sunshine oilsands ltd. · corporate profile founded in alberta in 2007 listed on the stock exchange...

Sunshine Oilsands Ltd.

HKSE Stock Code: 2012

April 2012

Sunshine Oilsands Ltd. ConfidentialApril 2012 1

Disclaimer

This presentation (the "Presentation") contains forward-looking information relating

to, among other things, (a) the future financial performance and objectives of Sunshine Oilsands Ltd. (the “Corporation”) and (b) plans and expectations of the Corporation. Such information may be identifiable by the terminology used, such as, but not limited to "plan," "anticipate," "predicts", "projects", "believes", "seeks", "intends," "expects," "estimate," "budget," "forecast," "will," "may," "should," "would," or other similar wording. The forward-looking statements are based on the Corporation’s current expectations, assumptions, estimates and projections about future events. The forward-looking information is subject to numerous known and unknown risks, uncertainties, and other factors, most of which are beyond the control of the Corporation, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such information. Readers and prospective investors are cautioned not to place undue reliance on any forward-looking information contained in this Presentation. The Corporation undertakes no obligation to update or revise forward-looking information contained in this Presentation, whether as a result of new information, future events, or disclose the occurrence of unanticipated events or otherwise. All information and material included in this Presentation is current as of March 1, 2012, unless otherwise stated. Please be cautioned that all forward-looking information contained in this Presentation is expressly qualified by this cautionary statement.

Sunshine Oilsands Ltd. ConfidentialApril 2012

We are a Major Holder of Oil Sands Resources, with ~45 Billion Barrels of Total

Petroleum-Initially-in-Place –Targeting 200,000 bbl/d Production from our first three

project areas

We are the Largest Holder of Non-Partnered Oil Sands Leases in the Athabasca

Region – Less than 30% of Our Total Oil Sands Acreage has been delineated

Our Management and Technical Teams Have Extensive Experience in Oil Sands

Project Development – Previous Experience on a Number of the Most Successful

Producing Projects in the Sector

We are Supported by Several Prominent Asian Entities such as China Life, Bank of

China Group Investment, Orient, Cross-Strait, CIC, Sinopec and EIG

Pure play focused on Insitu Oil Sands

Canada Holds the 3rd Largest Oil Reserves in World – Represents ~52% of the

World’s Investible and Accessible Oil Reserves

Canada’s Oil Sands Have Attracted Significant Investment due to its Low

Geopolitical Risk, Stable Fiscal Regime and Welcoming Investment Policies

Oil Sands are Expected to be a Major Contributor to Global Oil Supply – ~4.2

Million Barrels per Day of Production Expected by 2035

2

Highlights


Notes

1. Stock price can be found on the Stock Exchange of Hong Kong Limited website: www.hkex.com.hk

2. Based on Best Estimate volumes as defined by GLJ Petroleum Consultants and DeGolyer and MacNaughton Canada Limited; includes volumes from

Sunshine’s carbonates, clastics, and conventional heavy oil assets. Recoverable Resources defined as 2P Reserves + Best Estimate Contingent Resources

3. As at March 30, 2012 – Closing Price

4. Market Capitalization + Debt - Cash

5. Based on Sunshine’s Competent Persons’ Reports dated 30 November 2011; GLJ’s Pre-Tax PV10% incorporate GLJ’s 1 October 2011 commodity price

forecasts and D&M’s Pre-tax PV 10% incorporate D&M’s 30 November 2011 commodity price forecast. All figures are denominated in C$ millions;

Recoverable Resources defined as 2P Reserves + Best Estimate Contingent Resources

Ownership of Major Shareholders*

Corporate Profile

Founded in Alberta in 2007

Listed on the Stock Exchange of Hong Kong (Stock Code: 2012)(1)

~45 Billion barrels of Total Petroleum-Initially-In-Place(2)

