.01             0.91
- -------------------------------------------------------------------------------------------------------------------------------
Netback                                           $       6.22    $       7.09   $        4.10   $       6.23    $        4.96
- -------------------------------------------------------------------------------------------------------------------------------
BARRELS OF OIL EQUIVALENT ($/boe) (1)
Sales price (2)                                   $      80.60    $      84.88   $       47.96   $      76.73    $       48.99
Royalties                                                12.06           13.26            6.07          11.22             6.27
Production expense                                       12.52           11.60            9.62          11.70            10.05
- -------------------------------------------------------------------------------------------------------------------------------
Netback                                           $      56.02    $      60.02   $       32.27   $      53.81    $       32.67
===============================================================================================================================

(1)  AMOUNTS EXPRESSED ON A PER UNIT BASIS ARE BASED ON SALES VOLUMES.

(2)  NET OF  TRANSPORTATION  AND BLENDING  COSTS AND EXCLUDING  RISK  MANAGEMENT
     ACTIVITIES.


CANADIAN NATURAL RESOURCES LIMITED                                            17
===============================================================================




BUSINESS ENVIRONMENT
                                                               Three Months Ended                        Nine Months Ended
                                                 --------------                                   ---------------
                                                        SEP 30          Jun 30            Sep 30          SEP 30            Sep 30
                                                          2008            2008              2007            2008              2007
- -----------------------------------------------------------------------------------------------------------------------------------
                                                                                                     
WTI benchmark price (US$/bbl)                    $      118.13    $     124.00    $        75.33   $      113.38    $        66.26
Dated Brent benchmark price (US$/bbl)            $      114.96    $     121.39    $        74.85   $      111.11    $        67.18
WCS blend differential from WTI (US$/bbl) (1)    $       17.98    $      21.62    $        22.39   $       20.33    $        19.04
WCS blend differential from WTI (%) (1)                    15%             17%               30%             18%               29%
Condensate benchmark price (US$/bbl)             $      118.57    $     124.64    $        75.93   $      113.89    $        66.82
NYMEX benchmark price (US$/mmbtu)                $       10.11    $      10.80    $         6.13   $        9.66    $         6.88
AECO benchmark price (C$/GJ)                     $        8.78    $       8.86    $         5.32   $        8.16    $         6.46
US / Canadian dollar average exchange rate       $      0.9605    $     0.9900    $       0.9565   $      0.9819    $       0.9045
===================================================================================================================================

(1)  BEGINNING  IN THE FIRST  QUARTER OF 2008,  THE COMPANY HAS  QUANTIFIED  THE
     HEAVY  DIFFERENTIAL  USING THE WESTERN CANADIAN SELECT ("WCS") BLEND AS THE
     HEAVY CRUDE OIL MARKER. PRIOR PERIOD AMOUNTS HAVE BEEN RECLASSIFIED.

COMMODITY PRICES

Crude oil sales  contracts in the North America  segment are typically  based on
WTI benchmark pricing.  WTI averaged US$113.38 per bbl for the nine months ended
September 30, 2008, an increase of 71% from US$66.26 per bbl for the nine months
ended  September 30, 2007. WTI averaged  US$118.13 per bbl for the third quarter
of 2008, an increase of 57% from US$75.33 per bbl for the third quarter of 2007,
and a decrease of 5% from US$124.00 per bbl for the prior  quarter.  WTI pricing
during the third  quarter of 2008  continued to reflect  strong demand for crude
oil, tight supply and ongoing  geopolitical  uncertainty,  particularly  in July
2008 when WTI crude oil futures hit an all time high of approximately  US$147.00
per bbl. WTI pricing significantly  weakened toward the end of the third quarter
and traded  below  US$70.00 in October  2008.  This  decrease in WTI pricing was
partially  offset by a significant  weakening in the Canadian dollar compared to
the US dollar,  with the Canadian  dollar falling below US$0.80 in October 2008.

Crude oil sales  contracts for the Company's  North Sea and Offshore West Africa
segments are typically based on Dated Brent ("Brent")  pricing,  which generally
continued  to benefit  from strong  European and Asian  demand.  Brent  averaged
US$111.11  per bbl for the nine months ended  September 30, 2008; an increase of
65% compared to US$67.18 per bbl for the nine months ended  September  30, 2007.
In the third quarter of 2008,  Brent averaged  US$114.96 per bbl, an increase of
54% compared to US$74.85 per bbl for the third  quarter of 2007,  and a decrease
of 5% from  US$121.39  per bbl for the prior  quarter.  Similar to WTI  pricing,
Brent pricing significantly weakened toward the end of the third quarter.

The Company's  realized  crude oil prices  increased  from the nine months ended
September 30, 2007  primarily as a result of increased WTI and Brent pricing and
a narrower Heavy Differential, offset by the impact of a strong Canadian dollar.
The Heavy Differential averaged 18% for the nine months ended September 30, 2008
compared to 29% for the nine months  ended  September  30,  2007.  For the third
quarter of 2008,  the Heavy  Differential  averaged  15% compared to 30% for the
third quarter of 2007, and 17% for the prior quarter. The narrowing of the Heavy
Differential  from the comparable  periods was primarily due to increased demand
for heavy  crude oil due to reduced  refinery  cracking  margins  and  increased
demand for diesel.  Realized  prices  continued to be adversely  impacted by the
strong Canadian dollar.

The Company anticipates continued volatility in the crude oil pricing benchmarks
due to the  unpredictable  nature of supply  and  demand  factors,  geopolitical
events  and the  potential  of a global  economic  slowdown  resulting  from the
worldwide  financial crisis.  The Heavy  Differential is expected to continue to
reflect seasonal demand fluctuations and refinery cracking margins.

NYMEX  natural gas prices  averaged  US$9.66 per mmbtu for the nine months ended
September  30,  2008,  an  increase  of 40% from  US$6.88 per mmbtu for the nine
months ended  September 30, 2007.  For the third quarter of 2008,  NYMEX natural
gas prices  averaged  US$10.11  per mmbtu,  an increase of 65% from  US$6.13 per
mmbtu for the third  quarter of 2007,  and a decrease  of 6% from  US$10.80  per
mmbtu for the prior  quarter.  AECO natural gas prices for the nine months ended
September  30, 2008  increased 26% to average $8.16 per GJ from $6.46 per GJ for


18                                            CANADIAN NATURAL RESOURCES LIMITED
===============================================================================


the nine months ended  September 30, 2007.  For the third quarter of 2008,  AECO
natural gas prices  averaged  $8.78 per GJ, an increase of 65% from $5.32 per GJ
in the third  quarter  of 2007 and a  decrease  of 1% from  $8.86 per GJ for the
prior quarter.  Fluctuations  in natural gas prices from the comparable  periods
were primarily  related to demand and storage levels.  North America natural gas
inventory levels increased significantly during the third quarter of 2008 due to
increased shale gas production in the US and lower weather related demand.

OPERATING, ROYALTY AND CAPITAL COSTS

Strong  commodity  prices in recent years have resulted in increased  demand and
costs for oilfield services  worldwide.  This has led to inflationary  operating
and capital cost  pressures  throughout  the crude oil and natural gas industry,
particularly related to drilling activities and oil sands developments.

The crude oil and  natural  gas  industry is also  experiencing  cost  pressures
related to environmental regulations, both in North America and internationally.
In  Canada,   the  Federal  Government  has  indicated  its  intent  to  develop
regulations that would be in effect in 2010 to address industrial greenhouse gas
("GHG")  emissions.  The  Federal  Government  has also  outlined  national  and
sectoral reduction targets for several categories of air pollutants. In Alberta,
GHG regulations  came into effect July 1, 2007,  affecting  facilities  emitting
more than 100 kilotonnes of CO2e annually. Two of the Company's facilities,  the
Primrose/Wolf  Lake in-situ heavy crude oil facilities and the Hays sour natural
gas plant, are captured under the  regulations.  In the UK, GHG regulations have
been in effect  since  2005.  During  Phase 1 (2005  -2007)  of the UK  National
Allocation Plan the Company operated below its CO2 allocation. For Phase 2 (2008
- - 2012) the  Company's CO2  allocation  has been  decreased  below the Company's
estimated  current  operations  emissions.  The  Company  continues  to focus on
implementing  reduction  programs  based on  efficiency  audits  to  reduce  CO2
emissions at its major facilities and on trading mechanisms to ensure compliance
with  requirements now in effect.

Commencing  July 1, 2008, the British  Columbia  carbon tax is being assessed at
$10/tonne of CO2e on fuel consumed in the  province,  increasing to $30/tonne by
July 1, 2012.

Continued  cost  pressures  and the final  outcome of  changes to  environmental
regulations may adversely  impact the Company's  future net earnings,  cash flow
and capital projects.

In 2007 and 2008, the Province of Alberta issued certain details of its proposed
changes to the  Alberta  crude oil and natural  gas  royalty  regime,  effective
January 1, 2009. These proposed changes include:

o    The  implementation  of a new bitumen  valuation  methodology and a sliding
     scale  for oil sands  royalties  ranging  from 1% to 9% on a gross  revenue
     basis  pre-payout  and  25%  to  40%  on a net  revenue  basis  post-payout
     depending on benchmark crude oil pricing; and

o    New royalty formulas for conventional crude oil and natural gas that are to
     operate on sliding scales ranging up to 50% determined by commodity  prices
     and well productivity.

The Company is currently  awaiting  finalization and government  approval of the
royalty  regulations.  However,  the  Company  expects  that its 2009 and future
Alberta  royalty  payments  will  increase as a result of the  proposed  royalty
changes and that its level of activity in Alberta in  aggregate  will be reduced
from what it otherwise would have been in the absence of such royalty changes.



CANADIAN NATURAL RESOURCES LIMITED                                            19
===============================================================================




PRODUCT PRICES
                                                      Three Months Ended                        Nine Months Ended
                                       ----------------                                  ----------------
                                                SEP 30          Jun 30           Sep 30           SEP 30           Sep 30
                                                  2008            2008             2007             2008             2007
- --------------------------------------------------------------------------------------------------------------------------
                                                                                           
CRUDE OIL AND NGLS ($/bbl) (1) (2)
North America                          $         99.05  $        97.94   $        52.47  $         89.83  $         48.68
North Sea                              $        109.82  $       129.57   $        77.55  $        111.82  $         72.86
Offshore West Africa                   $        125.71  $       114.56   $        70.52  $        110.93  $         67.37
Company average                        $        102.30  $       103.73   $        58.10  $         94.72  $         54.57

NATURAL GAS ($/mcf) (1) (2)
North America                          $          8.83  $         9.94   $         5.88  $          8.86  $          7.05
North Sea                              $          3.65  $         4.27   $         5.26  $          3.73  $          4.47
Offshore West Africa                   $         11.18  $         8.97   $         5.31  $          9.33  $          5.76
Company average                        $          8.82  $         9.89   $         5.87  $          8.83  $          7.03

COMPANY AVERAGE ($/boe) (1) (2)        $         80.60  $        84.88   $        47.96  $         76.73  $         48.99

PERCENTAGE OF GROSS REVENUE (2)
     (excluding midstream revenue)
Crude oil and NGLs                                 70%             68%              67%              69%              60%
Natural gas                                        30%             32%              33%              31%              40%
==========================================================================================================================

(1)  AMOUNTS EXPRESSED ON A PER UNIT BASIS ARE BASED ON SALES VOLUMES.

(2)  NET OF  TRANSPORTATION  AND BLENDING  COSTS AND EXCLUDING  RISK  MANAGEMENT
     ACTIVITIES.

The Company's  realized crude oil prices increased 74% to average $94.72 per bbl
for the nine months  ended  September  30, 2008 from $54.57 per bbl for the nine
months ended September 30, 2007. Realized crude oil prices for the third quarter
of 2008  increased  76% to average  $102.30  per bbl from $58.10 per bbl for the
third  quarter of 2007,  and  decreased  1% from  $103.73  per bbl for the prior
quarter.  The Company's  realized crude oil prices increased from the comparable
periods  in 2007  primarily  as a result of  increased  WTI and Brent  benchmark
prices and a narrower Heavy Differential,  partially offset by a strong Canadian
dollar  relative  to the US dollar.  The  decrease  from the prior  quarter  was
primarily due to declining WTI and Brent benchmark prices, partially offset by a
narrower  Heavy  Differential  and the impact of the weakening  Canadian  dollar
relative to the US dollar.

The Company's  realized natural gas price increased 26% to average $8.83 per mcf
for the nine  months  ended  September  30, 2008 from $7.03 per mcf for the nine
months  ended  September  30,  2007.  Realized  natural gas prices for the third
quarter of 2008  increased  50% to average  $8.82 per mcf from $5.87 per mcf for
the third  quarter of 2007,  and  decreased 11% from $9.89 per mcf for the prior
quarter. The increase in realized natural gas prices from the comparable periods
in  2007  primarily  reflected  increased  benchmark  prices  due  to  increased
industrial consumption,  colder weather experienced late in the first quarter of
2008, and lower  liquefied  natural gas imports into the US in the first half of
2008.  The  decrease in realized  natural gas prices from the prior  quarter was
primarily due to higher storage levels due to increased  shale gas production in
the US, and lower demand  resulting from milder weather  experienced  during the
third quarter of 2008.


20                                            CANADIAN NATURAL RESOURCES LIMITED
===============================================================================


NORTH AMERICA

North America  realized crude oil prices increased 85% to average $89.83 per bbl
for the nine months  ended  September  30, 2008 from $48.68 per bbl for the nine
months ended  September  30, 2007.  Realized  crude oil prices  increased 89% to
average $99.05 per bbl for the third quarter of 2008 from $52.47 per bbl for the
third quarter of 2007,  and increased 1% from $97.94 bbl for the prior  quarter.
The increase from the comparable  periods in 2007 was due to the increase in WTI
benchmark pricing and a narrower Heavy Differential. The increase from the prior
quarter was due to a narrower Heavy Differential and the impact of the weakening
Canadian  dollar  relative to the US dollar,  partially  offset by declining WTI
benchmark pricing.

In North  America,  the Company  continues  to focus on its crude oil  marketing
strategy,  including the development of a blending strategy that expands markets
within current pipeline  infrastructure,  supporting pipeline projects that will
provide  capacity  to  transport  crude oil to new  markets,  and  working  with
refiners to add  incremental  heavy crude oil  conversion  capacity.  During the
third  quarter,  the Company  contributed  approximately  147,000 bbl/d of heavy
crude oil blends to the WCS stream.  The Company has also entered into a 20 year
transportation agreement to commit to ship 120,000 bbl/d of heavy sour crude oil
on the proposed  500,000 bbl/d  Keystone  Pipeline US Gulf Coast  expansion from
Hardisty,  Alberta to the US Gulf Coast.  Contemporaneously,  the  Company  also
entered into a 20 year crude oil  purchase  and sales  agreement to sell 100,000
bbl/d of heavy  sour  crude  oil to a major US  refiner.  Deliveries  under  the
agreements  are  expected to commence in 2012 upon  completion  of the  pipeline
expansion  and are subject to Keystone's  receipt of regulatory  approval of the
pipeline expansion as well as minimum levels of shipper commitments.

North America realized natural gas prices increased 26% to average $8.86 per mcf
for the nine  months  ended  September  30, 2008 from $7.05 per mcf for the nine
months ended  September  30, 2007.  Realized  North  America  natural gas prices
increased  50% to average $8.83 per mcf for the third quarter of 2008 from $5.88
per mcf for the third quarter of 2007,  and decreased 11% from $9.94 per mcf for
the prior quarter.  The  fluctuations  in natural gas prices from the comparable
periods in 2007 and the prior quarter were primarily related to the fluctuations
in benchmark prices.

Comparisons of the prices received for the Company's North America production by
product type were as follows:



                                                ---------------------
                                                             SEP 30                Jun 30                 Sep 30
                                                               2008                  2008                   2007
- -----------------------------------------------------------------------------------------------------------------
                                                                                    
WELLHEAD PRICE (1) (2)
Light/medium crude oil and NGLs (C$/bbl)         $            108.13   $           113.92    $             67.55
Pelican Lake crude oil (C$/bbl)                  $             95.58   $            98.28    $             48.91
Primary heavy crude oil (C$/bbl)                 $             97.30   $            95.39    $             47.47
Thermal heavy crude oil (C$/bbl)                 $             97.06   $            88.72    $             48.99
Natural gas (C$/mcf)                             $              8.83   $             9.94    $              5.88
=================================================================================================================

(1)  AMOUNTS EXPRESSED ON A PER UNIT BASIS ARE BASED ON SALES VOLUMES.

(2)  NET OF  TRANSPORTATION  AND BLENDING  COSTS AND EXCLUDING  RISK  MANAGEMENT
     ACTIVITIES.

NORTH SEA

North Sea realized crude oil prices increased 53% to average $111.82 per bbl for
the nine months ended September 30, 2008 from $72.86 per bbl for the nine months
ended September 30, 2007.  Realized North Sea crude oil prices  increased 42% to
average  $109.82  per bbl for the third  quarter of 2008 from $77.55 per bbl for
the third  quarter of 2007,  and  decreased  by 15% from $129.57 per bbl for the
prior quarter.  Realized crude oil prices per bbl in any particular  quarter are
dependant on the terms of the various sales contracts,  the frequency and timing
of  liftings  of certain  fields,  and  prevailing  crude  prices at the time of
lifting.  Realized  crude oil prices in the North Sea  during the third  quarter
continued  to  benefit  from the  impact of strong  European  and Asian  demand,
partially offset by the impact of the strong Canadian dollar.

OFFSHORE WEST AFRICA

Offshore West Africa realized crude oil prices  increased 65% to average $110.93
per bbl for the nine months ended September 30, 2008 from $67.37 per bbl for the
nine months ended  September 30, 2007.  Realized  Offshore West Africa crude oil
prices  increased  78% to average  $125.71 per bbl for the third quarter of 2008
from  $70.52  per bbl for the third  quarter  of 2007,  and  increased  10% from
$114.56 per bbl for the prior quarter.  Realized crude oil prices per bbl in any
particular  quarter are dependant on the terms of the various  sales  contracts,
the frequency and timing of liftings of each field,  and prevailing crude prices


CANADIAN NATURAL RESOURCES LIMITED                                            21
===============================================================================


at the time of lifting. Realized crude oil prices in Offshore West Africa during
the third  quarter  continued to benefit from the impact of strong  European and
Asian demand, offset by the impact of the strong Canadian dollar.

