Sunshine Oilsands Ltd. Annual General Meeting June 12, 2009 FOCUSED ON VALUE. Sunshine Oilsands Ltd.

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1 Annual General Meeting June 12, 2009 FOCUSED ON VALUE

2 Disclaimer This presentation contains forward-looking statements including estimates of future plans and operations, cash flows, the estimated amounts and timing of capital expenditures, the assumptions upon which estimates are based and related sensitivity analyses, and other expectations, beliefs, plans, objectives, assumptions or statements about future events or performance (often, but not always, using words or phrases such as expects or does not expect, is expected, anticipates or does not anticipate, plans, estimated or intends, or stating that certain actions, events or results may, could, would, might or will be taken, occur or be achieved). Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those reflected in the statements. Forward looking statements are based on the estimates and opinions of the Corporation s management at the time the statements are made. The Corporation assumes no obligation to update forward-looking statements should circumstances or management s estimates or opinions change. 2

3 Agenda Introduction Health, Safety & Environment Assets Conventional Heavy Oil Cretaceous Sandstone Carbonate Capital Markets Update Summary 3

4 Health Safety & Environment, Regulatory & Stakeholder Affairs Sunshine will comply with all health and safety, environmental laws and regulations Sunshine has established all relevant controls to ensure compliance and has delegated an executive sponsor The near term focus on this dimension is compliance, with the commitment to position this company for leadership and contribution to sustainable development Sunshine is focused on transparent and open relationships with all stakeholders with the highest level of financial transparency 4

5 Introduction: Positioned for Success Strong management team and board of directors Extensive energy experience Proven track record of executing large capital and oilsands projects Key divisional management in place Significant size and quality resource base 100% ownership of one of the largest oilsands land holdings 1,000,640 acres (1,563.5 sections) 8.9 Billion barrels of Petroleum Initially in Place (PIIP), 1.3 Billion (best case gross lease recoverable resources) and 2.4 Billion (high case gross lease recoverable resources) Conventional heavy oil, cretaceous SAGD sandstone and bitumen charged carbonates Multiple areas identified for commercial development Potential conventional heavy oil production in Muskwa SAGD cretaceous sandstone projects identified Production capacity of 184,000 bbl/d from 68 sections Legend Lake 50,000 bbl/d for 35 years West Ells 82,000 bbl/d for 35 years Thickwood 52,000 bbl/d for 35 years Significant resource and production potential in the carbonate reservoirs 5

6 Introduction: New Developments Legend Lake: New Core Area GLJ assigned contingent resource Sunshine technical review indicates good upside Forecasted development metrics consistent with best in class reservoirs Capital and operating cost advantage Muskwa: Conventional Heavy Oil Pending final testing, rapid execution facilitated by proven technology and year round access Excellent development metrics, profitable in low price environments West Ells and Thickwood Applied technology options available for additional recovery and cost savings Commercial projects preceded by pilot phases to prove applied technology options Opportunities for cost efficiencies through cooperation with adjacent mineral rights owners Harper Carbonate Pilot: Application Submitted October 2008 currently addressing SIR s Recalibrating Cost Base: costs are being driving down to reflect new market paradigm Savings of 20% estimated Researching Technical Joint Venture Opportunities Initial assessment of new proven technologies indicate compatibility with Sunshine reservoir types Capital and operating advantages are significant with technologies that are applicable 6

7 Assets GLJ resource estimate (based on only 392 sections and 58 core holes) 8.9 Billion PIIP 2.4 Billion recoverable (high case) 1.3 Billion recoverable (best case) Legend Lake Harper Ells 1,000,640 Acres (1,563.5 sections) 7 Primary areas 100% ownership and operatorship West Ells Thickwood Vast inventory of land provides the Company with optionality Muskwa Provides currency Generates reverse inquiries Ability to maintain operational momentum in any capital market environment Area participants include Shell, Husky, CNRL, Total, Athabasca, Suncor, Chevron & Imperial Oil Portage/Pelican Lake 7

8 Assets: Resource Potential 8

9 Assets: Project Portfolio Carbonate Production Conventional Heavy Oil Technology: Horizontal API: 14 to 16 Steam: No Diluents: No Pricing: LLB - 5% Depth: 450m Other: Water flooding at later stages to sustain recovery Cretaceous Sandstone Technology: SAGD API: 8 to10 Steam: Yes Diluents: Yes Pricing: LLB - 2% (Blended) - 25% (Hot) Depth: 200m to 430m Other: 40 to 70% Recovery Reliable and predictable Reservoir conformance maturing and predisposed to optimization Technology: CSS or SAGD API: 9 to 12 Steam: Yes Diluents: Yes Pricing: LLB - 2% (Blended) - 25% (Hot) Depth: 550m Other: Potential +30% recovery Knowledge base and emerging technologies growing Harper pilot key activity to initiate and prove mobility Technology Evolution 4 to 10% recovery on primary Up to 30% recovery on enhanced Short time line to cash flow Controllable capital and lifting costs Time 9

