Ann: Lapse of Performance Rights and expiry of Options, page-6

Hi Westcott and Hot,

Received an email from SDL today:

Thank you for your email. Mr Casello is not in the office this week. Set out below is our response in red to each of your questions:


•If the company cannot achieve project financing by 30 June what happens to the Camaroon Convention? The Cameroonian Government has already extended the Finance Deadline once.

As set out in the 2014 Annual Report, “The Government of Cameroon has extended the date to complete the conditions precedent to the Mbalam Convention to at least 30 June 2015. Failure to achieve the conditions precedent prior to that date will, if no further extension is granted, result in the cessation of the Mbalam Convention which may be considered an event of default as defined in the various convertible note deeds in place”. At this stage, Sundance remains confident that the date for satisfaction of the conditions precedent will be further extended by the Cameroon Government

•What is the status of EP3 Compliance? Has all expenditure in this area been put on hold? Can SDL close Project Financing without EP3 Compliance?

Expenditure has not been put on hold. As set out in the December quarterly Sundance is continuing “upgrading the DUP Environmental, Social, and Impact Assessment (ESIA) to the Equator Principles III”

•In the last Quarterly there was mention of the company refocusing financing efforts on China. If so, what effect will this new strategy have on the signed agreement with Mota Engil?

At this stage there is no impact on the Mota Engil contract. Mota Engil always envisaged subcontracting some parts of the contract to other (potentially Chinese subcontractors) and also sourcing large amounts of materials from China

•What involvement does Wal King have in current negotiations? Why haven’t SDL Shareholders heard from him since the AGM?

Wal King is the non-executive Chairman and therefore is not involved in day to day negotiations. As the Chairman he is actively involved in setting strategy for Management to implement.


I have subsequently spoken to Pamela and requested clarification from GC re response to Q1.

GC back in office late next wk.

Cheers,

Samson.