CRUDE OIL INVENTORY VOLUMES

The Company  recognizes revenue on its crude oil production when title transfers
to the customer and delivery has taken place.  The related  crude oil volumes by
segment, which have not been recognized in revenue, were as follows:



                                                             -----------------
                                                                       SEP 30           Jun 30              Dec 31
(bbl)                                                                    2008             2008                2007
- -------------------------------------------------------------------------------------------------------------------
                                                                                                
North America, related to pipeline fill                             1,097,526        1,097,526           1,097,526
North Sea, related to timing of liftings                              628,642          802,576           1,032,723
Offshore West Africa, related to timing of liftings                   862,183          377,741               8,578
- -------------------------------------------------------------------------------------------------------------------
                                                                    2,588,351        2,277,843           2,138,827
===================================================================================================================


In the  third  quarter  of 2008,  an  additional  311,000  barrels  of crude oil
produced  in the  Company's  international  operations  was not  lifted  and was
therefore  included in  inventory  at September  30,  2008.  Notwithstanding  an
overall increase in inventory,  consolidated cash flow from operations increased
by approximately $10 million,  primarily due to fluctuations in prevailing crude
oil prices.



DAILY PRODUCTION, BEFORE ROYALTIES
                                                          Three Months Ended                        Nine Months Ended
                                           ----------------                                ---------------
                                                    SEP 30        Jun 30            Sep 30         SEP 30           Sep 30
                                                      2008          2008              2007           2008             2007
- ---------------------------------------------------------------------------------------------------------------------------
                                                                                                    
CRUDE OIL AND NGLS (bbl/d)
North America                                      239,973        245,616          252,095        244,832          243,388
North Sea                                           42,760         45,830           52,013         46,041           57,020
Offshore West Africa                                24,237         27,631           28,954         26,842           28,800
- ---------------------------------------------------------------------------------------------------------------------------
                                                   306,970        319,077          333,062        317,715          329,208
- ---------------------------------------------------------------------------------------------------------------------------
NATURAL GAS (mmcf/d)
North America                                        1,467          1,501            1,622          1,494            1,670
North Sea                                                9             10               10             10               13
Offshore West Africa                                    14             15               15             14               12
- ---------------------------------------------------------------------------------------------------------------------------
                                                     1,490          1,526            1,647          1,518            1,695
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL BARRELS OF OIL EQUIVALENT (boe/d)            555,356        573,437          607,484        570,704          611,665
- ---------------------------------------------------------------------------------------------------------------------------
PRODUCT MIX
Light/medium crude oil and NGLs                        21%            22%              22%            22%              23%
Pelican Lake crude oil                                  7%             6%               6%             7%               6%
Primary heavy crude oil                                16%            16%              16%            16%              15%
Thermal heavy crude oil                                11%            12%              11%            11%              10%
Natural gas                                            45%            44%              45%            44%              46%
===========================================================================================================================



22                                            CANADIAN NATURAL RESOURCES LIMITED
===============================================================================




DAILY PRODUCTION, NET OF ROYALTIES
                                                          Three Months Ended                        Nine Months Ended
                                            --------------                                ----------------
                                                   SEP 30          Jun 30          Sep 30          SEP 30           Sep 30
                                                     2008            2008            2007            2008             2007
- ---------------------------------------------------------------------------------------------------------------------------
                                                                                                    
CRUDE OIL AND NGLS (bbl/d)
North America                                     202,419         202,264         213,680         207,072          208,370
North Sea                                          42,665          45,734          51,917          45,945           56,916
Offshore West Africa                               19,050          24,136          26,158          22,216           26,311
- ---------------------------------------------------------------------------------------------------------------------------
                                                  264,134         272,134         291,755         275,233          291,597
- ---------------------------------------------------------------------------------------------------------------------------
NATURAL GAS (mmcf/d)
North America                                       1,217           1,227           1,373           1,234            1,395
North Sea                                               9              10              10              10               13
Offshore West Africa                                   11              13              14              12               11
- ---------------------------------------------------------------------------------------------------------------------------
                                                    1,237           1,250           1,397           1,256            1,419
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL BARRELS OF OIL EQUIVALENT (boe/d)           470,268         480,418         524,417         484,593          527,982
===========================================================================================================================


Daily production and per bbl statistics are presented  throughout this MD&A on a
"before  royalty" or "gross"  basis.  Production on an "after  royalty" or "net"
basis is also presented.

The Company's  business  approach is to maintain large project  inventories  and
production  diversification  among each of the  commodities it produces;  namely
natural gas,  light/medium  crude oil and NGLs,  Pelican Lake crude oil, primary
heavy crude oil and thermal heavy crude oil.

Total production  averaged 570,704 boe/d for the nine months ended September 30,
2008, a 7% decrease from 611,665  boe/d for the nine months ended  September 30,
2007.  Production for the third quarter of 2008 decreased 9% to average  555,356
boe/d,  from 607,484 boe/d for the third quarter of 2007, and a 3% decrease from
573,437 boe/d for the prior quarter.

Total crude oil and NGLs production for the nine months ended September 30, 2008
decreased  3% to 317,715  bbl/d from  329,208  bbl/d for the nine  months  ended
September 30, 2007. Third quarter total crude oil and NGLs production  decreased
8% to  306,970  bbl/d from  333,062  bbl/d for the third  quarter  of 2007,  and
decreased 4% from 319,077  bbl/d for the prior  quarter.  The decrease  from the
comparable  periods was primarily  due to lower  production in the North Sea and
Offshore  West  Africa  due to the  timing of field  turnarounds  and the cyclic
nature of the Company's thermal production. Crude oil and NGLs production in the
third quarter of 2008 was near the midpoint of the Company's  previously  issued
guidance of 299,000 to 316,000 bbl/d.

Natural gas  production  continued to represent  the Company's  largest  product
offering,  accounting  for 45% of the  Company's  total  production in the third
quarter of 2008.  Natural gas production for the nine months ended September 30,
2008  averaged  1,518 mmcf/d  compared to 1,695 mmcf/d for the nine months ended
September 30, 2007.  Third quarter natural gas production  averaged 1,490 mmcf/d
compared to 1,647 mmcf/d for the third  quarter of 2007 and 1,526 mmcf/d for the
prior  quarter.  The  decrease in natural  gas  production  from the  comparable
periods primarily  reflected  production declines due to the Company's strategic
reduction in natural gas drilling activity. Third quarter natural gas production
was at the high end of the  Company's  previously  issued  guidance  of 1,466 to
1,490 mmcf/d.

For 2008, annual production  guidance is targeted to average between 313,000 and
318,000  bbl/d of crude  oil and NGLs and  between  1,492  and  1,506  mmcf/d of
natural  gas.  Fourth  quarter 2008  production  guidance is targeted to average
between  300,000 and 316,000  bbl/d of crude oil and NGLs and between  1,430 and
1,455 mmcf/d of natural gas.


CANADIAN NATURAL RESOURCES LIMITED                                            23
===============================================================================


NORTH AMERICA

North America crude oil and NGLs  production for the nine months ended September
30, 2008  increased 1% to average  244,832 bbl/d from 243,388 bbl/d for the nine
months ended September 30, 2007.  Third quarter North America crude oil and NGLs
production  decreased 5% to average  239,973  bbl/d from  252,095  bbl/d for the
third  quarter  of 2007,  and  decreased  2% from  245,616  bbl/d  for the prior
quarter.  The  fluctuations  in crude  oil and NGLs  production  from the  prior
periods  was  primarily  due to the  cyclic  nature  of  the  Company's  thermal
production.

For the nine months ended September 30, 2008,  natural gas production  decreased
11% to 1,494 mmcf/d from 1,670 mmcf/d for the nine months  ended  September  30,
2007.  For the third quarter of 2008,  natural gas  production  decreased 10% to
1,467 mmcf/d from 1,622 mmcf/d for the third  quarter of 2007,  and decreased 2%
from 1,501 mmcf/d for the prior quarter.  The decrease in natural gas production
from the  prior  periods  reflected  production  declines  due to the  Company's
strategic  decision to reduce  natural gas drilling  activity to focus on higher
return crude oil projects.

NORTH SEA

North Sea crude oil  production  for the nine months  ended  September  30, 2008
decreased  19% to 46,041  bbl/d  from  57,020  bbl/d for the nine  months  ended
September 30, 2007.  Third quarter North Sea crude oil production  decreased 18%
to 42,760 bbl/d from 52,013  bbl/d for the third  quarter of 2007 and by 7% from
45,830 bbl/d for the prior quarter.  Third quarter production was at the low end
of  guidance  with the  decrease  from the  prior  quarter  due to the  extended
duration of the Murchison  shutdown.  Three planned  maintenance  shutdowns were
successfully  completed  during  the  third  quarter  of 2008 at the  Murchison,
T-Block,  and Banff  Fields.  Two platforms at the Ninian Field will be shutdown
for maintenance in the fourth quarter.

OFFSHORE WEST AFRICA

Offshore West Africa crude oil  production  decreased 7% to 26,842 bbl/d for the
nine months ended September 30, 2008 from 28,800 bbl/d for the nine months ended
September  30, 2007.  Third quarter  Offshore  West Africa crude oil  production
decreased  16% to 24,237 bbl/d from 28,954 bbl/d for the third  quarter of 2007,
and by 12% from 27,631 bbl/d for the prior quarter.  During the third quarter, a
shutdown was taken at the Baobab Field for  maintenance  and to tie in the first
new well  delivered  from the  redrilling  program.  This well was  onstream  at
quarter end and  additional  production  is  anticipated  to be delivered in the
fourth quarter.  A well intervention  program at Espoir had restored one shut-in
production well during the quarter, with a second in progress at quarter end.


24                                            CANADIAN NATURAL RESOURCES LIMITED
===============================================================================




ROYALTIES
                                                      Three Months Ended                         Nine Months Ended
                                       ----------------                                   ----------------
                                                SEP 30           Jun 30           Sep 30           SEP 30           Sep 30
                                                  2008             2008             2007             2008             2007
- ---------------------------------------------------------------------------------------------------------------------------
                                                                                             
CRUDE OIL AND NGLS ($/bbl) (1)
North America                            $       15.76   $        17.46   $         8.00   $        14.26   $         7.02
North Sea                                $        0.24   $         0.27   $         0.14   $         0.23   $         0.13
Offshore West Africa                     $       26.90   $        14.49   $         6.81   $        18.89   $         5.90
Company average                          $       14.17   $        14.82   $         6.65   $        12.49   $         5.69

NATURAL GAS ($/mcf) (1)
North America                            $        1.55   $         1.88   $         0.90   $         1.60   $         1.17
Offshore West Africa                     $        2.24   $         1.13   $         0.51   $         1.59   $         0.50
Company average                          $        1.55   $         1.86   $         0.89   $         1.59   $         1.16

COMPANY AVERAGE ($/boe) (1)              $       12.06   $        13.26   $         6.07   $        11.22   $         6.27

PERCENTAGE OF REVENUE (2)
Crude oil and NGLs                                 14%              14%              11%              13%              10%
Natural gas                                        18%              19%              15%              18%              16%
Boe                                                15%              16%              13%              15%              13%
===========================================================================================================================

(1)  AMOUNTS EXPRESSED ON A PER UNIT BASIS ARE BASED ON SALES VOLUMES.

(2)  NET OF  TRANSPORTATION  AND BLENDING  COSTS AND EXCLUDING  RISK  MANAGEMENT
     ACTIVITIES.

NORTH AMERICA

North  America  crude oil and NGLs  royalties  per bbl for the nine months ended
September 30, 2008 continue to reflect strong  realized crude oil prices.  Crude
oil and NGLs  royalties  averaged  approximately  16% of revenues  for the third
quarter of 2008,  compared  to 15% for the third  quarter in 2007 and 18% in the
prior quarter.  Crude oil and NGLs royalties per bbl are  anticipated to average
16% to 18% of gross revenue for 2008.

Natural gas  royalties  per mcf  generally  fluctuate  with  natural gas prices.
Natural gas  royalties  averaged  approximately  18% of  revenues  for the third
quarter of 2008  compared  to 15% for the third  quarter of 2007 and 19% for the
prior  quarter.  Natural gas royalties are  anticipated to average 17% to 20% of
gross revenue for 2008.

NORTH SEA

North Sea government royalties on crude oil were eliminated effective January 1,
2003. The remaining royalty is a gross overriding royalty on the Ninian Field.


CANADIAN NATURAL RESOURCES LIMITED                                            25
===============================================================================


OFFSHORE WEST AFRICA

Offshore  West  Africa  production  is  governed  by the  terms  of the  various
Production Sharing Contracts ("PSCs"). Under the PSCs, revenues are divided into
cost  recovery  oil and profit  oil.  Cost  recovery  oil allows the  Company to
recover its capital and production costs and the costs carried by the Company on
behalf of the Government State Oil Company. Profit oil is allocated to the joint
venture partners in accordance with their respective equity  interests,  after a
portion has been allocated to the Government.  The Government's  share of profit
oil attributable to the Company's  equity interest is allocated  between royalty
expense  and  current  income  tax  expense  in  accordance  with the PSCs.  The
Company's  capital  investments in the Espoir Fields were fully recovered in the
first  quarter of 2007,  increasing  royalty  rates and current  income taxes in
accordance with the terms of the PSCs.

Royalty  rates as a percentage  of revenue  averaged  approximately  21% for the
third  quarter of 2008 compared to 10% for the third quarter of 2007 and 13% for
the prior  quarter.  Royalty  expense in the third  quarter  reflected  a higher
proportion of Espoir sales in the period,  which have higher royalty rates. This
increase was  compounded  by the impact of the  reduction  in the Cote  d'Ivoire
corporate  income tax rate enacted in the first quarter of 2008, which increased
the allocation of the  Government's  share of profit oil to royalties.  Offshore
West Africa royalty rates are anticipated to average 14% to 17% of gross revenue
for 2008.



PRODUCTION EXPENSE
                                                       Three Months Ended                         Nine Months Ended
                                        ----------------                                  ---------------
                                                 SEP 30          Jun 30           Sep 30          SEP 30            Sep 30
                                                   2008            2008             2007            2008              2007
- ---------------------------------------------------------------------------------------------------------------------------
                                                                                             
CRUDE OIL AND NGLS ($/bbl) (1)
North America                             $       16.23   $       15.44   $        11.69   $       15.17    $        12.87
North Sea                                 $       29.21   $       25.61   $        23.61   $       25.52    $        21.23
Offshore West Africa                      $        7.74   $        9.79   $         7.00   $        8.60    $         7.90
Company average                           $       17.61   $       16.39   $        13.13   $       16.24    $        13.97

NATURAL GAS ($/mcf) (1)
North America                             $        1.03   $        0.93   $         0.87   $        0.99    $         0.90
North Sea                                 $        3.09   $        2.68   $         2.29   $        2.68    $         2.39
Offshore West Africa                      $        1.58   $        1.27   $         1.39   $        1.36    $         1.32
Company average                           $        1.05   $        0.94   $         0.88   $        1.01    $         0.91

COMPANY AVERAGE ($/boe) (1)               $       12.52   $       11.60   $         9.62   $       11.70    $        10.05
===========================================================================================================================

(1) AMOUNTS EXPRESSED ON A PER UNIT BASIS ARE BASED ON SALES VOLUMES.

NORTH AMERICA

North  America crude oil and NGLs  production  expense for the nine months ended
September  30, 2008  increased 18% to $15.17 per bbl from $12.87 per bbl for the
nine months ended September 30, 2007.  Third quarter North America crude oil and
NGLs production  expense increased 39% to $16.23 per bbl from $11.69 per bbl for
the third  quarter of 2007 and  increased  5% from  $15.44 per bbl for the prior
quarter.  The increase in production expense per bbl from the comparable periods
was  primarily  a result  of the  higher  cost of  natural  gas for fuel for the
Company's  thermal  operations and increased  property tax and power costs.  The
increase  in the third  quarter of 2008 was also a result of the timing of steam
cycles at thermal  properties and the impact of lower production  volumes on the
fixed cost portion of production costs.

North America natural gas production expense for the nine months ended September
30, 2008  increased  10% to $0.99 per mcf from $0.90 per mcf for the nine months
ended  September 30, 2007.  Third quarter North America  natural gas  production
expense  increased 18% to $1.03 per mcf from $0.87 per mcf for the third quarter
of 2007 and increased 11% from $0.93 per mcf for the prior quarter. The increase
in production  expense per mcf from the comparable periods in 2007 was primarily


26                                            CANADIAN NATURAL RESOURCES LIMITED
===============================================================================


a result of lower  production  volumes on the fixed cost  portion of  production
costs.  The increase  from the prior  quarter was a result of higher  repair and
maintenance  activity during the third quarter of 2008, together with the impact
of lower production  volumes.

NORTH SEA

North Sea crude oil  production  expense  increased  on a per bbl basis from the
comparable periods in 2007 and the prior quarter due to lower production volumes
on a relatively fixed operating cost base as well as higher planned  maintenance
costs.

OFFSHORE WEST AFRICA

Offshore West Africa crude oil production  expense  decreased on a per bbl basis
from the prior quarter  primarily due to the impact of the timing of liftings at
the Baobab and Espoir  Fields,  resulting in a greater  proportion of relatively
lower fixed cost Espoir sales in the quarter.  The increase over the  comparable
periods in 2007 was  largely  due to lower  production  volumes on a  relatively
fixed operating cost base.



MIDSTREAM
                                                        Three Months Ended                         Nine Months Ended
                                         ----------------                                   ----------------
                                                  SEP 30           Jun 30           Sep 30           SEP 30           Sep 30
($ millions)                                        2008             2008             2007             2008             2007
- -----------------------------------------------------------------------------------------------------------------------------
                                                                                               
Revenue                                    $          20   $           20   $           19   $           60   $           55
Production expense                                     6                8                5               19               16
- -----------------------------------------------------------------------------------------------------------------------------
Midstream cash flow                                   14               12               14               41               39
Depreciation                                           2                2                2                6                6
- -----------------------------------------------------------------------------------------------------------------------------
Segment earnings before taxes              $          12   $           10   $           12   $           35   $           33
=============================================================================================================================


The Company's midstream assets consist of three crude oil pipeline systems and a
50%  working  interest  in  an  84-megawatt   cogeneration  plant  at  Primrose.
Approximately  80% of the Company's heavy crude oil production is transported to
international  mainline  liquid  pipelines  via the 100% owned and operated ECHO
Pipeline,  the 62% owned and operated  Pelican  Lake  Pipeline and the 15% owned
Cold Lake Pipeline.  The midstream  pipeline assets allow the Company to control
the transport of its own production volumes as well as earn third party revenue.
This  transportation  control enhances the Company's  ability to manage the full
range of costs  associated  with the  development  and  marketing of its heavier
crude oil.



DEPLETION, DEPRECIATION AND AMORTIZATION (1)
                                                         Three Months Ended                         Nine Months Ended
                                          ----------------                                   ----------------
                                                   SEP 30           Jun 30           Sep 30           SEP 30           Sep 30
                                                     2008             2008             2007             2008             2007
- ------------------------------------------------------------------------------------------------------------------------------
                                                                                               
Expense ($ millions)                      $           657  $           668  $           713  $         2,011  $         2,138
         $/boe (2)                        $         12.93  $         12.88  $         12.68  $         12.89  $         12.79
==============================================================================================================================

(1)  DD&A EXCLUDES DEPRECIATION ON MIDSTREAM ASSETS.

