阳光油砂(02012)公布，于2025年9月14日，与国际比特币矿机设备供应商BitCruiser Incorporated(Bitcruiser)，签订非约束性战略合作协议。根据协议，双方将在加拿大阳光油砂拥有的片区 共同建立大型比特币矿埸，公司负责项目所需的电力，天燃气能源及办公住宿仓储设备房等配套设施， Bitcruiser公司则负责投资比特币挖矿设备及矿埸建设运营，公司与Bitcruiser公司己达成共识，尽快组建 双方合作团队，针对矿场开发与营运制订实施计划。 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責，對其準確性或完整性亦不發表任何聲 明，並明確表示概不就因本公佈全部或任何部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 本公佈僅供參考，並不構成收購、購買或認購陽光油砂有限公司證券之邀請或要約。 SUNSHINE OILSANDS LTD. 陽光油砂有限公司* （一家根據加拿大阿爾伯塔省商業公司法註冊成立的有限公司） （香港聯交所：2012） 自願公告 與 BITCRUISER INCORPORATED 就開發比特幣礦場達成戰略合作 承陽光油砂有限公司董事會命 孫國平 執行主席 香港，二零二五年九月十四日 卡爾加里，二零二五年九月十四日 於本公告發佈之日，董事會包括執行董事孫國平先生及何沛恩女士；非執行董事 Michael John Hibberd 先生、 蔣喜娟女士及陳永嵐先生；以及獨立非執行董事賀弋先生、邢廣忠先生及龐珏女士。 *僅供識別 董事會在作出一切合理查詢後所知及所信，BitCruiser Incorporated 為獨立於本公司及其關連人士 之第三方，且與彼等概無關連。 本戰略協議並不會對雙方之間產生具有法律約 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責，對其準確性或完整性亦不發表任何聲 明，並明確表示概不就因本公佈全部或任何部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 本公佈僅供參考，並不構成收購、購買或認購陽光油砂有限公司證券之邀請或要約。 SUNSHINE OILSANDS LTD. 陽光油砂有限公司* （一家根據加拿大阿爾伯塔省商業公司法註冊成立的有限公司） （香港聯交所：2012） 有關收購目標公司 51%股權之須予披露及關連交易 （涉及根據特定授權發行對價股份） 盈利預測公告 承陽光油砂有限公司董事會命 孫國平 執行主席 香港，二零二五年九月九日 卡爾加里，二零二五年九月九日 於本公告發佈之日，董事會包括執行董事孫國平先生及何沛恩女士；非執行董事 Michael John Hibberd 先生、 蔣喜娟女士及陳永嵐先生；以及獨立非執行董事賀弋先生、邢廣忠先生及龐珏女士。 *僅供識別 茲提述陽光油砂有限公司（「本公司」）（香港交易所股份代號：2012）於二零二五年八月十九 日(香港時間)刊發就有關收購目標公司 51%股權之須予披露及關連交易（涉及根據特定授權發行 ...

本公佈僅供參考，並不構成收購、購買或認購陽光油砂有限公司證券之邀請或要約。 香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責，對其準確性或完整性亦不發 表任何聲明，並明確表示概不就因本公佈全部或任何部份內容而產生或因倚賴該等內容而引致之任何損失承擔 任何責任。 SUNSHINE OILSANDS LTD. 陽光油砂有限公司* ( 一家根據加拿大阿爾伯塔省商業公司法註冊成立的有限公司 ) (香港聯交所：2012) 延遲寄發通函 承陽光油砂有限公司董事會命 孫國平 執行主席 香港，二零二五年九月九日 卡爾加里，二零二五年九月九日 於本公告發佈之日，董事會包括執行董事孫國平先生及何沛恩女士；非執行董事 Michael John Hibberd 先生、 蔣喜娟女士及陳永嵐先生；以及獨立非執行董事賀弋先生、邢廣忠先生及龐珏女士。 *僅供識別 -1- 茲提述日期為二零二五年八月十九日（香港時間）的公告（以下簡稱「該公告」）內容就 有關（其中包括）有關收購目標公司 51% 股權之須予披露及關連交易（涉及根據特定授 權發行對價股份）。除另有界定外，本公告所用詞彙與該公告所界定者俱有相同涵義。 誠如該公告 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | 截至月份: | 2025年8月31日 | 狀態: 新提交 | | --- | --- | --- | | 致：香港交易及結算所有限公司 | | | | 公司名稱: | 陽光油砂有限公司 | | | 呈交日期: | 2025年9月4日 | | | I. 法定/註冊股本變動 | 不適用 | | FF301 第 1 頁 共 10 頁 v 1.1.1 FF301 II. 已發行股份及/或庫存股份變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 02012 | 說明 | | | | | | | | | 已發行股份（不包括庫存股份）數目 | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | 503,180,414 | | 0 | | 503,180,414 | | 增加 / 減少 (-) | | | 68,174,03 ...

Group 1 - The company, Sunshine Oilsands (02012), reported a total revenue of CAD 4.735 million for the first half of 2025, representing a year-on-year increase of 1.94% [1] - The net loss attributable to equity holders narrowed to CAD 11.697 million, a decrease of 64.68% compared to the previous year [1] - The basic and diluted loss per share was CAD 0.04 [1]

Group 1 - The company reported a total revenue of 4.735 million Canadian dollars for the first half of 2025, representing a year-on-year increase of 1.94% [1] - The net loss attributable to equity holders narrowed to 11.697 million Canadian dollars, a decrease of 64.68% compared to the previous year [1] - The basic and diluted loss per share was 0.04 Canadian dollars [1]

Core Viewpoint - Sunshine Oilsands (02012.HK) reported a significant decline in oil sales revenue for the six months ending June 30, 2025, primarily due to equipment maintenance at West Ells, resulting in a drop from approximately CAD 21.5 million in the previous year to zero [1] Financial Performance - For the three months ending June 30, 2025, the company recorded a net operating loss of approximately CAD 2.1 million, compared to a net operating income of about CAD 1.13 million in the same period of 2024 [1] - In the second quarter of 2025, the net loss attributable to shareholders was approximately CAD 2 million, an improvement from a net loss of about CAD 11 million in the same quarter of the previous year [1]

[Overview](index=2&type=section&id=Overview) Sunshine Oil Sands Ltd. is an Athabasca oil sands resource holder and developer with approximately 710 million barrels of best estimate contingent resources, having invested about CAD 1.29 billion in leases and development - The company is an Athabasca oil sands resource developer, holding approximately **710 million barrels** of best estimate contingent resources[3](index=3&type=chunk) - As of December 31, 2024, unrisked best estimate contingent resources were approximately **1.01 billion barrels**[3](index=3&type=chunk) - The company has invested approximately **CAD 1.29 billion** in oil sands leases, drilling operations, and project engineering[4](index=4&type=chunk) - The company's ability to continue as a going concern faces significant doubt, dependent on West Ells' ongoing operations, favorable sales prices, profitability, and refinancing capabilities[4](index=4&type=chunk) [Latest Operating Performance](index=2&type=section&id=Latest%20Operating%20Performance) The West Ells project, which began commercial production in 2017 and fully resumed in April 2024, was shut down for equipment maintenance in Q2 and H1 2025, resulting in zero bitumen production and sales - The West Ells project commenced commercial production on March 1, 2017, and fully resumed on April 11, 2024[5](index=5&type=chunk) - In Q2 and H1 2025, the West Ells project was shut down for equipment maintenance, resulting in **zero barrels/day** average bitumen production and sales[5](index=5&type=chunk) - The Thickwood and Legend projects are planned for initial production of **10,000 barrels/day**, with Thickwood approved in Q3 2013[6](index=6&type=chunk) - Muskwa is not yet in production, and the Godin area is expected to resume development in 2024 with no costs incurred by Sunshine Oil Sands[7](index=7&type=chunk) [Quarterly Performance Summary](index=3&type=section&id=Quarterly%20Performance%20Summary) This section provides key financial data for the past eight quarters, highlighting zero oil sands bitumen and petroleum sales, and net losses of CAD 9.793 million and CAD 41.845 million in Q2 and Q1 2025, respectively Key Financial Data for the Past Eight Quarters (CAD thousands, except per share amounts and barrels/day) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Oil Sands Bitumen Sales (barrels/day) | - | - | 311 | 479 | 884 | 1,227 | 1,550 | 9 | | Petroleum Sales | - | - | 3,074 | 5,211 | 10,674 | 11,437 | 11,932 | 49 | | Operating Costs | 2,473 | 1,878 | 3,062 | 2,683 | 3,269 | 4,290 | 4,528 | 3,581 | | Finance Costs | 1,449 | 3,111 | 4,308 | 2,630 | 2,920 | 2,740 | 2,684 | 2,668 | | Net (Loss)/Profit | 9,793 | 41,845 | 579 | 11,048 | 22,217 | (2,111) | 15,758 | | Net Loss/(Gain) Attributable to Equity Holders | 9,716 | 41,769 | 505 | 10,974 | 22,144 | (2,184) | 15,686 | | Per Share - Basic and Diluted | 0.03 | 0.17 | (0.00) | 0.05 | 0.09 | (0.01) | 0.06 | | Capital Expenditures | 1,375 | 121 | 962 | 275 | 672 | 171 | 378 | 1,864 | | Total Assets | 742,131 | 740,906 | 739,023 | 741,301 | 742,120 | 745,963 | 745,932 | 739,708 | | Working Capital Deficit | 108,749 | 99,258 | 92,666 | 514,041 | 83,772 | 84,242 | 79,458 | 94,082 | | Shareholders' Equity | 22,202 | 7,055 | 16,848 | 57,203 | 57,782 | 68,830 | 91,047 | 88,272 | [Operating Results](index=3&type=section&id=Operating%20Results) In Q2 and H1 2025, the company reported zero revenue from oil sands bitumen, diluent blend, realized oil sands bitumen, and petroleum sales due to the West Ells project shutdown, leading to a CAD 2.5 million operating cash flow net loss in Q2 2025 Realized Oil Sands Bitumen Revenue (CAD thousands) | Metric | Three Months Ended 2025 | Three Months Ended 2024 | Six Months Ended 2025 | Six Months Ended 2024 | | :--- | :--- | :--- | :--- | :--- | | Oil Sands Bitumen Revenue | - | 10,674 | - | 22,111 | | Diluent Blend | - | (4,668) | - | (9,610) | | Realized Oil Sands Bitumen Revenue | - | 6,006 | - | 12,501 | | (CAD/barrel) | Not applicable | 50.67 | Not applicable | 46.28 | - Realized bitumen revenue decreased in Q2 and H1 2025, primarily due to the West Ells project shutdown for equipment maintenance[10](index=10&type=chunk) Operating Cash Flow (CAD thousands) | Metric | Three Months Ended 2025 | Three Months Ended 2024 | Six Months Ended 2025 | Six Months Ended 2024 | | :--- | :--- | :--- | :--- | :--- | | Realized Oil Sands Bitumen Revenue | - | 6,006 | - | 12,501 | | Transportation | - | (1,576) | - | (4,017) | | Royalties | - | (408) | - | (653) | | Net Oil Sands Bitumen Revenue | - | 4,022 | - | 7,831 | | Operating Costs | (2,473) | (3,269) | (4,351) | (7,559) | | Operating Cash Flow | (2,473) | 753 | (4,351) | 272 | | Operating Netback (CAD/barrel) | Not applicable | 6.37 | Not applicable | 1.00 | - For the three months ended June 30, 2025, operating cash flow generated a net loss of **CAD 2.5 million**, compared to a net gain of **CAD 0.8 million** in the same period of 2024, primarily due to revenue loss from West Ells equipment maintenance[12](index=12&type=chunk) [Oil Sands Bitumen Production](index=4&type=section&id=Oil%20Sands%20Bitumen%20Production) For the three and six months ended June 30, 2025, West Ells' average bitumen production was zero barrels/day, a significant decrease from 2024, primarily due to the project shutdown for equipment maintenance Oil Sands Bitumen Production (barrels/day) | Metric | Three Months Ended 2025 | Three Months Ended 2024 | Six Months Ended 2025 | Six Months Ended 2024 | | :--- | :--- | :--- | :--- | :--- | | Oil Sands Bitumen Production | 0 | 905 | - | 1046 | - The decrease in production is primarily attributable to the West Ells project being shut down for equipment maintenance during Q1 and Q2 2025[13](index=13&type=chunk) [Oil Sands Bitumen Sales](index=4&type=section&id=Oil%20Sands%20Bitumen%20Sales) For the three and six months ended June 30, 2025, West Ells' average bitumen sales were zero barrels/day, a significant decrease from 2024, primarily due to the project shutdown for equipment maintenance Oil Sands Bitumen