sdl moves closer to confirming

ASX Announcement and Media Release
22 November 2011
SUNDANCE MOVES CLOSER TO CONFIRMING
MBALAM CONVENTION AND CONGO MINING PERMIT
? Negotiations for the Mbalam Convention in the Republic of Cameroon and the Mining Permit in the
Republic of Congo nearing completion.
? Meetings held with high ranking Government officials in China, Africa and Australia.
? Presidents of the Republics of Cameroon and Congo voice their support.
? Phase 1 of Scheme Implementation Agreement progressing to schedule.
Sundance Resources (‘Sundance’ or ‘the Company’) (ASX: SDL) provides the following update on its activities to
progress development of the Mbalam Iron Ore Project in the Republic of Cameroon and the Republic of Congo.
As announced to the ASX on 4 October 2011, the Scheme Implementation Agreement (‘SIA’) signed between
Sundance and Hanlong (Africa) Mining Investment Limited (‘Hanlong’) has a two phase structure. During Phase 1,
Sundance and Hanlong are to use all reasonable endeavours to progress the Mbalam Convention in Cameroon and
the Congo Mining Permit, and Hanlong is to confirm its funding arrangements. The initial conditions precedent must
be met prior to progressing to Phase 2 of the SIA.
Sundance and Hanlong have been actively working together to engage with the Governments of the Republic of
Cameroon and the Republic of Congo with a view to confirming the ratification of the Mbalam Convention and
Congo Mining Permit. Sundance and Hanlong executive management have attended a number of meetings
together with senior Government officials of both Republics of Cameroon and Congo to demonstrate their unified
commitment to the development of the Project.
In July 2011, Sundance and Hanlong along with representatives from CITIC Securities and China Development Bank
met with his Excellency Mr. Paul Biya, the President of Cameroon, in Beijing, China to discuss the Mbalam Project.
On 21 October 2011 the results of the Cameroon Presidential election were announced and confirmed the reelection
of the incumbent President Mr Paul Biya for another seven year term.
Figure 1 (Left to Right): Mr Ted Tokuchi, CITIC Securities, Mr Li Jiping, Vice Governor China Development
Bank, Mr George Jones, Chairman Sundance Resources, His Excellency Mr Paul Biya, President of the
Republic of Cameroon, Mr Liu Han, Chairman of Hanlong Group.
2 | P a g e
On 27 October 2011, his Excellency Mr. Denis Sassou-Nguesso, the President of the Republic of Congo, met with
Sundance and Hanlong in the country’s capital of Brazzaville. The President gave his support to the Nabeba
development and expressed his understanding of the necessary trans-border requirements for Stage One of the
Mbalam Project.
Sundance and Hanlong also met with a number of senior Government officials for the Republic of Congo, including
the Minister of State and Coordinator of the Economic Cluster, Minister of Economy, Planning, Land Reform and
Integration, Minister of Petroleum and Natural Gas, Minister of Foreign Affairs and Cooperation, Director of Cabinet
to the Ministry of Mines and Geology, the Director General of Mines and the Presidential Advisor for Mines and
Geology.
The final Environment and Social Assessment Report for the Congo is expected to be submitted by the end of
November 2011, which completes the requirements for the application process for the Mining Permit. It is
anticipated a successful Mining Permit from the Congo Government would then be awarded within the next three
months.
Sundance and Hanlong also met with a number of Government officials in the Republic of Cameroon in the
country’s capital of Yaounde. They met with the Deputy Secretary General of the Presidency of the Republic of
Cameroon, the Minister of Domains and Land Affairs, the State Secretary from the Ministry of Industry, Mines and
Technological Development, and the Director of the Kribi Deep Sea Port Project.
Following the meetings in Cameroon and Congo, Sundance and Hanlong executives left the countries confident that
an acceptable outcome for all parties was within reach and should align with the previously reported target
timetable within the SIA.
In Australia, Sundance and Hanlong were honoured to welcome the Prime Minister of Cameroon, Mr Philémon
Yang, to a meeting at the Sundance corporate office in Perth, Western Australia, while he was attending the
Commonwealth Heads of Government Meeting at the end of October 2011. The Prime Minister further expressed
the Cameroon Government’s strong support of the Mbalam Project, confirming it was a project of national interest
that they are eager to see developed in the near term.
Figure 2 (Left to Right): Mr Giulio Casello, MD/CEO Sundance Resources, His
Excellency Mr Denis Sassou-Nguesso, President of the Republic of Congo, Mr
Kang Huanjun, Vice President Hanlong Group.
3 | P a g e
Sundance aims to have the final terms of the Mbalam Convention agreed by the end of December 2011 with the
Government of Cameroon and then expects an Enabling Act which makes the Convention effective to be passed by
the Cameroon National Assembly when it is next expected to meet in March 2012.
Follow up meetings between Sundance, Hanlong and the Cameroon Government are now scheduled to occur
during December 2011.
The key principles for Sundance’s operations while it continues to advance activities to meet all conditions
precedent in Phase 1 of the SIA are:
(1) Maintain core competencies within the organisation particularly with the effective management of the
Company’s human capital and intellectual property.
(2) Prudent management of expenditure; while focussing on activities that further de-risk the Project,
enhance Company value, and maintain in-country tenement tenure.
(3) Grow the Project’s value further by increasing total Inferred and Indicated Mineral Resources.
(4) Ensuring construction will commence as soon as possible and meet the targeted DFS construction period
of 3 years following the completion of the SIA or securing Project financing.
-ENDSReleased
by:
Giulio Casello
Managing Director & CEO
Sundance Resources Ltd.
Shareholder/Media enquiries:
Jill Thomas
Investor Relations Manager
Telephone: +61 8 9220 2300
Email: [email protected]
Paul Armstrong
Read Corporate
Telephone: +61 8 9388 1474
Email: [email protected]
Figure 3 (Left to Right): Mr George Jones, Chairman of Sundance
Resources, Mr Liu Han, Chairman of Hanlong Group, Mr Philémon
Yang, Prime Minister of the Republic of Cameroon, Mr Giulio Casello
MD/CEO of Sundance Resources examining iron ore rock samples
from the Mbarga deposit.
Figure 4 (Left to Right): Mr Kang Huanjun, Vice President
Hanlong Group, Mr Philémon Yang, Prime Minister of the
Republic of Cameroon, and Mr Liu Han, Chairman of Hanlong
Group at the Sundance office in Perth.