(2)  AMOUNTS EXPRESSED ON A PER UNIT BASIS ARE BASED ON SALES VOLUMES.

Depletion,  Depreciation  and  Amortization  ("DD&A")  for the nine months ended
September 30, 2008 and the third quarter  decreased in total from the comparable
periods  in 2007 and the prior  quarter,  primarily  due to the  impact of lower
sales volumes.


CANADIAN NATURAL RESOURCES LIMITED                                            27
===============================================================================




ASSET RETIREMENT OBLIGATION ACCRETION
                                                     Three Months Ended                         Nine Months Ended
                                      ----------------                                   ---------------
                                               SEP 30          Jun 30            Sep 30          SEP 30            Sep 30
                                                 2008            2008              2007            2008              2007
- --------------------------------------------------------------------------------------------------------------------------
                                                                                            
Expense ($ millions)                    $          18   $          17    $           18   $          52    $           53
         $/boe (1)                      $        0.35   $        0.33    $         0.32   $        0.33    $         0.32
==========================================================================================================================

(1) AMOUNTS EXPRESSED ON A PER UNIT BASIS ARE BASED ON SALES VOLUMES.

Asset retirement  obligation  accretion  expense  represents the increase in the
carrying amount of the asset  retirement  obligation due to the passage of time.
Accretion  expense for the nine months  ended  September  30, 2008 and the third
quarter was consistent with the comparable periods.



ADMINISTRATION EXPENSE
                                                       Three Months Ended                         Nine Months Ended
                                        ----------------                                   ----------------
                                                 SEP 30           Jun 30           Sep 30           SEP 30           Sep 30
                                                   2008             2008             2007             2008             2007
- ----------------------------------------------------------------------------------------------------------------------------
                                                                                              
Expense ($ millions)                      $          46    $          45   $           53   $          134   $          166
         $/boe (1)                        $        0.91    $        0.87   $         0.94   $         0.86   $         0.99
============================================================================================================================

(1) AMOUNTS EXPRESSED ON A PER UNIT BASIS ARE BASED ON SALES VOLUMES.

Administration  expense for the nine  months  ended  September  30, 2008 and the
third quarter  decreased in total from the comparable  periods in 2007 primarily
due to decreased staffing costs,  including costs related to the Company's share
bonus program, as well as decreased office lease costs.



STOCK-BASED COMPENSATION (RECOVERY) EXPENSE
                                                       Three Months Ended                         Nine Months Ended
                                        ----------------                                   ---------------
                                                 SEP 30          Jun 30            Sep 30          SEP 30            Sep 30
($ millions)                                       2008            2008              2007            2008              2007
- ----------------------------------------------------------------------------------------------------------------------------
                                                                                              
(Recovery) expense                        $       (308)   $         459    $           78   $         151    $          209
============================================================================================================================


The Company's Stock Option Plan (the "Option Plan") provides  current  employees
(the "option  holders")  with the right to elect to receive  common  shares or a
direct cash  payment in  exchange  for  options  surrendered.  The design of the
Option Plan  balances  the need for a long-term  compensation  program to retain
employees  with the  benefits  of  reducing  the impact of  dilution  on current
Shareholders and the reporting of the obligations associated with stock options.
Transparency  of the cost of the  Option  Plan is  increased  as  changes in the
intrinsic  value of outstanding  stock options are recognized  each period.  The
cash  payment  feature  provides  option  holders  with  substantially  the same
benefits  and  allows  them to  realize  the  value of their  options  through a
simplified administration process.

The  Company  recorded  a $151  million  ($107  million  after-tax)  stock-based
compensation expense for the nine months ended September 30, 2008 as a result of
normal course graded vesting of options  granted in prior periods and the impact
of vested options exercised or surrendered during the period, and a $308 million
($221 million after-tax)  stock-based  compensation  recovery primarily due to a
28% decrease in the Company's  share price for the three months ended  September
30, 2008 (Company's  share price as at:  September 30, 2008 - C$73.00;  June 30,
2008 - C$100.84;  December 31, 2007 - C$72.58; September 30, 2007 - C$75.56). As
required by GAAP, the Company records a liability for potential cash payments to
settle its outstanding employee stock options each reporting period based on the
difference  between the exercise price of the stock options and the market price
of the Company's  common  shares,  pursuant to a graded  vesting  schedule.  The
liability is revalued  quarterly  to reflect  changes in the market price of the
Company's common shares and the options  exercised or surrendered in the period,
with the net  change  recognized  in net  earnings,  or  capitalized  during the
construction  period in the case of the  Horizon  Project.  For the nine  months
ended  September 30, 2008,  the Company  capitalized  $33 million in stock-based
compensation  on the Horizon  Project  (September  30, 2007 - $63 million).  The
stock-based  compensation  liability  reflected  the  Company's  potential  cash


28                                            CANADIAN NATURAL RESOURCES LIMITED
===============================================================================


liability  should all the vested options be surrendered for a cash payout at the
market price on  September  30, 2008.  In periods when  substantial  stock price
changes occur, the Company's earnings are subject to significant volatility. The
Company  utilizes  its  stock-based  compensation  plan to  attract  and  retain
employees in a competitive environment. All employees participate in this plan.

For the nine months ended  September 30, 2008, the Company paid $202 million for
stock  options  surrendered  for  cash  settlement  (September  30,  2007 - $321
million).



INTEREST EXPENSE
                                                               Three Months Ended                     Nine Months Ended
                                                 --------------                                --------------
                                                        SEP 30          Jun 30         Sep 30         SEP 30         Sep 30
($ millions, except per boe amounts)                      2008            2008           2007           2008           2007
- ----------------------------------------------------------------------------------------------------------------------------
                                                                                                
Expense, gross                                    $        150   $         141  $         160  $         451   $        472
Less: capitalized interest, Horizon Project                125             110             95            346            247
- ----------------------------------------------------------------------------------------------------------------------------
Expense, net                                      $         25   $          31  $          65  $         105   $        225
         $/boe (1)                                $       0.49   $        0.60  $        1.15  $        0.67   $       1.34
Average effective interest rate                           5.0%            4.8%           5.7%           5.2%           5.4%
============================================================================================================================

(1) AMOUNTS EXPRESSED ON A PER UNIT BASIS ARE BASED ON SALES VOLUMES.
Gross  interest  expense  and the  Company's  average  effective  interest  rate
decreased  in the nine  months  ended  September  30,  2008 from the  comparable
periods in 2007 primarily due to decreased  short term  borrowing  rates and the
impact of the stronger Canadian dollar.

On  commencement  of  operations  of Phase 1 of the  Horizon  Project,  interest
capitalization   will  cease  on  this  Phase,   increasing   interest   expense
accordingly.

RISK MANAGEMENT ACTIVITIES

The Company  utilizes  various  derivative  financial  instruments to manage its
commodity  price,  currency and interest  rate  exposures.  The  Company's  risk
management program is not used for speculative purposes.



                                                          Three Months Ended                      Nine Months Ended
                                            ---------------                                ---------------
                                                   SEP 30          Jun 30         Sep 30          SEP 30           Sep 30
($ millions)                                         2008            2008           2007            2008             2007
- --------------------------------------------------------------------------------------------------------------------------
                                                                                            
Crude oil and NGLs financial instruments    $         792   $         944    $       102    $      2,199   $          197
Natural gas financial instruments                      16              10           (125)            (21)            (216)
Foreign currency swaps                                (17)              -              -             (17)               -
- --------------------------------------------------------------------------------------------------------------------------
Realized loss (gain)                        $         791   $         954    $       (23)   $      2,161   $          (19)
- --------------------------------------------------------------------------------------------------------------------------

Crude oil and NGLs financial instruments    $      (2,423)  $       1,380    $        80    $       (992)  $          474
Natural gas financial instruments                     (68)             38             (4)             29               81
Foreign currency swaps                                (15)             (3)             -             (20)               -
- --------------------------------------------------------------------------------------------------------------------------
Unrealized (gain) loss                      $      (2,506)  $       1,415    $        76    $       (983)  $          555
- --------------------------------------------------------------------------------------------------------------------------
Net (gain) loss                             $      (1,715)  $       2,369    $        53    $      1,178   $          536
==========================================================================================================================



CANADIAN NATURAL RESOURCES LIMITED                                            29
===============================================================================


The  net  realized  loss  (gain)  from  crude  oil  and  natural  gas  financial
instruments  would have decreased  (increased)  the Company's  average  realized
prices as follows:



                                                      Three Months Ended                        Nine Months Ended
                                       ----------------                                  ----------------
                                                SEP 30           Jun 30         Sep 30            SEP 30           Sep 30
                                                  2008             2008           2007              2008             2007
- --------------------------------------------------------------------------------------------------------------------------
                                                                                            
Crude oil and NGLs ($/bbl) (1)         $        28.37   $        32.84   $        3.30   $         25.39    $        2.19
Natural gas ($/mcf) (1)                $         0.11   $         0.07   $       (0.83)  $         (0.05)   $       (0.47)
==========================================================================================================================

(1) AMOUNTS EXPRESSED ON A PER UNIT BASIS ARE BASED ON SALES VOLUMES.

Complete  details  related to outstanding  derivative  financial  instruments at
September 30, 2008 are disclosed in note 10 to the Company's  unaudited  interim
consolidated   financial   statements.

The commodity derivative financial  instruments  currently  outstanding have not
been designated as hedges for accounting purposes (the "non-designated hedges").
The fair value of these  non-designated  hedges is based on  prevailing  forward
commodity  prices in effect at the end of each reporting period and is reflected
in risk management activities in consolidated net earnings.  The cash settlement
amount  of  the  risk  management  derivative  financial  instruments  may  vary
materially depending upon the underlying crude oil and natural gas prices at the
time of final settlement of the derivative financial instruments, as compared to
their mark-to-market value at September 30, 2008.

Due to changes in crude oil and natural gas forward  pricing and the reversal of
prior period unrealized gains and losses,  the Company recorded a net unrealized
gain of $983 million ($677 million after-tax) on its risk management  activities
for the nine months ended September 30, 2008, including a $2,506 million ($1,750
million  after-tax) net unrealized  gain for the third quarter of 2008 (June 30,
2008 - unrealized loss of $1,415 million, $997 million after-tax;  September 30,
2007 - unrealized loss of $76 million, $57 million after-tax).



FOREIGN EXCHANGE
                                                      Three Months Ended                         Nine Months Ended
                                       ---------------                                    ----------------
                                              SEP 30            Jun 30           Sep 30          SEP 30            Sep 30
($ millions)                                    2008              2008             2007            2008              2007
- --------------------------------------------------------------------------------------------------------------------------
                                                                                             
Net realized (gain) loss                 $       (40)    $        (11)    $         22     $        (63)    $         53
Net unrealized loss (gain) (1)                   113              (20)            (195)             219             (477)
- --------------------------------------------------------------------------------------------------------------------------
Net loss (gain)                          $        73     $        (31)    $       (173)    $        156     $       (424)
==========================================================================================================================

(1)  AMOUNTS ARE REPORTED NET OF THE HEDGING  EFFECT OF CROSS  CURRENCY SWAPS AS
     DESCRIBED IN RISK MANAGEMENT ACTIVITIES.

The Company's  operating  results are affected by  fluctuations  in the exchange
rates between the Canadian dollar, US dollar, and UK pound sterling.  A majority
of the Company's revenue is based on reference to US dollar benchmark prices. An
increase  in the  value of the  Canadian  dollar  in  relation  to the US dollar
results  in  decreased  revenue  from  the  sale  of the  Company's  production.
Conversely, a decrease in the value of the Canadian dollar in relation to the US
dollar results in increased  revenue from the sale of the Company's  production.
Production   expenses  in  the  North  Sea  are  subject  to  foreign   currency
fluctuations due to changes in the exchange rate of the UK pound sterling to the
US dollar,  while  production  expenses in  Offshore  West Africa are subject to
foreign  currency  fluctuations  due to  changes  in the  exchange  rate  of the
Canadian  dollar  to  the US  dollar.  The  value  of the  Company's  US  dollar
denominated  debt is also  impacted  by the  value  of the  Canadian  dollar  in
relation to the US dollar.

The net unrealized foreign exchange loss for the nine months ended September 30,
2008 was primarily  related to the weakening of the Canadian  dollar in relation
to the US dollar with respect to the US dollar debt, offset by the impact of the
re-measurement  of North Sea future  income tax  liabilities  denominated  in UK
pounds sterling to US dollars.  Included in the net unrealized loss for the nine
months ended  September  30, 2008 was an  unrealized  gain of $136 million (nine
months ended  September 30, 2007 - unrealized  loss of $335 million)  related to
the impact of the cross currency swaps.  The net realized  foreign exchange gain
for the nine months ended  September 30, 2008 was primarily due to the result of
foreign  exchange  rate  fluctuations  on  settlement  of working  capital items
denominated  in US dollars or UK pounds  sterling and the repayment of US dollar
denominated  debt.  The  Canadian  dollar  ended the third  quarter at US$0.9435
compared to US$0.9817 at June 30, 2008 (December 31, 2007 - US$1.0120, September
30, 2007 - US$1.0037.


30                                            CANADIAN NATURAL RESOURCES LIMITED
===============================================================================




TAXES
                                                          Three Months Ended                        Nine Months Ended
                                           ---------------                                   ---------------
                                                  SEP 30           Jun 30            Sep 30          SEP 30          Sep 30
($ millions, except income tax rates)               2008             2008              2007            2008            2007
- ----------------------------------------------------------------------------------------------------------------------------
                                                                                               
Current                                    $          52    $         96      $          30   $          218  $          105
Deferred                                             (7)             (34)                10             (62)              27
- ----------------------------------------------------------------------------------------------------------------------------
Taxes other than income tax                $          45    $         62      $          40   $          156  $          132
- ----------------------------------------------------------------------------------------------------------------------------

North America                              $           6    $          6      $          28   $           33  $           65
North Sea                                            121             111                 56              328             145
Offshore West Africa                                  44              34                 21              116              47
- ----------------------------------------------------------------------------------------------------------------------------
Current income tax                                   171             151                105              477             257
Future income tax                                  1,011            (301)               175              790             391
- ----------------------------------------------------------------------------------------------------------------------------
                                                   1,182            (150)               280            1,267             648
Income tax rate and other legislative
changes (1) (2)                                        -               -                  -               41              71
- ----------------------------------------------------------------------------------------------------------------------------
                                           $       1,182    $       (150)     $         280   $        1,308  $          719
- ----------------------------------------------------------------------------------------------------------------------------
Effective income tax rate before
   non-recurring benefits                          29.4%           30.2%              28.6%            29.2%           29.3%
============================================================================================================================

(1)  INCLUDES  THE EFFECT OF A ONE TIME  RECOVERY  OF $19 MILLION DUE TO BRITISH
     COLUMBIA  CORPORATE  INCOME TAX RATE REDUCTIONS AND $22 MILLION DUE TO COTE
     D'IVOIRE  CORPORATE  INCOME TAX RATE  REDUCTIONS  ENACTED OR  SUBSTANTIVELY
     ENACTED DURING THE FIRST QUARTER OF 2008.

(2)  INCLUDES  THE EFFECT OF A ONE TIME  RECOVERY OF $71 MILLION DUE TO CANADIAN
     FEDERAL  INCOME TAX RATE  REDUCTIONS  ENACTED  DURING THE SECOND QUARTER OF
     2007.

Taxes other than income tax primarily  includes  current and deferred  petroleum
revenue tax  ("PRT").  PRT is charged on certain  fields in the North Sea at the
rate of 50% of net  operating  income,  after  allowing  for certain  deductions
including related capital and abandonment expenditures.

Taxable  income from the  conventional  crude oil and  natural  gas  business in
Canada is primarily  generated  through  partnerships,  with the related  income
taxes payable in a future period.  North America  current income taxes have been
provided  on the basis of the  corporate  structure  and  available  income  tax
deductions and will vary depending upon the nature, timing and amount of capital
expenditures incurred in Canada in any particular year.



CANADIAN NATURAL RESOURCES LIMITED                                            31
===============================================================================




CAPITAL EXPENDITURES (1)
                                                               Three Months Ended                       Nine Months Ended
                                                 ---------------                                 ---------------
                                                         SEP 30          Jun 30          Sep 30          SEP 30          Sep 30
($ millions)                                               2008            2008            2007            2008            2007
- --------------------------------------------------------------------------------------------------------------------------------
                                                                                                  
EXPENDITURES ON PROPERTY, PLANT AND EQUIPMENT
Net property acquisitions                        $          47   $         263   $           7   $         302   $          68
Land acquisition and retention                              32              24              29              68              80
Seismic evaluations                                         40              18              23              85             107
Well drilling, completion and equipping                    421             286             299           1,159           1,301
Production and related facilities                          311             270             238             900             815
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL NET RESERVE REPLACEMENT EXPENDITURES                 851             861             596           2,514           2,371
- --------------------------------------------------------------------------------------------------------------------------------
Horizon Project:
   Phase 1 construction costs                              635             875             671           2,175           2,049
   Phase 1 operating and capital inventory                  27              14               -              82               -
   Phase 1 commissioning costs                              84              34               -             167               -
   Phases 2/3 costs                                         83              82              28             242              91
   Capitalized interest, stock-based
    compensation and other                                  46             247             120             402             329
- --------------------------------------------------------------------------------------------------------------------------------
Total Horizon Project                                      875           1,252             819           3,068           2,469
- --------------------------------------------------------------------------------------------------------------------------------
Midstream                                                    2               3               2               6               4
Abandonments (2)                                            10               7              22              23              55
Head office                                                  6               4               3              13              12
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL NET CAPITAL EXPENDITURES                   $       1,744   $       2,127   $       1,442   $       5,624   $       4,911
================================================================================================================================
BY SEGMENT
North America                                    $         578   $         617   $         441   $       1,858   $       1,858
North Sea                                                   78              79             121             202             395
Offshore West Africa                                       195             164              34             453             116
Other                                                        -               1               -               1               2
Horizon Project                                            875           1,252             819           3,068           2,469
Midstream                                                    2               3               2               6               4
Abandonments (2)                                            10               7              22              23              55
Head office                                                  6               4               3              13              12
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL                                            $       1,744   $       2,127   $       1,442   $       5,624   $       4,911
================================================================================================================================

(1)  THE NET CAPITAL  EXPENDITURES  EXCLUDE  ADJUSTMENTS  RELATED TO DIFFERENCES
     BETWEEN CARRYING VALUE AND TAX VALUE, AND OTHER FAIR VALUE ADJUSTMENTS.

