Announcements

Sunshine Oilsands Ltd. announced today that its Board of Directors has approved a total budget for 2013 of $430 million that includes a $390 million capital expenditure program directed at West Ells and advancing other growth projects.

Mr. John Zahary, President and CEO, said 2013 promises to be a significant and exciting year in the development of Sunshine Oilsands. The Company is focused on progressing our key projects as we demonstrate long-term value creation to investors. By the end of 2013, we should be well-advanced with West Ells as well as moving forward on developments at Thickwood and Legend Lake.

2013 Budget Strategic Objectives

Sunshine Oilsands' 2013 budget objectives are aligned with our long-term objective of risk-managed value-creation:

• Maximize value by focusing on high rate of return oilsands projects;
• Leverage off our substantial resource base and technical expertise to grow production in the near-term and further develop platforms for long-term growth;
• Confirm technical expertise through first-phase development of West Ells;
• Advance Thickwood and Legend Lake initial project phases through regulatory approval and initiate expansion phase applications to achieve significant volume growth;
• Execute a disciplined program to delineate and evaluate opportunities beyond West Ells, Thickwood and Legend Lake on clastic and carbonate reservoirs; and
• Maintain a strong financial position by working closely with capital providers as projects advance.

The 2013 budget has been set at $430 million with a primary focus on progressing the mechanical completion, commissioning, start up and early operation of West Ells, while advancing development of Thickwood and Legend to build towards a projected 300,000 bbl/d production capacity.

The 2013 budget is allocated approximately:

• 75% to West Ells, including 16 Steam Assisted Gravity Drainage (SAGD) injection/production well pairs;
• 16% to Thickwood and Legend and progressing development to a projected 300,000 bbl/d capacity; and
• 9% for other capital projects and general corporate purposes.

The 2013 budget is expected to be funded through cash-on-hand and our $200 million committed, undrawn bank line. In addition, Sunshine is currently examining the potential for accessing the long term debt market for additional funding for ongoing growth opportunities.

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 Companys incorporation on 22 February 2007, Sunshine has secured over 464,897 hectares (1,189,762 acres) of oil sands leases (equal to approximately 7% of all granted leases in this area).

The Companys 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. Sunshines oil sands leases are grouped into three main asset categories: clastics, carbonates and conventional heavy oil.

For further enquiries, please contact:

Sunshine Oilsands Ltd.

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

FORWARD-LOOKING INFORMATION AND DISCLAIMER
This News Release may contain forward-looking information that 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 any words 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 Sunshines 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 Albertas 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 the Company 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 information release are not exhaustive and readers are not to place undue reliance on forward-looking statements as our 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 News Release, except as required under applicable securities legislation. The forward-looking statements speak only as of the date of this News Release 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 our material risk factors, see Risk Factors in our most recent Annual Information Form dated April 30, 2012 (AIF), Risk Management in our current MD&A 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 our website at www.sunshineoilsands.com.

This document does not constitute and is not an offer to sell or a solicitation of an offer to buy Common Shares of the Company in the United States (including its territories and possessions, any State of the United States and the District of Columbia) or elsewhere.