Sales (barrels/day) | Metric | Three Months Ended 2025 | Three Months Ended 2024 | Six Months Ended 2025 | Six Months Ended 2024 | | :--- | :--- | :--- | :--- | :--- | | Oil Sands Bitumen Sales | - | 884 | - | 1,055 | - The decrease in sales volume is primarily attributable to the West Ells project being shut down for equipment maintenance during Q1 and Q2 2025[15](index=15&type=chunk) [Petroleum Sales, Net of Royalties](index=5&type=section&id=Petroleum%20Sales%2C%20Net%20of%20Royalties) For the three and six months ended June 30, 2025, net petroleum sales after royalties were zero CAD, a significant decline from 2024, primarily due to revenue loss from West Ells equipment maintenance Petroleum Sales, Net of Royalties (CAD thousands) | Metric | Three Months Ended 2025 | Three Months Ended 2024 | Six Months Ended 2025 | Six Months Ended 2024 | | :--- | :--- | :--- | :--- | :--- | | Petroleum Sales | - | 10,674 | - | 22,111 | | Royalties | - | (408) | - | (653) | | Petroleum Sales, Net of Royalties | - | 10,266 | - | 21,458 | | CAD/barrel | Not applicable | 86.60 | Not applicable | 79.44 | - The decrease in net petroleum sales is primarily attributable to revenue loss from West Ells equipment maintenance during Q1 and Q2 2025[16](index=16&type=chunk) [Royalty Rate](index=5&type=section&id=Royalty%20Rate) Royalty rates start at 1% of oil sands bitumen sales, increasing with WTI oil prices above CAD 55/barrel, up to a maximum of 9% at WTI prices of CAD 120/barrel or more - Royalty rates start at **1%** of oil sands bitumen sales, increasing by **1%** for every CAD 1 rise in WTI oil price above **CAD 55/barrel**, up to a maximum of **9%** (at WTI oil prices of **CAD 120/barrel** or more)[17](index=17&type=chunk) - For the three and six months ended June 30, 2025, royalties increased by **CAD 0.3 million** compared to the same period in 2024, primarily due to increased oil sands bitumen sales and additional expenditures to Burgess Energy Holdings, LLC[17](index=17&type=chunk) [Diluent Costs](index=5&type=section&id=Diluent%20Costs) For the three and six months ended June 30, 2025, total diluent costs were zero CAD, a significant reduction from 2024, primarily due to the West Ells facility shutdown for equipment maintenance Diluent Costs (CAD thousands) | Metric | Three Months Ended 2025 | Three Months Ended 2024 | Six Months Ended 2025 | Six Months Ended 2024 | | :--- | :--- | :--- | :--- | :--- | | Diluent (at site) | - | 4,668 | - | 9,016 | | Diluent (at offload point) | - | - | - | 594 | | Total | - | 4,668 | - | 9,610 | | CAD/barrel | Not applicable | 39.37 | Not applicable | 35.58 | | Blend Ratio (at site) | Not applicable | 32.2% | Not applicable | 28.9% | | Blend Ratio (at offload point) | - | - | - | 10.9% | - Total diluent costs decreased by **CAD 4.7 million**, primarily due to the West Ells facility shutdown for equipment maintenance[19](index=19&type=chunk)[20](index=20&type=chunk) [Transportation](index=6&type=section&id=Transportation) For the three and six months ended June 30, 2025, transportation expenses were zero CAD, a significant reduction from 2024, primarily due to the West Ells facility shutdown for equipment maintenance Transportation Costs (CAD thousands) | Metric | Three Months Ended 2025 | Three Months Ended 2024 | Six Months Ended 2025 | Six Months Ended 2024 | | :--- | :--- | :--- | :--- | :--- | | Transportation | - | 1,576 | - | 4,017 | | CAD/barrel | Not applicable | 13.29 | Not applicable | 14.87 | - Transportation expenses decreased, primarily due to the interruption of diluted oil sands bitumen sales caused by West Ells facility maintenance[21](index=21&type=chunk) [Operating Costs](index=6&type=section&id=Operating%20Costs) For the three months ended June 30, 2025, total operating costs were CAD 2.473 million, a decrease of CAD 1.6 million from 2024, primarily due to the West Ells project shutdown for equipment maintenance Operating Costs (CAD thousands) | Metric | Three Months Ended 2025 | Three Months Ended 2024 | Six Months Ended 2025 | Six Months Ended 2024 | | :--- | :--- | :--- | :--- | :--- | | Operating Costs | 2,473 | 3,269 | 4,351 | 7,559 | - The decrease in operating costs is primarily due to the West Ells project suspending production for equipment maintenance during Q1 and Q2 2025[22](index=22&type=chunk) [General and Administrative Expenses](index=6&type=section&id=General%20and%20Administrative%20Expenses) For the three and six months ended June 30, 2025, general and administrative expenses increased to CAD 2.01 million and CAD 7.311 million, respectively, primarily due to higher compensation and municipal fees General and Administrative Expenses (CAD thousands) | Metric | Three Months Ended 2025 | Three Months Ended 2024 | Six Months Ended 2025 | Six Months Ended 2024 | | :--- | :--- | :--- | :--- | :--- | | Salaries, Consulting Fees, and Benefits | 1,616 | 1,373 | 3,234 | 2,819 | | Rent | - | 10 | 13 | 16 | | Legal and Audit | 6 | 26 | 29 | 88 | | Other | 389 | 448 | 4,035 | 3,538 | | Total | 2,010 | 1,857 | 7,311 | 6,461 | - The increase for the three-month period primarily stemmed from higher compensation expenses in Q2 2025[24](index=24&type=chunk) - The increase for the six-month period was primarily attributable to rising compensation expenses and municipal fees[24](index=24&type=chunk) [Finance Costs](index=7&type=section&id=Finance%20Costs) For the three months ended June 30, 2025, finance costs decreased by CAD 1.5 million to CAD 1.449 million, primarily due to interest expenses on loans from related parties and shareholders being settled through share issuance Finance Costs (CAD thousands) | Metric | Three Months Ended 2025 | Three Months Ended 2024 | Six Months Ended 2025 | Six Months Ended 2024 | | :--- | :--- | :--- | :--- | :--- | | Senior Bond Interest Expense | 298 | 294 | 610 | 588 | | Other Loan Interest Expense | 218 | 71 | 352 | 133 | | Interest Expense on Borrowings from Related Parties and Shareholders | 718 | 2,030 | 2,860 | 3,908 | | Other Interest Expenses - Leases and Other | 215 | 84 | 300 | 159 | | Unwinding of Provision Discount | - | 441 | 438 | 872 | | Period-End Balance | 1,449 | 2,920 | 4,560 | 5,660 | - The decrease in finance costs is primarily attributable to interest expenses on loans from related parties and shareholders, which were settled through the issuance of shares[25](index=25&type=chunk) [Share-Based Compensation](index=7&type=section&id=Share-Based%20Compensation) For the three and six months ended June 30, 2025 and 2024, share-based compensation expenses were zero, with the company recognizing the fair value of share options using the Black-Scholes option pricing model - For the three and six months ended June 30, 2025 and 2024, share-based compensation expenses were **zero**[26](index=26&type=chunk) - The company determines the fair value of share options using the Black-Scholes option pricing model[26](index=26&type=chunk) [Depletion, Depreciation, and Impairment](index=7&type=section&id=Depletion%2C%20Depreciation%2C%20and%20Impairment) For the three months ended June 30, 2025, depletion and depreciation expenses decreased by CAD 1.8 million to CAD 0.174 million, primarily due to the West Ells project shutdown for equipment maintenance, resulting in no depletion expenses Depletion and Depreciation (CAD thousands) | Metric | Three Months Ended 2025 | Three Months Ended 2024 | Six Months Ended 2025 | Six Months Ended 2024 | | :--- | :--- | :--- | :--- | :--- | | Depletion and Depreciation | 174 | 1,984 | 358 | 4,603 | | Depletion (CAD/barrel) | Not applicable | 15.08 | Not applicable | 15.55 | - Depletion and depreciation expenses decreased by **CAD 1.8 million**, primarily because no depletion expenses were incurred due to the West Ells project shutdown for equipment maintenance during Q1 and Q2 2025[28](index=28&type=chunk) - The company assesses E&E and PP&E assets for indicators of impairment or impairment reversal at each reporting date[29](index=29&type=chunk) - As of June 30, 2025 and 2024, the company found no indicators of further impairment losses (reversals) for E&E or the West Ells CGU[31](index=31&type=chunk) [Income Tax](index=8&type=section&id=Income%20Tax) For the three months ended March 31, 2025 and 2024, the company did not recognize any deferred income tax assets, primarily related to unrecognized tax losses, and held approximately CAD 1.43 billion in total available tax deductions as of June 30, 2025 - For the three months ended March 31, 2025 and 2024, the company did not recognize any deferred income tax assets, primarily related to unrecognized tax losses[32](index=32&type=chunk) - As of June 30, 2025, the company had approximately **CAD 1.43 billion** in total available tax deductions, with unrecognized tax losses expiring between 2029 and 2045[32](index=32&type=chunk) [Liquidity and Capital Resources](index=9&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the company reported a working capital deficit of CAD 108.7 million and shareholders' equity of CAD 22.202 million, with a debt-to-asset ratio of 99%, and is actively seeking capital through equity issuance, monetization, joint ventures, and debt Liquidity and Capital Resources (CAD thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Working Capital Deficit | 108,749 | 92,666 | | Shareholders' Equity | 22,202 | 16,848 | - The company entered into interest waiver agreements with deferred holders, waiving **USD 31.5 million** in accrued interest annually from 2023 to 2025[33](index=33&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk) - As of June 30, 2025, the company had incurred a total of **USD 57.7 million** (approximately **CAD 83 million**) in unsecured license debt[39](index=39&type=chunk) - The company received payment notices from the Municipality of Wood Buffalo for municipal property taxes of **CAD 17.2 million** and overdue penalties of **CAD 23.7 million** for 2016-2025, and has sought judicial review[39](index=39&type=chunk) - As of June 30, 2025, the company's debt-to-asset ratio was **99%**, higher than **98%** as of December 31, 2024[42](index=42&type=chunk) - The company faces foreign currency exchange rate fluctuation risks, primarily involving HKD, USD, and RMB[43](index=43&type=chunk) [Royalty Agreement](index=11&type=section&id=Royalty%20Agreement) Sunshine Oil Sands entered a royalty agreement with Burgess Energy Holdings, L.L.C. (BEH) in August 2021, granting BEH an undivided interest in oil sands for CAD 20 million, with a June 2023 amendment accelerating a CAD 5 million payment and revising royalty rates for WCS prices above USD 80/barrel up to 25% - The company entered into a royalty agreement with BEH, granting BEH an undivided interest in oil sands for a total consideration of **CAD 20 million**[45](index=45&type=chunk) - The agreement was amended on June 8, 2023, accelerating a **CAD 5 million** payment to the company[46](index=46&type=chunk) - The amended agreement revised the royalty rate for WCS prices above **USD 80/barrel**, increasing it to a maximum of **25.00%** (from the original **15.00%**)[46](index=46&type=chunk) [Commitments and Contingencies](index=11&type=section&id=Commitments%20and%20Contingencies) Management estimates contractual maturity dates for company obligations, but actual dates may vary, and the company is involved in various claims and legal proceedings, including municipal property tax disputes and liens, for which adequate provisions have been made, though outcomes are uncertain - The company is involved in various claims and legal proceedings, including municipal property tax disputes and liens[40](index=40&type=chunk) - The company believes it has made adequate provisions for such claims, but the outcome of litigation cannot be definitively predicted[40](index=40&type=chunk) - As of June 30, 2025, the company had incurred liens totaling **CAD 0.82 million** (approximately **USD 0.57 million**)[40](index=40&type=chunk) [Related Party Transactions](index=12&type=section&id=Related%20Party%20Transactions) For the six months ended June 30, 2025, the company paid CAD 0.25 million for management and consulting services to a director-affiliated firm, and as of June 30, 2025, had unsecured loans of approximately CAD 53.897 million from related companies and CAD 3.114 million from shareholders - For the six months ended June 30, 2025, **CAD 0.25 million** was paid to a consulting firm affiliated with a director for management and consulting services[48](index=48&type=chunk) - Mr. Sun Guoping, the company's Executive Chairman, beneficially owns approximately **30%** of the company's issued ordinary shares[48](index=48&type=chunk) - As of June 30, 2025, total unsecured loans from related companies amounted to approximately **CAD 53.897 million**, and from shareholders to approximately **CAD 3.114 million**[48](index=48&type=chunk) [Off-Balance Sheet Arrangements](index=12&type=section&id=Off-Balance%20Sheet%20Arrangements) As of June 30, 2025, the Group had no other off-balance sheet arrangements - As of June 30, 2025, the Group had no other off-balance sheet arrangements[49](index=49&type=chunk) [Purchases, Sales, and Redemptions of Sunshine Oil Sands' Listed Securities](index=12&type=section&id=Purchases%2C%20Sales%2C%20and%20Redemptions%20of%20Sunshine%20Oil%20Sands%27%20Listed%20Securities) In 2025, the company issued Class A ordinary shares under general and specific mandates to settle various debts, including 48,695,736 shares for CAD 3.05 million on April 17, 60,000,000 shares for CAD 6.727 million on June 25, and 162,310,261 shares for CAD 13.052 million on April 28 Class A Ordinary Share Issuances in 2025 (General Mandate) | Date | Creditor | Shares Issued | Issue Price (HKD/share) | Debt Settled (HKD) | Debt Settled (CAD) | | :--- | :--- | :--- | :--- | :--- | :--- | | April 17, 2025 | Creditor 1 | 48,695,736 | 0.35 | 17,043,508 | 3,050,787 | | June 25, 2025 | Creditor 2 | 60,000,000 | 0.64 | 38,400,000 | 6,727,635.87 | | July 30, 2025 | Mr. Zhang Jun | 8,174,030 | 0.50 | 4,087,015 | 716,869.26 | Class A Ordinary Share Issuances in 2025 (Specific Mandate) | Date | Creditor | Shares Issued | Issue Price (HKD/share) | Debt Settled (HKD) | Debt Settled (CAD) | | :--- | :--- | :--- | :--- | :--- | :--- | | April 28, 2025 | Creditor 3 | 162,310,261 | 0.45 | 73,039,619 | 13,052,180 | [Subsequent Events](index=13&type=section&id=Subsequent%20Events) Post-reporting period, the company settled debt with Mr. Zhang Jun by issuing 8,174,030 Class A ordinary shares on July 30, 2025, and on August 19, 2025, proposed to acquire a 51% stake in Nobao Technology Co., Ltd. via share issuance, which is a connected transaction - On July 30, 2025, the company entered into a settlement agreement with Mr. Zhang Jun, issuing **8,174,030** Class A ordinary shares to settle his debt[54](index=54&type=chunk) - On August 19, 2025, the company proposed to acquire a **51%** equity interest in Nobao Technology Co., Ltd. via share issuance for **HKD 50,919,450**, which constitutes a connected transaction[54](index=54&type=chunk) - On August 20, 2025, the company received a winding-up petition from Qiaoshi Finance Co., Ltd., and is taking legal measures to vigorously oppose it[55](index=55&type=chunk) [Changes in Accounting Policies](index=13&type=section&id=Changes%20in%20Accounting%20Policies) The company's significant accounting policies have remained unchanged since December 31, 2024 - The company's significant accounting policies have remained unchanged since December 31, 2024[56](index=56&type=chunk) [Critical Accounting Judgments and Estimates](index=13&type=section&id=Critical%20Accounting%20Judgments%20and%20Estimates) The company's critical accounting estimates significantly impact its financial position and operations, requiring management judgment, assumptions, and estimates that may change with evolving events and additional information - The company's critical accounting estimates significantly impact its financial position and operations, requiring management to make judgments, assumptions, and estimates[57](index=57&type=chunk) - These judgments, assumptions, and estimates may change with evolving events and additional information[57](index=57&type=chunk) [Risk Factors](index=13&type=section&id=Risk%20Factors) Resource exploration, development, and extraction businesses involve high risks, and the significant risks and uncertainties affecting the company, their potential impacts, and key risk management strategies remain consistent with those disclosed in the 2024 annual MD&A - Resource exploration, development, and extraction businesses involve high risks[59](index=59&type=chunk) - Significant risks and uncertainties, their potential impacts, and key risk management strategies remain unchanged from those disclosed in the 2024 annual Management's Discussion and Analysis[59](index=59&type=chunk) [Disclosure Controls and Procedures](index=14&type=section&id=Disclosure%20Controls%20and%20Procedures) As of June 30, 2025, the company's CFO and CEO assessed the disclosure controls and procedures as effective, providing reasonable assurance that material information is timely recorded, processed, summarized, and reported, with no significant changes in internal control over financial reporting during the period - As of June 30, 2025, the CFO and CEO assessed the company's disclosure controls and procedures as effective[60](index=60&type=chunk) - No significant changes in the Group's internal control over financial reporting were identified[61](index=61&type=chunk) [Forward-Looking Information](index=14&type=section&id=Forward-Looking%20Information) This Management's Discussion and Analysis contains forward-looking statements involving significant risks and uncertainties that could cause actual results to differ materially from projections, and investors are strongly cautioned not to place undue reliance on these statements, as the company has no obligation to update them - Certain statements in this Management's Discussion and Analysis are forward-looking statements, involving significant risks and uncertainties[62](index=62&type=chunk) - Actual results or outcomes may differ materially from those indicated in forward-looking statements, and investors should not place undue reliance on them[63](index=63&type=chunk) - The company has no obligation to update any forward-looking statements[63](index=63&type=chunk) [HKEX Additional Information](index=14&type=section&id=HKEX%20Additional%20Information) This section provides additional information required by the HKEX, covering corporate governance, directors' securities trading, share option movements, fair value of granted options, listed securities transactions, issued shares, employees, dividend policy, and interim results review and publication - The company is committed to maintaining high standards of corporate governance and confirms compliance with the Code set out in Appendix 14 of the HKEX Listing Rules for the period from January 1, 2025, to June 30, 2025, but is seeking appropriate insurance coverage for legal actions against directors[65](index=65&type=chunk) - The company confirms adoption of the Model Code for Securities Transactions by Directors of Listed Issuers in Appendix 10 of the HKEX Listing Rules, and directors have confirmed compliance[66](index=66&type=chunk) - As of June 30, 2025, the company had **27** full-time employees, with total personnel expenses of **CAD 1.6 million** for the six months ended June 30, 2025[73](index=73&type=chunk) - The company did not declare or pay any dividends for the six months ended June 30, 2025[74](index=74&type=chunk) [Corporate Governance Code (the 'Code')](index=14&type=section&id=Corporate%20Governance%20Code%20%28the%20%27Code%27%29) The