EIG Management Company

Cross-Strait Common Development Fund

China Life Insurance

Bank of China

China Investment Corporation

Sinopec

Orient International Resources

Other*numbers may not add due to rounding

3% 3%

5%

7%

8%

8%

10%

55%

Shares Outstanding(3): 2,840,921,435

Enterprise Value(3)(4): $1.2 billion

2P Reserves: 419 million bbls

Best Estimate Contingent Resources: 3.1 billion bbls

Value Opportunity:

C$/sh HK$/sh

PV10(5) Recoverable Resource 2.08 16.20

Current Trading Price(1)(3) 0.62 4.79


Resource Base Provides Significant Grown Opportunity

Notes

1. Includes discovered and undiscovered volumetric estimates from GLJ and D&M on separate properties as of 30

November 2011

2. With the exception of shared formations which represent 0.7% of total land holdings

~45 Billion Barrels of Total

Petroleum-Initially-in-Place (1) ;1.2 MM acres

Reserves 419 million bbls

Best Estimate Contingent 3.1 billion bbls

Production Capacity of ~200,000 Barrels per

Day from West Ells, Thickwood and Legend

Lake

Less than 30% of Our Oil Sands

Acreage has been Delineated

~100% Ownership in All Leases (2)

High Growth Portfolio of Assets Composed of

Clastic and Carbonate Oil Sands and

Producing Conventional Heavy Oil

Assets Located Close to Several High Profile

International Oil Companies

Sunshine’s Oil Sands Leases Represent ~7% of Granted

Leases in the Athabasca Oil Sands Region

Cc

Ch

T

Su

Sy

B

Cp

I

Ce H

A

Sh

Cn

K


1.3 1.3

2.3

3.5

107,840

1,000,640 1,000,640 1,085,747

1,156,377

0

250,000

500,000

750,000

1,000,000

1,250,000

1,500,000

1,750,000

2,000,000

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

2007 2008 2009 2010 2011

2P Reserves

Recoverable Resources

(Bn bbl) (1)

Source Sunshine Oilsands Ltd.

Best Estimate Contingent Resources

Land Holdings

Recent Corporate Developments

Acres (2)

Track Record of Building Scale

Note

1. Recoverable resource defined as 2P Reserves + Best Estimate Contingent Resources

2. 1 Hectare = 2.47105381 acres; we currently hold 467,969 hectares of leases (including all Oil Sands Leases

and PNG Licenses)

Received regulatory approval for our First 10,000 bbl/d SAGD phase at West Ells

Submitted regulatory application for a

10,000 bbl/d SAGD phase at Thickwood

Submitted regulatory application for a

10,000 bbl/d SAGD phase at Legend Lake

Entered into a strategic alliance “Memorandum of Understanding” with Sinopec

Achieved oil mobility at our Harper Carbonate pilot and continued to produce heavy oil from Muskwa

Secured key Cornerstone IPO investors – CIC, Sinopec and EIG

Raised ~C$226 million through private placements supported by China Life, Bank of China Group Investment and Cross-Strait

Recent Accomplishments are Indicators of Future Success

Successfully completed the first Initial Public Offering by an oil sands company on the HKSE raising gross proceeds of $579 MM


Hold ~45 Billion Barrels of Total Petroleum-Initially-in-Place

Property / Asset Type First Steam *

Ultimate Capacity *

(bbl/d)

Total Petroleum-

Initially-in-Place (1)

(MMbbl) (MMbbl) PV10 (C$MM) (3)

West Ells 2013 100,000 1,918 903 2,218

Thickwood 2015 50,000 1,403 489 731

Legend Lake 2016 50,000 1,844 540 1,057

Other Clastics 10,844 932 1,147

Total Clastics 200,000 16,009 2,864 5,153

Harper Carbonates 10,555 393 243

Other Carbonates 18,718 223 456

Total Carbonates 29,273 616 699

Muskwa ConventionalCurrently

Producing

1,600 – 1,800

(2012 Exit Rate)86 6 56

Total Combined 45,368 3,486 5,909

Summary of Our Asset Portfolio

Base Case Clastic Assets * Management Estimates for First Steam and Capacity

Note

1. Best Estimate of Total Petroleum-Initially-in-Place as per GLJ and D&M

2. Recoverable Resources defined as 2P Reserves + Best Estimate Contingent Resources

3. Pre-Tax PV10% incorporate GLJ’s 1 October 2011 commodity price forecasts and D&M’s 30 November 2011 commodity price forecast

