Sunshine Oilsands Cancelled lease Compensation EXPLORATION AND EVALUATION ASSETS (Continued)
During the year ended December 31, 2013, the Government of Alberta approved the Lower Athabasca Regional Plan (“LARP”) to
set aside land for conservation, tourism and recreation. The implementation of, and compliance with the terms of LARP impacted
the Company’s properties in northern Alberta, specifically the Harper CGU.
"This did impact Sunshine’s properties
in the Harper area, where 24 agreements were affected with cancellation of oil sands leases resulting in a loss of 102,365 hectares of
land."
"The Company was reimbursed for the oil sands leases
cancelled in the amount of $4.9 million, which included $0.7 million of interest. Legal costs of $0.4 million that were previously
capitalized were not reimbursed by the Government of Alberta. The legal costs of $0.4 million were expensed to professional fees
and credited to capital costs and presented as a disposal. The proceeds, excluding the interest, was credited to capitalized costs
and presented as a disposal."