company is committed to high corporate governance standards and confirmed compliance with the HKEX Listing Rules' Code from January 1 to June 30, 2025, while actively seeking appropriate insurance coverage for legal actions against its directors - The company confirms compliance with the Code set out in Appendix 14 of the HKEX Listing Rules for the period from January 1, 2025, to June 30, 2025[65](index=65&type=chunk) - The company is seeking appropriate insurance coverage for legal actions against its directors[65](index=65&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors of Listed Issuers (the 'Model Code')](index=15&type=section&id=Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors%20of%20Listed%20Issuers%20%28the%20%27Model%20Code%27%29) The company adopted the HKEX Listing Rules' Model Code for directors' securities transactions, and directors confirmed compliance with it and their code of conduct from January 1 to June 30, 2025 - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix 10 of the HKEX Listing Rules[66](index=66&type=chunk) - Directors have confirmed compliance with the Model Code and their code of conduct for securities transactions during the period from January 1, 2025, to June 30, 2025[66](index=66&type=chunk) [Share Option Movements](index=15&type=section&id=Share%20Option%20Movements) For the period ended June 30, 2025, there were no share option movements for directors, chief executive, or other executive management, with both opening and closing balances remaining at zero Share Option Movements (as of December 31, 2024, to June 30, 2024) | Name | December 31, 2024 | Granted | Exercised | Forfeited | Lapsed | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Directors Subtotal | - | - | - | - | - | - | | Other Option Holders | - | - | - | - | - | - | | Total | - | - | - | - | - | - | - For the period ended June 30, 2025, share option movements for directors, chief executive, and other executive management showed **zero** opening and closing balances[67](index=67&type=chunk)[68](index=68&type=chunk) [Fair Value of Share Options Granted](index=15&type=section&id=Fair%20Value%20of%20Share%20Options%20Granted) The weighted average fair value of share options granted in prior years was zero CAD, with the company using the Black-Scholes model for valuation, adjusting expected life based on management's assessment of non-transferability, exercise restrictions, and behavioral considerations - The weighted average fair value of share options granted in prior years was **CAD 0**[69](index=69&type=chunk) - The company uses the Black-Scholes model to value options[69](index=69&type=chunk) Black-Scholes Model Input Variables | Input Variable | Six Months Ended June 30, 2025 | Year Ended December 31, 2025 | | :--- | :--- | :--- | | Share Price at Grant Date (CAD) | - | - | | Exercise Price (CAD) | - | - | | Expected Volatility (%) | - | - | | Option Life (Years) | - | - | | Risk-Free Rate (%) | - | - | | Expected Forfeiture Rate (%) | - | - | [Purchases, Sales, and Redemptions of Sunshine Oil Sands' Listed Securities](index=15&type=section&id=Purchases%2C%20Sales%2C%20and%20Redemptions%20of%20Sunshine%20Oil%20Sands%27%20Listed%20Securities) During Q2 2025, Sunshine Oil Sands did not engage in any purchases, sales, or redemptions of its listed securities - During Q2 2025, Sunshine Oil Sands did not engage in any purchases, sales, or redemptions of its listed securities[71](index=71&type=chunk) [Issued Shares](index=16&type=section&id=Issued%20Shares) As of June 30, 2025, the company had 503,180,414 Class A ordinary shares issued - As of June 30, 2025, the company had **503,180,414** Class A ordinary shares issued[72](index=72&type=chunk) [Employees](index=16&type=section&id=Employees) As of June 30, 2025, the company had 27 full-time employees, with total personnel expenses amounting to CAD 1.6 million for the six months ended June 30, 2025 - As of June 30, 2025, the company had **27** full-time employees[73](index=73&type=chunk) - For the six months ended June 30, 2025, total personnel expenses amounted to **CAD 1.6 million**[73](index=73&type=chunk) [Dividends](index=16&type=section&id=Dividends) The company did not declare or pay any dividends for the six months ended June 30, 2025 - The company did not declare or pay any dividends for the six months ended June 30, 2025[74](index=74&type=chunk) [Review of Interim Annual Results](index=16&type=section&id=Review%20of%20Interim%20Annual%20Results) The company's condensed consolidated interim financial statements for the three and six months ended June 30, 2025, were reviewed by the Audit Committee and approved by the Board of Directors - The company's condensed consolidated interim financial statements for the three and six months ended June 30, 2025, were reviewed by the Audit Committee and approved by the Board of Directors[75](index=75&type=chunk) [Publication of Information](index=16&type=section&id=Publication%20of%20Information) This quarterly results announcement will be published on the HKEX and company websites in both Chinese and English, with the English version prevailing in case of discrepancies - This quarterly results announcement will be published on the HKEX website (www.hkexnews.hk) and the company's website (www.sunshineoilsands.com)[76](index=76&type=chunk) - This announcement is available in both Chinese and English, with the English version prevailing in case of any discrepancies[76](index=76&type=chunk) [2025 Outlook](index=16&type=section&id=2025%20Outlook) As commodity demand recovers, Sunshine Oil Sands will continue to focus on cost control and prudently seek business expansion and transformation opportunities, including a proposed acquisition of a 51% stake in a clean energy subsidiary of Nobao Energy Holdings (China) Co., Ltd - The company will continue to focus on cost control and prudently seek business expansion and transformation opportunities[77](index=77&type=chunk) - The company plans to acquire a **51%** equity interest in a clean energy business subsidiary of Nobao Energy Holdings (China) Co., Ltd., which is expected to significantly improve its financial position[77](index=77&type=chunk) - The target company's geothermal heat pump technology can be applied to the company's mining operations, enhancing future cost-effectiveness[77](index=77&type=chunk) - The company will also work with joint venture partners to restart operations at the Muskwa and Godin projects[78](index=78&type=chunk)

Second Quarter Results Announcement for the Period Ended June 30, 2025 [Financial Data Summary](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%95%B8%E6%93%9A%E7%B8%BD%E7%B5%90) Sunshine Oil Sands Ltd. announced its second-quarter results for the period ended June 30, 2025, with oil sales dropping to zero due to West Ells equipment maintenance, leading to an expanded net operating loss and negative operating cash flow, though net loss attributable to shareholders narrowed year-on-year Oil Sales (Net of Royalties) | Period | Amount (CAD Thousands) | | :--- | :--- | | Six Months Ended June 30, 2025 | 0 | | Six Months Ended June 30, 2024 | 21,458 | Oil sales were primarily impacted by revenue loss due to West Ells equipment maintenance in Q1 and Q2 2025[4](index=4&type=chunk)[6](index=6&type=chunk) Net Operating Income (Loss) (Excluding One-time Exchange Gains (Losses)) | Period | Amount (CAD Thousands) | | :--- | :--- | | Three Months Ended June 30, 2025 | (2,100) | | Three Months Ended June 30, 2024 | 1,130 | Operating Cash Flow | Period | Amount (CAD Thousands) | | :--- | :--- | | Three Months Ended June 30, 2025 | (2,473) (Net Outflow) | | Three Months Ended June 30, 2024 | 753 (Net Inflow) | Operating cash flow was primarily impacted by revenue loss due to West Ells equipment maintenance in Q1 and Q2 2025[4](index=4&type=chunk)[6](index=6&type=chunk) Net Profit (Loss) Attributable to Company Shareholders | Period | Amount (CAD Thousands) | | :--- | :--- | | Q2 2025 | (1,981) | | Q2 2024 | (10,974) | Selected Financial Figures (Balance Sheet) | Metric | June 30, 2025 (CAD Thousands) | December 31, 2024 (CAD Thousands) | | :--- | :--- | :--- | | Property, Plant and Equipment | 478,001 | 476,446 | | Exploration and Evaluation Assets | 241,208 | 239,259 | | Shareholders' Equity | 22,202 | 16,848 | Condensed Interim Financial Statements [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the company's total assets slightly increased to CAD 742.1 million, and shareholders' equity rose to CAD 22.2 million, but current liabilities significantly increased, with total liabilities remaining high, reflecting ongoing financial structural challenges Balance Sheet Key Data (CAD Thousands) | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total Assets | 742,131 | 739,023 | +3,108 | | Current Assets | 16,516 | 16,496 | +20 | | Non-current Assets | 725,615 | 722,527 | +3,088 | | Total Liabilities and Shareholders' Equity | 742,131 | 739,023 | +3,108 | | Total Liabilities | 719,929 | 722,175 | -2,246 | | Current Liabilities | 125,265 | 109,162 | +16,103 | | Non-current Liabilities | 594,664 | 613,013 | -18,349 | | Total Shareholders' Equity | 22,202 | 16,848 | +5,354 | [Condensed Consolidated Statement of Operations and Comprehensive Loss](index=5&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%B6%93%E7%87%9F%E5%8F%8A%E5%85%A8%E9%9D%A2%E虧%E6%90%8D%E8%A1%A8) For the six months ended June 30, 2025, the company reported zero oil sales, leading to an expanded net loss of CAD 11.845 million, and despite a decrease in finance costs, basic and diluted loss per share remained at CAD 0.04 Revenue Overview (CAD Thousands) | Revenue Item | Three Months Ended June 30 (2025) | Three Months Ended June 30 (2024) | Six Months Ended June 30 (2025) | Six Months Ended June 30 (2024) | | :--- | :--- | :--- | :--- | :--- | | Oil Sales, Net of