Recoverable Resources (2)


Initially Targeting Production Capacity of 200,000 bbl/d from our

Base Case Clastic Assets (1)

Initial development timeline based on our West Ells, Thickwood and Legend Lake properties

We hold ~1.9 Billion barrels of Recoverable Resources (2) at our Base Case Clastic Assets

First production in 2013, with new phases coming on-line every year thereafter (until 2024)

Additionally, we hold ~932 MMbbl of Best Estimate Recoverable Resources from our other Clastic

properties, not currently in our development plans – offering significant upside potential

Delineation Drilling & Regulatory Preparation ConstructionRegulatory Approval First Steam

Capacity 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

SAGD Facilities bbl/d

West Ells A Phase 1 5,000



West Ells B Phase 1 20,000

West Ells B Phase 2 20,000

West Ells C 30,000

Thickwood A Phase 1 10,000

Thickwood A Phase 2 20,000

Thickwood B 20,000

Legend Lake A Phase 1 10,000

Legend Lake A Phase 2 20,000

Legend Lake B 20,000

Total 200,000

Project Schedule (Base Case Clastic Assets) – 200,000 bbl/d Installed Capacity by 2024 (1)

1. “Base Case Clastic Assets” defined as West Ells, Thickwood and Legend Lake

2. Recoverable resource defined as 2P Reserves + Best Estimate Contingent Resources


Located west of Chevron’s proposed Ells

River project and Athabasca Oil Sands

Corp.’s / PetroChina’s Dover JV project

~903 MMbbl of Recoverable Resources (1)

Targeting 100,000 bbl/d ultimate production

capacity

Received regulatory approval for our

first 10,000 bbl/d phase on

26 January 2012

2 phase development (2 x 5,000 bbl/d)

with first steam in 2013

~50 year production life

Construction on our 53 km high grade

access road into the property is currently

underway

Capital costs for road construction

being shared with an industry partner

Near-Term Production from Our Base Case Clastic Assets

Thickwood 50,000 bbl/d (2015 First Steam)West Ells 100,000 bbl/d (2013 First Steam)

Note

1. Recoverable Resources defined as 2P Reserves + Best Estimate Contingent Resources

Located ~40 km from our West Ells

project

~489 MMbbl of Recoverable Resources (1)


capacity – first steam expected in 2015

Submitted regulatory application

for a 10,000 bbl/d phase on

31 October 2011

Located ~15 km from our West Ells project

~540 MMbbl Recoverable Resource (1)


capacity – first steam expected in 2016

Submitted regulatory application

for a 10,000 bbl/d phase on

25 November 2011

Legend Lake 50,000 bbl/d (2016 First Steam)

Source Management Estimates and Competent Persons’ Reports, dated 30 November 2011

1 2

3


Our Clastic Assets Target High Quality Wabiskaw Deltaic

Reservoirs vs. McMurray Channel Reservoirs

McMurray ChannelIn situ bitumen in the Athabasca oil sands

region is most commonly found in the

Wabiskaw and McMurray formations

Our Base Case Clastic Assets target

bitumen production from the Wabiskaw

formation

Bitumen in the Wabiskaw formation is

found in Deltaic sands

Whereas bitumen found in the

McMurray formation is found in

Channel Sands

Wave dominated Deltaic sands are

cleaner and more continuous than

channel sands

Wabiskaw Deltaic



Projects Company Porosity

Bitumen

Saturation

Reservoir

Depth (m)

SOR (1)

(bbl/bbl)

Production

Per Well (bbl/d)

