Sunshine Oilsands Ltd. Announcement of results for the fourth quarter and the year ended December 31, 2012

Sunshine Oilsands Ltd. Announcement of results for the fourth quarter and the 
year ended December 31, 2012 
HONG KONG, March 26, 2013 /CNW/ - Sunshine Oilsands Ltd. ("Sunshine") (HKEX: 
2012; TSX: SUO) today announced its financial results for the fourth quarter 
and year ended December 31, 2012. The Corporation's consolidated financial 
statements, notes to the consolidated financial statements, Management's 
Discussion and Analysis and Annual Information Form have been filed on SEDAR 
(www.sedar.com), with the SEHK at (www.hkexnews.hk) and are available on the 
Corporation's website (www.sunshineoilsands.com). The Annual Information Form 
includes the Corporation's reserves and resource data at an effective date of 
December 31, 2012 as evaluated by GLJ Petroleum Consultants Ltd. and DeGolyer 
and MacNaughton Canada Limited and prepared in accordance with National 
Instrument 51-101 Standards of Disclosure for Oil and Gas Activities. 
Sunshine's annual general meeting of shareholders will be held on May 7, 2013 
in Hong Kong. All figures are in Canadian dollars unless otherwise stated. 
Highlights 


    --  On March 1, 2012, Sunshine completed its IPO and listing on the
        Stock Exchange of Hong Kong Limited (the "SEHK"), raising
        approximately $570 million under the listing symbol of "2012".
    --  Through the IPO, the Corporation secured significant investment
        from cornerstone investors such as Premium Investment
        Corporation, a wholly-owned subsidiary of China Investment
        Corporation, EIG Management Company and Sinopec Century Bright
        Capital Investment Limited, a wholly-owned subsidiary of China
        Petrochemical Corporation, otherwise known as the Sinopec
        Group.
    --  Sunshine significantly increased its resource values and
        volumes in its independently evaluated reserves and resource
        estimates as at December 31, 2012; total best estimate
        contingent resource assignment of over 5 billion barrels
        representing a 2 billion barrel (65%) increase from November
        30, 2011.
    --  The Corporation signed a Memorandum of Understanding for
        strategic cooperation with Sinopec International Petroleum
        Exploration and Production Corporation.
    --  In October, Sunshine secured a $200 million credit facility
        with a syndicate of financial institutions. This credit
        facility was oversubscribed and was expanded from its original
        size due to strong interest.
    --  The Corporation listed on the Toronto Stock Exchange ("TSX") on
        November 16, 2012 under the symbol of "SUO".
    --  Operationally, the Corporation obtained approval for its first
        Steam Assisted Gravity Drainage ("SAGD") 10,000 barrel per day
        project at West Ells and commenced civil construction early in
        the year and mechanical construction in the summer at the West
        Ells site.
    --  At West Ells, the Corporation initiated and progressed
        substantial development of the West Ells project, which is
        intended to start steaming in the third quarter of 2013.
    --  In relation to other core areas, Sunshine continues to advance
        through the regulatory process for its Thickwood and Legend
        projects with approvals expected in the first half of 2013 and
        later in 2013, respectively, for an initial 10,000 barrels per
        day project in each area.

Message to Shareholders

2012 was a year of tremendous success for Sunshine Oilsands Ltd. ("Sunshine" 
or the "Corporation"). We established our position in the capital markets with 
the closing of a significant IPO and listing on the Stock Exchange of Hong 
Kong and the Toronto Stock Exchange. We grew our resource and reserves base 
with large additions and we grew our operational presence materially. All of 
these accomplishments centered around building shareholder value by moving 
ahead with the development of our enormous clastic and carbonate resource base 
in the Athabasca region of Alberta. We view these achievements to be just the 
beginning for developing our long term production potential aimed at 
increasing shareholder value.

