Sunshine Oilsands Ltd. Announces Results for Second Quarter 2013

HONG KONG, Aug. 14, 2013 /CNW/ - Sunshine Oilsands Ltd. ("Sunshine" or the 
"Company") today announced its financial results for the second quarter of 
2013. The Company's condensed interim consolidated financial statements, notes 
to the condensed interim consolidated financial statements and Management's 
Discussion and Analysis have been filed on SEDAR ( ) and with the 
SEHK at ( ) and are available on the Company's website 
( ). All figures are in Canadian dollars unless 
otherwise stated. 

    --  Sunshine continues to make progress in construction of the West
        Ells project. West Ells Phase 1 and Phase 2 have a design
        capacity of 10,000 barrels per day.
    --  The cost estimate for the West Ells project is now
        approximately $525 million. Sunshine continues to expect Phase
        1 first steam to be in the fourth quarter of this year.
    --  In relation to other core areas, since all statements of
        concern have been removed, Thickwood is poised for Order in
        Council approval.
    --  We are pursuing up to an additional $300 million in funding to
        continue our capital program initiatives.

A strategic review process was initiated on August 6, 2013 to look at 
opportunities for additional funding in the form of debt, equity, JV 
arrangements or other structures to fund the development of our substantial 
asset base.  Development work is to focus on West Ells before major 
expenditures on other projects are considered.

Message to Shareholders

The second quarter of 2013 was a busy but challenging quarter for Sunshine.

We are excited to see the significant progress at West Ells and eagerly 
anticipate plant commissioning and start up of operations in the next few 
months. Drilling and completions on the first 5,000 bpd pad is now done and 
drilling is nearly complete on the second 5,000 bpd pad. Surface work on the 
first pad will be finished soon and we will be readying the pad to start 
steaming.  The second pad is expected to be ready to commence operations in 
early 2014.  The central processing facility is progressing well, with the 
last modules expected to be delivered to the site in September.  Construction 
is moving rapidly, to enable the plant to begin commissioning in the next few 

We have continued to see cost pressures in construction at West Ells. The 
heavy rains and flooding in the Fort McMurray region in May slowed activity on 
site and added to costs for the project. Our project survived better than 
others as we were able to continue operations throughout the period but we did 
experience some delays. As well, the heavy and unprecedented flooding 
experienced in June in the Calgary area impacted our suppliers and the 
logistics associated with getting equipment to site. These delays and other 
impacts have combined to raise the cost estimate for the West Ells  project to 
approximately $525 million.

We have been pleased with the progress on our other projects. Our second 
planned project at Thickwood has been advancing through regulatory approval. 
We believe the project will soon receive government approval to proceed  since 
all public statements of concern have now been removed.

The delays and higher capital costs at West Ells, combined with monies spent 
on early stage development of our other projects, has increased the urgency of 
us accessing incremental capital. We are looking to secure financing of up to 
$300 million to allow us to continue to advance our projects.

Given the state of current markets and our financial position, we are focusing 
capital on West Ells and deferring our other attractive opportunities until 
capital markets improve and again recognize the high value opportunities 
captured in our asset base.

During the second quarter, we saw existing shareholders continue to support 
the company through increasing their ownership stake. We appreciate their 
support and that of all of our stakeholders as we work through these 
challenging times to validate the captured value of our large and attractive 
asset base. We expect the enormous embedded value in the asset base will 
receive better value recognition in the markets as we move toward first 
production over the next few months and realize increasing production in the 
coming year.

We thank you for your support through the challenging financing times. We 
believe we will be positioned to continue development at West Ells and look to 
expand into other asset areas as incremental funding is secured.


This document contains forward-looking information relating to, among other 
things: (a) the future financial performance and objectives of Sunshine 
Oilsands Ltd. ("Sunshine" or the "Company"); and (b) the plans and 
expectations of the Company. 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 document 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 
document, except as required under applicable securities legislation. The 
forward-looking statements speak only as of the date of this document 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 three and six months ended June 30, 2013 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 , on the SEDAR website at  or our 
website at .

About Sunshine Oilsands Ltd.

The Company is engaged in the evaluation and the development of oil properties 
for the future production of bitumen in the Athabasca oil sands region in 
Alberta, Canada. Sunshine trades on the HKEX under the symbol "2012" and on 
the TSX under the symbol "SUO".

SOURCE  Sunshine Oilsands Limited 
Mr. John Zahary, President and CEO; Mr. David Sealock, Executive VP, Corporate 
Operations; (403) 984-1446,, 
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