West Ells (2) 31% 76% 255 2.7 808

Thickwood (2) 32% 73% 190 3.6 653

Legend Lake (2) 32% 69% 430 2.9 604

Great Divide (3) 32% 85% 400 3.6 414

Christina Lake (3) 35% 81% 400 2.2 945

Hangingstone (3) 33% 80% 350 3.5 525

Mackay River (3) 34% 74% 137 2.5 657

Christina Lake (3) 31% 77% 370 2.4 906

Surmount (3) 32% 78% 375 2.6 813

Foster Creek (3) 33% 85% 450 2.6 795

Firebag (3) 34% 78% 300 3.2 1,689

Our Deltaic Reservoir Parameters Compare Favorably to those

of Several Producing Oil Sands Project Areas

Source All information from IHS Inc. systems data or Energy Resources Conservation Board published In Situ Progress reports

Notes1. Production and SOR inputs based on analysis of public data up to December 2010 (average steady state performance since inception), except for our properties that are based on internal development models including plant build SORs and

expected well peak production rates2. Management development plans, including plant build SORs and expected well peak production rates 3. Production and SOR inputs based on analysis of IHS Inc. public industry data up to December 2010 (average steady state performance since inception). Project data based on ERCB’s published In Situ Progress reports

Comparison of Sunshine’s Clastic Reservoir Characteristics to Producing Project Areas


Our Oil Sands Assets will Benefit from Favourable Economics

Supplemented by Strong Project Execution

10.78

14.35

17.92

15.2423.61

30.761.69

1.69

1.69

4.76

7.09

9.41

6.25

6.25

6.25

2.16

6.01

11.09

1.38

1.38

1.38

7.75

9.63

11.51

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

50.00 70.00 90.00

(C$/bbl unless noted – Illustrative Netback at West Ells (2011 Dollars))

Our oil sands project economics will

benefit from the following:

Strong oil prices

Narrow heavy to light oil differentials

Low natural gas prices

Favorable royalty / fiscal regime

Based on our current operating

projections, we expect that our Clastic

oil sands assets will be cash flow

positive at WTI oil prices as low as

US$50/bblNotes

1. Assumes a US$/C$ exchange rate of 0.98

2. Carbon emissions based on 25 kilograms of carbon dioxide emitted per barrel of steam, and the costs of carbon is

assumed to be C$25.00 per tonne of carbon dioxide emitted

3. Fuel operating costs assume a plant build SOR of 2.70x. The natural gas required to produce one barrel of steam

is assumed to be 0.407 Mcf/bbl of steam (or 1.099 Mcf/bbl of bitumen). We also plan to inject non-condensable

gas at a rate of 0.219 Mcf/bbl of bitumen produced. The 0.219 of bitumen intensity is inclusive of minor additions

related to plant fuel and fuel for re-pressurisation of compressor units. Total natural gas required to extract one

barrel of bitumen is 1.318 Mcf/bbl. Henry Hub natural gas price assumption based on a 13.8:1 US$ WTI to US$

Henry Hub price based on Gilbert Laustsen Jung Associates Ltd. (“GLJ”) November 2011 commodity price

forecast, which assumes an AECO price discount of US$0.66 per MMbtu to Henry Hub. Fuel gas used at the

SAGD project site is priced at 98% of the AECO Canadian dollar price

4. Non-fuel operating costs include a fixed portion composed of labour, property taxes, insurance, shutdown and

maintenance operating costs. Variable non-fuel component includes well workovers and chemicals

5. Crown royalties are based on net revenue royalty on a post-payout basis, including an average sustaining capital

cost of C$8.75/bbl

6. Condensate price is based on a 2.0% premium over Edmonton Par price with an additional premium of $4.73/bbl at

the project site, which is inclusive of transportation costs. One barrel of the dilbit (defined as a blend of bitumen and

condensate) is composed of 30% condensate and 70% bitumen (or 0.43 barrel of condensate per barrel of

bitumen)

7. Edmonton Par differential of C$0.86 discount to WTI, and a heavy oil discount of 19.5% (to Edmonton Par) for

Lloydminster heavy oil at Hardisty. Also assumes a blend quality differential of C$1.16 per barrel representing the

differential between Ells Legend Lake bitumen blend and Bow River at Hardisty

Cash Operating Netback Carbon Emissions (2)

