On August 31, 2021, Sunshine Oilsands Ltd. (the ‘Corporation') entered into a Royalty Agreement (together with its ancillary documents, the ‘Original Royalty Agreement') with Burgess Energy Holdings, L.L.C. (‘BEH'), pursuant to which, the Corporation has granted to BEH a royalty interest in the bitumen for an aggregate consideration of CAD 20 million (the ‘Aggregate Consideration'), subject to the terms and conditions stipulated therein. The royalty rate used to determine BEH's share of Sunshine's produced bitumen of the month is based on the Western Canadian Select (‘WCS') price. On June 8, 2023, the Corporation entered into an amended Royalty Agreement (together with its ancillary documents, the ‘Amended Royalty Agreement') with BEH, pursuant to which, the Corporation will receive accelerated payment of CAD 5 million from the aggregate consideration of CAD 20 million, subject to the terms and conditions stipulated therein.

In accordance with the Amended Royalty Agreement, the royalty rate calculation for WCS prices above USD 80/bbl is amended as follows: When average daily WCS price of the month is USD 80/bbl, the royalty rate is 8.75% and proportionally increases up to a maximum of 25.00% when the WCS price rises to USD 113/bbl (based on the original Royalty Agreement, the royalty rate increases from 8.75% up to a maximum of 15.00% when the WCS price rises to USD 100/bbl). Save as the amendments disclosed above, there's no other major amendment to the original Royalty Agreement.