Royalties | - | 10,266 | - | 21,458 | | Other Income | 373 | 380 | 541 | 916 | | Foreign Exchange Gain / (Loss) | 3,681 | (5,420) | 4,194 | (17,729) | | Total Revenue | 4,054 | 5,226 | 4,735 | 4,645 | Expenses Overview (CAD Thousands) | Expense Item | Three Months Ended June 30 (2025) | Three Months Ended June 30 (2024) | Six Months Ended June 30 (2025) | Six Months Ended June 30 (2024) | | :--- | :--- | :--- | :--- | :--- | | Diluent | - | 4,668 | - | 9,610 | | Transportation | - | 1,576 | - | 4,017 | | Operating | 2,473 | 3,269 | 4,351 | 7,559 | | Depletion and Depreciation | 176 | 1,984 | 360 | 4,603 | | General and Administrative | 2,008 | 1,857 | 7,309 | 6,461 | | Finance Costs | 1,449 | 2,920 | 4,560 | 5,660 | | Total Expenses | 6,106 | 16,274 | 16,580 | 37,910 | Net Income / (Loss) and Loss Per Share (CAD Thousands) | Metric | Three Months Ended June 30 (2025) | Three Months Ended June 30 (2024) | Six Months Ended June 30 (2025) | Six Months Ended June 30 (2024) | | :--- | :--- | :--- | :--- | :--- | | Loss Before Income Tax | (2,052) | (11,048) | (11,845) | (33,265) | | Net Income / (Loss) | (2,052) | (11,048) | (11,845) | (33,265) | | Net Income / (Loss) Attributable to Equity Holders of the Company for the Year | (1,981) | (10,974) | (11,697) | (33,118) | | Basic and Diluted Earnings / (Loss) Per Share | (0.01) | (0.05) | (0.04) | (0.14) | [Condensed Consolidated Statement of Changes in Equity](index=6&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%82%A1%E6%9D%B1%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) As of June 30, 2025, the company's total shareholders' equity increased to CAD 22.202 million, primarily driven by the issuance of common shares, despite recording a net loss during the period Overview of Changes in Equity (CAD Thousands) | Item | December 31, 2024 | June 30, 2025 | | :--- | :--- | :--- | | Total Share Capital | 16,848 | 22,202 | | Net Income (Loss) and Comprehensive Income (Loss) for the Year | (11,845) | (11,845) | | Issuance of Common Shares | - | 15,744 | [Condensed Consolidated Statement of Cash Flows](index=7&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For the six months ended June 30, 2025, the company experienced a net cash outflow of CAD 0.821 million from operating activities and CAD 1.494 million from investing activities, offset by a net cash inflow of CAD 2.713 million from financing activities, resulting in a period-end cash balance of CAD 0.732 million Cash Flow Overview (CAD Thousands) | Activity Type | Three Months Ended June 30 (2025) | Three Months Ended June 30 (2024) | Six Months Ended June 30 (2025) | Six Months Ended June 30 (2024) | | :--- | :--- | :--- | :--- | :--- | | Net Cash Provided by (Used in) Operating Activities | 418 | (211) | (821) | (1,127) | | Net Cash Provided by (Used in) Investing Activities | (1,375) | 81 | (1,494) | 340 | | Net Cash Generated from Financing Activities | 1,358 | 664 | 2,713 | 1,192 | | Net Increase / (Decrease) in Cash | 401 | 534 | 398 | 405 | | Cash at End of Period | 732 | 914 | 732 | 914 | Notes to the Condensed Consolidated Interim Financial Statements [Company Information](index=8&type=section&id=1.%20%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) Sunshine Oil Sands Ltd. is an oil sands heavy oil producer registered in Alberta, Canada, with shares listed on the Hong Kong Stock Exchange, and operates a joint venture in China for petroleum mineral evaluation and development - The company was incorporated on February 22, 2007, in Alberta, Canada, primarily engaged in oil sands heavy oil production in the Athabasca oil sands region of Canada[17](index=17&type=chunk) - The company's shares were listed on the Hong Kong Stock Exchange (stock code: 2012) on March 1, 2012, and voluntarily delisted from the Toronto Stock Exchange on September 30, 2015[17](index=17&type=chunk) - The company established Sunshine Oil Sands Hebei, a joint venture in China, on April 15, 2019, holding a **51% interest**[18](index=18&type=chunk) [Basis of Preparation](index=8&type=section&id=2.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) Despite a net loss of CAD 11.8 million and net current liabilities of approximately CAD 108.75 million for the six months ended June 30, 2025, the financial statements are prepared on a going concern basis, with the company's ability to continue as a going concern dependent on successful refinancing, debt restructuring, and securing additional funding - For the six months ended June 30, 2025, the Group incurred a net loss of approximately **CAD 11.8 million** and had net current liabilities of approximately **CAD 108.75 million**[20](index=20&type=chunk) - The company's ability to continue as a going concern depends on achieving projected earnings, profitable operations, restructuring cash outflows, controlling expenses, refinancing current debt, and obtaining additional financing[21](index=21&type=chunk) - Management is in discussions with existing shareholders and creditors to refinance current debt, secure additional funding, and meet debt repayment obligations due within the next 12 months[21](index=21&type=chunk) [Statement of Compliance](index=9&type=section&id=2.1%20%E5%90%88%E8%A6%8F%E8%AA%AA%E6%98%8E) The condensed consolidated interim financial statements are prepared in accordance with IFRS, HKEX Listing Rules, and the Hong Kong Companies Ordinance, presented in Canadian dollars, measured at historical cost, with certain disclosures condensed or omitted - The financial statements are prepared in accordance with International Financial Reporting Standards, the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, and the Hong Kong Companies Ordinance[22](index=22&type=chunk) - The statements are presented in Canadian dollars and prepared on a historical cost basis, with financial instruments measured at fair value[22](index=22&type=chunk) - Certain information and disclosures normally included in audited annual consolidated financial statements have been condensed or omitted[22](index=22&type=chunk) [Adoption of Revised International Financial Reporting Standards (IFRS)](index=9&type=section&id=3.%20%E6%8E%A1%E7%94%A8%E7%B6%93%E4%BF%AE%E8%A8%82%E7%9A%84%E5%9C%8B%E9%9A%9B%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%BA%96%E5%89%87(IFRS)) The Group has initially applied amendments to IAS 21 "Lack of Exchangeability" effective January 1, 2024, with no significant impact on financial performance or position, and new or revised IFRS issued but not yet effective are also not expected to have a material impact - The Group has initially applied the amendments to IAS 21 "Lack of Exchangeability" for the financial year beginning January 1, 2024[23](index=23&type=chunk)[24](index=24&type=chunk) - The application of new and revised IFRS has had no significant impact on the Group's financial performance and position for the current and prior periods[24](index=24&type=chunk) - The Directors anticipate that the application of new and revised IFRS issued but not yet effective will not have a material impact on the Group's results and financial position[25](index=25&type=chunk) [Trade and Other Receivables](index=10&type=section&id=4.%20%E6%87%89%E6%94%B6%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E8%B3%A0%E9%A0%85) As of June 30, 2025, the Group's total trade and other receivables slightly decreased to CAD 17.34 million, with an average credit period of 30 days granted to customers, and expected credit losses on trade receivables are considered minimal Trade and Other Receivables (CAD Thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Other Receivables – Current | 15,784 | 16,177 | | Loans Receivable – Current | 10,834 | 11,366 | | Loans Receivable – Non-current | 1,556 | 1,496 | | Total | 17,340 | 17,673 | - The Group grants its trade customers an average credit period of **30 days**[26](index=26&type=chunk) - As of June 30, 2025, the Company's Directors consider the expected credit losses on trade receivables to be minimal[29](index=29&type=chunk) [Exploration and Evaluation Assets](index=10&type=section&id=5.%20%E5%8B%98%E6%8E%A2%E5%8F%8A%E8%A9%95%E4%BC%B0%E8%B3%87%E7%94%A2) As of June 30, 2025, exploration and evaluation assets increased to CAD 241.2 million, primarily due to capital and non-cash expenditures, with no impairment losses or reversals recognized during the period, and impairment assessments based on the present value of future cash flows Exploration and Evaluation Assets Movements (CAD Thousands) | Item | December 31, 2024 | June 30, 2025 | | :--- | :--- | :--- | | Balance | 239,259 | 241,208 | | Capital Expenditure | 728 | 1,496 | | Non-cash Expenditure | 560 | 453 | - For the six months ended June 30, 2025, the Group recognized no impairment losses (or reversals) for cash-generating units of exploration and evaluation assets[32](index=32&type=chunk) - Impairment assessments are estimated using the fair value less costs of disposal method, calculated as the present value of expected future cash flows (after tax), based on reports from independent reserve evaluators GLJ Petroleum Consultants[31](index=31&type=chunk) [Property, Plant and Equipment](index=11&type=section&id=6.%20%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99) As of June 30, 2025, the carrying value of property, plant and equipment slightly increased to CAD 478 million, with no impairment losses or reversals recognized for the West Ells cash-generating unit during the period, and impairment assessments based on the present value of future cash flows Property, Plant and Equipment Carrying Value (CAD Thousands) | Item | December 31, 2024 | June 30, 2025 | | :--- | :--- | :--- | | Carrying Value | 476,446 | 478,001 | - For the six months ended June 30, 2025, the Group recognized no impairment losses (or reversals) for the West Ells cash-generating unit[34](index=34&type=chunk) - Impairment assessments are estimated using the fair value less costs of disposal method, calculated as the present value of expected future cash flows (after tax), based on reports from independent reserve evaluators GLJ Petroleum Consultants[33](index=33&type=chunk) [Right-of-Use Assets and Lease Liabilities](index=12&type=section&id=7.