Fuel Opex (3) Non-Fuel Opex (4)

Post-Payout Royalties (5) Transportation

Diluent (6) Differential and Other (1) (7)

Source GLJ Report, November 2011 for pricing forecast, Sunshine estimates for operating assumptions,

2011 Constant Dollars

US$90 WTI

US$70 WTI

US$50 WTI

C$91.84 (1)

C$71.43 (1)

C$51.02 (1)

Cash Flow

Positive at

US$50/bbl Oil

Prices

Illustrative Long-Term Netbacks per Barrel


Significant position in the bitumen rich Grosmont, Nisku, Leduc and Wabamuncarbonate formations

216,576 hectares of land

~29 Billion bbl of Total Best Estimate PIIP

~5 Billion bbl of High Estimate economically Recoverable Resources

In late-2010, our Harper Grosmont C pilot successfully established thermal mobility of bitumen from the Grosmont C formation

We are in the process of preparing a regulatory application for a second carbonate pilot (targeting the Grosmont B formation)

Development of our carbonate assets will benefit from learnings from our pilot, as well, from proven technologies demonstrated by industry players over time

12

Tremendous Upside Potential from Our Carbonate Properties


Carbonate Bitumen Bearing Formations


We are currently producing greater than 800

bbl/d (1) of heavy oil at our Muskwa asset

Also hold various leases in the Harper,

Godin and Portage areas

~5.5 MMbbl of 2P Reserves

Assets qualify for Alberta’s oil sands royalty

structure

Lower than typical heavy oil royalties

Assets located in close proximity to leases

held by high profile operators such as

Cenovus and CNRL

Existing Conventional Heavy Oil Production from Muskwa


Note1. 30 November 2011 exit rates greater than 800 bbl/d based on actual delivery volumes

Muskwa Operating Area


We intend to fund the development of our projects primarily through internal resources

of cash and bank balances, as well as from the net proceeds from the Global Offering

Following completion of the Global Offering, we anticipate being fully funded to

gradually proceed to a commercial production capacity of 20,000 bbl/d by 2015

We currently have a two year credit facility in place for a principal amount of C$100MM

(which is undrawn)

We are also in discussions with the Bank of China in relation to a possible additional

credit facility in the amount of US$200MM (1)

14

Near-Term Development Plan Expenditure Outlook


Notes1. Currently in discussions with Bank of China in relation to a possible credit facility in the amount of US$200MM pursuant to a non-binding Letter of Intent. We have not yet entered into a binding credit facility agreement with Bank of China2. All production numbers in the table related to Muskwa are based on actual or forecast average production volumes for the periods specified, rather than to capacity 3. Muskwa Development Capacities and Project Life will be defined through exploration drilling and fairway definition for future development. Current development plan/forecast considers 2012 pad development only for a total of seven pads and 57 wells

Corporate Planned Expenditures 2012 – 2013

Property /

Expenditure

2012 Year-End

(C$MM)

2013 Year-End

(C$MM)

West Ells 272 159

Thickwood 13 135

Muskwa 17 0

Other Projects 25 25

Delineation Drilling 24 53

Total 351 372


Development Summary (2)

Property

Capacity

(Mbbl/d)

Project

Life

(Years) 2012 2013 2014 2015

West Ells 100 55 – 5 10 10

Thickwood 50 47 – – – 10

Legend Lake 50 44 – – – –

200 5 10 20

Muskwa (2) (3) – 10 1.2 1.7 1.6 1.4

Production Capacity (Mbbl/d)

Production

Total Oil Sands


AltexResources Ltd.