(2)  ABANDONMENTS  REPRESENT EXPENDITURES TO SETTLE ASSET RETIREMENT OBLIGATIONS
     AND HAVE BEEN REFLECTED AS CAPITAL EXPENDITURES IN THIS TABLE.



32                                            CANADIAN NATURAL RESOURCES LIMITED
===============================================================================



The Company's  strategy is focused on building a diversified  asset base that is
balanced among various products.  In order to facilitate  efficient  operations,
the Company  concentrates  its  activities in core regions where it can dominate
the land base and  infrastructure.  The Company  focuses on maintaining its land
inventories to enable the continuous  exploitation  of play types and geological
trends, greatly reducing overall exploration risk. By dominating infrastructure,
the  Company  is able to  maximize  utilization  of its  production  facilities,
thereby increasing control over production costs.

Net capital  expenditures  for the nine  months  ended  September  30, 2008 were
$5,624 million  compared to $4,911  million for the nine months ended  September
30, 2007.  Net capital  expenditures  for the third  quarter of 2008 were $1,744
million  compared  to $1,442  million  for the third  quarter of 2007 and $2,127
million for the prior quarter. The capital expenditures  primarily reflected the
continued progress on the Company's larger, future growth projects, most notably
the  Horizon  Project,  Primrose  East,  and Gabon,  offset by the effects of an
overall strategic reduction in the North America natural gas drilling program.

For the nine months ended September 30, 2008, the Company drilled a total of 790
net  wells  consisting  of 228  natural  gas  wells,  500 crude  oil  wells,  34
stratigraphic  test and service  wells and 28 wells that were dry. This compared
to 1,051 net wells  drilled for the nine months ended  September  30, 2007.  The
Company  achieved  an  overall  success  rate of 96% for the nine  months  ended
September 30, 2008, excluding  stratigraphic test and service wells, compared to
90% for the nine months ended September 30, 2007.

For the third  quarter  of 2008,  the  Company  drilled a total of 315 net wells
consisting of 62 natural gas wells,  234 crude oil wells, 8  stratigraphic  test
and  service  wells and 11 wells that were dry.  This  compared to 268 net wells
drilled for the third  quarter of 2007 and 115 net wells for the prior  quarter.
The Company  achieved an overall  success  rate of 96% for the third  quarter of
2008,  excluding  stratigraphic test and service wells,  compared to 95% for the
third quarter of 2007 and 94% for the prior quarter.

NORTH AMERICA

North America, excluding the Horizon Project, accounted for approximately 34% of
the total  capital  expenditures  for the nine months ended  September  30, 2008
compared to 39% for the nine months ended  September  30, 2007.

During the nine months ended  September 30, 2008,  the Company  targeted 237 net
natural gas wells, including 24 wells in Northeast British Columbia, 86 wells in
the Northern Plains region, 58 wells in Northwest  Alberta,  and 69 wells in the
Southern Plains region. The Company also targeted 514 net crude oil wells during
the same period.  The majority of these wells were concentrated in the Company's
crude oil Northern  Plains  region  where 288 heavy crude oil wells,  92 Pelican
Lake crude oil wells,  52  thermal  crude oil wells and 6 light  crude oil wells
were targeted.  Another 76 wells  targeting light crude oil were drilled outside
the Northern Plains region.

Due to significant  differences in relative  commodity  prices between crude oil
and natural gas during the nine months ended  September  30,  2008,  the Company
continued to access its large crude oil drilling  inventory to maximize value in
both the short and long term.  Due to the Company's  focus on drilling crude oil
wells in 2007 and 2008,  natural gas  drilling  activities  have been reduced to
manage overall capital  spending.  Deferred natural gas well locations have been
retained in the Company's prospect inventory.

As part of the phased expansion of its In-Situ Oil Sands Assets,  the Company is
continuing to develop its Primrose  thermal  projects.  Overall Primrose thermal
production  averaged  approximately  61,000 bbl/d for the third  quarter of 2008
compared to 60,000 bbl/d for the third quarter of 2007 and approximately  67,000
bbl/d for the prior quarter.

The Primrose  East  Expansion,  a new facility  located 15  kilometers  from the
existing Primrose South steam plant and 25 kilometers from the Wolf Lake central
processing  facility,  is  anticipated  to add  approximately  40,000  bbl/d  of
production  capacity when complete.  Drilling and  construction of facilities is
complete.  First steaming  commenced in September 2008 and first  production was
achieved in the fourth quarter of 2008.

The next planned  phase of the Company's  In-Situ Oil Sands Assets  expansion is
the  Kirby  project  located  120  kilometers  north  of the  existing  Primrose
facilities.  The Kirby project is anticipated to add approximately  45,000 bbl/d
of production  capacity.  During 2007, the Company filed a combined  application
and Environmental  Impact  Assessment for this project with Alberta  Environment
and the Alberta Energy and Utilities Board. Final corporate sanction and project
scope will be impacted by environmental regulations and their associated costs.

Development of new pads and secondary  recovery  conversion  projects at Pelican
Lake  continued  as  expected  throughout  the third  quarter of 2008.  Drilling
consisted of 35  horizontal  wells in the third  quarter.  The response from the


CANADIAN NATURAL RESOURCES LIMITED                                            33
===============================================================================


water  and  polymer  flood  projects  continues  to be  positive.  Pelican  Lake
production averaged  approximately 37,000 bbl/d for the second and third quarter
of 2008  compared to  approximately  35,000 bbl/d for the third quarter of 2007.

For the fourth quarter of 2008, the Company's  overall planned drilling activity
in North  America is  expected to be  comprised  of 31 natural gas wells and 222
crude oil wells, excluding stratigraphic and service wells.

HORIZON PROJECT

First  production of synthetic crude oil is currently  targeted to commence late
in the fourth  quarter of 2008. A high level overview of progress by major plant
facility at the Horizon Project is as follows:

o    MINING - Completed, ready for oil sands mining operation, continues to move
     overburden;

o    ORE PREPARATION PLANT - Completed,  ready for operation;

o    HYDROTRANSPORT -  Completed, ready for operation;

o    PIPERACK - Completed, live and operational;

o    EXTRACTION - Completed, ready for operation;

o    FROTH TREATMENT - Completed, in commissioning and testing;

o    DELAYED COKER / DILUENT RECOVERY UNIT - Completed,  circulating  diesel and
     ready for operation;

o    CO-GENERATION - Completed, producing steam and power;

o    SULPHUR PLANT - Completed,  turned over to operations for commissioning and
     testing;

o    TANKAGE - Completed, ready for operation;

o    MAIN CONTROL ROOM - Completed, live and operational;

o    UTILITIES & SERVICES - Completed, live and operational;

o    SCO  PIPELINE  (THIRD  PARTY  OWNED AND  OPERATED) -  Completed,  ready for
     operation;

o    HYDROGEN PLANT - Completed, turned over to operations for commissioning and
     testing; and

o    HYDROTREATERS  - Plant 41 has been  completed and turned over to operations
     for  commissioning  and testing.  Plant 43 is  completing  electrical  heat
     tracing  and  insulation   while  starting   commissioning.   Plant  42  is
     mechanically  complete with  electrical  heat tracing and  insulation to be
     completed before turning over to operations for commissioning and testing.

Construction  delays  and an  extended  commissioning  schedule  have lead to an
increase  of $441  million to the  project  forecast  construction  costs.  This
results in the  revised  total  construction  cost  estimate  for Phase 1 of the
Horizon Project to be approximately $9.7 billion.

NORTH SEA

In the third quarter of 2008, the Company  continued with its planned program of
infill drilling,  recompletions,  workovers and waterflood optimizations. At the
end of the quarter 0.9 net wells were in progress.

The Company  also  continued  with its strategy of long term  investment  in the
facilities and  infrastructure at the Ninian and Murchison fields,  completing a
turnaround at Murchison  which included the successful  implementation  of a new
control system.  During the third quarter turnarounds were also completed at the
T-Block and Banff fields within planned timeframes.

OFFSHORE WEST AFRICA

During the third quarter of 2008, 1.5 net wells were drilled,  including 0.9 net
stratigraphic wells, with an additional 0.6 net wells drilling at the end of the
quarter.

At Espoir a workover was successfully completed restoring production to
a shut-in well. Another workover was in progress at the end of the quarter.  The
first well in the current  year Baobab  drilling  program was  completed  in the
quarter and brought on production.  At the 90% owned and operated Olowi Field in
offshore Gabon the  substructure  was put in place in readiness for installation
of the Conductor Supported Platform,  which was installed in early November, and
construction  continued  on the  wellhead  towers,  subsea  facilities  and  the
floating  production  storage and offtake vessel  ("FPSO").  Drilling  commenced
early in the second  quarter of 2008 and  continued  in the third  quarter  with
first crude oil now targeted for the first  quarter of 2009 due to delays in the
completion  of the  construction  of the FPSO.  Olowi  production is targeted to
plateau at approximately 20,000 bbl/d net to the Company.


34                                            CANADIAN NATURAL RESOURCES LIMITED
===============================================================================


CAPITAL BUDGET AND PRODUCTION GUIDANCE FOR 2009

The Company has completed its capital and operating budget planning for the 2009
fiscal year and will continue to implement  its strategy of  maintaining a large
portfolio of varied projects, which it believes will enable it, over an extended
period  of  time,  to  provide   consistent  growth  in  production  and  create
shareholder  value. In response to the current economic  climate,  the Company's
total  forecasted  capital  spending for 2009 has been reduced to  approximately
$4.0  billion.  Annual  production  for 2009 is  forecasted  to average  between
386,000  and  426,000  bbl/d of crude oil and NGLs and  between  1,285 and 1,350
mmcf/d of natural  gas.  As  necessary,  the 2009  budget is subject to revision
throughout  the  upcoming  year in the  context of  targeted  financial  ratios,
project  returns,  product pricing  expectations and balance in project risk and
time horizons.



LIQUIDITY AND CAPITAL RESOURCES
                                             -------------------
                                                         SEP 30              Jun 30             Dec 31            Sep 30
($ millions, except ratios)                                2008                2008               2007              2007
- -------------------------------------------------------------------------------------------------------------------------
                                                                                              
Working capital deficit (1)                    $          1,103    $           3,180   $         1,382    $          824
Long-term debt (2)                             $         11,633    $          11,040   $        10,940    $       10,686

Share capital                                  $          2,761    $           2,754   $         2,674    $        2,663
Retained earnings                                        13,628               10,847            10,575             9,824
Accumulated other comprehensive income                      116                    6                72                85
- -------------------------------------------------------------------------------------------------------------------------
Shareholders' equity                           $         16,505    $          13,607   $        13,321    $       12,572

Debt to book capitalization (2) (3)                         41%                  45%               45%               46%
Debt to market capitalization (2) (4)                       23%                  17%               22%               21%
After tax return on average common
    shareholders' equity (5)                                29%                  14%               22%               19%
After tax return on average capital
    employed (2) (6)                                        16%                   8%               12%               11%
=========================================================================================================================

(1)  CALCULATED AS CURRENT ASSETS LESS CURRENT LIABILITIES.

(2)  LONG-TERM  DEBT  IS  STATED  AT  ITS  CARRYING  VALUE,  NET OF  FAIR  VALUE
     ADJUSTMENTS, ORIGINAL ISSUE DISCOUNTS AND TRANSACTION COSTS.

(3)  CALCULATED  AS  LONG-TERM  DEBT;  DIVIDED  BY  THE  BOOK  VALUE  OF  COMMON
     SHAREHOLDERS' EQUITY PLUS LONG-TERM DEBT.

(4)  CALCULATED  AS  LONG-TERM  DEBT;  DIVIDED  BY THE  MARKET  VALUE OF  COMMON
     SHAREHOLDERS' EQUITY PLUS LONG-TERM DEBT.

(5)  CALCULATED  AS NET  EARNINGS  FOR THE TWELVE MONTH  TRAILING  PERIOD;  AS A
     PERCENTAGE OF AVERAGE COMMON SHAREHOLDERS' EQUITY FOR THE PERIOD.

(6)  CALCULATED AS NET EARNINGS PLUS AFTER-TAX  INTEREST  EXPENSE FOR THE TWELVE
     MONTH TRAILING PERIOD;  AS A PERCENTAGE OF AVERAGE CAPITAL EMPLOYED FOR THE
     PERIOD.  AVERAGE CAPITAL EMPLOYED IS THE AVERAGE  SHAREHOLDERS'  EQUITY AND
     LONG-TERM DEBT FOR THE PERIOD,  INCLUDING $9,725 MILLION IN AVERAGE CAPITAL
     EMPLOYED  RELATED TO THE HORIZON  PROJECT (JUNE 30, 2008 - $8,781  MILLION;
     DECEMBER 31, 2007 - $7,001 MILLION; SEPTEMBER 30, 2007 - $6,120 MILLION).

At September 30, 2008, the Company's  capital resources  consisted  primarily of
cash flow from operations,  available bank credit  facilities and access to debt
capital markets.  Cash flow from operations is dependent on factors discussed in
the "Risks and Uncertainties"  section of the Company's December 31, 2007 annual
MD&A. The Company's  ability to renew existing  credit  facilities and raise new
debt is also dependent upon these factors,  as well as maintaining an investment
grade debt rating and the condition of capital and credit markets.

The current worldwide credit events has resulted in unprecedented disruptions in
the availability of credit on commercially  acceptable  terms. In light of these
credit challenges, the Company has undertaken a thorough review of its liquidity
sources as well as its exposure to  counterparties  and has  concluded  that its
capital  resources are  sufficient to meet ongoing  short,  medium and long-term
commitments.  Specifically, the Company continues to believe that its internally
generated cash flow from operations supported by the implementation of its hedge
policy,  the flexibility of its capital  expenditure  programs  supported by its
multi-year  financial plans,  its existing credit  facilities and its ability to
raise  new  debt on  commercially  acceptable  terms,  will  provide  sufficient
liquidity  to sustain its  operations  in the short,  medium and  long-term  and
support  its  growth   strategy.   Further,   the  Company   believes  that  its
counterparties  currently  have the  financial  capacity  to settle  outstanding
obligations in the normal course of business.


CANADIAN NATURAL RESOURCES LIMITED                                            35
===============================================================================


On an ongoing basis, the Company continues to focus on the following areas:

o    Monitoring cash flow from operations which is the primary source of funds;

o    Reviewing bank credit  facilities and public debt indentures to ensure they
     are in compliance with applicable covenant packages;

o    Monitoring credit markets, governments,  world banks and the Company's bank
     syndicates to identify associated risks and exposures;

o    Maintaining  an active  commodity  risk  management  program  that  manages
     exposure  to crude  oil and  natural  gas  price  volatility.  The  Company
     believes  that this is an  effective  tool to manage  short and medium term
     changes in spot commodity  prices.  The Company also monitors its commodity
     risk  counterparties  to ensure they are in position to settle  obligations
     within the contractually agreed terms of settlement;

o    Monitoring  exposure to individual  customers,  contractors,  suppliers and
     joint venture  partners on a regular basis and when  appropriate,  ensuring
     that parental  guarantees or letters of credit are in place to minimize the
     impact in the event of default; and

o    Preparation of the Company's 2009 capital and operating  budgets to provide
     the  required   flexibility  to  deal  with  commodity  price   volatility,
     commitments  in  respect  of  capital  and  operating   expenditures,   and
     commitments to retire its  non-revolving  bank credit facility  maturing in
     October 2009. The Company  manages the allocation of maintenance and growth
     capital to ensure it is expended in a prudent and appropriate manner.

At the end of the third  quarter of 2008,  the  Company  had  $2,373  million of
available credit under its bank credit facilities,  which together with net cash
flow to be  generated  in 2009,  is  forecasted  to be  sufficient  to repay the
October 2009 maturity of the $2,350 million  non-revolving bank credit facility.
Further, the Company's current debt ratings are BBB (high) with a negative trend
by DBRS Limited, Baa2 with a stable outlook by Moody's Investors Service and BBB
with a stable outlook by Standard & Poor's. The Company does not have any direct
exposure to asset-backed commercial paper.

Further  details  related to the Company's  long-term debt at September 30, 2008
are  disclosed  in  note  3 to  the  Company's  unaudited  interim  consolidated
financial  statements.

At September 30, 2008, the Company's  working capital deficit was $1,103 million
and included the current  portion of the stock-based  compensation  liability of
$378 million and the current  portion of the net  mark-to-market  liability  for
risk management derivative financial instruments of $330 million. The settlement
of the stock-based  compensation  liability is dependent upon both the surrender
of vested stock  options for cash  settlement  by employees and the value of the
Company's share price at the time of surrender.  The cash  settlement  amount of
the  risk  management  derivative  financial  instruments  may  vary  materially
depending  upon the  underlying  crude oil and natural gas prices at the time of
final settlement of the derivative financial  instruments,  as compared to their
mark-to-market value at September 30, 2008.

The financing of Phase 1 of the Horizon  Project  development  was guided by the
competing  principles of retaining as much direct ownership interest as possible
while  maintaining  a strong  balance  sheet.  The  Company  believes it has the
necessary financial capacity to complete the Horizon Project,  while at the same
time  not   compromising   conventional   crude  oil  and   natural  gas  growth
opportunities.

Long-term debt was $11,633 million at September 30, 2008, resulting in a debt to
book capitalization  ratio of 41% (June 30, 2008 - 45%; December 31, 2007 - 45%;
September 30, 2007 - 46%).  As expected,  this ratio is now near the midpoint of
the 35% to 45% range  targeted by  management  primarily due to the net earnings
contribution for the year and the impact of the strengthening US dollar exchange
rate on the Company's US dollar denominated  long-term debt. The Company remains
committed to maintaining a strong balance sheet and flexible capital  structure.
While  the  Company  believes  that  it  has  the  balance  sheet  strength  and
flexibility  to  complete  the  Horizon  Project,  as well as its other  planned
capital expenditure programs,  the Company has hedged a portion of its crude oil
and natural gas production  for 2008 and 2009 at prices that protect  investment
returns. In the future, the Company may also consider the divestiture of certain
non-strategic  and  non-core   properties  to  gain  additional   balance  sheet
flexibility.

The  Company's  commodity  hedging  program  reduces the risk of  volatility  in
commodity   prices  and  supports  the  Company's  cash  flow  for  its  capital
expenditures  throughout the Horizon Project  construction  period. This program
currently  allows  for  the  hedging  of up to  75% of the  production  for  the
remainder of 2008. For the purpose of this program,  the purchase of put options
is in  addition  to  the  above  parameters.  In  accordance  with  the  policy,
approximately 49% of budgeted crude oil volumes are hedged using collars for the
remainder of 2008. In addition,  50,000 bbl/d of crude oil volumes are protected
by put options for the remainder of 2008 at a strike price of US$55.00 per bbl.


