The Company has a strong balance sheet to withstand the current low oil price environment, and our sound financial management strategy has seen the Company well supported by  both new and existing  investors in Australia and internationally. At year end, we had 197 gross 3P Reserves drilling locations across our Eagle Ford acreage where we continue to pursue operational and drilling efficiencies, opportunities to further improve well economics by improving recoveries and reducing costs. In 2014 this included a switch to pad drilling with zipper fracs and new completion techniques that have provided significant upside in production. Despite our current scaling back of drilling activity, we have set 2015 production guidance at 7,850 – 8,500 BOEPD, an increase from the previous year of some 13 – 17 percent,  but a target that we believe is achievable while maintaining acceptable levels of liquidity given our demonstrated abilities and growing footprint in the Eagle Ford.  Sundance has a strong culture throughout the organisation of ensuring that high standards of safety are maintained and that our operations are conducted in an environmentally  responsible way. During 2014 our comprehensive safety program was enhanced and  further improvements will be a strong focus throughout 2015. Sundance is well placed for future growth in the Eagle Ford. The Company has a strong balance sheet to withstand the current low oil price environment, and our sound financial management strategy has seen the Company well supported by both new and existing investors in Australia and internationally. We expect that Sundance will grow organically and also through further leasing or  bolt-on acquisitions in our core Eagle Ford focus area within our current, conservative balance sheet parameters.  Despite the current oil pricing scenario, Sundance’s medium-to-long term growth  trajectory looks very positive.  We can demonstrate this through: Safety and Environment  A strong financial position Positive outlook for 2015 Thank you for your support As a mid-tier oil and gas producer and explorer in the S&P/ASX All Australian 200 index, and with the increasing interest and support from institutional and retail investors. I believe that Sundance will deliver significant long-term value from our assets for our shareholders. We have had a busy year at Sundance and I would like to recognise the efforts and valued contribution of the Board of Directors, management team and all staff and contractors of the Company in helping us achieve our strategic goals. I am confident that we have the right team and excellent assets in place to execute our clear and focused strategy that we expect to deliver significant value for our shareholders. On behalf of the Board and Company, I would like to thank our shareholders for your strong support of the Company throughout the year. We are committed to delivering long-term value for our shareholders and I look forward to reporting over the rest of the coming year on the continued value creation and growth of Sundance. Yours sincerely, M IKE HANNELL Chairman • A track record of capital efficient growth • A track record of value creation • Being a low cost/high margin operator • Having top tier Eagle Ford assets with an extensive drilling inventory • Having a clean balance sheet 3