a penny for your thoughts, page-23

Hi edenhouse,

Details of funding requirements for NW Europe project from the announcement on Jan 17th:
The principle terms of the Term Sheet are:
* Sun Resources will pay ?1.51m (approximately $2.1m) of the dry hole costs based on a ?5.33m estimate (A$7.48m);

* Sun Resources will pay 15% of total past auditable costs estimated at up to ?900,000 (i.e. Sun Resources will pay approximately ?135,000 (A$190,000));

* Sun Resources will execute, subject to due diligence, a Definitive Farm‐in Agreement by 31 December 2010 (now extended to 28 February 2011), or if a rig contract is to be executed prior to that date, immediately prior to execution of the rig contract.

Sun will then maintain its interest in the project on a heads‐up (15%) basis

Sun are free carried through the first two drills, with Peak holding an option for a third and they had $7.1 million in the bank as of 31 Dec.

As long as nothing untoward occurs, cash is not a problem for Sun for either Thailand or European projects.

Cheers,
turtle