Announcements

Announces NI 51-101 compliant reserves and resources evaluation update for Best Estimate Contingent Resource and Reserves categories

Updated NI 51-101 compliant Best Estimate Contingent Resources increase by 62% to approximately 5 Billion Barrels, an increase of 1.9 billion barrels, and 2P Reserves increase to 445 million barrels

Sunshine Oilsands Ltd. ("Sunshine" or the "Company") (Stock code: 2012) today announced results of its mid-year reserves and resource evaluations, effective as of May 31, 2012. Sunshine's Proved and Probable Reserves plus Contingent Best Estimate Resources have been independently evaluated and have increased substantially above our previous evaluation results which were effective as of November 30, 2011.

Estimate of Resources
Sunshine's May 31, 2012 mid-year reserves and resource results are described and summarized below:

• Approximately 5 billion barrels of best estimate contingent resources with an aggregate pre-tax PV10% value of Cdn $6.9 billion;
• 80 million barrels of 1P (Proved) reserves with an aggregate pre-tax PV10% value of Cdn $312 million;
• 445 million barrels of 2P (Proved plus Probable) reserves with an aggregate pre-tax PV10% value of Cdn $918 million; and
• 603 million barrels of 3P (Proved plus Probable plus Possible) reserves with an aggregate pre-tax PV10% of Cdn $1.6 billion.

"This increased level of recognition continues to confirm our belief in our asset base and the potential of our properties," said Michael Hibberd and Songning Shen, Co-Chairmen.

The aggregate associated pre tax discounted cash flows from the independent evaluators for Contingent Best Estimate Resources of approximately 5 billion barrels (increase of 1.9 billion barrels), (PV10%) is Cdn $6.9 billion (Canadian dollars), representing growth of 36% (Cdn $1.8 billion) over the November 30, 2011 estimates. Proved Reserves were evaluated at 80 million barrels, representing growth of 78 million barrels while aggregate Proved plus Probable Reserves recognition increased by 26 million barrels to 445 million barrels. The aggregate pre tax discounted cash flows for Proved reserves (PV10%) is Cdn $312 million while Proved plus Probable reserves PV10% value is Cdn $918 million.

"We have achieved significant growth in our Reserves and Resources categories in this mid-year report," said John Zahary, President and CEO. "As we are only partially delineated across several of our land areas, we intend to continue with delineation activities to expand recognition of our Resource potential and we will report the results of those activities in a timely manner. With continued progression of the implementation of our development plans in our core SAGD properties at West Ells, Legend Lake and Thickwood, we also aim to achieve growth in our Reserves recognition."

Sunshine's Proved Reserves growth since the last evaluation resulted from the January 20, 2012 regulatory approval of the West Ells commercial SAGD development facility. The West Ells facility is designed to produce 10,000 bbls/day of bitumen production and is under active construction. Sunshine's Probable Reserves additions were achieved in the Legend Area.

Sunshine realized significant increases in Best Estimate Contingent Resource recognition in both Clastics and Carbonates categories. Clastics best estimate contingent resource recognition increased by 1.2 billion barrels to 3.6 billion barrels primarily due to Harper, Opportunity and Pelican Lake additions. Carbonates best estimate contingent resource recognition increased in Sunshine's Goffer, Muskwa and Portage operating areas, adding over 700 million barrels. "We are particularly encouraged to see progression in our carbonate reservoir resource recognition, since we have captured large trends of this resource type and we are progressing our examination of suitable technologies for extraction," said John Zahary.

Qualified Persons
Sunshine Oilsands Ltd.'s reserves and resource reports, effective May 31, 2012, were independently prepared by DeGolyer and MacNaughton Canada Limited and GLJ Petroleum Consultants Ltd.

About Sunshine Oilsands Ltd.
Sunshine Oilsands Ltd., is one of the largest non-partnered holders of oil sands leases by area in the Athabasca oil sands region, which is located in the province of Alberta, Canada. Since the Company's incorporation on 22 February 2007, Sunshine has secured over 464,897 hectares (1,148,785 acres) of oil sands leases (equal to approximately 7% of all granted leases in this area).

The Company's principal operations are the exploration, development and production of its diverse portfolio of oil sands leases. Its principal operating regions in the Athabasca area are at West Ells, Thickwood, Legend Lake, Harper, Muskwa, Goffer, Pelican and Portage. Sunshine's oil sands leases are grouped into three main asset categories: clastics, carbonates and conventional heavy oil.

For further enquiries, please contact:

Sunshine Oilsands Ltd.

Phone: (1) 403 984 1446
Email: [email protected]

By Order of the Board.
Michael John Hibberd
Co-Chairman

and

Songning Shen
Co-Chairman

Hong Kong, July 5, 2012

As at the date of this announcement, the Board consists of Mr. Michael John Hibberd and Mr. Songning Shen as executive directors, Mr. Hok Ming Tseung, Mr. Tingan Liu, Mr. Haotian Li and Mr. Gregory George Turnbull as non-executive directors and Mr. Raymond Shengti Fong, Mr. Wazir Chand Seth, Mr. Robert John Herdman and Mr. Gerald Franklin Stevenson as independent non-executive directors.

* For identification purposes only