10 Primary Cold Flow Projects Shell Canada: Woodenhouse Existing primary production projects in Wabiskaw formation Muskwa CNRL: Brintnell CNRL: Wabasca CNRL: North Wabasca Encana: Pelican Lake III CNRL: Pelican Lake CNRL: South Wabasca 10

11 Conventional Heavy Oil: Muskwa - Net Pay Mapping Porosity 28% Oil Saturation 67% OOIP > 4 m (over 386 Mbbl) > 160 drilling spacing units Recent penetrations validating contours 2009 Wells Licensed for Wabiskaw Oil 11

12 Conventional Heavy Oil: Muskwa - Development Project Phase Primary Development Component Estimated Period Expected Heavy Oil Production(bbl/d) Cumulative Capital Cost Phase ,800 $29,000,000 Phase ,100 $46,600,000 Phase ,800 $64,800,000 Phase ,000 $130,800,000 Phase ,000 $134,800,000 Project Phase Enhanced Development Component Estimated Period Expected Heavy Oil Production(bbl/d) Cumulative Capital Cost Phase ,350 $110,900,000 Phase ,160 $110,900,000 Phase ,860 $220,900,000 Phase ,600 $312,900,000 Phase ,900 $313,900,000 Total Capital for Primary & Enhanced $448,700,000 Time 12

13 Cretaceous Sandstone: Projects Three principal core areas in the SAGD project portfolio All adjudicated by GLJ and assigned significant resource Sunshine in depth technical analysis indicates very significant opportunity beyond GLJ s assessment Detailed development plan constructed 13

14 Cretaceous Sandstone: Reservoir Characteristics Projects Company Net Pay (m) Porosity Bitumen Saturation Reservoir Depth (m) Facies Legend Sunshine % 78% 430 Deltaic Sands West Ells Sunshine % 78% 255 Deltaic Sands Thickwood Sunshine % 73% 200 Deltaic Sands Great Divide Connacher % 85% 400 Channel Sands Christina Lake EnCana 25 35% 81% 400 Channel Sands Hangingstone Jacos % 80% 350 Channel Sands Mackay River Petro-Canada % 74% 137 Channel Sands Joslyn Total % 80% 110 Channel Sands Ells River Chevron % 78% 220 Deltaic Sands Dover 1 AOSC % 78% 250 Deltaic Sands 14

15 Carbonate: Projects Massive underlying resource Regional geological model broadly understood Principal risk is efficient extraction technology Represents Sunshine s future development option Harper Ells Muskwa Portage 15

16 Carbonate: Development Metrics Potential to sustain over 400,000 bbl/d production from the carbonate regions for over 25 years GLJ adjudicated technology Conventional SAGD wells Pilot plant in each operational area to prove reservoir conformance CAPEX efficiency of $35,000 per bbl/d Includes road, Co-Gen, Pipeline and additional well costs (challenging drilling environment, deeper structures) 16

17 Carbonate: Development Areas Potential Sunshine conservative management estimate indicates over 400,000 bbl/d potential from carbonates Based on conservative management exploration plan Indications are that the area potential is considerably larger 2009 in-situ Harper pilot to establish thermal mobility response which has significant implications for resource recognition and value 17

18 Capital Markets Update: Valuations Public Oilsands Company Valuations Time 1 Jr. Oil Sands index is a simple average of Excelsior Energy, North Peace Energy, Oilsands Quest, Southern Pacific, Alberta Oilsands and Patch International 2 Sr. Oil Sands index is a simple average of Canadian Oil Sands Trust, UTS Energy, OPTI Canada, Connacher and Suncor 3 Jr. Heavy Oil Index is a simple average of Bronco Energy and Black Pearl 18

