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Sunshine Oilsands Ltd. is committed to providing our investors and the public with timely and accurate information regarding our business and operating activies.
July 20, 2016

Announcement of partial closing of Private Placement of 96,400,000 common shares under specific mandate

Hong Kong (July 21, 2016) and Calgary, Alberta (July 20, 2016) – The Board of Directors of Sunshine Oilsands Ltd. (the “Corporation” or “Sunshine”) (HKEX: 2012) wishes to announce the following:

Partial Closing of Private Placement under Specific Mandate
Reference is made to the announcements of the Corporation dated June 1, 2015 (Hong Kong), July 28, 2015 (Hong Kong), August 21, 2015 (Hong Kong), October 1, 2015 (Hong Kong), November 2, 2015 (Hong Kong), December 6, 2015 (Hong Kong), March 3, 2016 (Hong Kong), May 3, 2016 (Hong Kong), June 3, 2016 (Hong Kong) and June 23, 2016 (Hong Kong) (collectively, the "Announcements") and the circular of the Corporation dated June 22, 2015 (the "Circular") in relation to, among other matters, the proposed issue of new Class "A" Common Voting Shares ("Common Shares") under the Specific Mandate and the connected transactions involving subscriptions for new Common Shares by connected persons. Unless the context requires otherwise, terms use herein shall have the same meanings as those defined in the Announcements and the Circular.

Sunshine is pleased to announce today that it has completed the closing of 96,400,000 Common Shares (the "Partial Closing") under the Specific Mandate at a price of HK $0.75 per Common Share (approximately CDN $0.126 per Common Share at current exchange rates). Upon the Partial Closing, the Corporation has received total gross proceeds of HK $72,300,000 (approximately CDN $12.16 million at current exchange rates) for the allotment and issue of 96,400,000 Common Shares (the "Issued Shares"). Placement expenses are estimated to be approximately HK $100,000 (approximately CDN $16,813).

The Issued Shares represent (i) approximately 2.176% of the total issued and outstanding Common Shares prior to the Partial Closing and (ii) approximately 2.129% of the total issued and outstanding Common Shares as enlarged by the Partial Closing.

The Corporation intends to apply the net proceeds from the Issued Shares (i) for general working capital of the Corporation and (ii) as funds for future development of the existing business of the Corporation, including funding the operation costs of the West Ells project.

A further announcement will be issued when the Corporation completes the closing of the remaining 263,786,667 Common Shares (HK$197,840,000 or approximately CDN $33,263,838 at current exchange rates) subscribed for by Prime Union which will be closed in one or more tranches with the last tranche closing no later than August 2, 2016.

ABOUT SUNSHINE OILSANDS LTD.
The Corporation is a Calgary based public corporation listed on the Hong Kong Stock Exchange since March 1, 2012. The Corporation is focused on the development of its significant holdings of oil sands leases in the Athabasca oil sands region. The Corporation owns interests in approximately one million acres of oil sands and petroleum and natural gas leases in the Athabasca region. The Corporation is currently focused on executing milestone undertakings in the West Ells project area. West Ells has an initial production target rate of 5,000 barrels per day.

For further enquiries, please contact:

Mr. Hong Luo
Chief Executive Officer
Tel: (1) 403-984-1450
Email: [email protected]

FORWARD LOOKING INFORMATION
This announcement contains forward-looking information relating to, among other things, (a) the future financial performance and objectives of Sunshine; and (b) the intended use of proceeds of the Partial Closing; (c) the closing of the remaining 263,786,667 Common Shares subscribed for by Prime Union; and (d) the plans and expectations of the Corporation. Such forward-looking information is subject to various risks, uncertainties and other factors. All statements other than statements and information of historical fact are forward-looking statements. The use of words such as “estimate”, “forecast”, “expect”, “project”, “plan”, “target”, “vision”, “goal”, “outlook”, “may”, “will”, “should”, “believe”, “intend”, “anticipate”, “potential”, and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on Sunshine’s experience, current beliefs, assumptions, information and perception of historical trends available to Sunshine, and are subject to a variety of risks and uncertainties including, but not limited to those associated with resource definition and expected reserves and contingent and prospective resources estimates, unanticipated costs and expenses, regulatory approval, fluctuating oil and gas prices, expected future production, the ability to access sufficient capital to finance future development and credit risks, changes in Alberta’s regulatory framework, including changes to regulatory approval process and land-use designations, royalty, tax, environmental, greenhouse gas, carbon and other laws or regulations and the impact thereof and the costs associated with compliance. Although Sunshine believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned that the assumptions and factors discussed in this announcement are not exhaustive and readers are not to place undue reliance on forward-looking statements as the Corporation’s actual results may differ materially from those expressed or implied. Sunshine disclaims any intention or obligation to update or revise any forward-looking statements as a result of new information, future events or otherwise, subsequent to the date of this announcement, except as required under applicable securities legislation. The forward-looking statements speak only as of the date of this announcement and are expressly qualified by these cautionary statements. Readers are cautioned that the foregoing lists are not exhaustive and are made as at the date hereof. For a full discussion of the Corporation’s material risk factors, see the Corporation’s annual information form for the year ended December 31, 2015 and risk factors described in other documents we file from time to time with securities regulatory authorities, all of which are available on the Hong Kong Stock Exchange at www.hkexnews.hk, on the SEDAR website at www.sedar.com or the Corporation’s website at www.sunshineoilsands.com.