SUNSHINE OIL (02012) announced that on October 22, 2025, Hong Kong time (October 22, 2025, Calgary time), the company entered into debt-to-equity conversion agreements with its creditors, including Lianchuang Green Energy, Xinghua, Hong Kong Best Power, and Yeshiyuan. According to these agreements, the company will issue shares to each creditor as a full and final settlement of their respective debts. The issue price is HKD 0.43 per share, which is the closing price reported on October 22, 2025, by the Hong Kong Stock Exchange. The 140 million shares to be issued represent approximately 24.50% of the company's existing share capital of 571 million shares as of the date of this announcement, and about 19.68% of the expanded share capital after the issuance. As of the date of the debt-to-equity agreements, the total debt owed by the company to its creditors amounts to HKD 60.2 million (approximately CAD 10.86 million). This debt will be settled through the issuance of the 140 million shares. The company’s board believes that settling debts through share issuance will not result in significant cash outflows while also reducing the company’s liabilities. Therefore, the board considers the terms of the debt-to-equity conversion agreements to be fair and reasonable, and that this issuance is in the overall interest of the company and its shareholders.