They may also sign a cooperation agreement under which COSL will conduct thermal fluid tests within the oilsands areas of Sunshine in order to confirm the feasibility of multiple thermal fluid techniques and other relevant technologies with respect of oilsands exploration.

The technology, which was developed and patented by COSL, has the potential to reduce the facility foot print and operation cost for generating steam and other thermal fluids to inject into reservoirs.

Songning Shen, Co-Chairman, said this technology has been proven successful in an CNOOC limited offshore project, and Sunshine Oilsands research of the multi-component thermal fluid thermal recovery technology gives a possible indication that it could work economically in bitumen reservoirs.

The MOU is not legally binding except for those provisions in respect of exclusivity, confidentiality and dispute resolution. The MOU is in effect for one year and can be automatically extended for another year unless terminated. The MOU may or may not lead to the entering into of a cooperation agreement and the technology may or may not result in any benefit to operations.

Separately, Sunshine’s Board of Directors approved a total budget for 2013 of $430 million that includes a $390 million capital expenditure program directed at West Ells and advancing other growth projects.

Sunshine Oilsands Ltd. is one of the largest non-partnered holders of oil sands leases by area in the Athabasca oil sands region. Since its incorporation on 22 February 2007, Sunshine has secured more than 464,897 hectares (1,189,762 acres) of oil sands leases (equal to approximately 7% of all granted leases in this area).

Principal operations are the exploration, development and production of its diverse portfolio of oil sands leases. Its principal operating regions in the Athabasca area are at West Ells, Thickwood, Legend Lake, Harper, Muskwa, Goffer, Pelican and Portage. Sunshines oil sands leases are grouped into three main asset categories: clastics, carbonates and conventional heavy oil.