Cameroon is close to a final agreement with the Chinese railway Mbalam-Kribi

Dear SDL Shareholders,

Here is an article I would like to share with you all.

IMO, China's $60 billion African package could be related to our project. I DOUBTED timing of Xi's African visit a coincidence as EPC contract signing being imminent.

I think our patience will be well paid off very soon. Could be a lot sooner than many expected.

Good luck with our SDL investment.

Cheers.

Pikapika

Cameroon is close to a final agreement with the Chinese railway Mbalam-Kribi

- Monday, November 30, 2015 2:18 p.m.

(Ecofin Service) - Speaking to investors at the Annual General Meeting held this November 30, 2015 in Australia, Giulio Casello, the general manager of Sundance Resources, announced that the Government of Cameroon, his partner in the mining project Mbalam iron deposit (East Cameroon), was close to an agreement with the Chinese operator that will build the railway linking this town to discharge port of Kribi.

The Cameroonian authorities do not communicate directly on this issue, but may be a connection between this announcement and the one made by Prime Minister Philemon Yang representatives of the people, while presenting their economic and social plan for the year 2016. On this occasion, he mentioned the intention to take out loans project for an amount of just over $ 500 million. Recall that it was he who had led the discussions on the subject with his Chinese counterpart.

About the CEO of Sundance Resources, is a Chinese company, and most likely the China Ghezouba Group, which will take charge of building this infrastructure. The contract, already drafted, is currently the subject proofreading by the different parties before its signing. In terms of funding, it should take the form of a sovereign loan from China to Cameroon, but no amount is further advanced.

This evolution of things is considered by the Australian firm as a major asset in continuing the project. Despite an international environment marked by lower commodity prices, Sundance Resources believes this load reduction will allow it to move towards the operation with optimized costs.

However, the first tonnes of iron ore will not come out of Cameroon before 2020. The operator still has to obtain parliamentary approval for the Congolese part of his project, but he is confident. The finalization of the financing agreement of the railway between Cameroon and the Chinese side is expected in the second quarter of 2016. The construction of the mine it will intervene in the third quarter of 2017, before marketing the ore.

During the General Assembly, most of the resolutions proposed by the Sundance Resources Board was voted by shareholders. An important vote concerned that the rescheduling of its debt. New players have found a place on the board.

Idriss Linen

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