%20%E4%BD%BF%E7%94%A8%E6%AC%8A%E8%B3%87%E7%94%A2%E5%8F%8A%E7%A7%9F%E8%B3%83%E8%B2%A0%E5%82%B5) As of June 30, 2025, total right-of-use assets decreased to CAD 4.85 million and lease liabilities decreased to CAD 0.809 million, primarily due to depreciation and foreign exchange adjustments, with lease liabilities measured at the present value of unpaid lease payments discounted at 10% Right-of-Use Assets Movements (CAD Thousands) | Item | December 31, 2024 | June 30, 2025 | | :--- | :--- | :--- | | Total | 5,326 | 4,850 | | Depreciation | (656) (2024) | (328) (2025) | | Foreign Exchange Adjustment | 318 (2024) | (148) (2025) | Lease Liabilities (CAD Thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Lease Liabilities | 809 | 1,084 | - Lease liabilities are initially measured at the present value of unpaid lease payments at the commencement date, discounted using the interest rate implicit in the lease (10% for office and equipment)[36](index=36&type=chunk) [Trade and Other Payables](index=12&type=section&id=8.%20%E6%87%89%E4%BB%98%E8%B2%BF%E6%98%93%E5%8F%8A%E6%87%89%E8%A8%88%E8%B2%A0%E5%82%B5) As of June 30, 2025, total trade and other payables increased to CAD 295.5 million, with CAD 20.681 million of trade payables overdue by more than 90 days, indicating liquidity pressure Trade and Other Payables (CAD Thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade Payables | 21,510 | 20,340 | | Interest Payable | 215,578 | 215,594 | | Other Payables | 23,608 | 23,520 | | Accrued Liabilities | 34,867 | 26,464 | | Total | 295,563 | 285,918 | Aging Analysis of Trade Payables (CAD Thousands) | Aging | June 30, 2025 | | :--- | :--- | | 0 - 30 Days | 130 | | 31 – 60 Days | 18 | | 61 – 90 Days | 681 | | > 90 Days | 20,681 | [Debt](index=13&type=section&id=9.%20%E5%82%B5%E5%8B%99) This section details the company's other loans and senior notes, including multiple interest waiver and deferral agreements, designed to provide more time for debt repayment or refinancing and to reduce financing costs [Other Loans](index=13&type=section&id=9.1%20%E5%85%B6%E4%BB%96%E8%B2%B8%E6%AC%BE) As of June 30, 2025, total other loans increased to CAD 24.517 million, with CAD 20.743 million classified as current liabilities, all unsecured and bearing annual interest rates between 0% and 36% Other Loans (CAD Thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current | 20,743 | 15,213 | | Non-current | 3,774 | 3,890 | | Total | 24,517 | 19,103 | - These loans are unsecured and bear annual interest rates ranging from **0% to 36%**[38](index=38&type=chunk) - Approximately **CAD 20.743 million** is due within one year[38](index=38&type=chunk) [Senior Notes](index=13&type=section&id=9.2%20%E5%84%AA%E5%85%88%E7%A5%A8%E6%93%9A) The company has entered into multiple interest waiver and deferral agreements with deferral holders, including for 2023, 2024, and 2025, waiving a total of USD 94.5 million in interest and extending the deferral period to August 31, 2027, to allow more time for repayment or refinancing - The 2023 Interest Waiver Agreement waived approximately **USD 31.5 million** in interest accrued from January 1, 2023, to December 31, 2023[39](index=39&type=chunk) - The 2023 Reinstatement and Amendment Deferral Agreement extended the deferral period to August 31, 2025, with unpaid amounts accruing interest at an annual rate of **10%**[41](index=41&type=chunk) - The 2024 Interest Waiver Agreement waived **USD 31.5 million** in interest accrued from January 1, 2024, to December 31, 2024[40](index=40&type=chunk) - The 2025 Reinstatement and Amendment Deferral Agreement extended the deferral period to August 31, 2027, with unpaid amounts continuing to accrue interest at an annual rate of **10%** (unless further interest waivers apply)[42](index=42&type=chunk) - The 2025 Interest Waiver Agreement waived **USD 31.5 million** in interest accrued from January 1, 2025, to December 31, 2025[43](index=43&type=chunk) [Provisions](index=14&type=section&id=10.%20%E6%92%A5%E5%82%99) As of June 30, 2025, the decommissioning liability provision increased to CAD 55.538 million, with estimated expenditures continuing until 2040, based on estimated costs for oil production area reclamation and abandonment, adjusted using discount and inflation rates Decommissioning Liability Provision (CAD Thousands) | Item | Balance as of January 1 | Impact of Discount Rate Change | Unwinding of Discount | Balance as of December 31 | | :--- | :--- | :--- | :--- | :--- | | 2025 | 53,049 | 2,052 | 437 | 55,538 | | 2024 | 49,829 | 1,466 | 1,754 | 53,049 | - As of June 30, 2025, the Group's total estimated undiscounted cash flows required to fulfill asset retirement obligations amounted to **CAD 81.4 million**[44](index=44&type=chunk) - Decommissioning costs are expected to continue until 2040, discounted using risk-free rates ranging from **3.59% to 4.28%** per annum and inflated at an annual rate of **2.0%**[44](index=44&type=chunk) [Income Tax](index=14&type=section&id=11.%20%E6%89%80%E5%BE%97%E7%A8%85) As of June 30, 2025, the Group's net deferred income tax asset was zero, primarily due to unrecognized deferred tax benefits offsetting deferred tax assets and liabilities Deferred Income Tax Assets (Liabilities) Components (CAD Thousands) | Item | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Exploration and Evaluation Assets and Property, Plant and Equipment | (33,236) | (50,611) | | Decommissioning Liability | 12,774 | 12,201 | | Tax Losses | 243,878 | 243,878 | | Deferred Tax Benefits Unrecognized | (223,435) | (205,487) | | Net Deferred Tax Assets | - | - | [Share Capital](index=15&type=section&id=12.%20%E8%82%A1%E6%9C%AC) As of June 30, 2025, the company's issued and fully paid share capital significantly increased to 503 million shares, totaling CAD 1.334 billion, primarily through the allotment of new shares to creditors to settle debts Movements in Issued and Fully Paid Share Capital | Item | June 30, 2025 (Number of Shares) | June 30, 2025 (CAD) | December 31, 2024 (Number of Shares) | December 31, 2024 (CAD) | | :--- | :--- | :--- | :--- | :--- | | Balance at Beginning of Year | 292,174,417 | 1,318,681 | 243,478,681 | 1,315,265 | | Placement – General Mandate | 48,695,736 | 3,049 | 48,695,736 | 3,416 | | Placement – Specific Mandate | 162,310,261 | 12,695 | - | - | | Balance at End of Year | 503,180,414 | 1,334,425 | 292,174,417 | 1,318,681 | - On April 17, 2025, the company allotted and issued **48,695,736 Class A common shares** to Creditor 1 to settle approximately **HKD 17.04 million** in debt[47](index=47&type=chunk) - On June 25, 2025, the company allotted and issued **60,000,000 Class A common shares** to Creditor 2 to settle approximately **HKD 38.4 million** in debt[47](index=47&type=chunk) - On April 28, 2025, the company allotted and issued **162,310,261 Class A common shares** to Creditor 3 to settle approximately **HKD 73.04 million** in debt[48](index=48&type=chunk) [Share-based Compensation](index=16&type=section&id=13.%20%E4%BB%A5%E8%82%A1%E4%BB%BD%E7%82%BA%E5%9F%BA%E7%A4%8E%E7%9A%84%E8%A3%9C%E5%84%9F) This section outlines the company's employee share option scheme and share option movements, noting that all share options expired by June 30, 2025, resulting in no outstanding options and no share-based compensation expenses recognized during the period [Employee Share Option Scheme](index=16&type=section&id=13.1%20%E5%93%A1%E5%B7%A5%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) The Post-IPO Share Option Scheme stipulates that the maximum number of Class A common shares reserved for issuance is 10% of the total issued and outstanding shares, with exercise prices determined by the Board, not lower than specific market prices on the HKEX - Under the Post-IPO Share Option Scheme, the maximum number of Class A common shares reserved for issuance is **10%** of the total issued and outstanding shares[50](index=50&type=chunk) - The exercise price of share options is determined by the Board, not lower than the closing price on the HKEX on the grant date or the volume-weighted average trading price for the preceding five trading days[50](index=50&type=chunk) [Share Option Movements](index=16&type=section&id=13.2%20%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%AE%8A%E5%8B%95) As of June 30, 2025, all 200,000 outstanding share options at the beginning of the period had expired, resulting in no unexercised share options at period-end Share Option Movements Overview | Item | June 30, 2025 (Number of Share Options) | December 31, 2024 (Number of Share Options) | | :--- | :--- | :--- | | Balance at Beginning of Period | - | 200,000 | | Expired | - | (200,000) | | Balance at End of Period | - | - | - As of June 30, 2025, the weighted average remaining contractual life of unexercised share options was **0 years**[51](index=51&type=chunk) [Share-based Compensation](index=16&type=section&id=13.3%20%E4%BB%A5%E8%82%A1%E4%BB%BD%E7%82%BA%E5%9F%BA%E7%A4%8E%E7%9A%84%E8%A3%9C%E5%84%9F) For the three and six months ended June 30, 2025, the Group recognized no share-based compensation expenses - For the three and six months ended June 30, 2025, the Group recognized no share-based compensation expenses[52](index=52&type=chunk) [Revenue](index=16&type=section&id=14.