36                                            CANADIAN NATURAL RESOURCES LIMITED
===============================================================================


Commencing  January 1, 2009, the Company's  commodity  hedging  program has been
revised by its Board of  Directors  to allow for the hedging of up to 50% of the
near 12  months  budgeted  production  and up to 25% of the  following  13 to 24
months estimated production.  The purchase of put options will continue to be in
addition to the above parameters.  In 2009,  approximately 6% of estimated crude
oil volumes are hedged  using  collars and 92,000 bbl/d of crude oil volumes are
protected by put options at a strike price of US$100.00 per bbl.

The Company  has the  following  commodity  related  net  financial  derivatives
outstanding at September 30, 2008:


                                  Remaining term            Volume            Weighted average price          Index
- --------------------------------------------------------------------------------------------------------------------
                                                                                            
CRUDE OIL
Crude oil price collars     Oct 2008   -    Dec 2008      20,000 bbl/d      US$50.00    -     US$65.53  Mayan Heavy
                            Oct 2008   -    Dec 2008      50,000 bbl/d      US$60.00    -     US$75.22          WTI
                            Oct 2008   -    Dec 2008      50,000 bbl/d      US$60.00    -     US$76.05          WTI
                            Oct 2008   -    Dec 2008      50,000 bbl/d      US$60.00    -     US$76.98          WTI
                            Oct 2008   -    Dec 2008      25,000 bbl/d      US$70.00    -    US$112.63          WTI
                            Jan 2009   -    Dec 2009      25,000 bbl/d      US$70.00    -    US$111.56          WTI
Crude oil puts              Oct 2008   -    Dec 2008      50,000 bbl/d                        US$55.00          WTI
                            Jan 2009   -    Dec 2009      92,000 bbl/d                       US$100.00          WTI
====================================================================================================================


The Company's  outstanding  commodity  financial  derivatives are expected to be
settled  monthly  based  on the  applicable  index  pricing  for the  respective
contract month.

Subsequent  to  September  30,  2008,  the Company  entered  into 4,000 bbl/d of
US$70.00 - US$90.00  WTI  collars  for the  period  April 2009 to June 2009.  In
addition, the Company entered into 500,000 GJ/d of natural gas AECO collars with
a floor of C$6.00  and a ceiling  ranging  from  C$8.50 to C$8.80 for the period
November 2008 to March 2009.

LONG-TERM DEBT

As at  September  30,  2008,  the  Company  had in place  unsecured  bank credit
facilities of $6,233  million,  comprised  of:

o    a $125 million demand credit facility;

o    a  non-revolving  syndicated  credit  facility of $2,350  million  maturing
     October 2009;

o    a revolving  syndicated  credit  facility of $2,230  million  maturing June
     2012;

o    a revolving  syndicated  credit  facility of $1,500  million  maturing June
     2012; and

o    a 15  million pounds demand credit facility  related to the Company's North
     Sea operations.

The revolving  syndicated credit facilities are extendible annually for one year
periods  at the  mutual  agreement  of  the  Company  and  the  lenders.  If the
facilities are not extended,  the full amount of the outstanding principal would
be repayable on the maturity date.

In addition to the outstanding debt, letters of credit and financial  guarantees
aggregating $367 million, including $300 million related to the Horizon Project,
were outstanding at September 30, 2008.

MEDIUM-TERM  NOTES

The Company has $2,600 million remaining on its outstanding  $3,000 million base
shelf  prospectus  filed  in  September  2007  that  allows  for  the  issue  of
medium-term notes in Canada until October 2009. If issued, these securities will
bear interest as determined at the date of issuance.

SENIOR UNSECURED NOTES

During the second quarter of 2008,  US$31 million of the senior  unsecured notes
were repaid.

US DOLLAR DEBT SECURITIES

During the third quarter of 2008, US$8 million of US dollar debt securities were
repaid.

In January 2008, the Company issued US$1,200  million of unsecured notes under a
US base shelf  prospectus,  comprised of US$400 million of 5.15% unsecured notes
due February 2013,  US$400 million of 5.90%  unsecured  notes due February 2018,
and US$400 million of 6.75% unsecured notes due February 2039. Proceeds from the
securities  issued were used to repay bankers'  acceptances  under the Company's
bank credit facilities. After issuing these securities, the Company has US$1,800


CANADIAN NATURAL RESOURCES LIMITED                                            37
===============================================================================


million  remaining on its  outstanding  US$3,000  million base shelf  prospectus
filed in September  2007 that allows for the issue of US dollar debt  securities
in the United States until October 2009. If issued,  these  securities will bear
interest as determined at the date of issuance.

SHARE CAPITAL

As at September 30, 2008, there were 540,857,000  common shares  outstanding and
25,161,000  stock options  outstanding.  As at November 4, 2008, the Company had
540,885,000 common shares outstanding and 24,958,000 stock options  outstanding.

In February 2008, the Company's  Board of Directors  approved an increase in the
annual  dividend  paid by the  Company to $0.40 per common  share for 2008.  The
increase  represents an 18% increase from 2007,  recognizes the stability of the
Company's cash flow, and provides a return to  Shareholders.  This is the eighth
consecutive  year in which  the  Company  has  paid  dividends  and the  seventh
consecutive  year of an increase in the distribution  paid to its  Shareholders.
The dividend policy undergoes a periodic review by the Board of Directors and is
subject to change.

COMMITMENTS AND OFF BALANCE SHEET ARRANGEMENTS

In the  normal  course  of  business,  the  Company  has  entered  into  various
commitments that will have an impact on the Company's future  operations.  These
commitments  primarily relate to debt  repayments;  operating leases relating to
offshore FPSOs,  drilling rigs and office space; firm commitments for gathering,
processing and transmission  services; as well as expenditures relating to asset
retirement obligations.  As at September 30, 2008, no entities were consolidated
under the  Canadian  Institute  of  Chartered  Accountants  Handbook  Accounting
Guideline 15, "Consolidation of Variable Interest Entities". The following table
summarizes the Company's commitments as at September 30, 2008:



                                      Remaining
($ millions)                               2008            2009            2010          2011           2012      Thereafter
- -----------------------------------------------------------------------------------------------------------------------------
                                                                                              
Product transportation and
    pipeline                         $       61    $        181   $         164   $       135   $        114    $      1,101
Offshore equipment operating
    lease (1)                        $       51    $        134   $         121   $       119   $         96    $        425
Offshore drilling (2) (3)            $       85    $        218   $          54   $         -   $          -    $          -
Asset retirement obligations (4)     $       10    $          4   $           5   $         4   $          4    $      4,614
Long-term debt (5)                   $        -    $      2,379   $         400   $       424   $        371    $      6,683
Interest expense (6)                 $      122    $        589   $         518   $       496   $        438    $      5,569
Office lease                         $        6    $         26   $          29   $        22   $          2    $          -
Other                                $       50    $        380   $         260   $        36   $         30    $         74
==============================================================================================================================

(1)  OFFSHORE EQUIPMENT  OPERATING LEASES ARE PRIMARILY COMPRISED OF OBLIGATIONS
     RELATED TO FPSOS.  DURING  2006,  THE COMPANY  ENTERED INTO AN AGREEMENT TO
     LEASE AN ADDITIONAL FPSO COMMENCING IN 2009, IN CONNECTION WITH THE PLANNED
     OFFSHORE  DEVELOPMENT  IN GABON,  OFFSHORE WEST AFRICA.  DURING THE INITIAL
     TERM,  THE TOTAL  ANNUAL  PAYMENTS  FOR THE GABON FPSO ARE  ESTIMATED TO BE
     US$50 MILLION.

(2)  DURING 2007,  THE COMPANY  ENTERED INTO A ONE-YEAR  AGREEMENT  FOR OFFSHORE
     DRILLING  SERVICES  RELATED TO THE BAOBAB FIELD IN COTE D'IVOIRE,  OFFSHORE
     WEST  AFRICA.  THE  AGREEMENT  COMMENCED IN THE THIRD  QUARTER OF 2008,  ON
     DELIVERY OF THE RIG.  ESTIMATED TOTAL REMAINING  PAYMENTS OF US$54 MILLION,
     AFTER JOINT  VENTURE  RECOVERIES,  HAVE BEEN INCLUDED IN THIS TABLE FOR THE
     PERIOD 2008 - 2009.

(3)  DURING 2007, THE COMPANY  AWARDED  CONTRACTS FOR A DRILLING RIG AND FOR THE
     CONSTRUCTION  OF WELLHEAD  TOWERS IN CONNECTION  WITH THE PLANNED  OFFSHORE
     DEVELOPMENT  IN GABON,  OFFSHORE  WEST AFRICA.  ESTIMATED  TOTAL  REMAINING
     PAYMENTS OF US$279  MILLION HAVE BEEN INCLUDED IN THIS TABLE FOR THE PERIOD
     2008 - 2010.

(4)  AMOUNTS REPRESENT MANAGEMENT'S ESTIMATE OF THE FUTURE UNDISCOUNTED PAYMENTS
     TO SETTLE  ASSET  RETIREMENT  OBLIGATIONS  RELATED TO RESOURCE  PROPERTIES,
     FACILITIES,  AND PRODUCTION  PLATFORMS,  BASED ON CURRENT  LEGISLATION  AND
     INDUSTRY OPERATING PRACTICES.  AMOUNTS DISCLOSED FOR THE PERIOD 2008 - 2012
     REPRESENT  THE MINIMUM  REQUIRED  EXPENDITURES  TO MEET THESE  OBLIGATIONS.
     ACTUAL  EXPENDITURES  IN ANY  PARTICULAR  YEAR  MAY  EXCEED  THESE  MINIMUM
     AMOUNTS.

(5)  THE  LONG-TERM  DEBT  REPRESENTS  PRINCIPAL  REPAYMENTS  ONLY  AND DOES NOT
     REFLECT FAIR VALUE  ADJUSTMENTS,  ORIGINAL  ISSUE  DISCOUNTS OR TRANSACTION
     COSTS.  NO DEBT  REPAYMENTS  ARE REFLECTED FOR $1,440  MILLION OF REVOLVING
     BANK CREDIT FACILITIES DUE TO THE EXTENDABLE NATURE OF THE FACILITIES.

(6)  INTEREST   EXPENSE   AMOUNTS   REPRESENT  THE  SCHEDULED   FIXED-RATE   AND
     VARIABLE-RATE  CASH  PAYMENTS  RELATED  TO  LONG-TERM  DEBT.   INTEREST  ON
     VARIABLE-RATE  LONG-TERM DEBT WAS ESTIMATED BASED UPON PREVAILING  INTEREST
     RATES AS AT SEPTEMBER 30, 2008.

In addition to the amounts  disclosed  above,  the Company has budgeted  revised
construction  costs  of  approximately  $785  million  related  to  the  planned
completion of Phase 1 of the Horizon Project.


38                                            CANADIAN NATURAL RESOURCES LIMITED
===============================================================================


LEGAL PROCEEDINGS

The Company is defendant  and  plaintiff in a number of legal actions that arise
in the normal course of business. In addition, the Company is subject to certain
contractor  construction  claims  related to the  Horizon  Project.  The Company
believes that any  liabilities  that might arise  pertaining to any such matters
would not have a material effect on its consolidated financial position.

CRITICAL ACCOUNTING ESTIMATES AND CHANGE IN ACCOUNTING POLICIES

The preparation of financial statements requires the Company to make judgements,
assumptions  and estimates in the application of generally  accepted  accounting
principles  that have a  significant  impact  on the  financial  results  of the
Company.  Actual  results  could differ from those  estimates.  A  comprehensive
discussion of the Company's significant  accounting policies is contained in the
MD&A and the  audited  consolidated  financial  statements  for the  year  ended
December 31, 2007.

For the impact of new  accounting  standards  related  to  capital  disclosures,
inventory and financial  instruments,  refer to note 2 of the unaudited  interim
consolidated financial statements as at September 30, 2008.

INTERNATIONAL FINANCIAL REPORTING STANDARDS

In February 2008, the Canadian Institute of Chartered Accountants confirmed that
effective January 1, 2011, Canadian GAAP for publicly  accountable entities will
be replaced in full with International Financial Reporting Standards ("IFRS") as
promulgated by the  International  Accounting  Standards  Board.  The Company is
currently  assessing  the impact of adopting  IFRS and is  developing  a plan to
achieve convergence to IFRS by January 1, 2011.

SENSITIVITY ANALYSIS

The following table is indicative of the annualized  sensitivities  of cash flow
from  operations  and net earnings  from changes in certain key  variables.  The
analysis  is based on business  conditions  and sales  volumes  during the third
quarter of 2008,  excluding  mark-to-market  gains  (losses) on risk  management
activities and capitalized interest, and is not necessarily indicative of future
results. Each separate line item in the sensitivity analysis shows the effect of
a change in that variable only with all other variables being held constant.



                                                CASH FLOW FROM        CASH FLOW FROM
                                                                          OPERATIONS                           NET EARNINGS
                                                    OPERATIONS    (PER COMMON SHARE,      NET EARNINGS   (PER COMMON SHARE,
                                                  ($ MILLIONS)                BASIC)      ($ MILLIONS)               BASIC)
- ---------------------------------------------------------------------------------------------------------------------------
                                                                                               
PRICE CHANGES
Crude oil - WTI US$1.00/bbl (1)
   Excluding financial derivatives          $              89     $             0.17     $         66      $          0.12
   Including financial derivatives          $              63     $             0.12     $         47      $          0.09
Natural gas - AECO C$0.10/mcf (1)
   Excluding financial derivatives          $              40     $             0.07     $         28      $          0.05
   Including financial derivatives          $              39     $             0.07     $         28      $          0.05
VOLUME CHANGES
Crude oil - 10,000 bbl/d                    $             234     $             0.43     $        146      $          0.27
Natural gas - 10 mmcf/d                     $              23     $             0.04     $         11      $          0.02
FOREIGN CURRENCY RATE CHANGE
$0.01 change in US$ (1)
Including financial derivatives             $         94 - 96     $      0.17 - 0.18     $         26      $          0.05
INTEREST RATE CHANGE - 1%                   $              32     $             0.06     $         32      $          0.06
===========================================================================================================================

(1)  FOR DETAILS OF OUTSTANDING FINANCIAL INSTRUMENTS IN PLACE, REFER TO NOTE 10
     OF THE COMPANY'S UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS.


CANADIAN NATURAL RESOURCES LIMITED                                            39
===============================================================================


OTHER OPERATING HIGHLIGHTS


NETBACK ANALYSIS
                                                         Three Months Ended                      Nine Months Ended
                                            ---------------                               ---------------
                                                   SEP 30         Jun 30        Sep 30           SEP 30         Sep 30
($/boe) (1)                                          2008           2008          2007             2008           2007
- -----------------------------------------------------------------------------------------------------------------------
                                                                                           
Sales price (2)                               $     80.60   $      84.88   $     47.96    $       76.73   $      48.99
Royalties                                           12.06          13.26          6.07            11.22           6.27
Production expense (3)                              12.52          11.60          9.62            11.70          10.05
- -----------------------------------------------------------------------------------------------------------------------
NETBACK                                             56.02          60.02         32.27            53.81          32.67
Midstream contribution (3)                          (0.28)         (0.24)        (0.26)           (0.26)         (0.23)
Administration                                       0.91           0.87          0.94             0.86           0.99
Interest, net                                        0.49           0.60          1.15             0.67           1.34
Realized risk management loss (gain)                15.56          18.38         (0.41)           13.86          (0.11)
Realized foreign exchange (gain) loss               (0.80)         (0.20)         0.38            (0.41)          0.31
Taxes other than income tax - current                1.02           1.84          0.54             1.40           0.62
Current income tax - North America                   0.09           0.11          0.49             0.21           0.38
Current income tax - North Sea                       2.39           2.15          0.99             2.11           0.87
Current income tax - Offshore West Africa            0.87           0.65          0.37             0.74           0.28
- -----------------------------------------------------------------------------------------------------------------------
CASH FLOW                                     $     35.77   $      35.86   $     28.08    $       34.63   $      28.22
=======================================================================================================================

(1)  AMOUNTS EXPRESSED ON A PER UNIT BASIS ARE BASED ON SALES VOLUMES.

(2)  NET OF  TRANSPORTATION  AND BLENDING  COSTS AND EXCLUDING  RISK  MANAGEMENT
     ACTIVITIES.

(3)  EXCLUDING INTERSEGMENT ELIMINATION.