Capital Market

We started off the year with the successful completion of our Hong Kong 
initial public offering ("IPO") which saw us raise HK$4.5 billion 
(approximately $570 million). We secured significant investments from several 
prominent cornerstone investors. Our IPO was one of the largest IPOs for the 
Stock Exchange of Hong Kong in 2012. A TSX listing in Canada was obtained in 
the fourth quarter of the year. This TSX listing facilitates the ability for 
North American shareholders to buy our stock. In the fourth quarter, we 
continued to focus on securing funding for our projects and negotiated a 
credit facility of $200 million with a syndicate of several major financial 
institutions led by Alberta Treasury Branches and Bank of China (Canada). The 
credit facility was oversubscribed and was expanded from its original size due 
to strong support from financial institutions that included Bank of America, 
HSBC Bank, Morgan Stanley, Bank of Nova Scotia, Toronto-Dominion Bank, UBS and 
Industrial and Commercial Bank of China. With the success of these financings, 
we have secured a financial platform that supports our business plan to begin 
developing our large oil sands asset base. This initial development includes 
the completion of the construction of the West Ells project, funding of front 
end costs for the Thickwood project and regulatory development to expand 
capacity for these two main projects and a third project at Legend. We believe 
the opportunity at Sunshine is immense.

Facilitating joint venture discussions with parties who have expressed 
interest for involvement in the development of our attractive assets remains a 
top priority for Sunshine. Throughout fiscal 2012, we continued discussions 
with interested parties, including Sinopec International Petroleum Exploration 
and Production Corporation with whom we have a Memorandum of Understanding for 
strategic cooperation. In addition, in January 2013, we signed a Memorandum of 
Understanding with China Oilfield Services Ltd. ("COSL"). We are working with 
a syndicate of financial advisors to finalize and implement a debt financing 
strategy.

Reserve Additions

Our resource base is one of the largest in the Athabasca region, where 
Sunshine owns 100% of approximately 1.1 million acres of oil sands leases. Our 
December 31, 2012 Reserves and Resources Reports confirmed significant 
increases in Best Estimate Contingent Resource recognition in both the 
clastics and carbonates categories compared to fiscal 2011. Total 
Petroleum-in-Place ("PIIP"), which is the sum of discovered and undiscovered 
PIIP components, increased to approximately 70 billion barrels. Clastic Best 
Estimate Contingent Resource recognition increased by 1.3 billion barrels to 
3.7 billion barrels. Carbonate Best Estimate Contingent Resource recognition 
increased by over 700 million barrels to 1.4 billion barrels. Based on this, 
we believe our current share price is trading at a significant discount to our 
PV10% resource and reserves value. Our focus remains on the continuous 
investment in and development of our massive resource base and, ultimately, 
production from core project areas in order to translate these opportunities 
into higher shareholder value.

As we look ahead to our long term plan, we believe opportunities associated 
with our significant reserves and resource assets are impressive. We have 
commercial development plans in the West Ells, Thickwood and Legend areas 
targeting over 300,000 barrels per day of production.

Operational Excellence

With funding in place for West Ells, we broke ground on October 10, 2012 and 
have made significant progress at the construction site. Several key 
milestones were successfully achieved including the construction of a 55 km 
all-season access road, key facility construction and the completion of the 
drilling of the first pair of horizontal SAGD producer wells. Major equipment 
has been delivered to site, including heat recovery steam generators and free 
water knockouts. We kicked off 2013 with the standing of the evaporator tower 
- meeting schedule and without incident.

We are pleased to report that we are progressing as planned for the West Ells 
construction schedule. We continue to forecast total capital costs of West 
Ells at approximately $468 million, excluding road construction costs. With 
first steam expected in the third quarter of 2013, Phase 1 West Ells is 
designed to produce 5,000 barrels per day of bitumen followed by an expansion 
for an additional 5,000 barrels per day expected to be producing from Phase 2 
in 2014. As we ramp up activities to achieve near-term production and cash 
flow, this will provide the basis to further support increasing recognition of 
value in Sunshine's assets.

