News Releases

Calgary, Alberta; January 6, 2010 - Sunshine Oilsands Ltd., ("Sunshine" or the "Company"), is pleased to announce that in December, 2009, the Company closed a non-brokered financing of 333,433 Flow-Through Common Shares at a price of $6.00 per share for gross proceeds of $2,000,598. This is in addition to the $35,000,002 of equity financing the Company secured in August in a non-brokered equity financing of 6,666,667 Common Shares priced at $5.25 per share.

Mr. Kowal, Co-CEO, stated that "this financing is an endorsement, from international and domestic investors, of our people, assets and plans for developing our resources. Our Company has a large and diverse portfolio of assets, containing conventional heavy oil, oil in cretaceous sandstone that is recoverable using conventional SAGD and oil in a world class carbonate area. In addition, I am pleased to confirm that the Company completed its West Ells seismic program in December, 2009, and is in the process of commencing the Legend Lake and Muskwa winter drilling program mobilizations."

About Sunshine Oilsands

Sunshine Oilsands Ltd. is a Calgary based company engaged in the development of its significant holdings (1 million acres) of in-situ oil sands deposits in the Athabasca region in Alberta.
The Company's initial development plans include a conventional heavy oil project and exploitation of its SAGD cretaceous sandstone land areas. Sunshine's initial adjudicated resource report, which was based on 58 core holes encompassing 396 sections, attributed 9.1 Billion barrels of original bitumen in place, 2.5 Billion barrels high case gross lease recoverable resources and 1.3 Billion best case gross lease recoverable resources.
For more information, please visit the Company's website at www.sunshineoilsands.com.
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Advisory Respecting Forward-Looking Statements:

This news release contains certain forward-looking information and statements. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends", "confident", "might" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this news release may contain forward-looking information and statements pertaining to the following: the in-situ pilot, the reserve report, recognition of the Company's contingent resources, the Company's development plans, the Company's production potential and life span thereof; the timing and amount of estimated production; costs of production; capital expenditures; construction time lines; currency exchange rate fluctuations; environmental risks; unanticipated reclamation expenses; risk of obtaining regulatory approvals; engineering and design risk; fluctuation in commodity prices, operational challenges and other expectations, beliefs, plans, goals, objectives, assumptions, information and statements about possible future events, conditions, results of operations or performance. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of the risk factors set forth below:

• General economic, market and business conditions in jurisdictions relevant to the Company's business;
• Access to capital;
• Volatility on market prices for oil;
• Liabilities inherent in oil sands operations;
• Uncertainties associated with estimating oil sands resources and reserves;
• Competition for, among other things, capital, acquisitions of resources and reserves, leases and skilled personnel;
• Incorrect assessments of the value of acquisitions and the likelihood of success of exploration and development programs;
• Geological, technical, drilling and processing problems;
• Change in tax laws and incentive programs relating to oil and natural gas industry;
• Changes in Government regulations;
• Failure to obtain regulatory, industry partner and third party consents and approvals where required;
• Fluctuations in foreign exchange or interest rates and stock market volatility; and
• Failure to realize the anticipated benefits of acquisitions.

The Company cautions that the foregoing list of assumptions, risks and uncertainties is not exhaustive. The forward-looking information and statements contained in this news release speak only as of the date of this news release, and the Company assumes no obligation to publicly update or revise them to reflect new events or circumstances except as may be required by applicable laws.