Level 3, 24 Outram Street, West Perth WA 6005

PO Box 497, West Perth WA 6872 Australia

T: +61 8 9220 2300

F: +61 8 9220 2309

ABN 19 055 719 394

ASX Announcement

16 December 2014

Cost Reduction Program and Board Changes

Sundance Resources Limited ("Sundance" or "Company") (ASX: SDL) advises the Company has undertaken a number of cost reduction measures to ensure it appropriately manages its cash position whilst retaining the ability to move its world-class Mbalam-Nabeba Iron Ore Project ("Project") into production rapidly when market conditions improve.
The measures will ensure the continued advancement of the Project, which ranks as one of the best undeveloped iron ore Projects in the world based on its high grade iron ore and largely complete in- country approvals and existing mining conventions.
As of 1 January 2015, Fiona Harris will step down from the Board, reducing the number of members of the Board to five after Michael Blakiston did not re-nominate for his Board position and George Jones retired without replacement at Sundance's recent AGM. The Company's Board now comprises the Chairman, three other Non-Executive Directors and the Managing Director.
The Chairman and Non-Executive Directors have each agreed to a reduction in fees of 10%.
The salary of the Managing Director and members of the Sundance senior management team have also been reduced by 10%.
Further, an internal review has identified a number of additional cost cutting measures, including the reduction of staff numbers and overheads.
As part of these measures, Alan Rule will now have the combined role of CFO and Company Secretary. Together, these measures are expected to deliver a significant reduction in operating expenditure in
2015.
Mr Wal King, Chairman of Sundance, acknowledged the substantial contributions made by Michael
Blakiston and Fiona Harris to the Company since 2010.
"Michael and Fiona are both excellent Directors who brought exceptional skills and experience that have been of significant benefit to Sundance during their tenure," Mr King said.
Mr Giulio Casello, Managing Director of Sundance, said the difficult decisions made by the Company were appropriate due to the conditions facing all iron ore development companies.
"These are never easy decisions to make and we want to recognise the tremendous contribution and progress made by our staff and contractors to date," Mr Casello said. "We do, however, believe these

decisions are in the best interests of Sundance shareholders and will ultimately allow us to deliver a world-class iron ore Project."

ENDS

Released by:

Giulio Casello

Managing Director and CEO Sundance Resources Limited
Investor/Media inquiries:
Luke Forrestal/Warrick Hazeldine
Cannings Purple
Mobile: +61 411 479 144/+61 417 944 616
Email: [email protected]/[email protected]

About Sundance Resources

Sundance Resources is seeking to develop its flagship Mbalam-Nabeba Iron Ore Project, which straddles the border of Cameroon and the Republic of Congo in Central Africa. Stage One will be the production of a Direct Shipping Ore ("DSO")-quality sinter fines product averaging 62.6% Fe at a rate of 35Mtpa for approximately 12 years based on blending material sourced from the deposits in the neighbouring countries of Cameroon and Congo. Stage Two, which is currently at a Pre-Feasibility Stage, would then extend the life of the operation by further 15-plus years producing high-grade Itabirite hematite concentrate. In April 2011, Sundance completed the Definitive Feasibility Study for Stage One and Pre- Feasibility Study for Stage Two of the Mbalam-Nabeba Iron Ore Project. The Project scope involves the construction of a 510km rail line dedicated to the transport of iron ore through Cameroon and 70km rail spur line connecting the Nabeba mine in Congo. It also includes the building of a dedicated mineral export terminal designed for taking bulk iron ore carriers of up to 300,000 tonnes.

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