Dear Fellow Shareholders, CEO’S REPORT 4 With mixed appraisal results in the Woodford, Sundance’s Mississippian/Woodford  position generally requires higher prices to meet our hurdle rates. Because of the mixed Woodford results, higher overall unit costs, and depressed pricing at year end, we  recognized an impairment charge of ~$60 million on these assets at year 2014. Had prices maintained their strength, we likely would have been in a position to recover our investment from these assets. Our high quality Eagle Ford acreage produces strong recoveries at reasonable costs and thus generates good returns, even in a low price environment. Because of these character- istics, the majority of our forward capital is expected to be invested generating strong growth and shareholder returns in the Eagle Ford. Our position as a cost and balance sheet leader is underpinned by two key philosophies: 1) investment in a leading technical team that is encouraged to take reasonable risks to improve recoveries and/or reduce costs, and 2) a ruthless focus on portfolio returns as demonstrated by our consistent track record of divesting assets that don’t fit our strategic objectives or promise lower forward return profiles. Our peers went from talking about their growth prospects to fretting about cash costs and liquidity, a stark contrast from the go-go growth times which existed in the first half of the year. This shift in industry strategy has now come in line with our general business philosophy — in the resource space, low-cost, low debt businesses will survive and thrive across cycles; and, relative to our US onshore peer group, Sundance boasts a top 15% cost structure and balance sheet. Like many prior bubbles driven by new technologies, the second half of the year saw the pricing environment come crashing down around us. The market became fundamentally unbalanced, driving prices down almost 50% and rendering material portions of global oil and gas development uneconomic. Our second capital priority for the year was to conclude the appraisal of the Woodford formation in our Logan County, Oklahoma assets. We viewed this relatively modest, but higher risk, investment as having a 25% chance of success with a 15x upside. Unfortunately, we met with mixed success in our appraisal activities proving that in today’s onshore  US oil and gas industry that the best absolute returns are generated by drilling in proved  regions. There are plenty of solid opportunities to efficiently grow the business without exposure to undue geologic risk. We primarily reinvested this capital in production growth and cash flow with only about $75 million reinvested in acquiring oil and gas leases and producing properties. This resulted in our production increasing from 5,028 BOEPD to 9,434 BOEPD by December 2014 and full year EBITDAX increasing $73.8 million to $126.4 million in 2014. Had prices stayed steady, we likely would have generated  earnings before income taxes of over $85 million and a  return on capital in excess of 20%. The easy credit environment caused asset prices to increase significantly to the point where, in our view, risk adjusted returns on new acquisitions were threatening cyclical lows. In line with our strategy, Sundance had monetized several mature assets realizing ~$50 million in current period gains while freeing up ~$165 million in invested capital. In the US, E&P companies were spending record amounts of capital, fueled by cheap and plentiful debt, on horizontal drilling and completions to drive production growth while making material strategic acquisitions in order to increase their long-term  exposure to oil prices. 2014 Review — 2014 was a year of stark economic contrasts in our industry. During the first half as in the past several years, historically volatile West Texas Intermediate oil prices seemed range bound between $80 and $110 with geopolitical events driving prices towards the ceiling and demand risks pushing prices towards the floor of the range. Sundance’s Performance versus the ASX 200 ANNUAL PERCENTAGE CHANGE IN 2P PV10 (NET ASSET VALUE) IN SUNDANCE YEAR PER DEBT ADJUSTED SHARE  PRICE PER SHARE IN ASX200 2014 21.6% -48.0% 1.1% 2013 63.3% 29.9% 15.1% 2012 -15.6% 87.8% 14.6% 2011 59.7% -44.6% -14.5%