announcement, page-5

SUNDANCE RESOURCES DELIVERS POSITIVE FEASIBILITY STUDIES
FOR THE MBALAM IRON ORE PROJECT
Definitive Feasibility Study for Stage One and Pre-Feasibility Study for Stage Two define a
high-quality iron ore Project of global significance that will generate substantial financial returns
and position Sundance as a key industry player.
HIGHLIGHTS
? Estimated Net Present Value over US$4B for total project (Stage One and Two).
? An Internal Rate of Return of 27% estimated on an un-geared basis.
? Definitive Feasibility Study (DFS) for Stage One based on forecast average production rate of
35 million dry tonnes per annum (Mdtpa) of Direct Shipping Ore (DSO) averaging 63.6% Fe.
? Pre-Feasibility Study (PFS) completed for Stage Two based on continued production of
35 Mdtpa of Itabirite hematite concentrate product at 66% Fe.
? Stage One capital expenditure of approximately US$4.6B.
? Capital payback projected to be achieved in three years.
? Cash operating costs, pre-royalties, of US$21.20 per tonne for Stage One.
? Initial JORC-Code compliant Maiden Reserve of 252 million product tonnes at 63.6% Fe.
? Reserve update to follow based on recent mineral resource upgrade.
? Sundance Board formally supports progressing the development of the Mbalam Iron Ore
Project, paving the way for transition to production subject to entering into agreements with
Government, obtaining Government approvals and securing project finance.
? First ore on ship anticipated in the last quarter of calendar 2014, positioning Sundance to
become a significant global iron ore produce