%20%E6%94%B6%E5%85%A5) For the three and six months ended June 30, 2025, the company's oil sales (net of royalties) were zero, a significant decrease from the prior year, with all revenue derived from Canadian customers and recognized at a point in time Oil Sales (Net of Royalties) (CAD Thousands) | Period | 2025 | 2024 | | :--- | :--- | :--- | | Three Months Ended June 30 | - | 10,266 | | Six Months Ended June 30 | - | 21,458 | - All revenue from contracts with customers is derived from Canada and recognized at a point in time[54](index=54&type=chunk)[57](index=57&type=chunk) - The West Ells royalty rate is price-sensitive, starting at **1%** of oil sands heavy oil sales and increasing with West Texas Intermediate crude oil prices[54](index=54&type=chunk) [Segment Information](index=17&type=section&id=15.%20%E5%88%86%E9%A1%9E%E4%BF%A1%E6%81%AF) The Group operates in a single business segment: the mining, production, and sale of crude oil products, with no geographical information presented as all revenue and most non-current assets are located in Canada; Customer B contributed 73.3% of revenue in 2024, but there were no major customers in 2025 due to no sales - The Group operates in a single business segment based on its products: the mining, production, and sale of crude oil products[56](index=56&type=chunk) - No geographical information is presented as all the Group's revenue is derived from Canadian customers, and the majority of its non-current assets are located in Canada[57](index=57&type=chunk) - In 2024, Customer B contributed **73.3%** of the Group's revenue, while in 2025, there were no major customers due to no sales[58](index=58&type=chunk) [Other Income](index=17&type=section&id=16.%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) For the three months ended June 30, 2025, other income amounted to CAD 0.373 million, primarily from reimbursements by Burgess Energy Holdings L.L.C. for mineral and surface lease rentals incurred by the Group Other Income Overview (CAD Thousands) | Item | Three Months Ended June 30 (2025) | Three Months Ended June 30 (2024) | Six Months Ended June 30 (2025) | Six Months Ended June 30 (2024) | | :--- | :--- | :--- | :--- | :--- | | Interest Income | - | 3 | 2 | 4 | | Other Income | 373 | 377 | 539 | 746 | | Gain / (Loss) on Disposal of Assets | - | - | - | 166 | | Balance at End of Period | 373 | 380 | 541 | 916 | - Other income for the period primarily includes reimbursements from Burgess Energy Holdings L.L.C. to the Group for mineral and surface lease rentals incurred under the royalty agreement terms[59](index=59&type=chunk) [General and Administrative Expenses](index=18&type=section&id=17.%20%E4%B8%80%E8%88%AC%E5%8F%8A%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, general and administrative expenses increased to CAD 7.311 million, mainly due to higher salaries, consulting fees, and other expenses General and Administrative Expenses (CAD Thousands) | Item | Three Months Ended June 30 (2025) | Three Months Ended June 30 (2024) | Six Months Ended June 30 (2025) | Six Months Ended June 30 (2024) | | :--- | :--- | :--- | :--- | :--- | | Salaries, Consulting Fees and Benefits | 1,615 | 1,373 | 3,234 | 2,819 | | Legal and Audit | 6 | 26 | 29 | 88 | | Other | 389 | 448 | 4,035 | 3,538 | | Period-end | 2,010 | 1,857 | 7,311 | 6,461 | [Finance Costs](index=18&type=section&id=18.%20%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) For the six months ended June 30, 2025, finance costs decreased to CAD 4.56 million, primarily due to reduced interest expenses on loans from related companies and shareholders, despite a slight increase in senior notes interest expense Finance Costs (CAD Thousands) | Item | Three Months Ended June 30 (2025) | Three Months Ended June 30 (2024) | Six Months Ended June 30 (2025) | Six Months Ended June 30 (2024) | | :--- | :--- | :--- | :--- | :--- | | Senior Notes Interest Expense | 298 | 294 | 610 | 588 | | Other Loans Interest Expense | 218 | 71 | 338 | 133 | | Interest Expense on Loans from Related Companies and Shareholders | 718 | 2,030 | 3,088 | 3,908 | | Amortization of Discount on Provisions | - | 441 | 437 | 872 | | Period-end Balance | 1,449 | 2,920 | 4,560 | 5,660 | [Earnings / (Loss) Per Share](index=18&type=section&id=19.%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9%2F(%E虧%E6%90%8D)) For the six months ended June 30, 2025, basic and diluted loss per share was CAD 0.04, an improvement from CAD 0.14 in the prior year, mainly due to a narrower net loss Basic and Diluted Earnings / (Loss) Per Share | Period | 2025 | 2024 | | :--- | :--- | :--- | | Loss Per Share for the Six Months Ended June 30 | (0.04) | (0.14) | - Basic loss per share is calculated based on the loss attributable to owners of the Company of approximately **CAD 11.845 million** for the six months ended June 30, 2025 (2024: CAD 33.118 million), and the weighted average number of Class A common shares outstanding during the period[62](index=62&type=chunk)[63](index=63&type=chunk) [Capital and Financial Risk Management](index=19&type=section&id=20.%20%E8%B3%87%E6%9C%AC%E5%8F%8A%E9%87%91%E8%9E%8D%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86) The Group manages its financial risks and capital requirements by raising capital through equity issuance and debt, and monitors foreign exchange rates, while facing liquidity risk and needing to ensure sufficient liquidity to repay maturing debts [Capital Risk Management](index=19&type=section&id=20.1%20%E8%B3%87%E6%9C%AC%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86) As of June 30, 2025, the Group's working capital deficit was CAD 108.7 million and shareholders' equity was CAD 22.202 million, with the company raising capital through equity issuance and debt to maintain financial flexibility and future business development Capital Structure (CAD Thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Working Capital Deficit | 108,749 | 92,666 | | Shareholders' Equity | 22,202 | 16,848 | | Total | 130,951 | 109,514 | - The Group's strategy is to raise sufficient capital through equity issuance and debt to maintain its capital base, aiming for financial flexibility and future business development[64](index=64&type=chunk) - For the six months ended June 30, 2025, there were no changes in the Group's capital management objectives and strategies[65](index=65&type=chunk) [Categories of Financial Instruments](index=19&type=section&id=20.2%20%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E9%A1%9E%E5%88%A5) As of June 30, 2025, the Group's financial assets measured at amortized cost totaled CAD 16.241 million, and financial liabilities measured at amortized cost totaled CAD 687 million Categories of Financial Instruments (CAD Thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Financial Assets Measured at Amortized Cost | 16,241 | 16,681 | | Financial Liabilities Measured at Amortized Cost | 687,081 | 668,042 | [Fair Value of Financial Instruments](index=19&type=section&id=20.3%20%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E7%9A%84%E5%85%AC%E5%85%81%E5%80%BC) The Company's Directors believe that the carrying amounts of financial assets and liabilities recognized at amortized cost in the consolidated financial statements approximate their fair values, which are determined using discounted cash flow analysis - The fair value of financial assets and liabilities is determined using generally accepted valuation models, employing discounted cash flow analysis[67](index=67&type=chunk) - The Company's Directors believe that the carrying amounts of financial assets and liabilities recognized at amortized cost approximate their fair values[67](index=67&type=chunk) [Currency Risk](index=20&type=section&id=20.4%20%E8%B2%A8%E5%B9%A3%E9%A2%A8%E9%9A%AA) The Group is exposed to foreign exchange rate fluctuations arising from expenses and debts denominated in USD, HKD, and RMB; a 1% increase or decrease in the USD to CAD exchange rate would impact the carrying value of debt by approximately CAD 2.6 million - The Group is exposed to risks arising from foreign exchange rate fluctuations, primarily related to expense commitments, deposits, accounts payable, and long-term debt denominated in USD, HKD, and RMB[68](index=68&type=chunk) 1% Exchange Rate Fluctuation Impact on Debt Carrying Value (CAD Thousands, as of June 30, 2024) | Currency | Impact | | :--- | :--- | | USD | Approx. 2,700 | | HKD | Approx. 700 | | RMB | Approx. 100 | - For the six months ended June 30, 2025, the Group did not enter into any forward exchange rate contracts[68](index=68&type=chunk) [Liquidity Risk](index=20&type=section&id=20.5%20%E6%B5%81%E5%8B%95%E9%A2%A8%E9%9A%AA) The Group manages liquidity risk by developing plans to ensure sufficient liquidity to repay liabilities at maturity through equity or debt proceeds; as of June 30, 2025, total financial liabilities cash outflows were CAD 663.5 million, with CAD 124.6 million due within one year - The Group manages liquidity risk by developing plans to ensure sufficient liquidity to repay liabilities at maturity through equity or debt proceeds[70](index=70&type=chunk) Financial Liabilities Cash Flow Timing (CAD Thousands, as of June 30, 2025) | Item | Total | Within One Year | One to Three Years | | :--- | :--- | :--- | :--- | | Trade and Accrued Payables | 295,563 | 92,258 | 203,305 | | Debt | 368,019 | 32,415 | 335,604 | | Total | 663,582 | 124,673 | 538,909 | [Related Party Transactions](index=20&type=section&id=21.