CALGARY, ALBERTA--(Marketwire - Sept. 16, 2012) -
NOT FOR DISTRIBUTION OR DISSEMINATION IN OR INTO THE UNITED STATES.
Sunshine Oilsands Ltd. ("Sunshine" or the "Company") (HKSE:2012) today announced that its Board of Directors has authorized the Company to repurchase, for cancellation, up to CDN $50,000,000 worth of Class A Common Voting Shares ("Common Shares") through open market purchases on the facilities of the Stock Exchange of Hong Kong Limited (the "SEHK"), all in accordance with the rules of the SEHK and pursuant to the general mandate to repurchase Common Shares not exceeding 10 percent of the issued capital of the Company that was granted to the Board of Directors of the Company at the Annual and Special Meeting of the Shareholders of the Company on 29 May 2012 (Hong Kong time).
The Company's Board of Directors has determined that this share repurchase is in the best interests of the Company and its shareholders.
It is not expected that the total number of Common Shares to be repurchased will exceed 5% of the total number of Common Shares in issue. The price paid per Common Share will be determined in the context of the market and in accordance with the rules of the SEHK. The Company will utilize available internal financial resources to fund the repurchase that are legally available in accordance with the provisions of the Business Corporations Act (Alberta) and the Company's articles of incorporation. The Company will inform the SEHK of repurchases by way of a next day return form published no later than 30 minutes before the commencement of trading on the business day following a share repurchase.
Sunshine believes the current market price of its Common Shares does not reflect their underlying value. Our balance sheet situation presents us with the opportunity to capitalize on the current valuation of Sunshine in the market which, in our opinion, does not fairly represent the value and potential of our asset base. The purchase of Common Shares for cancellation will be advantageous to our shareholders by increasing the value of remaining Common Shares.
ABOUT SUNSHINE OILSANDS LTD.
Sunshine Oilsands Ltd. is one of the largest non-partnered holders of oil sands leases by area in the Athabasca oil sands region, which is located in the province of Alberta, Canada. Since the Company's incorporation on 22 February 2007, Sunshine has secured over 464,897 hectares (1,148,785 acres) of oil sands leases (equal to approximately 7% of all granted leases in this area).
The Company's principal operations are the exploration, development and production of its diverse portfolio of oil sands leases. Its principal operating regions in the Athabasca area are at West Ells, Thickwood, Legend Lake, Harper, Muskwa, Goffer, Pelican and Portage. Sunshine's oil sands leases are grouped into three main asset categories: clastics, carbonates and conventional heavy oil.
FORWARD-LOOKING INFORMATION AND DISCLAIMER
This News Release may contain forward-looking information that 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 any words "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 the Company 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 information release 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 News Release, except as required under applicable securities legislation. The forward-looking statements speak only as of the date of this News Release 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 dated April 30, 2012 ("AIF"), "Risk Management" in our current MD&A 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 www.hkexnews.hk, on the SEDAR website at www.sedar.com or our website at www.sunshineoilsands.com.
This document does not constitute and is not an offer to sell or a solicitation of an offer to buy Common Shares of the Company in the United States (including its territories and possessions, any State of the United States and the District of Columbia) or elsewhere.
Hong Kong Exchanges and Clearing Limited, The Stock Exchange of Hong Kong Limited and Hong Kong Securities Clearing Company Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.