Sunshine Oilsands Ltd.

Announcement of Partial Closing of Private Placement of 96,400,000 Common Shares Under Specific Mandate

HONG KONG, CHINA and CALGARY, ALBERTA--(Marketwired - July 20, 2016) - SUNSHINE OILSANDS LTD. (a corporation incorporated under the Business Corporations Act of the Province of Alberta, Canada with limited liability) (HKSE:2012)

By Order of the Board of Sunshine Oilsands Ltd.

Sun Kwok Ping

Executive Chairman

Hong Kong, July 21, 2016

Calgary, July 20, 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

The Board of Directors of Sunshine Oilsands Ltd. (the "Corporation" or "Sunshine") (HKSE:2012) wishes to announce the following:

Partial Closing of Private Placement under Specific Mandate

Reference is made to the announcements of the Corporation dated June 1, 2015 (Hong Kong), July 28, 2015 (Hong Kong), August 21, 2015 (Hong Kong), October 1, 2015 (Hong Kong), November 2, 2015 (Hong Kong), December 6, 2015 (Hong Kong), March 3, 2016 (Hong Kong), May 3, 2016 (Hong Kong), June 3, 2016 (Hong Kong) and June 23, 2016 (Hong Kong) (collectively, the "Announcements") and the circular of the Corporation dated June 22, 2015 (the "Circular") in relation to, among other matters, the proposed issue of new Class "A" Common Voting Shares ("Common Shares") under the Specific Mandate and the connected transactions involving subscriptions for new Common Shares by connected persons. Unless the context requires otherwise, terms use herein shall have the same meanings as those defined in the Announcements and the Circular.

Sunshine is pleased to announce today that it has completed the closing of 96,400,000 Common Shares (the "Partial Closing") under the Specific Mandate at a price of HK $0.75 per Common Share (approximately CDN $0.126 per Common Share at current exchange rates). Upon the Partial Closing, the Corporation has received total gross proceeds of HK $72,300,000 (approximately CDN $12.16 million at current exchange rates) for the allotment and issue of 96,400,000 Common Shares (the "Issued Shares"). Placement expenses are estimated to be approximately HK $100,000 (approximately CDN $16,813).