%20%E9%97%9C%E8%81%AF%E6%96%B9%E4%BA%A4%E6%98%93) This section discloses the Group's transactions with related parties, including consulting fees paid to a director's associated company, remuneration for key management personnel and directors, and loans from related companies and shareholders [Purchase and Sale Transactions](index=21&type=section&id=21.1%20%E8%B2%B7%E8%B3%A3%E4%BA%A4%E6%98%93) For the six months ended June 30, 2025, the Group paid CAD 0.25 million in management and consulting fees to a consulting firm associated with a director, and Executive Chairman Mr. Sun Guoping beneficially owns approximately 30.00% of the company's issued common shares - For the six months ended June 30, 2025, a consulting firm associated with a director of Sunshine Oil Sands charged the Group **CAD 0.25 million** for management and consulting services[73](index=73&type=chunk) - Mr. Sun Guoping, the Executive Chairman of the Company, beneficially owns or controls or directs **150,962,591 common shares**, representing approximately **30.00%** of the Company's issued common shares[73](index=73&type=chunk) [Key Management Personnel and Directors' Remuneration](index=21&type=section&id=21.2%20%E4%B8%BB%E8%A6%81%E7%AE%A1%E7%90%86%E4%BA%BA%E5%93%A1%E5%8F%8A%E8%91%A3%E4%BA%8B%E7%9A%84%E9%85%AC%E9%87%91) For the six months ended June 30, 2025, total remuneration for directors and key management personnel was CAD 1.144 million, a slight decrease from the prior year Directors' and Key Management Personnel Remuneration (CAD Thousands) | Item | Three Months Ended June 30 (2025) | Three Months Ended June 30 (2024) | Six Months Ended June 30 (2025) | Six Months Ended June 30 (2024) | | :--- | :--- | :--- | :--- | :--- | | Directors' Fees | 71 | 92 | 162 | 182 | | Salaries and Allowances | 491 | 489 | 980 | 980 | | Share-based Compensation | 1 | 1 | 2 | - | | Total | 563 | 580 | 1,144 | 1,162 | [Loans from Related Companies](index=21&type=section&id=21.3%20%E9%97%9C%E8%81%AF%E5%85%AC%E5%8F%B8%E8%B2%B8%E6%AC%BE) As of June 30, 2025, non-current loans from related companies decreased to CAD 53.897 million from December 31, 2024, these loans are unsecured, bear a 10% annual interest rate, and are extendable for 2 to 3 years Loans from Related Companies (CAD Thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Non-current | 53,897 | 56,205 | - As of June 30, 2025, loans obtained by the Group from related companies are unsecured, bear an annual interest rate of **10%**, with approximately **CAD 53.897 million** extendable for 2 to 3 years[75](index=75&type=chunk) [Shareholder Loans](index=21&type=section&id=21.4%20%E8%82%A1%E6%9D%B1%E8%B2%B8%E6%AC%BE) As of June 30, 2025, shareholder loans significantly decreased to CAD 3.114 million, these loans are unsecured, bear a 10% annual interest rate, and have maturity dates between 1 and 3 years Shareholder Loans (CAD Thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Non-current | 3,114 | 20,990 | - As of June 30, 2025, loans from shareholders held by the Group are unsecured, bear an annual interest rate of **10%**, with approximately **CAD 3.114 million** maturing between 1 and 3 years[76](index=76&type=chunk) [Commitments and Contingencies](index=21&type=section&id=22.%E6%89%BF%E8%AB%BE%E5%92%8C%E7%AA%81%E7%99%BC%E4%BA%8B%E9%A0%85) The Group faces various commitments and contingencies, including annual lease rental obligations of CAD 2.5 million, disputes with RMWB over municipal property taxes and penalties, and a New York State court judgment on senior notes, for which the company is actively pursuing legal remedies [Commitments](index=21&type=section&id=22.1%20%E6%89%BF%E8%AB%BE) As of June 30, 2025, the Group has an annual obligation to pay approximately CAD 2.5 million in oil sands mineral lease rentals and surface lease rentals - The Group has an annual obligation to pay approximately **CAD 2.5 million** in oil sands mineral lease rentals and surface lease rentals[77](index=77&type=chunk) [Contingencies](index=22&type=section&id=22.2%20%E7%AA%81%E7%99%BC%E4%BA%8B%E9%A0%85) The Group is actively negotiating to resolve disputes with the Regional Municipality of Wood Buffalo (RMWB) regarding municipal property taxes (CAD 17.2 million) and overdue penalties (CAD 23.7 million) for 2016-2025, and has sought judicial review; additionally, the company is appealing a New York State court judgment for approximately USD 19.694 million on senior notes - The Company received demand notices from RMWB for municipal property taxes from 2016 to 2025, totaling **CAD 17.2 million** in accrued taxes and **CAD 23.7 million** in accrued overdue penalties[78](index=78&type=chunk) - The Company has sought judicial review to determine the impact of non-compliant tax notices on RMWB's property tax claims[78](index=78&type=chunk) - The Group received a judgment from a New York State court to pay non-deferral holders of senior notes a total of approximately **USD 19.694 million** (approximately **CAD 26.048 million**) in principal and interest, which the Company has appealed[80](index=80&type=chunk) - As of June 30, 2025, the Company had incurred **CAD 0.82 million** (approximately **USD 0.57 million**) in liens arising in the normal course of business[79](index=79&type=chunk) [Subsidiaries](index=22&type=section&id=23.%20%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8) The Group owns several wholly-owned subsidiaries (Sunshine Oil Sands (Hong Kong) Limited, Boswell Investments Limited, Sunshine Oil Sands Shanghai) and a 51% owned joint venture (Sunshine Oil Sands Hebei), with most having no operating activities as of June 30, 2024 - The Company owns several wholly-owned subsidiaries, including Sunshine Oil Sands (Hong Kong) Limited, Boswell Investments Limited (registered in the British Virgin Islands to seek new investment opportunities), and Sunshine Oil Sands Shanghai[81](index=81&type=chunk) - The Company's **51%** owned joint venture is Sunshine Oil Sands Hebei[82](index=82&type=chunk) - As of June 30, 2024, most subsidiaries had no operating activities[81](index=81&type=chunk)[82](index=82&type=chunk) [Supplemental Cash Flow Information](index=23&type=section&id=24.%20%E8%A3%9C%E5%85%85%E7%8F%BE%E9%87%91%E6%B5%81%E6%8A%AB%E9%9C%B2) For the six months ended June 30, 2025, non-cash working capital changes provided a net cash inflow of CAD 9.516 million from operating activities, primarily influenced by an increase in trade and other payables Non-cash Working Capital Movements (CAD Thousands) | Item | Three Months Ended June 30 (2025) | Three Months Ended June 30 (2024) | Six Months Ended June 30 (2025) | Six Months Ended June 30 (2024) | | :--- | :--- | :--- | :--- | :--- | | Trade and Other Receivables | (324) | 577 | (377) | (224) | | Prepaid Expenses and Deposits | - | (86) | 238 | (1) | | Trade and Other Payables | 3,992 | 23 | 9,655 | 4,374 | | Total | 3,668 | 514 | 9,516 | 4,149 | [Subsequent Events](index=23&type=section&id=25.%20%E5%BE%8C%E7%BA%8C%E4%BA%8B%E9%A0%85) Subsequent to the reporting period, the company settled Mr. Zhang Jun's debt by issuing shares on July 30, 2025, and entered an agreement to acquire a 51% equity interest in Nobao Technology Co. Ltd. on August 19, 2025; additionally, the company received a winding-up petition from Qiaoshi Finance Limited on August 20, 2025, which it is actively opposing - On July 30, 2025, the company entered into a settlement agreement with Mr. Zhang Jun, allotting and issuing **8,174,030 Class A ordinary voting shares** at an issue price of **HKD 0.50 per share** to fully and finally settle his outstanding debt of **HKD 4,087,015**[84](index=84&type=chunk) - On August 19, 2025, the company agreed to acquire a **51% equity interest** in Nobao Technology Co. Ltd. for a consideration of **HKD 50.91945 million**, to be paid by issuing **56,983,240 consideration shares**[84](index=84&type=chunk) - On August 20, 2025, the company received a winding-up petition from Qiaoshi Finance Limited for a financial obligation of **HKD 3.106295 million**, which the company is taking legal measures to vigorously oppose[85](index=85&type=chunk) [Approval of Interim Consolidated Financial Statements](index=23&type=section&id=26.%20%E6%89%B9%E5%87%86%E4%B8%AD%E6%9C%9F%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) The Board of Directors approved the publication of the condensed interim consolidated financial statements on August 28, 2025 (Calgary time) / August 29, 2025 (Hong Kong time) - The Board of Directors approved the condensed interim consolidated financial statements and authorized their publication on August 28, 2025 (Calgary time) / August 29, 2025 (Hong Kong time)[86](index=86&type=chunk) Appendix to the Condensed Consolidated Interim Financial Statements (Unaudited) [Sunshine Oil Sands Ltd. Non-Consolidated Statement of Financial Position](index=24&type=section&id=A1.%20%E9%99%BD%E5%85%89%E6%B2%B9%E7%A0%82%E6%9C%89%E9%99%90%E5%85%AC%E5%8F%B8%E9%9D%9E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, Sunshine Oil Sands Ltd.'s non-consolidated statement of financial position shows total assets of CAD 737.3 million, total liabilities of CAD 706.6 million, and total shareholders' equity of CAD 30.726 million, a decrease from December 31, 2024 Sunshine Oil Sands Ltd. Non-Consolidated Statement of Financial Position (CAD Thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | 737,378 | 738,246 | | Total Liabilities | 706,652 | 673,623 | | Total Shareholders' Equity | 30,726 | 64,623 | [Directors' Remuneration and Other Staff Costs](index=26&type=section&id=A2.%20%E8%91%A3%E4%BA%8B%E9%85%AC%E9%87%91%E5%8F%8A%E5%85%B6%E4%BB%96%E5%93%A1%E5%B7%A5%E6%88%90%E6%9C%AC) For the six months ended June 30, 2025, total staff costs (including directors' remuneration) increased significantly to CAD 4.483 million from CAD 2.819 million in the prior year, primarily due to growth in other staff salaries and benefits Directors' Remuneration and Other Staff Costs (CAD Thousands) | Item | Three Months Ended June 30 (2025) | Three Months Ended June 30 (2024) | Six Months Ended June 30 (2025) | Six Months Ended June 30 (2024) | | :--- | :--- | :--- | :--- | :--- | | Directors' Remuneration | 563 | 580 | 1,144 | 1,162 | | Other Staff Costs | 1,820 | 793 | 2,858 | 1,657 | | Total Staff Costs (Including Directors' Remuneration) | 2,383 | 1,373 | 4,483 | 2,819 | - Other staff salaries and other benefits increased from **CAD 1.657 million** for the six months ended June 30, 2024, to **CAD 2.801 million** for the same period in 2025[89](index=89&type=chunk)