Ann: SDL: Further Extension of AustSino Agreement, page-131

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Dear Shareholder,
This has been an extraordinary year for all of us as COVID-19 impacted every aspect of our lives. None
more so than the World economies that have been battered by lockdowns imposed by Governments.
While we will not blame the pandemic for holding up the Company’s well-intended plans to eliminate
Sundance’s $132 million debt and finally advance our world-class Mbalam-Nabeba Iron Ore Project it has
had a slowing effect.
This is manifested by our inability since March 2020 to travel to and from Cameroon and the Republic of
Congo where our Project is based, or to China to try to speed up a frustratingly slow financial agreement
with AustSino. The Project has been in limbo for 9 months and this has added to the disappointment and
frustration of Sundance management and our shareholders.
The year under review started with some momentum as Sundance and AustSino coordinated visits to
Cameroon to progress the Project with Cameroon Government officials. Visits to China were also arranged
for Cameroon Government officials to meet with the potential consortium lined up for our Project.
The consortium of Chinese players that are willing to fund, build and operate the Mbalam-Nabeba Iron Ore
Project includes some of the largest companies in the world. Included in the Consortium are Shenzhen
Yantian Port Holdings, China Railway Construction Co, China Baowu Steel Group and Shanghai Tsingshan
Mineral Co Ltd. Naturally we and the Governments in Cameroon and Congo have been impressed with the
quality and potential of the consortium members.
The efforts of AustSino and in particular Mr Chun Ming Ding in arranging this high-quality consortium have
been essential in the support we have continued to receive in Cameroon, including the potential for the
Mbalam Convention to be reinstated. Our last visit to Cameroon was in February this year just before
COVID-19 hit. Pleasingly, on this visit to Yaounde the Government of Cameroon offered its support and
expressed enthusiasm for the completion of our transaction with AustSino.
As you will be aware, the Company’s transaction with AustSino is progressing much more slowly than
anticipated. However, the Board of Sundance continues to believe that completing the transaction is in the
best interests of all shareholders as it will eliminate the Company’s debt of $132 million; see AustSino take
a controlling stake of just over 50 per cent in Sundance; provide us with an immediate significant cash
injection of $4 million to advance the Project; while still retaining a near undiluted 40% equity for our
existing shareholders.
During the year it became clear to AustSino that WAPRC, the original funder of its plans to invest in
Sundance was unable to secure the necessary finance. AustSino has since identified a new Chinese funder
and remains confident it can complete the transaction with Sundance by 30 November 2020. The change
in funder who has committed $100 million to AustSino coupled with the challenges of Covid-19 has resulted
in multiple extensions of the deadline for completion of the Sundance/ Aust Sino transaction. Even with
the many extensions of the deadline it is pleasing that Sundance shareholders continue to support AustSino
and the transaction which was approved at a Sundance General Meeting on 29 July 2020. There has also
been strong ongoing support from our Noteholders who approved the extensions.