Although our near term focus remains on West Ells, we are working to progress 
regulatory clearance for the Thickwood and Legend applications. We expect to 
leverage off the first-phase development and construction of our West Ells 
project and use this data to improve results and cost efficiencies for future 
development phases and projects. We will continue through the regulatory 
approval process in 2013 for the 10,000 barrel per day Thickwood and Legend 
commercial projects. Expansion plans for significant bitumen production growth 
will continue, we expect to file expansion applications for West Ells, 
Thickwood and Legend as rapidly as possible.

Health, Safety and Community

Sunshine remains committed to working with local stakeholders as we build a 
strong, sound and sustainable organization that is intended to be meaningful 
in a global context. The Corporation consistently maintains a disciplined 
approach to health, safety and environmental issues and remains committed to 
operating in a socially responsible manner with regularly conducted emergency 
response training, and safety and environmental audits of our operating 
facilities. We are pleased to report that we had no significant incidents in 
fiscal 2012.

What's Next

2012 was an exciting year for Sunshine with achievements that set the 
groundwork for future milestones and accomplishments. 2013 is a pivotal year 
for Sunshine as we continue to develop West Ells with first steam in the third 
quarter. By the end of 2013, we should be at or near first production at West 
Ells and we expect to be moving forward on developments at Thickwood and 
Legend, with additional commercial applications filed in support of our 
300,000 barrel per day growth plan. Sunshine's significant presence in the 
north-western part of the Athabasca oil sands region represents an opportunity 
for investors seeking value growth. As a management team, we continue to 
believe in our execution capabilities and in the experience of our technical 
team which strives for operational excellence. It is our dedication and 
commitment to achieve results which will help to deliver on our projects.

Independent Reserves and Resource Assessment, December 31, 2012

Sunshine's oil sands leases in the Athabasca oil sands region of north-eastern 
Alberta hold an estimated 70 billion barrels of Total Petroleum Initially in 
Place (PIIP, a sum of discovered and undiscovered PIIP components). Sunshine's 
Reserves and Resources evaluation completed by the independent evaluators, GLJ 
Petroleum Consultants Ltd. ("GLJ Report") and DeGolyer and MacNaughton Canada 
Limited ("D&M Report"), with an effective date of December 31, 2012, confirmed 
a substantial increase in our recognized reserves and resources from November 
30, 2011. Main highlights of the new independently prepared Reserves and 
Resources Reports include the following:
    --  80 million barrels of Proved Reserves with an aggregate pre-tax
        PV10% value of $362 million;
    --  446 million barrels of Proved Plus Probable Reserves with an
        aggregate pre-tax PV10% value of $990 million; and
    --  5.1 billion barrels of Best Estimate Contingent Resources with
        an aggregate pre-tax PV10% value of $10.3 billion.

The following tables summarize the results of the latest reserves and 
resources evaluation. In comparison to the November 30, 2011 reserves and 
resources assessment, the latest evaluation shows a 78 million barrel increase 
in proved reserves and 27 million barrel increase in proved plus probable 
reserves. Clastic Best Estimate Contingent resource recognition increased by 
1.3 billion barrels to 3.7 billion barrels. Carbonates Best Estimate 
Contingent resource recognition increased by over 700 million barrels to 1.3 
billion barrels. The December 31, 2012 total best estimate contingent resource 
assignment of over 5 billion barrels represents a 2 billion barrel (65%) 
increase from November 30, 2011.

Reserves, effective December 31, 2012
      Reserves
      Proved                Proved Plus Probable  Proved Plus Probable
                                                  Plus Possible
      Gross[1]  PV10% ($MM) Gross[1]  PV10% ($MM) Gross[1]  PV10% ($MM)
      (MMbbls)              (MMbbls)              (MMbbls)

Total 80        362         446       990         605       1,665

Source: GLJ Report and D&M Report effective December 31, 2012. Values
are calculated before tax using the D&M price forecast effective
January 3, 2013.