Name

Majority of our Management and Technical Teams Have Greater

than 20 Years of Relevant Industry Experience

Source Sunshine Oilsands Ltd.* The logos used above are the property of the respective third parties

9Jason HancherukVP, Land Regulatory Affairs

34Tony SabelliSenior VP, Operations

14John KowalStrategic Advisor

26Doug BrownCOO

24David SealockEVP, Corporate Operations

20Dr. Songbo CongVP, Facilities Engineering

28Daniel DugasVP, Field Operations

18Al StarkTreasurer

21Songning ShenCo-Chairman and Executive Director

Corporate ExperienceYears of Experience in the

Oil and Gas Industry

Michael J. HibberdCo-Chairman and Executive Director

23

Canadian Hunter

20Thomas RouseCFO and VP, Finance

John ZaharyPresident and CEO

25

Hurricane

Hydrocarbons

CNOOC

Union Oil Company

SceptreResources Ltd.

Renata Resources Inc.

Christine ProfiliController

10


Our Execution Strategy

Resource

Management

Execution

Assurance

Resource

Optionality

Our Clastic depositional environment provides high assurance of continuous lateral resource

deposits, driving efficient delineation and development results

Our projects will benefit from highly favorable commodity prices which drive strong

economics

Controllable input costs are well defined and linked to tested designs

Infrastructure is developed or final development is underway at our near-term development

properties

Modular development plan allows us to control costs and improve performance at each

successive phase, deploying technology as it is proven

Global procurement opportunities provide downward cost pressure on capital

intensive inputs

Technical and operational experience ensures oil sands best practices are consistently

employed

Oil sands projects participated in include BlackGold, Firebag, Foster Creek, Great Divide,

Mackay River, Surmont and Joslyn

Land base is less than 30% delineated – have achieved 100% technical success rate on

over 240 wells drilled to date

Carbonate resource identified with 29 billion barrels of total PIIP to-date, and we have

developed an economic case for over 5 billion barrels

We are a consumer of proven oil sands extraction techniques with exposure to technology

upside


Support from our Prominent and Committed Asian Sponsors

will Provide Meaningful Long-Term Strategic Benefits

Notes

1. We entered into a non-binding Memorandum of Understanding for Strategic Cooperation in February 2012 with Sinopec International Petroleum Exploration and Production, with a view to forming a strategic alliance, and to carry out strategic

cooperation with Sinopec

Strong support from our prominent

sponsors provides financial strength and

flexibility along with significant long-term

strategic benefits

Our sponsors have deep and long-

standing relationships throughout the

Asian business community

Potential to provide meaningful

advantages in sourcing and procuring

equipment and materials for oil sands

project development

Major IPO Cornerstone Investors


Strategic Partner (1)

Major Current Shareholders

Cross-Strait

Common

Development

Fund


We are a Major Holder of Oil Sands Resources, with ~45 Billion Barrels of Total

Petroleum-Initially-in-Place –Targeting 200,000 bbl/d Production from our first three

project areas

We are the Largest Holder of Non-Partnered Oil Sands Leases in the Athabasca

Region – Less than 30% of Our Total Oil Sands Acreage has been delineated

Our Management and Technical Teams Have Extensive Experience in Oil Sands

Project Development – Previous Experience on a Number of the Most Successful

Producing Projects in the Sector

We are Supported by Several Prominent Asian Entities such as China Life, Bank of

China Group Investment, Orient, Cross-Strait, CIC, Sinopec and EIG

Pure play focused on Insitu Oil Sands

Canada Holds the 3rd Largest Oil Reserves in World – Represents ~52% of the

World’s Investible and Accessible Oil Reserves

Canada’s Oil Sands Have Attracted Significant Investment due to its Low

Geopolitical Risk, Stable Fiscal Regime and Welcoming Investment Policies

Oil Sands are Expected to be a Major Contributor to Global Oil Supply – ~4.2

Million Barrels per Day of Production Expected by 2035

18

Highlights


Board of Directors

CEO for China Coal Corporation of Calgary

Has over 20 year of experience in the oil and gas industry

Raymond Fong, P. Eng.

Co-Chairman of Sunshine Oilsands Ltd.

