HONG KONG, CHINA and CALGARY, ALBERTA--(Marketwired - Dec. 6, 2016) -

Grant of Options

The board of directors of Sunshine Oilsands Ltd. (the "Corporation") (HKEX:2012) announces that share options (the "Options") to acquire Class "A" common shares in the capital of the Corporation (the "Shares") were granted by the Corporation, to certain employees of the Corporation (the "Grantees"), under its share option scheme adopted on January 26, 2012, as amended on May 7, 2013 and June 13, 2013 (the "Share Option Scheme"), subject to acceptance by the Grantees, with details as follows:

Date of grant	:	December 4, 2016 (Calgary)
Number of Options granted	:	An aggregate of 6,632,943 Options in respect of 6,632,943 Shares(1)
Exercise price of Options granted	:	HK$0.410 (CDN$0.07 equivalent)(1) per Share
Closing price of the Shares on the date of grant	:	HK$0.395
Validity period of the Options	:	Five (5) years

Notes:

1. The Options were priced in Canadian dollars and the Hong Kong dollar price is based on the Bank of Canada noon exchange rate on the date of grant.Each Option shall entitle each of the Grantees to subscribe for one Share upon exercise of such Option at an exercise price of HK$0.410 (CDN$0.07 equivalent) per Share, which is higher than (i) the closing price of HK$0.395 (CDN$0.07 equivalent) per Share as quoted on the Stock Exchange on the date of grant of the Options; and (ii) the average closing price of HK$0.404 (CDN$0.07 equivalent) per Share as quoted on the Stock Exchange for the 5 trading days immediately preceding the date of grant of the Options.
   
   

Included in the total Options granted are the following Options granted to the chief financial officer of the Corporation:

Name	Number of Options Granted
Gloria Ho, Chief Financial Officer	5,000,000

None of the Grantees is a substantial shareholder, chief executive or director of the Corporation, nor an associate (as defined under the Listing Rules) of any of them.

Appointment of Canadian Corporate Secretary

The Corporation announces the appointment of Dan Shea as Canadian Corporate Secretary. Mr. Shea is an associate at Dentons Canada LLP, whose practice focuses principally on capital markets transactions. He has handled a wide range of public and private debt and equity financings for issuers and their underwriters, including initial public offerings and investment grade and high-yield financings. He has also worked on a broad range of mergers and acquisitions.

ABOUT SUNSHINE OILSANDS LTD.

The Corporation is a Calgary based public corporation listed on the Hong Kong Stock Exchange since March 1, 2012. The Corporation is focused on the development of its significant holdings of oil sands leases in the Athabasca oil sands region of Alberta, Canada. The Corporation owns interests in approximately one million acres of oil sands and petroleum and natural gas leases in the Athabasca region. 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.

FORWARD-LOOKING INFORMATION

This announcement contains forward-looking information relating to, among other things, 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 of 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, 2015 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 on the Corporation's website at www.sunshineoilsands.com.

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong 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.

This announcement is made pursuant to Rule 17.06A of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules"). By Order of the Board of Sunshine Oilsands Ltd.

Sun Kwok Ping, Executive Chairman

Hong Kong, December 6, 2016

Calgary, December 6, 2016

As at the date of this announcement, the Board consists of Mr. Kwok Ping Sun, Mr. Hong Luo, Dr. Qi Jiang and Mr. Qiping Men as executive directors; Mr. Michael John Hibberd, Mr. Jianzhong Chen and Ms. Xijuan Jiang as non-executive directors; and Mr. Raymond Shengti Fong, Mr. Gerald Franklin Stevenson, Ms. Joanne Yan and Mr. Yi He as independent non-executive directors.

* For identification purposes only