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ASX Announcement | Media Release 6 June 2016

Highlights:

UPDATE ON ACTIVITIES

• RFC Ambrian appointed to assist Sundance with capital restructuring proposals

• Ex‐Glencore/Xstrata iron ore executive to join RFC Ambrian advisory team

Sundance Resources Limited (ASX:SDL) ("Sundance" or "Company") is pleased to announce it has appointed specialist resources sector advisory firm RFC Ambrian Limited to assist with assessing capital restructuring proposals as part of the next phase of work to prepare for the development of the Company's Mbalam‐Nabeba Iron Ore Project ("Project") in the Republic of Cameroon and the Republic of Congo.

Sundance presently has convertible notes on issue with a total face value of $93.5 million and a total redemption value of $116.8 million. Apart from $2.5 million due on 31 December 2016 to Hanlong, the remainder of the convertible notes are due on 23 September 2017. There is no ongoing obligation to make interest payments on any of the convertible notes except for those held by Hanlong. The Hanlong notes can be converted to equity at either party's discretion.

Sundance has commenced discussions with various stakeholders about the current capital structure and has received positive initial feedback from a number of those parties concerning the future direction of the business.

RFC Ambrian will assist in engaging with stakeholders in coming months and will make specific recommendations to the Sundance Board about restructuring options to best position the Company for the future.

ADVISORY SUPPORT

To provide additional support, RFC Ambrian has engaged Mr Mark Eames as part of its advisory team for the Sundance assignment. Mr Eames was formerly Head of Iron Ore Assets at Glencore plc and has extensive experience in iron ore with both Rio Tinto and Glencore. Specifically, he has intimate knowledge of the African iron ore industry and has worked on developments in the Republic of Congo, where Sundance's Nabeba deposit is located.

It is envisaged that Mr Eames will join the Sundance Board in the event the restructuring process reaches a satisfactory outcome.

NEXT STEPS

Sundance secured its short‐term financial future with the completion of an Entitlement Offer in March 2016 and had $4.3 million cash on hand at the end of March.

The Company remains confident that discussions involving the Government of Cameroon and Chinese contracting groups regarding an EPC contract for the port and rail infrastructure associated with Mbalam‐Nabeba will be brought to a positive conclusion

During the balance of 2016, Sundance intends to progress discussions with the Government of Cameroon and potential investors in both the infrastructure and mine developments.

The Company reiterates that it remains fully committed to the timely development of the world class Mbalam‐Nabeba Iron Ore Project and recognises that the support of the governments of Cameroon and Congo is critical. It intends to continue to engage with the host Governments in a transparent and open manner.

Sundance CEO Giulio Casello said: "Sundance has successfully faced up to the challenges of the past six months, including a severe downturn in the iron ore market, the conclusion of a complex litigation process and changes in the timing of the EPC contract for port and rail development.

"The logical next step in responding to current market conditions and likely development timing is to ensure that the Company's balance sheet is appropriately structured. We look forward to working with RFC Ambrian as we take the Company forward in its next stage of development."

ENDS

For further information: GIULIO CASELLO

Chief Executive Officer and Managing Director Sundance Resources Limited

Tel: +61 8 9220 2300

Media enquiries: Luke Forrestal Cannings Purple

Mobile: +61 411 479 144

Email: [email protected]

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