SUNSHINE METALS LIMITED — Capital/Financing Update 2016

Aug 16, 2016

17 August 2016

SALE OF SIBUYAN NICKEL PROPERTIES DEVELOPMENT CORPORATION

The directors of Pelican Resources Limited ( ASX: PEL ) (“Pelican” or “the Company”) are pleased to provide an update on the sale of Sibuyan Nickel Properties Development Corporation (“SNPDC”), the beneficial owner of the Romblon Project located on Sibuyan Island in the Romblon Province in the Philippines.

Pelican has previously reported attempts to secure the support of its venture partner, All Acacia Resources Inc. (“AARI”) for the Memorandum of Understanding (“Agreement”) between Pelican and Dynamo Atlantic Limited (“DAL”) relating the sale of SNPDC. Pelican advises it has received notification from AARI that it is prepared to support the sale of SNPDC.

DAL has previously completed due diligence enquiries and advanced payments totaling $A1.41 million in accordance with the terms of the MOU. On securing AARI’s support for the sale of SNPDC, Pelican considers that the MOU is unconditional and the parties can proceed towards completion.

Directors

Mr Alec Pismiris Mr Anthony Torresan Mr Colin Chenu

Company Secretary Mr Alec Pismiris

Pelican has commenced drafting a formal Share Sale Agreement (“SSA”) to facilitate the transfer of ownership of SNPDC to Dynamo. Obtaining AARI’s commitment to the sale of SNPDC means that Pelican is now ready and able to progress with completion of the SSA. On completion, Dynamo is required to pay the balance of the sale price of $A3.29 million.

For further details please contact:

Alec Pismiris Director & Company Secretary M: (+61) 402 212532 E: apismiris@pelicanresources.com.au

Registered Office: Level 9 190 St Georges Terrace Perth Western Australia 6000 Telephone: +61 8 6141 6304 Facsimile: +61 8 9226 1370 www.pelicanresources.com.au