19 Capital Markets Update: Recent Performance Public Oilsands Company Valuations Time 19

20 Capital Markets Update: Recent Oil & Gas Financings Oil & Gas Financings (Since January 1, 2009) Flow of capital shut off in Q Markets opening up but deals are opportunistic Issuer Announcement Date Issue Amount (C$ 000's) Peyto Energy Trust Jun 5, ,050 Painted Pony Petroleum Ltd. Jun 4, ,950 TransAtlantic Petroleum Corp. Jun 4, ,150 Galleon Energy Inc. Jun 1, ,000 Sabretooth Energy Ltd. May 27, ,076 Connacher Oil and Gas Ltd. May 27, ,075 Seaview Energy Inc. May 22, ,001 Petro Andina Resources Inc. May 20, ,560 NAL Oil & Gas Trust May 19, ,423 Zargon Oil & Gas Ltd. May 14, ,475 Harvest Energy Trust May 12, ,509 Savanna Energy Services Corp. May 11, ,250 Crew Energy Inc. May 7, ,400 Bonterra Oil & Gas Ltd. May 7, ,997 Breaker Energy May 7, ,979 Anderson Energy Ltd. May 7, ,040 Angle Energy Inc. May 7, ,000 Coastal Energy Company May 6, ,000 Vero Energy Inc. Apr 30, ,000 Cathedral Energy Services Income Trust Apr 28, ,005 Petrominerales Ltd. Apr 27, ,475 Bronco Energy Ltd. Apr 21, ,905 Bankers Petroleum Ltd. Apr 16, ,002 Daylight Resources Trust Apr 15, ,410 Iteration Energy Ltd. Apr 14, ,555 Pearl Exploration and Production Ltd. Apr 7, ,054 Celtic Exploration Ltd. Apr 2, ,438 Baytex Energy Ltd. Mar 23, ,058 Midnight Oil Exploration Ltd. Mar 20, ,450 Crescent Point Energy Trust Mar 4, ,031 TriStar Oil & Gas Ltd. Mar 4, ,500 Orleans Energy Inc. Feb 12, ,001 Storm Exploration Inc. Feb 12, ,610 TransGlobe Energy Corporation Feb 4, ,003 Breaker Energy Jan 29, ,109 Penn West Energy Trust Jan 29, ,007 Progress Energy Resources Corp. Jan 28, ,508 ARC Energy Trust Jan 21, ,006 Total 2,923,059 20

21 Capital Markets Update: Recent Oilsands Financings Oilsands Financings (Since January 1, 2008) Issuer Announcement Date Issue Amount (C$ 000's) North Peace Energy Jun 9, ,000 Connacher May 19, ,586 Oilsands Quest Apr 29, ,814 Petrobank Energy Dec 18, ,431 Oil Sands Quest Sep 23, ,640 Oil Sands Quest Sep 22, ,080 OSUM Oil Sands Corp. Aug 27, ,000 Excelsior Energy Aug 6, ,287 North Peace Energy Jul 24, ,000 Alberta Oil Sands Inc. Jul 10, ,477 Bronco Energy May 6, ,056 Oilsands Quest May 1, ,500 Total 706,871 No significant new capital issues between September 2008 and April 2009 Markets for oilsands beginning to thaw 21

22 Capital Markets Update: Environment & Impact Impact of Downturn North American E&P companies on average reduced capital budgets by 33% 1 to 3 Million bbl/d of oilsands projects deferred Costs have retreated Materials and manpower in better supply Current Environment Large amounts of cash not yet deployed Volatility has dropped significantly Oil prices at an attractive level and rising trend Fear of missing the upswing in energy sector 22

23 Capital Markets Update: Financial Strategy Execute multi-pronged financing strategy Develop financing structures that leverage our assets Mitigate risk Manage dilution Access the most advantageous markets for capital Realize maximum value for shareholders 23

24 Summary Assets One of the largest 100% working interest land holdings in the Athabasca Region (1,000,640 acres) Portfolio consists of multiple asset groupings Conventional Heavy Oil - short line of sight to cash flow Cretaceous Sandstone - high value, large production profile SAGD assets Carbonates - substantial long term value assets Thermal recovery only, no mining of resources No tailing ponds or mining pits People Proven track record of execution within all Sunshine product types with other successful companies (Rally Energy, Deer Creek, Connacher and Flint) Divisional leaders in place Capital Structure Broad shareholder base No controlling shareholder (all shareholders <10%) Efficient and transparent structure with managed dilution Resources Tremendous upside potential GLJ evaluations predicated on only 58 core holes resulting in 8.9 Billion bbls (PIIP) Production Growth Currently forecasting 184,000 bbl/d production identified on only 68 sections Over 400,000 bbl/d production potential from carbonate reservoirs Significant future production potential on remaining land base (~1,500 sections) 24

25 Contact Information Suite 1400, 700-4th Avenue, SW Calgary, Alberta, Canada T2P 3J4 Main Telephone: +1 (403) Facsimile: +1 (403) David Sealock Vice President, Corporate Operations