Sunshine Oilsands extends Renergy partnership for Athabasca oil sands development

Sunshine Oilsands Ltd. has extended its supplementary agreement with Renergy Petroleum (Canada) Co., Ltd., pushing the "Amended Outside Date" from October 20, 2025, to October 20, 2027. Under this amendment, Renergy will continue to bear all expenditures in the Muskwa and Godin areas, without a specified capital expenditure target or commitment cap. However, if Renergy fails to achieve a production level of 500 barrels per day for 20 consecutive days by the amended date, its working interest will be forfeited.

The board of directors considers this extension beneficial, given Sunshine's limited cash flow and restrictions on investing in Muskwa due to Senior Notes covenants. The Muskwa and Godin project is deemed commercially attractive due to its proximity to delivery locations, potential for lower oil production royalties with an enhanced recovery scheme, and marketability of oil without high-cost diluents.

This transaction is categorized as a connected transaction under Hong Kong Listing Rules due to Renergy's affiliation with executive chairman and substantial shareholder Mr. Kwok Ping Sun. Mr. Sun and non-executive director Ms. Xijuan Jiang abstained from voting on the relevant board resolutions.