40                                            CANADIAN NATURAL RESOURCES LIMITED
===============================================================================


FINANCIAL STATEMENTS


CONSOLIDATED BALANCE SHEETS

                                                                  ---------------------
                                                                               SEP 30                Dec 31
(millions of Canadian dollars, unaudited)                                        2008                  2007
- ------------------------------------------------------------------------------------------------------------
                                                                                      
ASSETS
CURRENT ASSETS
   Cash and cash equivalents                                      $                14       $            21
   Accounts receivable and other                                                1,967                 1,662
   Future income tax                                                              194                   480
   Current portion of other long-term assets                                        -                    18
- ------------------------------------------------------------------------------------------------------------
                                                                                2,175                 2,181
PROPERTY, PLANT AND EQUIPMENT (note 12)                                        37,628                33,902
OTHER LONG-TERM ASSETS                                                             26                    31
- ------------------------------------------------------------------------------------------------------------
                                                                  $            39,829       $        36,114
============================================================================================================

LIABILITIES
CURRENT LIABILITIES
   Accounts payable                                               $               408       $           379
   Accrued liabilities                                                          2,091                 1,567
   Current portion of other long-term liabilities (note 4)                        779                 1,617
- ------------------------------------------------------------------------------------------------------------
                                                                                3,278                 3,563
LONG-TERM DEBT (note 3)                                                        11,633                10,940
OTHER LONG-TERM LIABILITIES (note 4)                                            1,282                 1,561
FUTURE INCOME TAX                                                               7,131                 6,729
- ------------------------------------------------------------------------------------------------------------
                                                                               23,324                22,793
- ------------------------------------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY
SHARE CAPITAL (note 6)                                                          2,761                 2,674
RETAINED EARNINGS                                                              13,628                10,575
ACCUMULATED OTHER COMPREHENSIVE INCOME (note 7)                                   116                    72
- ------------------------------------------------------------------------------------------------------------
                                                                               16,505                13,321
- ------------------------------------------------------------------------------------------------------------
                                                                  $            39,829       $        36,114
============================================================================================================

COMMITMENTS (NOTE 11)



CANADIAN NATURAL RESOURCES LIMITED                                            41
===============================================================================




CONSOLIDATED STATEMENTS OF EARNINGS
                                                              Three Months Ended                     Nine Months Ended
                                                     -------------------                    ------------------
(millions of Canadian dollars, except per common                SEP 30             Sep 30              SEP 30            Sep 30
   share amounts, unaudited)                                      2008               2007                2008              2007
- --------------------------------------------------------------------------------------------------------------------------------
                                                                                                     
REVENUES                                               $         4,583    $         3,073    $         13,662    $        9,343
Less: royalties                                                   (612)              (341)             (1,749)           (1,048)
- --------------------------------------------------------------------------------------------------------------------------------
REVENUE, NET OF ROYALTIES                                        3,971              2,732              11,913             8,295
- --------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Production                                                         639                544               1,836             1,693
Transportation and blending                                        472                359               1,646             1,103
Depletion, depreciation and amortization                           659                715               2,017             2,144
Asset retirement obligation accretion (note 4)                      18                 18                  52                53
Administration                                                      46                 53                 134               166
Stock-based compensation (recovery) expense (note 4)              (308)                78                 151               209
Interest, net                                                       25                 65                 105               225
Risk management activities (note 10)                            (1,715)                53               1,178               536
Foreign exchange loss (gain)                                        73               (173)                156              (424)
- --------------------------------------------------------------------------------------------------------------------------------
                                                                   (91)             1,712               7,275             5,705
- --------------------------------------------------------------------------------------------------------------------------------
EARNINGS BEFORE TAXES                                            4,062              1,020               4,638             2,590
Taxes other than income tax                                         45                 40                 156               132
Current income tax expense (note 5)                                171                105                 477               257
Future income tax expense (note 5)                               1,011                175                 790               391
- --------------------------------------------------------------------------------------------------------------------------------
NET EARNINGS                                           $         2,835    $           700    $          3,215    $        1,810
- --------------------------------------------------------------------------------------------------------------------------------
NET EARNINGS PER COMMON SHARE (note 9)
   Basic and diluted                                   $          5.25    $          1.30    $           5.95    $         3.36
================================================================================================================================



42                                            CANADIAN NATURAL RESOURCES LIMITED
===============================================================================




CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
                                                                                          Nine Months Ended
                                                                                -------------------
                                                                                           SEP 30              Sep 30
(millions of Canadian dollars, unaudited)                                                    2008                2007
- ----------------------------------------------------------------------------------------------------------------------
                                                                                              
SHARE CAPITAL (note 6)
Balance - beginning of period                                                   $           2,674   $           2,562
Issued upon exercise of stock options                                                          17                  19
Previously recognized liability on stock options exercised for common shares                   70                  82
- ----------------------------------------------------------------------------------------------------------------------
Balance - end of period                                                                     2,761               2,663
- ----------------------------------------------------------------------------------------------------------------------
RETAINED EARNINGS
Balance - beginning of period                                                              10,575               8,151
Net earnings                                                                                3,215               1,810
Dividends on common shares (note 6)                                                          (162)               (137)
- ----------------------------------------------------------------------------------------------------------------------
Balance - end of period                                                                    13,628               9,824
- ----------------------------------------------------------------------------------------------------------------------
ACCUMULATED OTHER COMPREHENSIVE INCOME (note 7)
Balance - beginning of period                                                                  72                 146
Other comprehensive income (loss), net of taxes                                                44                 (61)
- ----------------------------------------------------------------------------------------------------------------------
Balance - end of period                                                                       116                  85
- ----------------------------------------------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY                                                            $          16,505   $          12,572
======================================================================================================================




CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                                                                 Three Months Ended                Nine Months Ended
                                                           --------------                 ----------------
                                                                 SEP 30         Sep 30            SEP 30           Sep 30
(millions of Canadian dollars, unaudited)                          2008           2007              2008             2007
- --------------------------------------------------------------------------------------------------------------------------
                                                                                                 
NET EARNINGS                                                $     2,835     $      700     $       3,215     $      1,810
- --------------------------------------------------------------------------------------------------------------------------
NET CHANGE IN DERIVATIVE FINANCIAL INSTRUMENTS DESIGNATED
  AS CASH FLOW HEDGES
Unrealized  income  during the period,  net of taxes of
  $13  million  (2007 - $1 million) - three months ended;
  $2 million (2007 - $9 million) - nine months ended                 89             10                24                6
Reclassification to net earnings, net of taxes of
  $1 million (2007 - $11 million) - three months ended;
  $6 million (2007 - $24 million) - nine months ended                 3             24               (11)             (51)
- --------------------------------------------------------------------------------------------------------------------------
                                                                     92             34                13              (45)
FOREIGN CURRENCY TRANSLATION ADJUSTMENT
Translation of net investment                                        18            (11)               31              (16)
- --------------------------------------------------------------------------------------------------------------------------
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAXES                     110             23                44              (61)
- --------------------------------------------------------------------------------------------------------------------------
COMPREHENSIVE INCOME                                        $     2,945     $      723     $       3,259     $      1,749
===========================================================================================================================



CANADIAN NATURAL RESOURCES LIMITED                                            43
===============================================================================




CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                 Three Months Ended                 Nine Months Ended
                                                          ----------------                  ----------------
                                                                 SEP 30            Sep 30           SEP 30          Sep 30
(millions of Canadian dollars, unaudited)                          2008              2007             2008            2007
- ---------------------------------------------------------------------------------------------------------------------------
                                                                                                  
OPERATING ACTIVITIES
Net earnings                                               $      2,835     $         700    $      3,215     $      1,810
Non-cash items
   Depletion, depreciation and amortization                         659               715           2,017            2,144
   Asset retirement obligation accretion                             18                18              52               53
   Stock-based compensation (recovery) expense                     (308)               78             151              209
   Unrealized risk management (gain) loss                        (2,506)               76            (983)             555
   Unrealized foreign exchange loss (gain)                          113              (195)            219             (477)
   Deferred petroleum revenue tax (recovery) expense                 (7)               10             (62)              27
   Future income tax expense                                      1,011               175             790              391
Other                                                                 4                12              23                7
Abandonment expenditures                                            (10)              (22)            (23)             (55)
Net change in non-cash working capital                             (132)              (94)             16              (82)
- ---------------------------------------------------------------------------------------------------------------------------
                                                                  1,677             1,473           5,415            4,582
- ---------------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Issue (repayment) of bank credit facilities, net                    331                49            (909)          (1,797)
Repayment of medium-term notes                                        -                 -               -             (125)
Repayment of senior unsecured notes                                   -                 -             (31)             (33)
(Repayment) issue of US dollar debt securities                       (8)                -           1,215            2,553
Issue of common shares on exercise of stock options                   3                 3              17               19
Dividends on common shares                                          (54)              (46)           (154)            (132)
Net change in non-cash working capital                              (32)              (17)             (2)               6
- ---------------------------------------------------------------------------------------------------------------------------
                                                                    240               (11)            136              491
- ---------------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Expenditures on property, plant and equipment                    (1,739)           (1,421)         (5,616)          (4,861)
Net proceeds on sale of property, plant and equipment                 5                 1              15                5
- ---------------------------------------------------------------------------------------------------------------------------
Net expenditures on property, plant and equipment                (1,734)           (1,420)         (5,601)          (4,856)
Net change in non-cash working capital                             (191)              (32)             43             (219)
- ---------------------------------------------------------------------------------------------------------------------------
                                                                 (1,925)           (1,452)         (5,558)          (5,075)
- ---------------------------------------------------------------------------------------------------------------------------
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS                     (8)               10              (7)              (2)
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD                      22                11              21               23
- ---------------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS - END OF PERIOD                  $         14     $          21    $         14     $         21
===========================================================================================================================
INTEREST PAID                                              $        184     $         158    $        462     $        403
TAXES PAID
   Taxes other than income tax                             $        162     $          29    $        217     $        103
   Current income tax                                      $        178     $          85    $        123     $        157
===========================================================================================================================




44                                            CANADIAN NATURAL RESOURCES LIMITED
===============================================================================


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(tabular amounts in millions of Canadian dollars, unless otherwise stated,
unaudited)

1.   ACCOUNTING POLICIES

The interim  consolidated  financial  statements of Canadian  Natural  Resources
Limited  (the  "Company")  include the Company and all of its  subsidiaries  and
partnerships,  and have been prepared following the same accounting  policies as
the audited consolidated  financial statements of the Company as at December 31,
2007,  except  as  described  in  note 2.  The  interim  consolidated  financial
statements  contain  disclosures  that are  supplemental to the Company's annual
audited consolidated financial statements. Certain disclosures that are normally
required  to be  included  in the  notes  to  the  annual  audited  consolidated
financial  statements have been condensed.  These interim  financial  statements
should be read in conjunction with the Company's audited consolidated  financial
statements and notes thereto for the year ended December 31, 2007.

COMPARATIVE FIGURES

Certain  prior  period  figures  have  been   reclassified  to  conform  to  the
presentation adopted in 2008.

2.   CHANGES IN ACCOUNTING POLICIES

Effective  January 1, 2008 the Company  adopted  the  following  accounting  and
disclosure standards issued by the Canadian Institute of Chartered  Accountants:

o    CAPITAL  DISCLOSURES  -  Section  1535  -  "Capital  Disclosures"  requires
     entities to disclose their objectives,  policies and processes for managing
     capital,  as well as  quantitative  data about  capital.  The standard also
     requires the disclosure of any externally imposed capital  requirements and
     compliance with those  requirements.  The standard does not define capital.
     This  standard  affects  disclosure  only and did not impact the  Company's
     accounting   for  capital   (note  8).

o    INVENTORIES  -  Section  3031  -  "Inventories"  replaces  Section  3030  -
     "Inventories"  and establishes new standards for the measurement of cost of
     inventories and expands disclosure  requirements for inventories.  Adoption
     of this standard did not have a material impact on the Company's  financial
     statements.

o    FINANCIAL INSTRUMENTS - Section 3862 - "Financial Instruments - Disclosure"
     and Section 3863 - "Financial  Instruments - Presentation"  replace Section
     3861 - "Financial Instruments - Disclosure and Presentation".  Section 3862
     enhances disclosure requirements concerning risks and requires quantitative
     and qualitative disclosures about exposures to risks arising from financial
     instruments.  Section 3863 carries  forward the  presentation  requirements
     from Section 3861 unchanged. These standards affect disclosures only and do
     not impact the Company's accounting for financial instruments (note 10).


CANADIAN NATURAL RESOURCES LIMITED                                            45
===============================================================================


3.   LONG-TERM DEBT



                                                                              ----------
                                                                                  SEP 30            Dec 31
                                                                                    2008              2007
- -----------------------------------------------------------------------------------------------------------
                                                                                           
CANADIAN DOLLAR DENOMINATED DEBT
Bank credit facilities (bankers' acceptances)                                   $  3,787          $  4,696
Medium-term notes                                                                  1,200             1,200
- -----------------------------------------------------------------------------------------------------------
                                                                                   4,987             5,896
- -----------------------------------------------------------------------------------------------------------
US DOLLAR DENOMINATED DEBT
Senior unsecured notes (2008 - US$31 million; 2007 - US$62 million)                   33                61
US dollar debt securities (2008 - US$6,300 million; 2007 - US$5,108 million)       6,677             5,048
Less - original issue discount on senior unsecured notes and US dollar
    debt securities (1)                                                              (24)              (23)
- -----------------------------------------------------------------------------------------------------------
                                                                                   6,686             5,086
Fair value of interest rate swaps on US dollar debt securities (2)                    16                 9
- -----------------------------------------------------------------------------------------------------------
                                                                                   6,702             5,095
- -----------------------------------------------------------------------------------------------------------
Long-term debt before transaction costs                                           11,689            10,991
Less - transaction costs (1) (3)                                                     (56)              (51)
- -----------------------------------------------------------------------------------------------------------
                                                                                $ 11,633          $ 10,940
===========================================================================================================

(1)  THE COMPANY HAS INCLUDED  UNAMORTIZED ORIGINAL ISSUE DISCOUNTS AND DIRECTLY
     ATTRIBUTABLE  TRANSACTION  COSTS IN THE CARRYING  VALUE OF THE  OUTSTANDING
     DEBT.

(2)  THE CARRYING  VALUES OF US$350  MILLION OF 5.45% NOTES DUE OCTOBER 2012 AND
     US$350  MILLION OF 4.90% NOTES DUE DECEMBER  2014 HAVE BEEN ADJUSTED BY $16
     MILLION  (2007 - $9  MILLION)  TO REFLECT  THE FAIR  VALUE  IMPACT OF HEDGE
     ACCOUNTING.

(3)  TRANSACTION COSTS PRIMARILY REPRESENT UNDERWRITING COMMISSIONS CHARGED AS A
     PERCENTAGE OF THE RELATED DEBT OFFERINGS,  AS WELL AS LEGAL,  RATING AGENCY
     AND OTHER PROFESSIONAL FEES.

BANK CREDIT FACILITIES

As at  September  30,  2008,  the  Company  had in place  unsecured  bank credit
facilities of $6,233  million,  comprised  of:

     o    a $125 million demand credit  facility;

     o    a non-revolving  syndicated credit facility of $2,350 million maturing
          October 2009;

     o    a revolving syndicated credit facility of $2,230 million maturing June
          2012;

     o    a revolving syndicated credit facility of $1,500 million maturing June
          2012; and

     o    a 15 million pounds demand  credit  facility  related to the Company's
          North Sea operations.

The revolving  syndicated credit facilities are extendible annually for one year
periods  at the  mutual  agreement  of  the  Company  and  the  lenders.  If the
facilities are not extended,  the full amount of the outstanding principal would
be repayable on the maturity date.

The weighted average interest rate of the bank credit facilities  outstanding at
September 30, 2008, was 3.7% (December 31, 2007 - 5.2%).

In addition to the outstanding debt, letters of credit and financial  guarantees
aggregating  $367  million,  including  $300 million  related to the Horizon Oil
Sands Project ("Horizon Project"), were outstanding at September 30, 2008.

MEDIUM-TERM NOTES

The Company has $2,600 million remaining on its outstanding  $3,000 million base
shelf  prospectus  filed  in  September  2007  that  allows  for  the  issue  of
medium-term notes in Canada until October 2009. If issued, these securities will
bear interest as determined at the date of issuance.


46                                            CANADIAN NATURAL RESOURCES LIMITED
===============================================================================


SENIOR UNSECURED NOTES

During the second quarter of 2008,  US$31 million of the senior  unsecured notes
were repaid.

US DOLLAR DEBT SECURITIES

During the third quarter of 2008, US$8 million of US dollar debt securities were
repaid.

In January 2008, the Company issued US$1,200  million of unsecured notes under a
US base shelf  prospectus,  comprised of US$400 million of 5.15% unsecured notes
due February 2013,  US$400 million of 5.90%  unsecured  notes due February 2018,
and US$400 million of 6.75% unsecured notes due February 2039. Proceeds from the
securities  issued were used to repay bankers'  acceptances  under the Company's
bank credit facilities. After issuing these securities, the Company has US$1,800
million  remaining on its  outstanding  US$3,000  million base shelf  prospectus
filed in September  2007 that allows for the issue of US dollar debt  securities
in the United States until October 2009. If issued,  these  securities will bear
interest as determined at the date of issuance.

4.   OTHER LONG-TERM LIABILITIES
                                                   -----------
                                                       SEP 30            Dec 31
                                                         2008              2007
- --------------------------------------------------------------------------------
Asset retirement obligations                         $  1,151          $  1,074
Stock-based compensation                                  441               529
Risk management (note 10)                                 349             1,474
Other                                                     120               101
- --------------------------------------------------------------------------------
                                                        2,061             3,178
Less: current portion                                     779             1,617
- --------------------------------------------------------------------------------
                                                     $  1,282          $  1,561
================================================================================

ASSET RETIREMENT OBLIGATIONS

At September  30, 2008,  the Company's  total  estimated  undiscounted  costs to
settle  its asset  retirement  obligations  were  approximately  $4,641  million
(December  31, 2007 - $4,426  million).  These  costs will be incurred  over the
lives of the operating  assets and have been discounted using a weighted average
credit-adjusted   risk  free  rate  of  6.6%  (December  31,  2007  -  6.6%).  A
reconciliation of the discounted asset retirement obligations is as follows:


                                         ------------------
                                               NINE MONTHS                 Year
                                                     ENDED                Ended
                                              SEP 30, 2008         Dec 31, 2007
- --------------------------------------------------------------------------------
Balance - beginning of period                 $     1,074          $      1,166
  Liabilities incurred                                 15                    21
  Liabilities acquired (disposed)                       3                   (65)
  Liabilities settled                                 (23)                  (71)
  Asset retirement obligation accretion                52                    70
  Revision of estimates                                 -                    35
  Foreign exchange                                     30                   (82)
- --------------------------------------------------------------------------------
Balance - end of period                       $     1,151          $      1,074
================================================================================


CANADIAN NATURAL RESOURCES LIMITED                                            47
===============================================================================


STOCK-BASED COMPENSATION

The Company  recognizes a liability for the potential cash settlements under its
Stock Option Plan.  The current  portion  represents  the maximum  amount of the
liability  payable within the next twelve month period if all vested options are
surrendered for cash settlement.

                                          -----------------
                                               NINE MONTHS                 Year
                                                     ENDED                Ended
                                              SEP 30, 2008         Dec 31, 2007
- --------------------------------------------------------------------------------
Balance - beginning of period                 $        529         $        744
  Stock-based compensation                             151                  193
  Payments for options surrendered                    (202)                (375)
  Transferred to common shares                         (70)                 (91)
  Capitalized to Horizon Project                        33                   58
- --------------------------------------------------------------------------------
Balance - end of period                                441                  529
Less: current portion                                  378                  390
- --------------------------------------------------------------------------------
                                              $         63         $        139
================================================================================


5.   INCOME TAXES

The provision for income taxes is as follows:

                                    Three Months Ended       Nine Months Ended
                                  ---------               ---------
                                     SEP 30      Sep 30      SEP 30       Sep 30
                                       2008        2007        2008         2007
- --------------------------------------------------------------------------------
Current income tax
  - North America                   $     6     $    28     $    33     $    65
Current income tax
  - North Sea                           121          56         328         145
Current income tax
  - Offshore West Africa                 44          21         116          47
- --------------------------------------------------------------------------------
Current income tax expense              171         105         477         257
Future income tax expense             1,011         175         790         391
- --------------------------------------------------------------------------------
Income tax expense                  $ 1,182     $   280     $ 1,267     $   648
================================================================================

Taxable  income from the  conventional  crude oil and  natural  gas  business in
Canada is primarily  generated  through  partnerships,  with the related  income
taxes payable in a future period.  North America  current income taxes have been
provided  on the basis of the  corporate  structure  and  available  income  tax
deductions and will vary depending upon the nature, timing and amount of capital
expenditures incurred in Canada in any particular year.

During the first quarter of 2008,  enacted or  substantively  enacted income tax
rate  changes  resulted  in a  reduction  of future  income tax  liabilities  of
approximately  $19 million in British Columbia and $22 million in Cote d'Ivoire,
Offshore West Africa.

During the second  quarter of 2007,  the  Canadian  Federal  Government  enacted
income  tax  rate  changes,  resulting  in a  reduction  of  future  income  tax
liabilities of approximately $71 million.