Chairman and Co-CEO of Sunshine Oilsands from February 2007 to October

2008

Chairman of Canacol Energy Ltd., Heritage Oil Plc and Heritage Oil

Corporation and director of AltaCanada Energy Corp., Pan Orient Energy

Corp., and Sagres Energy Inc

Michael J. Hibberd, BA, MBA, LLB

Co-Chairman of Sunshine Oilsands Ltd.

President and Co-CEO of Sunshine Oilsands from February 2007 to October

2008

Extensive knowledge of Alberta oil sands, former exploration manager with

Connacher Oil & Gas and senior consultant to Koch Canada Exploration

Songning Shen, M.Sc., P. Geol

Chairman of the Board, Orient Holdings Group Limited; Chairman of the Board,

Orient International Petroleum & Chemical Limited; Vice President, Hong Kong

Financial Service Institute;

Honorary President, Hong Kong Association of Medium-and-Small Enterprises

Tseung Hok Ming, Postgraduate of Int’l Economics & Trade

Deputy CEO of Bank of China Group Investment Limited (“BOCGI”)

Chairman of BOCGI’s Investment Committee and Director of Bank of China

Investment Limited

Li Haotian, MBA, BA Sc. Engineering

Deputy Chairman & President of China Life Insurance (Overseas) Co. Ltd

Member of the Listing Committee of the Stock Exchange of Hong Kong Limited

Anton T.A. Liu, MBA Economics

President of Seth Consultants Ltd.

Previously Chairman of McDaniel & Associates Consultants Ltd.

Director of several public oil and gas companies

Mike Seth, BA Sc.

Regional Managing Partner (Calgary) with McCarthy Tétrault LLP

Director of several public oil and gas companies

Greg Turnbull, Q.C., BA, LLB

Formally a Sr Partner with Price Waterhouse and Price Waterhouse Coopers

Recently served on Chartered Accountants Education Foundation Board of

Governors

Robert J. Herdman, FCA

Most recently Head, Acquisitions and Divestitures for CIBC World Markets

Extensive experience in oil and gas operations

Gerald Stevenson, B. Sc., M. Sc., P. Eng.

www.sunshineoilsands.com

AUDITORS Deloitte & Touche LLP

LEGAL COUNSEL McCarthy Tetrault LLP (Canada)

Freshfields Bruckhaus Deringer (HK)

EVALUATION ENGINEERS GLJ Petroleum Consultants Limited

DeGoyler and McNaughton Canada Limited

REGISTRAR & TRANSFER AGENT Alliance Trust Company (Canada)

Computershare Hong Kong Investor

Services Limited (HK)

INVESTOR CONTACTS John Zahary, President & CEO

David Sealock, Executive VP,

Corporate Operations

Suite 1020, 903, 8 Avenue SW, Calgary, Alberta, Canada T2P 0P7

403.984.1450 403.455.7674


Appendix


Oil Sands Region Map Canada’s resource industry features a

unique combination of characteristics that

make it very attractive to international

energy consumers

Large reserves base with significant

growth opportunities

Regulated and safe work environment

creates low political and fiscal risk

Close proximity to growing

undersupplied global demand markets

International investment in Canada’s oil

sands to-date has been significant, and

this trend is expected to continueEdmonton

Calgary

COLD LAKE

ATHABASCA

PEACE RIVER

WABISKAW-

MCMURRAY

DEPOSIT

CLEARWATER

DEPOSIT

Fort

McMurray

Canada

United States650 Km0 Km

Source Canadian Association of Petroleum Producers

Canada’s Oil Sands are a Natural Fit for Global Energy Demand


Canada’s oil reserves represent ~52% of the world’s investible and accessible reserves

Aside from Saudi Arabia and Venezuela, Canada holds the largest oil reserves in the world

Relative to other resource rich global supply regions, Canada offers a high degree of geopolitical security and a significantly more attractive fiscal regime

