Announcements

Sunshine Oilsands Ltd. is committed to providing our investors and the public with timely and accurate information regarding our business and operating activies.

February 14, 2023

INSIDE INFORMATION REVISED RESULTS FOR THE THIRD QUARTER ENDED SEPTEMBER 30, 2022

This announcement is made by the Board of Directors (the “Board”) of Sunshine Oilsands Limited (“Sunshine” or the “Company”) pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules”) and the Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

Reference is made to the announcements issued by the Company dated November 11, 2022 (Hong Kong time) in relation to, among other things, the unaudited financial results of the Company for the third quarter ended September 30, 2022 and the Management Discussion and Analysis for the same period ended.

The Board wishes to update that upon further review by the management of the Company and recent discussions with its auditors, an additional impairment reversal in an aggregate amount of CAD 296,290,000 (approximately HKD 1,696,794,000) (including CAD85,039,000 (approximately HKD 487,001,000) and CAD211,251,000 (approximately HKD 1,209,792,000) on exploration and evaluation (“E&E”) and property, plant and equipment (“PP&E”) respectively) (the “Adjustment”) should be recorded for the nine months ended September 30, 2022 to better reflect the accounting treatment in relation to reversal of impairment when circumstance/indicator for such reversal exists.

Upon the Adjustment, the E&E balance as at September 30, 2022 will increase by CAD 85,039,000 (approximately HKD 487,001,000) to CAD 367,970,000 (approximately HKD 2,107,291,000) (before the Adjustment: CAD 282,931,000 (approximately HKD 1,620,289,000)); the PP&E balance as at September 30, 2022 will increase by CAD 211,251,000 (approximately HKD 1,209,792,000) to CAD 843,365,000 (approximately HKD 4,829,783,000) (before the Adjustment: CAD 632,114,000 (approximately HKD 3,619,990,000)); and the net profit and comprehensive profit attributable to owners of the Company for the nine-month ended September 30, 2022 will increase by CAD 296,290,000 (approximately HKD 1,696,794,000) to CAD 425,429,000 (approximately HKD 2,436,347,000) (before the Adjustment: CAD 129,139,000 (approximately HKD 739,553,000)).

* The HK$ amount was converted using the period end exchange rate of $1 CAD = $5.7268 HKD as at September 30, 2022.

Impact of the Adjustment on the consolidated financial statements of the Company for 3Q22 are as follows:

Impact on Condensed Consolidated Interim Statements of Financial Position (Expressed in thousands of Canadian dollars)
*September 30, 2022*	Amount Before adjustment				Change in amount			Amount after adjustment
Exploration and evaluation			282,931	85,039							367,970
Property, plant and equipment			632,114	211,251							843,365
Non-Current Assets			934,227	296,290							1,230,517
Total Assets			944,563	296,290										1,240,853
Deficit			(1,080,636)	296,290								(784,346)
Equity attributable to owners of the Company			306,189	296,290								602,479
Shareholders' Equity			305,279	296,290								601,569

Impact on Condensed Consolidated Interim Statements of Operations and Comprehensive Profit and Loss (Expressed in thousands of Canadian dollars, except for per share amounts)
	Amount Before adjustment				Change in amount								Amount after adjustment
*Three months ended September 30, 2022*

Reversal of impairment loss on E&E and PP&E			(64,869)		(296,290)								(361,159)
Expenses			(38,456)		(296,290)								(334,746)
Profit/(Loss) before income taxes			26,581		296,290								322,871
Net profit/(loss)			26,581		296,290								322,871
Net profit/(loss) and comprehensive profit/(loss) for the year attributable to owners of the Company			26,655				296,290			322,945
Basic and diluted profit/(loss) per share			$0.11				$1.22		$1.33

	Amount Before adjustment					Change in amount									Amount after adjustment
*Nine months ended September 30, 2022*

Reversal of impairment loss on E&E and PP&E		(191,816)					(296,290)		(488,106)
Expenses		(126,197)					(296,290)		(422,487)
Profit/(Loss) before income taxes		128,912					296,290		425,202
Net profit/(loss)		128,912					296,290		425,202
Net profit/(loss) and comprehensive profit/(loss) for the year attributable to owners of the Company		129,139					296,290		425,429
Basic and diluted profit/(loss) per share		$0.53					$1.22			$1.75


Impact on Condensed Consolidated Interim Statements of Changes in Shareholders’ Equity (Expressed in thousands of Canadian dollars)
	Amount Before adjustment	Change in amount					Amount after adjustment
*Nine months ended September 30, 2022*

Total Attributable to Equity Holders
Deficit	(1,080,636)	296,290						($784,346)
Total	306,189	296,290						$602,479
Non-controlling interests	(910)	-						($910)
Total Equity	305,279	296,290						$601,569

Impact on Condensed Consolidated Interim Statements of Cash Flows (Expressed in thousands of Canadian dollars)
	Amount Before adjustment			Change in amount			Amount after adjustment
*Three months ended September 30, 2022*

Net profit/(loss)	26,581	296,290				322,871
Depletion, depreciation and impairment	(62,890)	(296,290)				(359,180)

	Amount Before adjustment		Change in amount		Amount after adjustment
*Nine months ended September 30, 2022*
Net profit/(loss)	128,912		296,290		425,202
Depletion, depreciation and impairment	(189,370)		(296,290)		(485,660)

The revised quarterly results and the unaudited condensed consolidated financial statements have been reviewed by the Company’s Audit Committee but have not been audited.

The information contained in this announcement is based on the unaudited financial accounts of the Group, which have not been audited or confirmed by the Company’s auditors. The Company is in the process of finalizing the annual audited financial results of the Group for the year ended December 31, 2022 which are expected to be published by the end of March 2023.

The Board of Directors of the Company is of the view that the above adjustment is appropriate and truly and fairly reflect the Company’s financial position and performance.

Shareholders and potential investors are advised to exercise caution when dealing in the shares of the Company.

Hong Kong, February 15, 2023

Calgary, February 14, 2023

As at the date of this Announcement, the Board consists of Mr. Kwok Ping Sun and Ms. Gloria Pui Yun Ho as executive directors; Mr. Michael John Hibberd, Ms. Linna Liu and Ms. Xijuan Jiang as non-executive directors; and Mr. Yi He, Mr. Alfa Li and Mr. Guangzhong Xing as independent non-executive directors.

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