48                                            CANADIAN NATURAL RESOURCES LIMITED
===============================================================================


6.   SHARE CAPITAL



                                                                                  ------------------------------------
                                                                                     Nine Months Ended Sep 30, 2008

ISSUED                                                                             NUMBER OF SHARES
COMMON SHARES                                                                         (thousands)              AMOUNT
- ----------------------------------------------------------------------------------------------------------------------
                                                                                                       
Balance - beginning of period                                                            539,729             $  2,674
         Issued upon exercise of stock options                                             1,128                   17
         Previously recognized liability on stock options exercised for common
              shares                                                                           -                   70
- ----------------------------------------------------------------------------------------------------------------------
Balance - end of period                                                                  540,857             $  2,761
======================================================================================================================


DIVIDEND POLICY

In February 2008, the Board of Directors set the regular  quarterly  dividend at
$0.10 per common  share.  The Company has paid  regular  quarterly  dividends in
January,  April,  July, and October of each year since 2001. The dividend policy
undergoes a periodic review by the Board of Directors and is subject to change.

STOCK OPTIONS



                                                                                             Nine Months Ended Sep 30, 2008
                                                                                          STOCK OPTIONS            WEIGHTED AVERAGE
                                                                                             (thousands)             EXERCISE PRICE
- ------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                  
Outstanding - beginning of period                                                                30,659                 $     47.23
         Granted                                                                                  1,327                 $     87.19
         Surrendered for cash settlement                                                         (3,560)                $     25.87
         Exercised for common shares                                                             (1,128)                $     14.83
         Forfeited                                                                               (2,137)                $     55.63
- ------------------------------------------------------------------------------------------------------------------------------------
Outstanding - end of period                                                                      25,161                 $     53.09
- ------------------------------------------------------------------------------------------------------------------------------------
Exercisable - end of period                                                                       6,683                 $     37.67
====================================================================================================================================


7.   ACCUMULATED OTHER COMPREHENSIVE INCOME

The components of accumulated other comprehensive  income, net of taxes, were as
follows:

                                                        ----------
                                                            SEP 30       Sep 30
                                                              2008         2007
- --------------------------------------------------------------------------------
Derivative financial instruments designated as
  cash flow hedges                                         $   114      $   114
Foreign currency translation adjustment                          2          (29)
- --------------------------------------------------------------------------------
                                                           $   116      $    85
================================================================================



CANADIAN NATURAL RESOURCES LIMITED                                            49
===============================================================================


8.   CAPITAL DISCLOSURES

As required by  Canadian  generally  accepted  accounting  principles  ("GAAP"),
effective  January  1,  2008,  the  Company  must  provide  certain  disclosures
regarding its objectives,  policies and processes for managing capital,  as well
as provide certain quantitative data about capital. As the Company does not have
any  externally  imposed  capital   requirements,   for  the  purposes  of  this
disclosure,  the Company has defined its capital to mean its long-term  debt and
consolidated shareholders' equity, as determined each reporting date.

The Company's  objectives  when  managing its capital  structure are to maintain
financial  flexibility  and  balance  to enable the  Company  to access  capital
markets to sustain its on-going operations and to support its growth strategies.
The Company  primarily  monitors  capital on the basis of an internally  derived
non-GAAP  financial  measure  referred  to as its  "debt to book  capitalization
ratio",  which is the  arithmetic  ratio of long-term debt divided by the sum of
the carrying value of shareholders' equity plus long-term debt. The Company aims
over time to maintain its debt to book capitalization  ratio in the range of 35%
to 45%. However,  the Company may exceed the high end of such target range if it
is investing in capital  projects,  undertaking  acquisitions,  or in periods of
lower commodity prices. The Company may be below the low end of the target range
when cash flow from  operating  activities  is greater than  current  investment
activities.  The  ratio is  currently  near the  midpoint  of the  target  range
primarily due to the debt financing of the  construction of the Horizon project,
together with the impact of the  strengthening in the US dollar exchange rate on
the Company's US dollar denominated long-term debt.

Readers  are  cautioned  that as the debt to book  capitalization  ratio  has no
defined  meaning  under GAAP,  this  financial  measure may not be comparable to
similar measures provided by other reporting entities.  Further, there can be no
assurances that the Company will continue to use this measure to monitor capital
or will not alter the method of calculation of this measure at some point in the
future.

                                                  -------------
                                                       SEP 30            Dec 31
                                                         2008              2007
- --------------------------------------------------------------------------------
Long-term debt                                       $ 11,633          $ 10,940
Total shareholders' equity                           $ 16,505          $ 13,321
Debt to book capitalization                                41%               45%
================================================================================

9.   NET EARNINGS PER COMMON SHARE



                                                                  Three Months Ended              Nine Months Ended
                                                        -------------                    -------------
                                                               SEP 30        Sep 30           SEP 30        Sep 30
                                                                 2008          2007             2008          2007
- --------------------------------------------------------------------------------------------------------------------
                                                                                              
Weighted average common shares outstanding                    540,819       539,494          540,557       539,229
   (thousands) - basic and diluted
- --------------------------------------------------------------------------------------------------------------------
Net earnings - basic and diluted                            $   2,835      $    700         $  3,215      $  1,810
- --------------------------------------------------------------------------------------------------------------------
Net earnings per common share - basic and diluted           $    5.25      $   1.30         $   5.95      $   3.36
====================================================================================================================



50                                            CANADIAN NATURAL RESOURCES LIMITED
===============================================================================


10.  FINANCIAL INSTRUMENTS

The carrying  values of the Company's  financial  instruments by category are as
follows:



                                     --------------------------------------------------------------------------
                                                                         SEP 30, 2008
- ---------------------------------------------------------------------------------------------------------------
                                                  LOANS AND        HELD FOR TRADING            OTHER FINANCIAL
                                             RECEIVABLES AT                      AT             LIABILITIES AT
Asset (liability)                            AMORTIZED COST              FAIR VALUE             AMORTIZED COST
- ---------------------------------------------------------------------------------------------------------------
                                                                                 
Cash and cash equivalents            $                    -      $              14        $                  -
Accounts receivable                                   1,344                      -                           -
Accounts payable                                          -                      -                        (408)
Accrued liabilities                                       -                      -                      (2,091)
Risk management                                           -                   (349)                          -
Long-term debt                                            -                      -                     (11,633)
- ---------------------------------------------------------------------------------------------------------------
                                     $                1,344      $            (335)       $            (14,132)
===============================================================================================================





                                     --------------------------------------------------------------------------
                                                                           Dec 31, 2007
- ---------------------------------------------------------------------------------------------------------------
                                                  Loans and                Held for            Other financial
                                             receivables at              trading at             liabilities at
Asset (liability)                            amortized cost              fair value             amortized cost
- ---------------------------------------------------------------------------------------------------------------
                                                                                
Cash and cash equivalents           $                     -     $                21      $                  -
Accounts receivable                                   1,143                       -                         -
Accounts payable                                          -                       -                      (379)
Accrued liabilities                                       -                       -                    (1,567)
Risk management                                           -                  (1,474)                        -
Long-term debt                                            -                       -                   (10,940)
- ---------------------------------------------------------------------------------------------------------------
                                    $                 1,143     $            (1,453)     $            (12,886)
===============================================================================================================



The carrying value of the Company's  financial  instruments  approximates  their
fair value, except for fixed-rate long-term debt as noted below:

                                    -------------------
                                        SEP 30, 2008            Dec 31, 2007
- --------------------------------------------------------------------------------
                                    CARRYING       FAIR     Carrying       Fair
                                       VALUE      VALUE        value      value
- --------------------------------------------------------------------------------
Fixed-rate long-term debt (1)        $ 7,846    $ 6,961      $ 6,244    $ 6,259
================================================================================

(1)  THE CARRYING  VALUES OF US$350  MILLION OF 5.45% NOTES DUE OCTOBER 2012 AND
     US$350  MILLION OF 4.90% NOTES DUE DECEMBER  2014 HAVE BEEN ADJUSTED BY $16
     MILLION  (2007 - $9  MILLION)  TO REFLECT  THE FAIR  VALUE  IMPACT OF HEDGE
     ACCOUNTING.


CANADIAN NATURAL RESOURCES LIMITED                                            51
===============================================================================


RISK MANAGEMENT

The Company uses derivative financial instruments to manage its commodity price,
foreign  currency and interest rate exposures.  These financial  instruments are
entered  into  solely  for  hedging  purposes  and are not used for  speculative
purposes.

The estimated fair value of derivative financial instruments has been determined
based  on  appropriate  internal  valuation  methodologies  and/or  third  party
indications.  Fair values  determined  using valuation models require the use of
assumptions  concerning  the amount and timing of future cash flows and discount
rates. In determining  these  assumptions,  the Company has relied  primarily on
external readily  observable market inputs including quoted commodity prices and
volatility,  interest  rate  yield  curves,  and  foreign  exchange  rates.  The
resulting fair value  estimates may not necessarily be indicative of the amounts
that could be  realized  or settled in a current  market  transaction  and these
differences may be material.

The  changes  in  estimated  fair  values of  derivative  financial  instruments
included  in the  risk  management  asset  (liability)  were  recognized  in the
financial statements as follows:



                                                                              -------------------
                                                                               NINE MONTHS ENDED                Year Ended
                                                                                    SEP 30, 2008              Dec 31, 2007
- ---------------------------------------------------------------------------------------------------------------------------
Asset (liability)                                                                RISK MANAGEMENT           Risk management
                                                                                  MARK-TO-MARKET            mark-to-market
- ---------------------------------------------------------------------------------------------------------------------------
                                                                                                      
Balance - beginning of period                                                    $        (1,474)           $          128
Retained earnings effect of adoption of financial instrument standards                         -                        14
Net cost of outstanding put options                                                          272                        58
Net change in fair value of outstanding derivative financial instruments
   attributable to:
      - Risk management activities                                                           983                    (1,400)
      - Interest expense                                                                       7                         9
      - Foreign exchange                                                                     136                      (350)
      - Other comprehensive income                                                             3                       125
- ---------------------------------------------------------------------------------------------------------------------------
                                                                                             (73)                   (1,416)
Add: Put premium financing obligations (1)                                                  (276)                      (58)
- ---------------------------------------------------------------------------------------------------------------------------
Balance - end of period                                                                     (349)                   (1,474)
Less: current portion                                                                       (330)                   (1,227)
- ---------------------------------------------------------------------------------------------------------------------------
                                                                                 $           (19)           $         (247)
===========================================================================================================================


(1)  THE COMPANY HAS  NEGOTIATED  PAYMENT OF PUT OPTION  PREMIUMS  WITH  VARIOUS
     COUNTERPARTIES AT THE TIME OF ACTUAL SETTLEMENT OF THE RESPECTIVE  OPTIONS.
     THESE  OBLIGATIONS  HAVE BEEN  REFLECTED IN THE NET RISK  MANAGEMENT  ASSET
     (LIABILITY).

Net losses (gains) from risk management activities were as follows:



                                                          Three Months Ended                     Nine Months Ended
- -------------------------------------------------------------------------------------------------------------------------
                                                       SEP 30             Sep 30             SEP 30            Sep 30
                                                         2008               2007               2008              2007
- -------------------------------------------------------------------------------------------------------------------------
                                                                                          
Net realized risk management loss (gain)     $            791   $            (23) $           2,161   $           (19)
Net unrealized risk management (gain) loss             (2,506)                76               (983)              555
- -------------------------------------------------------------------------------------------------------------------------
                                             $         (1,715)  $             53   $          1,178   $           536
=========================================================================================================================



52                                            CANADIAN NATURAL RESOURCES LIMITED
===============================================================================


FINANCIAL RISK FACTORS

a)  MARKET RISK

Market  risk is the risk that the fair value or future cash flows of a financial
instrument  will fluctuate  because of changes in market  prices.  The Company's
market risk is  comprised  of  commodity  price risk,  interest  rate risk,  and
foreign currency exchange risk.

COMMODITY PRICE RISK

The Company uses commodity price financial derivatives to manage its exposure to
commodity  price  risk  associated  with the sale of its  future  crude  oil and
natural gas production. At September 30, 2008, the Company had the following net
financial derivatives outstanding to manage its commodity price exposures:



                                  Remaining term                Volume          Weighted average price               Index
- ---------------------------------------------------------------------------------------------------------------------------
                                                                                                   
CRUDE OIL
Crude oil price collars    Oct 2008   -    Dec 2008          20,000 bbl/d       US$50.00   -    US$65.53       Mayan Heavy
                           Oct 2008   -    Dec 2008          50,000 bbl/d       US$60.00   -    US$75.22               WTI
                           Oct 2008   -    Dec 2008          50,000 bbl/d       US$60.00   -    US$76.05               WTI
                           Oct 2008   -    Dec 2008          50,000 bbl/d       US$60.00   -    US$76.98               WTI
                           Oct 2008   -    Dec 2008          25,000 bbl/d       US$70.00   -   US$112.63               WTI
                           Jan 2009   -    Dec 2009          25,000 bbl/d       US$70.00   -   US$111.56               WTI

Crude oil puts             Oct 2008   -    Dec 2008          50,000 bbl/d                       US$55.00               WTI
                           Jan 2009   -    Dec 2009          92,000 bbl/d                      US$100.00               WTI
===========================================================================================================================


At  September  30,  2008,  the net cost of  outstanding  put  options  and their
respective periods of settlement was as follows:



                                                      Q4 2008         Q1 2009        Q2 2009         Q3 2009        Q4 2009
- ----------------------------------------------------------------------------------------------------------------------------
                                                                                                       
Cost ($ millions)                                       US$15           US$60          US$60           US$61          US$61
============================================================================================================================


The Company's  outstanding  commodity  financial  derivatives are expected to be
settled  monthly  based  on the  applicable  index  pricing  for the  respective
contract month.

Subsequent  to  September  30,  2008,  the Company  entered  into 4,000 bbl/d of
US$70.00 - US$90.00  WTI  collars  for the  period  April 2009 to June 2009.  In
addition, the Company entered into 500,000 GJ/d of natural gas AECO collars with
a floor of C$6.00  and a ceiling  ranging  from  C$8.50 to C$8.80 for the period
November 2008 to March 2009.


CANADIAN NATURAL RESOURCES LIMITED                                            53
===============================================================================


INTEREST RATE RISK

The  Company is exposed to  interest  rate risk on its fixed and  floating  rate
long-term  debt. The Company enters into interest rate swap agreements to manage
its fixed to floating  interest  rate mix on long-term  debt.  The interest rate
swap contracts require the periodic exchange of payments without the exchange of
the notional principal amounts on which the payments are based. At September 30,
2008, the Company had the following interest rate swap contracts outstanding:



                                     Remaining term           Amount ($ millions)   Fixed rate        Floating rate
- --------------------------------------------------------------------------------------------------------------------
                                                                                       
INTEREST RATE
Swaps - fixed to floating(2)      Oct 2008   -   Oct 2012              US$350          5.45%       LIBOR (1) + 0.81%
                                  Oct 2008   -   Dec 2014              US$350          4.90%       LIBOR (1) + 0.38%
====================================================================================================================

(1)  LONDON INTERBANK OFFERED RATE

(2)  SUBSEQUENT TO SEPTEMBER 30, 2008,  THE COMPANY  UNWOUND  US$350  MILLION OF
     5.45% INTEREST RATE SWAPS FOR NET PROCEEDS OF APPROXIMATELY US$16 MILLION

All interest rate related derivative financial instruments  designated as hedges
at September 30, 2008 were classified as fair value hedges.

FOREIGN CURRENCY EXCHANGE RATE RISK

The  Company  is  exposed  to  foreign  currency  exchange  rate  risk in Canada
primarily  related  to its US  dollar  denominated  long-term  debt and  working
capital.  The Company is also exposed to foreign currency  exchange rate risk on
transactions  conducted  in  other  currencies  in its  subsidiaries  and in the
carrying  value  of  its  self-sustaining  foreign  subsidiaries.   The  Company
periodically  enters into cross currency swap  agreements  and foreign  currency
forward  agreements to manage known currency  exposure on US dollar  denominated
long-term debt and working  capital.  The cross currency swap contracts  require
the  periodic  exchange  of payments  with the  exchange at maturity of notional
principal  amounts on which the payments are based.  At September 30, 2008,  the
Company had the following cross currency swap contracts outstanding:




                            Remaining term               Amount      Exchange rate    Interest rate    Interest rate
                                                   ($ millions)           (US$/C$)            (US$)             (C$)
- --------------------------------------------------------------------------------------------------------------------
                                                                                               
CROSS CURRENCY
Swaps                  Oct 2008   -   Aug 2016           US$250             1.116            6.00%            5.40%
                       Oct 2008   -   May 2017         US$1,100             1.170            5.70%            5.10%
                       Oct 2008   -   Mar 2038           US$550             1.170            6.25%            5.76%
====================================================================================================================


All cross currency related derivative financial instruments designated as hedges
at September 30, 2008 were classified as cash flow hedges.

In  addition to the cross  currency  swap  contracts  noted  above,  the Company
utilizes foreign  currency forward  contracts to manage certain foreign currency
cash management  needs. At September 30, 2008, the Company had US$776 million of
these contracts outstanding, with terms of approximately 30 days or less.


54                                            CANADIAN NATURAL RESOURCES LIMITED
===============================================================================


FINANCIAL INSTRUMENT SENSITIVITIES

As required by Canadian  GAAP,  the Company  must provide  certain  quantitative
sensitivities  related  to  its  financial  instruments.   The  following  table
summarizes the annualized  sensitivities of the Company's net earnings and other
comprehensive  income to  changes  in the fair  value of  financial  instruments
outstanding  as at September  30, 2008  resulting  from changes in the specified
variable,  with all other  variables  held  constant.  These  sensitivities  are
limited to the impact of changes in a specified  variable  applied to  financial
instruments  only and do not represent the impact of a change in the variable on
the  operating  results  of  the  Company  taken  as  a  whole.  Further,  these
sensitivities  are  theoretical,  as changes in one variable may  contribute  to
changes in another variable,  which may magnify or counteract the sensitivities.
In addition, changes in fair value generally can not be extrapolated because the
relationship of a change in an assumption to the change in fair value may not be
linear.



                                                 ---------------------- --------------------------
                                                             Impact on            Impact on other
                                                          net earnings       comprehensive income
- --------------------------------------------------------------------------------------------------
                                                                     
COMMODITY PRICE RISK
   Increase WTI US$1.00/bbl                         $              (25)    $                   -
   Decrease WTI US$1.00/bbl                         $               25     $                   -
INTEREST RATE RISK
   Increase interest rate 1%                        $              (26)    $                   7
   Decrease interest rate 1%                        $               26     $                  (8)
FOREIGN CURRENCY EXCHANGE RATE RISK
   Increase exchange rate by US$0.01                $              (32)    $                   -
   Decrease exchange rate by US$0.01                $               32     $                   -
==================================================================================================


b)   CREDIT RISK

Credit  risk is the risk that a party to a  financial  instrument  will  cause a
financial  loss for the  Company by  failing to  discharge  an  obligation.