Distribution of Global Oil Reserves

State

Owned

78%

Investible and

Accessible

22%


Canada’s Oil

Sands 52%

Other Investible

/ Accessible

Reserves 48%

260

211175

137115 102 92

60 46 37 30 25 20 19

0

50

100

150

200

250

300

Sau

di A

rabia

Ven

ezue

la

Can

ada

Iran

Iraq

Kuw

ait

Abu

Dha

bi

Rus

sia

Liby

a

Niger

ia

Kaz

akhs

tan

Qat

ar

China

Unite

d Sta

tes

Bn bbl

Ranking of World Oil Reserves

Source Oil & Gas Journal (December 2010)

Oil Sands Represent

~97% of Canada’s

Total Reserves

Canada’s Oil Sands Hold the 3rd Largest Oil Reserves Globally,

Representing ~52% of Total Investible/Accessible Reserves


0

1

2

3

4

5

2010A 2011E 2012E 2013E 2014E 2015E 2016E 2017E 2018E 2019E 2020E

40

50

60

70

80

90

Mining Oil SandsWestern Canadian Conventional Oil Production

In Situ Oil Sands Oil Sands % of Total Production

(%)

Demand for global oil resources is

expected to reach ~99 MMbbl/d

by 2035

Conventional supply is in decline,

and global production is expected

to transition towards non-

conventional sources

As a result of its tremendous

growth trajectory, Canada’s oil

sands will play a major role in

meeting the needs of the world’s

growing crude demandChina / India

OECD ex. North America OECD ex. China / IndiaNorth America

International Bunkers

MMbbl/d

Western Canadian Oil Production Forecast

Source Canadian Association of Petroleum Producers and IEA World Energy Outlook 2010; Conventional production excludes Atlantic Canada

production and excludes Pentanes/Condensates

MMbbl/d 2010A 2020E CAGR

Conventional 0.95 0.88 (1%)

Mining Oil Sands 0.73 1.29 6%

In Situ Oil Sands 0.74 1.71 9%

Total Oil Sands 1.47 3.00 7%

Total 2.42 3.88 5%

Source Canadian Association of Petroleum Producers and IEA World Energy

Outlook 2010

MMbbl/d

21 20 19 18 17 17 16

21 22 22 21 21 20 19

25 27 28 29 31 32

11 14 16 18 21 237 7 8 8 9 9

17

33

0

20

40

60

80

100

120

1980 2009 2015 2020 2025 2030 2035

65

84 89 91 94 96 99

Primary Global Oil Demand by Region

Canada’s Oil Sands Can Meet the Needs of Undersupplied

Growing Demand Markets in Asia and Other Key Regions


Canada is located within close proximity to the world’s largest crude demand region – the United States

The Canadian Government is highly supportive of expanding its export markets

Initiatives are underway to export crude to Asia from Canada’s west coast

Competitive Travel Distances for Canadian Supply to Demand Markets

United States

Canada

Japan

Korea

China

PersianCulf

Approx 5,000 Miles

South America

Canada’s

Oil Sands


Competitive Proximity to Major Global Crude Demand Markets


Our 100% Non-Partnered Oil Sands Position Offers Strategic

Value at a Time of Increasing Global Interest in the Region

1.42.1

10.1

4.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2009 2010 2011 2012

Operators, owners and buyers from all

over the world have invested billions of

dollars over the last several years to

gain access to Canada’s oil sands

As a result, a large portion of the

acreage in the Athabasca region has

been acquired

Therefore, those holding large, high-

quality non-partnered lands in the

region are significantly advantaged

Our 100% (1) owned oil sands position

is of considerable strategic value

We own ~7% of all granted

leases in the Athabasca oil sands

region

Source Publicly Disclosed Press Releases

Evolution of Lease Positions in the Athabasca Region

Recent Canadian Oil Sands M&A Activity

(C$ Bn)

YTD

Asian acquirors have

been extremely active

in Canada’s oil sands

2005 Current

Oil Sands Mineral Rights

Source GeoScout December 2011

Notes

1. With the exception of shared formations which represent 0.7% of total land holdings

Other AcquirorsAsian Acquirors

sunshine oilsands ltd. · corporate profile founded in alberta in 2007 listed on the stock exchange...

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