"Gross reserves" are the Company's working interest share before 
deducting royalties and without including any royalty interests of
1. the Company. Net Reserves are the Company's working interest share 
after deduction of royalty obligations, plus the Company's royalty 
interests in reserves. The Corporation holds 100% working interest 
share in all its properties. 
Contingent Resources, effective December 31, 2012 


           Contingent Resources
           Low Estimate    Best Estimate        High Estimate
           Gross    PV10%  Gross    PV10% ($MM) Gross    PV10% ($MM)
           (MMbbls) ($MM)  (MMbbls)             (MMbbls)

Total      1,748    3,102  3,712    8,069       6,139    16,307
Clastics

Total      463      839    1,345    2,225       5,250    10,060
Carbonates

Combined   2,211    3,941  5,057    10,294      11,389   26,367
Total

Source: GLJ Report and D&M Report effective December 31, 2012. Values
are calculated before tax using the D&M price forecast effective
January 3, 2013.

Summary of Financial Figures

For the fourth quarter of 2012, the Corporation had a net loss of $9.2 million 
compared to $2.5 million for the same period in 2011 and net loss per share of 
$0.00 for both periods. For the year ended December 31, 2012, the Corporation 
had a net loss of $61.7 million compared to $68.8 million in 2011 and net loss 
per share for each respective year of $0.02 and $0.05.

As at December 31, the Corporation notes the following selected balance sheet 
figures:

 _________________________________________________
|                                 |2012   |2011   |
|_________________________________|_______|_______|
|                                 |($000s)|($000s)|
|_________________________________|_______|_______|
|Cash and cash equivalents        |282,231|84,957 |
|_________________________________|_______|_______|
|Exploration and evaluation assets|366,668|382,277|
|_________________________________|_______|_______|
|Property and equipment           |327,971|719    |
|_________________________________|_______|_______|
|Total liabilities                |180,650|327,128|
|_________________________________|_______|_______|
|Shareholders' equity             |871,076|148,587|
|_________________________________|_______|_______|

About Sunshine Oilsands Ltd.

Sunshine Oilsands Ltd. (the "Corporation" or "Sunshine") is a Calgary based 
public company, listed on the SEHK since March 1, 2012 and the Toronto Stock 
Exchange since November 16, 2012. Sunshine is focused on the development of 
its significant holdings of oil sands leases in the Athabasca oil sands 
region. The Corporation owns 100% of approximately 1.1 million acres of oil 
sands leases, equivalent to approximately 7% of the total oil sands leases 
granted in the Athabasca region. The Corporation is currently focused on 
executing milestone undertakings in the West Ells project area, where first 
steam is scheduled for the third quarter of 2013. West Ells has an initial 
production target rate of 5,000 barrels per day, which will be followed 
immediately by an approved expansion to a planned production capacity of 
10,000 barrels per day in early 2014. In addition to West Ells activities, 
Sunshine is progressing regulatory approvals for two additional 10,000 barrels 
per day projects, one in Thickwood and one in Legend.

Sunshine's growth is being led by an experienced team with strong capital 
markets, corporate governance and capital cost discipline.

FORWARD-LOOKING INFORMATION AND 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. ("Sunshine" or the "Corporation"); and 
(b) 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 Presentation 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 Presentation, 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 our 
material risk factors, see "Risk Factors" in our most recent Annual 
Information Form, "Risk Management" in our current MD&A for the year ended 
December 31, 2011 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.

For further enquiries, please contact:

Sunshine Oilsands Ltd.

Mr. John
Zahary    Mr. David Sealock
President Executive VP, Corporate Operations
& CEO



Tel: +1-403-984-1446
Email:
investorrelations@sunshineoilsands.com
Website: www.sunshineoilsands.com



http://www.sunshineoilsands.com

SOURCE: Sunshine Oilsands Ltd.

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CO: Sunshine Oilsands Ltd.
NI: OIL UTI ENV ERN 

-0- Mar/27/2013 00:36 GMT