Sunshine Oilsands Ltd. has signed a "Memorandum of Understanding" (MOU) on 11 January 2013 (Calgary time) with China Oilfield Services Ltd. (COSL) to amicably negotiate and communicate with each other in respect of cooperation in developing multiple thermal fluid oilsands exploration technology in Canada and, if acceptable, sign a cooperation agreement under which COSL will conduct thermal fluid tests within the oilsands areas of the Company in order to confirm the feasibility of multiple thermal fluid techniques and other relevant technologies with respect of oilsands exploration. The technology which was developed and patented by COSL has the potential to reduce the facility foot print and operation cost for generating steam and other thermal fluids to inject into reservoirs.

Mr. Songning Shen, Co-Chairman, said "this technology has been proven successful in an CNOOC limited offshore project, and Sunshine Oilsands' research of the "multi-component thermal fluid thermal recovery technology" gives a possible indication that it could work economically in bitumen reservoirs".

The MOU is not legally binding except for those provisions in respect of exclusivity, confidentiality and dispute resolution. The MOU is in effect for one year and can be automatically extended for another year unless terminated. The MOU may or may not lead to the entering into of a cooperation agreement and the technology may or may not result in any benefit to the Company's operations.

Tags: Sunshine Oilsands Ltd.