SUNSTONE METALS LTD — AGM Information 2009

Nov 18, 2009

AGM

November 2009

AVALON MINERALS LTDVision - to become a regional copper producer in Sweden

• Stage 1 start up 2012 14,000 tpa Cu
• Stage 2 double production 2016 20,000 tpa Cu

Disclaimer

• Certain statements contained in this presentation, including information as to the future financial or operating performance of Avalon Minerals and its projects, are forward-looking statements. Such forward-looking statements:
  • • are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Avalon Minerals, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies; and
  • • Involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward-looking statements.
  • • May include, among other things, statements regarding targets, estimates and assumptions in respect of metal production and prices, operating costs and results, capital recovery rates, and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions;
  • • The words "believe", "expect", "anticipate", "indicate", "contemplate", "target", "plan", "intends", "continue", "budget", "estimate", may", "will", "schedule" and similar expressions identify forward-looking statements.
• Avalon Minerals disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise.
• All forward-looking statements made in this presentation are qualified by the foregoing cautionary statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein.

Sweden – A New Era

• 1 in Iron Ore2 in Gold
• 2 in Copper
• 2 in Silver
• Europe's Largest open cut – Aitik 20mt /annum

Viscaria

History

• Discovered in 1970's 4km from Kiruna
• 12.3mt @ 2.3% Cu production from 1982-1997
• Phelps Dodge 2003-2008 (no activity)
• Avalon purchase March 2008
• -May 2008 – JORC 24.1mt @ .8% Cu – B Zone
• -May 2008 – JORC 2.5mt @ 1.6% Cu D Zone
• -July 2008 – JORC 5.3mt @ 1.3% Cu - A North Zone
• -Sept 2008 – JORC 8.2m @ 2.7% Cu – A Zone South

TOTAL 39.9mt @ 1.3% Cu

A New Mineral Field – IOCG and VMS

• 200km2tenements
• Viscaria unit extends north for 40km
• Anglo, Rio new IOCG discovery 10km south
• 4 Regional Viscaria type targets

Mineral Resources & Targets

3 Parallel zones

OCfdJRIRnerreesourcesABDZ&ones,
Zones	Eiitsngx	C%u
D	25tm	%16
B	24tm	%8
hAZNtoneor	53tm	%12
AZShtoneou	82tm	%27

Potential Remnants – South Mine

A Zone South - Targets

Geological Model

Viscaria Will Produce Again

FEASIBILITY STUDY

• Capacity 500,000 tpa @2.6% Cu Concentrate - 50,000 t @ 28% Cu/annum Copper - 14,000tpa Copper price - US $6,600/t ( $3.00/lb) Outokumpu costs (1998) - $.60US/lb

Viscaria Fly Over

40km EM Conductors

D Zone - Magnetics

Mining and Geology

Personnel & Infrastructure

• MSP Engineering feasibility studies
• Fergus Hart Study Manager
• Previous Viscaria Mine Foreman has been retained
• Exploration Manager Louise Lindskog
• Project Geologist Sweden Nigel Baker
• CSA Global Resources
• TGB Drillers of Kiruna appointed
• Swedish environmental consultants Hifab

Viscaria Conceptual Flow Chart

	2009	2010		2011		2012
Pfibilitreeasy-
Mllteaurgy
iiPttermng
Dillirng
DfiiiFibilittenveeasySdtuy
Citt&onsruconlDteeopmenv
Miinng

Photos

Infrastructure at Viscaria

Viscaria benefits from existing infrastructure–

• 10km Decline and 20km of development drives ($50m replacement cost)
• Accommodation in Kiruna Town (population 20,000)
• House & office established at Kiruna
• Hydro-grid power
• Rail & road
• Experienced workforce
• Daily flights from Stockholm

Viscaria Strengths

• High Grade A Zone > 3% Cu
• Large system (4km) + multiple zones (x3)
• Open at depth and along strike
• Existing decline and unmined stopes
• Copper smelters in country- Ronskarr
• Early cash flow and growth opportunities
• Regional producer benefits- area of influence
• Regional exploration targets

Tonnes & Grade

Photos

Competent Persons Statement

The information in this report relating to Exploration Results is reviewed by Ms Louise Lindskog BSc Hons (Geol) who is a Member of the Australasian Institute of Mining and Metallurgy and is the company's Exploration Manager who is a fulltime employee. Ms Lindskog has over 7 years of exploration experience in a variety of mineral deposit styles including uranium, diamonds, base metals and gold mineralisation and she consents to inclusion of the information in this report in the form and context in which it appears. She qualifies as a Competent Person as defined in the 2004 Edition of the "Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves".

Contact Details

• Suite 22 Richardson Street West Perth WA 6005AustraliaTelephone: +61 8 9322 2752 Facsimile: +61 8 9322 2827
• PO Box 165West Perth WA 6872Australia
• info@avalonminerals.com.au
• david@avalonminerals.com.au
• www.avalonminerals.com.au