You will need some black and white fondant. Knead in a little tylose powder if you want it to harden. Start with a square of black and use two toothpicks to make indentions on each side.
Roll out an oval shape for the sheep's body.
Using a wilton tip 10 make circle marks on the wooly body.
Glue the body onto the legs with gum glue (a little tylose powder mixed with water). Shape a tear drop for the head.
Pinch out the sides of the head to make ears. If your fondant is wanting to dry out rub it with some crisco.
I almost forgot to show the tail (as usual!). The tail is another small tear drop shape. Glue both the head and tail to the body as shown.
Use a food marker to draw on the eyes. It's easier to write with food markers when your fondant is dry. You could also use small black sprinkles or two tiny balls of black fondant for eyes.
My sheep heads wanted to fall off so I let them dry with their heads propped up on a little box. It worked perfect and I got them finished fast.