Monday 14 September 2015

Woodbine Oil Projects Operations Update

• Sun continues to negotiate with various parties in an effort to secure a new capital partner to progress the frack of the Jack Howe #1H well.

• Amerril and Sun are seeking alternative solutions to maximise the value of mutually held projects as a consequence of Sun being unable to tender the consideration to Amerril within the agreed four month period and Amerril not assigning its lease interests to Sun.

• Sun continues as the Operator, with a 50% interest in the Normangee Oil Project, including the Jack Howe #1H well, within the confirmed 250 feet net oil pay section of the Lower Woodbine, that has a 6,100 feet lateral section ready to be fracked.

• Sun currently operates its entire East Texas 'Eaglebine' land position (totalling over 14,000 gross acres and approximately 10,000 net acres); including its 100%-owned, new Southern Woodbine leases, and the joint interests in the Normangee and SW Leona Oil Projects .

The Board of Sun Resources NL ('Sun' or 'Company') (ASX: SUR) provides an update on its Woodbine Oil Projects operations. After agreeing with Amerril Energy LLC ('Amerril') in May 2015 to resolve a number of matters, Sun looked to secure a new capital partner over the past four months to fund future drilling and fracking operations across Sun's Lower Woodbine oil and gas leases. Sun continues to negotiate with various parties in an effort to secure a new capital partner to progress the frack of the Jack Howe #1H well. Amerril and Sun are also seeking solutions to maximise the value of mutually held projects as a consequence of Amerril not assigning its lease interests to Sun within the agreed four month period.

The current 'land bank' net to Sun is summarised in the table below and the Woodbine play total is over 14,600 gross acres:

(Total acres approximate, as at 11 September 2015)

Jack Howe #1H Drilled and Cased: Awaiting Multi-stage Hydraulic Fracking

Sun is advancing the planning to frack the Jack Howe #1H well in the Normangee Oil Project and looking to reduce the cost of fracking below the current level of approximately US$4 million (100% WI). Sun is now looking to delivering the anticipated 25% [or greater] reduction in costs for services, in line with falling oil prices and reduced activity in USA-based unconventional plays. Sun is actively searching to farm-out its land bank and continues to engage with a number of interested parties. Further reports will be made when commercial agreements are executed with a new capital partner.

Sun continues to seek to appraise the commercial potential of the newly emerging Buda-Rose oil play that has been recently successfully tested in the area by EOG and others. This is a new additional layer (or 'Bench') below the prospective Lower Woodbine target identified by the Jack Howe #1H. Offset wells adjacent to the Normangee Oil Project, including Seale #1V in the SW Leona Oil Project, have confirmed the oil potential of the Buda, with 2 laterals already flowing back oil after fracking. The Delta Oil Project leases cover a portion of a large 'Buda-Rose' structure that will be the focus of near term evaluation.

For further information please contact: Sun Resources NL

Telephone: +61 (08) 9321 9886

Email: [email protected]

Geological information contained in this report was compiled by the General Manager, Technical of Sun Resources, Matthew Battrick, BSc (Geol), MPESA, MPESGB, MAAPG, GAICD who has more than 33 years' experience in the practice of petroleum geology. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States nor shall there be any sale of the securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful. The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the Securities Act), or any state securities laws and may not be offered or sold in the United States or to U.S. persons (as defined in Regulation S under the Securities Act) except in compliance with the registration requirements or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. This document contains forward-looking statements which reflect management's expectations regarding expected target dates. These forward-looking statements can generally be identified by words such as 'will', 'expects', 'intends', or similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements.

These statements are not historical facts but instead represent management's expectations, estimates and projections regarding future events. Statements relating to 'reserves' or 'resources' are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions that some or all of the resources and reserves described can be profitably produced in the future. Although management believes the expectations reflected in such forward-looking statements are reasonable, forward-looking statements are based on the opinions, assumptions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward looking statements. In addition, if any of the assumptions or estimates made by management prove to be incorrect, actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this document. Such assumptions include, but are not limited to, general economic, market and business conditions and corporate strategy. Accordingly, investors are cautioned not to place undue reliance on such statements. All of the forward-looking information in this document is expressly qualified by these cautionary statements. Forward-looking information contained herein is made as of the date of this document and Sun Resources disclaims any obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise, except as required by law.