The Company's accounts receivable are mainly with customers in the crude oil and
natural  gas  industry  and are subject to normal  industry  credit  risks.  The
Company manages these risks by reviewing its exposure to individual companies on
a regular  basis and where  appropriate,  ensures that  parental  guarantees  or
letters of credit are in place to  minimize  the impact in the event of default.
Substantially  all of the Company's  accounts  receivables are due within normal
trade terms.

The Company is also exposed to possible losses in the event of nonperformance by
counterparties to derivative financial instruments; however, the Company manages
this credit risk by entering into agreements with  substantially  all investment
grade  financial  institutions  and other  entities.  At September 30, 2008, the
Company  had  net  risk   management   assets  of  $111  million  with  specific
counterparties  related to derivative financial instruments (December 31, 2007 -
$20 million).


CANADIAN NATURAL RESOURCES LIMITED                                            55
===============================================================================


c)    LIQUIDITY RISK

Liquidity risk is the risk that the Company will encounter difficulty in meeting
obligations associated with financial liabilities.

Management of liquidity  risk requires the Company to maintain  sufficient  cash
and cash equivalents,  along with other sources of capital, consisting primarily
of cash flow from operating activities,  available credit facilities, and access
to  debt  capital  markets,  to meet  obligations  as they  become  due.  Due to
fluctuations in the timing of the receipt and/or  disbursement of operating cash
flows,  the  Company  maintains  adequate  bank  credit  facilities  to  provide
liquidity.

The maturity dates for financial liabilities are as follows:



                                            Less than          1 to less than       2 to less than
                                               1 year                 2 years              5 years           Thereafter
- ------------------------------------------------------------------------------------------------------------------------
                                                                                            
Accounts payable                  $               408    $                  -    $               -      $             -
Accrued liabilities               $             2,091    $                  -    $               -      $             -
Risk management                   $               330    $                (36)   $              27      $            28
Long-term debt (1)                $                33    $              2,346    $           2,019      $         5,859
========================================================================================================================

(1)  THE  LONG-TERM  DEBT  REPRESENTS  PRINCIPAL  REPAYMENTS  ONLY  AND DOES NOT
     REFLECT FAIR VALUE  ADJUSTMENTS,  ORIGINAL  ISSUE  DISCOUNTS OR TRANSACTION
     COSTS.  NO DEBT  REPAYMENTS  ARE REFLECTED FOR $1,440  MILLION OF REVOLVING
     BANK CREDIT FACILITIES DUE TO THE EXTENDABLE NATURE OF THE FACILITIES.

11.  COMMITMENTS

As at September  30,  2008,  the Company had  committed  to certain  payments as
follows:



                                Remaining  2008            2009             2010           2011             2012        Thereafter
- -----------------------------------------------------------------------------------------------------------------------------------
                                                                                                  
Product transportation and
   pipeline                     $            61     $       181      $       164    $       135    $         114    $        1,101
Offshore equipment operating
   leases (1)                   $            51     $       134      $       121    $       119    $          96    $          425
Offshore drilling (2) (3)       $            85     $       218      $        54    $         -    $           -    $            -
Asset retirement
   obligations (4)              $            10     $         4      $         5    $         4    $           4    $        4,614
Office leases                   $             6     $        26      $        29    $        22    $           2    $            -
Other                           $            50     $       380      $       260    $        36    $          30    $           74
===================================================================================================================================

(1)  OFFSHORE EQUIPMENT  OPERATING LEASES ARE PRIMARILY COMPRISED OF OBLIGATIONS
     RELATED TO  FLOATING  PRODUCTION,  STORAGE AND  OFFTAKE  VESSELS  ("FPSO").
     DURING 2006,  THE COMPANY  ENTERED INTO AN AGREEMENT TO LEASE AN ADDITIONAL
     FPSO  COMMENCING  IN  2009,  IN  CONNECTION   WITH  THE  PLANNED   OFFSHORE
     DEVELOPMENT  IN GABON,  OFFSHORE WEST AFRICA.  DURING THE INITIAL TERM, THE
     TOTAL ANNUAL PAYMENTS FOR THE GABON FPSO ARE ESTIMATED TO BE US$50 MILLION.

(2)  DURING 2007,  THE COMPANY  ENTERED INTO A ONE-YEAR  AGREEMENT  FOR OFFSHORE
     DRILLING  SERVICES  RELATED TO THE BAOBAB FIELD IN COTE D'IVOIRE,  OFFSHORE
     WEST AFRICA.  THE  AGREEMENT  COMMENCED IN THE SECOND  QUARTER OF 2008,  ON
     DELIVERY OF THE RIG.  ESTIMATED TOTAL REMAINING  PAYMENTS OF US$54 MILLION,
     AFTER JOINT  VENTURE  RECOVERIES,  HAVE BEEN INCLUDED IN THIS TABLE FOR THE
     PERIOD 2008 - 2009.

(3)  DURING 2007, THE COMPANY  AWARDED  CONTRACTS FOR A DRILLING RIG AND FOR THE
     CONSTRUCTION  OF WELLHEAD  TOWERS IN CONNECTION  WITH THE PLANNED  OFFSHORE
     DEVELOPMENT  IN GABON,  OFFSHORE  WEST AFRICA.  ESTIMATED  TOTAL  REMAINING
     PAYMENTS OF US$279  MILLION HAVE BEEN INCLUDED IN THIS TABLE FOR THE PERIOD
     2008 - 2010.

(4)  AMOUNTS REPRESENT MANAGEMENT'S ESTIMATE OF THE FUTURE UNDISCOUNTED PAYMENTS
     TO SETTLE  ASSET  RETIREMENT  OBLIGATIONS  RELATED TO RESOURCE  PROPERTIES,
     FACILITIES,  AND PRODUCTION  PLATFORMS,  BASED ON CURRENT  LEGISLATION  AND
     INDUSTRY OPERATING PRACTICES.  AMOUNTS DISCLOSED FOR THE PERIOD 2008 - 2012
     REPRESENT  THE MINIMUM  REQUIRED  EXPENDITURES  TO MEET THESE  OBLIGATIONS.
     ACTUAL  EXPENDITURES  IN ANY  PARTICULAR  YEAR  MAY  EXCEED  THESE  MINIMUM
     AMOUNTS.

In addition to the amounts  disclosed  above,  the Company has budgeted  revised
construction  costs  of  approximately  $785  million  related  to  the  planned
completion of Phase 1 of the Horizon Project.


56                                            CANADIAN NATURAL RESOURCES LIMITED
===============================================================================




12.  SEGMENTED INFORMATION

                                       NORTH AMERICA                       NORTH SEA                  OFFSHORE WEST AFRICA
(millions of Canadian           Three Months     Nine Months     Three Months    Nine Months      Three Months     Nine Months
  dollars,                         Ended            Ended           Ended           Ended            Ended            Ended
  unaudited)                      Sep 30           Sep 30          Sep 30          Sep 30           Sep 30           Sep 30
                            ---------         -------         --------        --------         --------        ---------
                               2008     2007   2008     2007    2008    2007    2008     2007    2008    2007     2008    2007
- --------------------------------------------------------------------------------------------------------------------------------
                                                                                       
SEGMENTED REVENUE             3,883    2,459  11,380   7,578     462     397   1,507    1,230     234     211      758     516
Less: royalties                (561)    (320) (1,617) (1,001)     (1)     (1)     (3)      (2)    (50)    (20)    (129)    (45)
- --------------------------------------------------------------------------------------------------------------------------------
SEGMENTED REVENUE, NET OF     3,322    2,139  9,763    6,577     461     396   1,504    1,228     184     191      629     471
   ROYALTIES
- --------------------------------------------------------------------------------------------------------------------------------
SEGMENTED EXPENSES
Production                      498      401  1,424    1,265     123     117     340      353      15      23       61      63
Transportation and
   blending                     483      366  1,674    1,122       3       4       8       12       1       -        1       -
Depletion, depreciation
   and amortization             556      593  1,684    1,748      75      77     233      271      26      43       94     119
Asset retirement
   obligation accretion          12        9     32       28       6       8      19       23       -       1        1       2
Realized risk management
   loss (gain)                  791      (28) 2,162      (53)      -       5      (1)      34       -       -        -       -
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL SEGMENTED EXPENSES      2,340    1,341  6,976    4,110     207     211     599      693      42      67      157     184
- --------------------------------------------------------------------------------------------------------------------------------
SEGMENTED EARNINGS BEFORE
   THE FOLLOWING                982      798  2,787    2,467     254     185     905      535     142     124      472     287
- --------------------------------------------------------------------------------------------------------------------------------
NON-SEGMENTED EXPENSES
Administration
Stock-based compensation
   (recovery) expense
Interest, net
Unrealized risk
   management (gain) loss
Foreign exchange loss
   (gain)
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL NON-SEGMENTED
   EXPENSES
- --------------------------------------------------------------------------------------------------------------------------------
EARNINGS BEFORE TAXES
Taxes other than income
   tax
Current income tax expense
Future income tax expense
- --------------------------------------------------------------------------------------------------------------------------------
NET EARNINGS
================================================================================================================================



CANADIAN NATURAL RESOURCES LIMITED                                            57
===============================================================================




                                         MIDSTREAM          INTER-SEGMENT ELIMINATION AND OTHER             TOTAL
(millions of Canadian          Three Months    Nine Months      Three Months    Nine Months      Three Months     Nine Months
  dollars,                        Ended           Ended            Ended           Ended            Ended            Ended
  unaudited)                     Sep 30          Sep 30           Sep 30          Sep 30           Sep 30           Sep 30
                           ---------         -------         --------        --------         --------        ---------
                              2008     2007   2008     2007    2008    2007    2008     2007    2008    2007     2008    2007
- -------------------------------------------------------------------------------------------------------------------------------
                                                                                     
SEGMENTED REVENUE               20       19      60      55     (16)     (13)   (43)     (36)  4,583    3,073   13,662   9,343
Less: royalties                  -        -       -       -       -        -       -       -    (612)    (341)  (1,749) (1,048)
- --------------------------------------------------------------------------------------------------------------------------------
SEGMENTED REVENUE, NET          20       19      60      55     (16)     (13)   (43)     (36)  3,971    2,732   11,913   8,295
   OF ROYALTIES
- --------------------------------------------------------------------------------------------------------------------------------
SEGMENTED EXPENSES
Production                       6        5      19      16      (3)      (2)    (8)      (4)    639      544    1,836   1,693
Transportation and
   blending                      -        -       -       -     (15)     (11)   (37)     (31)    472      359    1,646   1,103
Depletion, depreciation
   and amortization              2        2       6       6       -        -       -       -     659      715    2,017   2,144
Asset retirement
   obligation accretion          -        -       -       -       -        -       -       -      18       18       52      53
Realized risk
   management  loss
   (gain)                        -        -       -       -       -        -       -       -     791      (23)   2,161     (19)
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL SEGMENTED EXPENSES         8        7      25      22     (18)     (13)   (45)     (35)  2,579    1,613    7,712   4,974
- --------------------------------------------------------------------------------------------------------------------------------
SEGMENTED EARNINGS
   BEFORE THE FOLLOWING         12       12      35      33       2        -       2      (1)  1,392    1,119    4,201   3,321
- --------------------------------------------------------------------------------------------------------------------------------
NON-SEGMENTED EXPENSES
Administration                                                                                    46       53      134     166
Stock-based compensation
   (recovery) expense                                                                           (308)      78      151     209
Interest, net                                                                                     25       65      105     225
Unrealized risk
   management (gain)
   loss                                                                                       (2,506)      76     (983)    555
Foreign exchange loss
   (gain)                                                                                         73     (173)     156    (424)
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL NON-SEGMENTED                                                                           (2,670)      99     (437)    731
   EXPENSES
- --------------------------------------------------------------------------------------------------------------------------------
EARNINGS BEFORE TAXES                                                                          4,062    1,020    4,638   2,590
Taxes other than income
   tax                                                                                            45       40      156     132
Current income tax
   expense                                                                                       171      105      477     257
Future income tax expense                                                                      1,011      175      790     391
- --------------------------------------------------------------------------------------------------------------------------------
NET EARNINGS                                                                                   2,835      700    3,215   1,810
================================================================================================================================



58                                            CANADIAN NATURAL RESOURCES LIMITED
===============================================================================




NET ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT

                                                                 Nine Months Ended
                                           SEP 30, 2008                                       Sep 30, 2007
                         ----------------------------------------------------
                                                        NON                                             Non
                                                  CASH/FAIR                                        Cash/Fair
                                      NET             VALUE    CAPITALIZED               Net           Value        Capitalized
                             EXPENDITURES        CHANGES(1)          COSTS      Expenditures      Changes(1)              Costs
- --------------------------------------------------------------------------------------------------------------------------------
                                                                                                
North America                  $    1,858      $         18   $      1,876     $       1,858    $         11      $       1,869
North Sea                             202                 -            202               395               -                395
Offshore West Africa                  453                (3)           450               116               -                116
Other                                   1                 -              1                 2               -                  2
Horizon Project (2)                 3,068                 -          3,068             2,469               -              2,469
Midstream                               6                 -              6                 4               -                  4
Head office                            13                 -             13                12               -                 12
- --------------------------------------------------------------------------------------------------------------------------------
                               $    5,601      $         15   $      5,616     $       4,856    $         11      $       4,867
================================================================================================================================

(1)  ASSET  RETIREMENT  OBLIGATIONS,  FUTURE INCOME TAX  ADJUSTMENTS  RELATED TO
     DIFFERENCES  BETWEEN  CARRYING  VALUE AND TAX  VALUE,  AND OTHER FAIR VALUE
     ADJUSTMENTS.

(2)  NET EXPENDITURES FOR THE HORIZON PROJECT ALSO INCLUDE CAPITALIZED  INTEREST
     AND STOCK-BASED COMPENSATION.



                                             Property, plant and equipment                         Total assets
                                   ----------------                               ------------------
                                             SEP 30                  Dec 31                   SEP 30                     Dec 31
                                               2008                    2007                     2008                       2007
- --------------------------------------------------------------------------------------------------------------------------------
                                                                                                 
SEGMENTED ASSETS
North America                       $        22,238        $         22,033         $         23,863         $           23,617
North Sea                                     1,839                   1,728                    2,044                      1,957
Offshore West Africa                          1,533                   1,188                    1,653                      1,354
Other                                            26                      25                       44                         41
Horizon Project                              11,719                   8,651                   11,801                      8,740
Midstream                                       205                     205                      356                        333
Head office                                      68                      72                       68                         72
- --------------------------------------------------------------------------------------------------------------------------------
                                    $        37,628        $         33,902         $         39,829         $           36,114
================================================================================================================================


CAPITALIZED INTEREST

The Company  capitalizes  construction  period interest based on Horizon Project
costs incurred and the Company's cost of borrowing. Interest capitalization on a
particular  development phase ceases once construction is substantially complete
and this phase of the Horizon Project is available for its intended use. For the
nine months  ended  September  30,  2008,  pre-tax  interest of $346 million was
capitalized to the Horizon Project (September 30, 2007 - $247 million).


CANADIAN NATURAL RESOURCES LIMITED                                            59
===============================================================================


SUPPLEMENTARY INFORMATION

INTEREST COVERAGE RATIOS
The following  financial  ratios are provided in  connection  with the Company's
continuous  offering of medium-term  notes pursuant to the short form prospectus
dated  September  2007.  These  ratios  are  based  on  the  Company's   interim
consolidated   financial   statements  that  are  prepared  in  accordance  with
accounting principles generally accepted in Canada.

Interest coverage ratios for the twelve month period ended September 30, 2008:
- --------------------------------------------------------------------------------
Interest coverage (times)
     Net earnings (1)                                                      7.7x
     Cash flow from operations (2)                                        12.5x
================================================================================
(1)  NET EARNINGS PLUS INCOME TAXES AND INTEREST EXPENSE;  DIVIDED BY THE SUM OF
     INTEREST EXPENSE AND CAPITALIZED INTEREST.

(2)  CASH FLOW FROM OPERATIONS  PLUS CURRENT INCOME TAXES AND INTEREST  EXPENSE;
     DIVIDED BY THE SUM OF INTEREST EXPENSE AND CAPITALIZED INTEREST.






60                                            CANADIAN NATURAL RESOURCES LIMITED
===============================================================================



CONFERENCE CALL

A conference  call will be held at 7:00 a.m.  Mountain Time,  9:00 a.m.  Eastern
Time on Thursday, November 6, 2008. The North American conference call number is
1-866-226-1793  and  the  outside  North  American  conference  call  number  is
001-416-641-6128.  Please call in about 10 minutes  before the starting  time in
order to be patched into the call.  The  conference  call will also be broadcast
live on the internet and may be accessed through the Canadian Natural website at
www.cnrl.com.

A taped  rebroadcast will be available until 6:00 p.m.  Mountain Time,  Thursday
November 13, 2008. To access the postview in North America, dial 1-800-408-3053.
Those outside of North America,  dial  001-416-695-5800.  The passcode to use is
3268893.

WEBCAST

This call is being  webcast by Vcall and can be accessed  on Canadian  Natural's
website at  WWW.CNRL.COM/INVESTOR_INFO/CALENDAR.HTML.

The webcast is also being distributed over PrecisionIR's  Investor  Distribution
Network to both institutional and individual investors.  Investors can listen to
the call  through  www.vcall.com  or by visiting  any of the  investor  sites in
PrecisionIR's Individual Investor Network.

2008 FOURTH QUARTER RESULTS

2008 fourth  quarter  results are  scheduled  for release on Thursday,  March 5,
2009. A  conference  call will be held on that day at 7:00 a.m.  Mountain  Time,
9:00 a.m. Eastern Time.



For further information, please contact:


                       CANADIAN NATURAL RESOURCES LIMITED
                           2500, 855 - 2nd Street S.W.
                                Calgary, Alberta
                                     T2P 4J8

       TELEPHONE:    (403) 514-7777                  ALLAN P. MARKIN
       FACSIMILE:    (403) 514-7888                         Chairman
       EMAIL:         IR@CNRL.COM
       WEBSITE:      WWW.CNRL.COM                   JOHN G. LANGILLE
                                                       Vice-Chairman

       TRADING SYMBOL - CNQ                            STEVE W. LAUT
       Toronto Stock Exchange                            President &
       New York Stock Exchange               Chief Operating Officer

                                                    DOUGLAS A. PROLL
                                           Chief Financial Officer &
                                      Senior Vice-President, Finance

                                                     COREY B. BIEBER
                                                     Vice-President,
                                        Finance & Investor Relations




CANADIAN NATURAL RESOURCES LIMITED                                            61
===============================================================================