Sunshine Oilsands Ltd. Announces Results for the First Quarter ended March 31, 2015 and Update on West Ells Progress

CALGARY, Alberta and HONG KONG, May 13, 2015 /CNW/ -- Sunshine Oilsands Ltd. (the "Corporation" or "Sunshine") (HKEX:  2012; TSX: SUO) today announced its financial results for the first quarter ended March 31, 2015. The Corporation's consolidated financial statements, notes to the consolidated financial statements and management's discussion and analysis have been filed on SEDAR (www.sedar.com) and with The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange") (www.hkexnews.hk) and are available on the Corporation's website (www.sunshineoilsands.com). All figures are in Canadian dollars unless otherwise stated.

In the first quarter of 2015, Sunshine focused on West Ells construction initiatives and achieved progress in the following areas:

• Received 64 of 65 major facilities modules on site by the end of first quarter and materially progressed construction activities. The final module was delivered in April.
• Advanced construction completion to approximately 92% by the end of the quarter. Construction completion currently stands at approximately 95%.
• Obtained regulatory approval for a Non-Condensable Gas "Full Field" application.
• Submitted applications related to royalties, progressed marketing plan for plant products and progressed plans for waste disposal.
• Added experienced personnel with extensive experience. Dr. Qi Jiang was hired as President and Chief Operating Officer and Mr. Bob Gerwing was hired as Vice President, Facilities Engineering.
• Continued to progress construction activities in line with budgets.
• Commenced pre-commissioning assessment activities.

As at the date of this announcement, construction of West Ells facilities is proceeding in line with budgets and is approximately 95% complete, with all large modules delivered to site and installed.

Sunshine's Capital Raising and Joint Ventures Activities

Sunshine is actively examining opportunities for securing additional debt capital to fund Phase 2 expansion of West Ells and to cover initial West Ells operating costs. The recent improvement in oil pricing, combined with a weaker Canadian dollar and a significant narrowing in heavy oil pricing differentials to levels not seen since September of 2012, currently at around US$8.40 per barrel, has recently created a more receptive investment sentiment toward oil sands. The target is to raise at least US$150 million of incremental debt capital. In addition, Sunshine remains committed to looking for opportunities for joint ventures to reduce capital commitments and to accelerate activities aimed at increasing production.

Summary of Financial Figures

For the first quarter of 2015, the Corporation had a net loss of $30.8 million compared to $4.3 million for the same period in 2014, representing a net loss per share of $0.01 for the 2015 period and $0.00 for the 2014 period. $16.5 million of the first quarter 2015 period loss related to foreign exchange losses resulting from weakening of the Canadian dollar against the US dollar.

As at March 31, 2015 and December 31, 2014, the Corporation notes the following selected balance sheet figures:

2015 Outlook

Sunshine's plan for 2015 is to continue to look for opportunities to secure joint ventures and additional financing to expand construction, operations and development activities in the West Ells project area and in other project areas.

The current board approved schedule for West Ells startup is targeting full first steam commencing in late June 2015, with first oil in September 2015. Sunshine's operational priority is to achieve smooth startup of the Phase 1 West Ells facilities and to achieve its nameplate capacity of 5,000 bbls/d, since this initial project phase is central to validating the commercial potential of the Wabiskaw formation in the West Ells, Thickwood and Legend project areas. The approved first steam schedule is currently being re-examined by management. If any identified material operational risks relating to the current startup schedule remain, the first steam schedule will be deferred for an additional period to ensure smooth commissioning and startup of facilities. Any board approved changes to the first steam and first production schedules will be communicated promptly to shareholders via press release.

As at the date of this announcement, construction of the West Ells facilities is proceeding in line with budgets and is approximately 95% complete, with all large modules delivered to site and installed. Sunshine is fully committed to advancing its corporate initiatives to ensure that West Ells achieves a smooth startup of the Phase 1 facilities and achievement of nameplate capacity.

Michael J. Hibberd
Executive Vice Chairman

Dr. Qi Jiang
President & COO

About Sunshine Oilsands Ltd.

The Corporation is a Calgary based public corporation, listed on the Hong Kong Stock Exchange since March 1, 2012 and the Toronto Stock Exchange since November 16, 2012. The Corporation is focused on the development of its significant holdings of oil sands leases in the Athabasca oil sands region. The Corporation owns interests in oil sands and petroleum and natural gas leases in the Athabasca region of Alberta. The Corporation is currently focused on executing milestone undertakings in the West Ells project area. West Ells has an initial production target rate of 5,000 barrels per day.

Website: www.sunshineoilsands.com

FORWARD LOOKING INFORMATION

This announcement contains forward-looking information relating to, among other things, (a) the future financial performance and objectives of Sunshine; 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 announcement are not exhaustive and readers are not to place undue reliance on forward-looking statements as the Corporation's 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 announcement, except as required under applicable securities legislation. The forward-looking statements speak only as at 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 the Corporation's material risk factors, see the Corporation's annual information form for the year ended December 31, 2014 and risk factors described in other documents that the Corporation files 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 on the Corporation's website at www.sunshineoilsands.com.

As at the date of this announcement, the Board consists of Mr. Michael John Hibberd, Dr. Qi Jiang and Mr. Jin Hu as executive directors; Mr. Hong Luo, Mr. Hok Ming Tseung, Mr. Tingan Liu and Mr. Haotian Li as non-executive directors; and Mr. Raymond Shengti Fong, Mr. Robert John Herdman, Mr. Gerald Franklin Stevenson and Mr. Zhefei Song as independent non-executive directors.

SOURCE Sunshine Oilsands Ltd.