SUNSTONE METALS LTD — AGM Information 2013

Nov 28, 2013

AVALON MINERALS LTD

Viscaria Copper Project

November 2013Annual General Meeting

AVALON MINERALS

• Scandinavian focused copper exploration and mineral resource development company
• Key Assets:
  • • Viscaria Copper Project (100%)
  • • Viscaria Regional Exploration (584sqkm)
• Active strategy to acquire additional and complementary assets to add further value to Viscaria Project economics

SWEDEN – UNIQUE INVESTMENT OPPORTUNITY

• Low sovereign risk (Ranked 2nd in World)
  • •Politically and economically stable
  • •Favourable mining regulations
• Highly Prospective/Under Explored
  • •1000 year mining history
  • •Largest iron ore producer in Europe
  • • A leading producer of base & precious metals
  • •Minor modern exploration
• Other Factors
  • •Established Mining culture
  • •Excellent infrastructure
  • •Low cost power
  • •22% company tax rate
  • •No production royalties

VISCARIA COPPER PROJECT MINERAL RESOURCES

A ZONE 21.6Mt @ 1.5% CuB ZONE19.7Mt @ 0.8% Cu

D ZONE

13.6Mt @ 1% Cu,25.6Mt @ 26.3% Fe

DISCOVERY ZONE10.9Mt @ 0.3% Cu & 38.7% Fe

TOTAL*65.8Mt @ 1% Cu,36.5Mt @ 30.3% Fe

*JORC Mineral Resource breakdown presented on page 17and JORC Competent Person Statement page 18

VISCARIA PROJECT GOALS FOR 2013

• Define Mineral Resources to support a Project NPV of +$300M
  • Increase A and D Zone Resources through drilling
  • –Acquire the Discovery Zone Prospect
• Demonstrate project potential to be a mid-tier copper producer
• Begin DFS and the process to Permit Project for Development

D ZONE PROSPECT

2012-2013 ASSAY RESULTS – D ZONE

7

LONG SECTION – D ZONE

8

2013 D ZONE RESOURCE INCREASE

Objective of resource extension drill program was to add:~45kt of contained Cu and 1.6Mt of recoverable Fe at D Zone

CRuesource	()TMtonnage	%Cu	C()Mtlteau	C()Itncreaseu
O2012tc	45.	0.9	48,000
2013Jneu	13.6	1.0	136,000	88,000

• •152% increase to the Cu resource tonnage
• •183% increase in contained copper metal
• •195% of the objective set prior to drill program

FReesource	Toe (nnagM)t	%Fe	Ms Rasecy (over%)	Rblece Fovera(M)te	Ine Fcreas(M)te
O2012tc	14.8	285.	31.1	3.2	2.
J2013une	25.6	26.3	31.9	5.7	5

• •73% increase to the Fe resource tonnage
• •78% increase in contained iron metal
• •156% of the objective set prior to drill program

SCOPING STUDY FINAL RESULT (JULY 2013)

OSPiMiiitpennngcenaro	ViiPjildiddDZdDiZtscararoecncngpgraeoneanscoeroneuuvy
Tddonnageangrae	M@CdF33.70.61%22%taneu
OiMiiRttpmmnngaeu	3.5Mtpa
MiLifnee	10.3years
PPdiCAPEXtre-roucon	$USM180	$IldUSMi20.6tncespre-srpu
SiiCAPEXtusanng	$US51M	Eldltxcuescosurecoss
NPV1()tpre-ax0%REAL	S$U373M	$US/lbC3.00u$US150/illttronorepees

Price Sensitivity

PjNPV1(Ptroecre0%lreaT)ax		FPi(f69Fill)%terceoreronorepees
		US$US$130/150/tt		US$170/t
CuPirce	$US3.0lbC5/u	$371	$474	$578
	$US3.2/lbC5u	$321	$423	$527
	$US3.00lbC/u	$270	$337	$477
	US$lbC2.75/u	$219	$323	$426

2013 ACHIEVEMENT

Ptarameer	Uitn	SSJl2013itdcopnguyuy(ithDZddonepgraeanwu)DiZscoeronevy	Ob2012tcoerSiSd*tcopnguy
Tiihlltonnagenopenpses	Mt	33.7	11.0
MiiPdiRttnngrouconae	Mtpa	3.5	2.1
MiLifnee	Years	10.3	5.5
CAlPdtinnuaopperroucon	kt	15-22	9
AlFCPdtinnaeonc.roconuu	kt	1000~	400
PjNPVtroec10%REALtaxpre-$$@3.00/lbC&10/Fll5ttuepees	$SU	$33M7$$(423M@3.2lbC)5u	$2M5$$(61M@3.2lbC)5u

* Note: July 2013 NPV also includes some revised cost/revenue assumptions:

• •Reduced mining costs (now $4/t of ore instead of $4.55/t of ore)
• •Increased pit slopes (now 60° instead of 55°)
• •Reduced copper recovery assumptions (now 85% instead of 90%)
• •Increased TC/RC costs (doubled)
• •Increased royalties to include Discovery Zone Royalty

PATH TO DELIVERING ON VISCARIA PROJECT POTENTIAL

•Complete DFS

•

• •Drilling all mineral resources to JORC Indicated-Measured (~40,000m)
• •Various Studies: Mining, Metallurgy, Geotechnical, Hydrological, Social Impact
• •Detailed Design of Project Infrastructure
• Complete Project Permitting
  • •Get northern A Zone Mining Exploitation Concession granted
  • •Get Discovery Zone Mining Exploitation Concession granted
  • • Resubmit Environmental Impact Assessment (EIA) for greatly expanded project scope
• •Complete Discovery Zone purchase

PROPOSED DEVELOPMENT TIMELINE (Subject to Funding)

Potential Additional Value Opportunities

• • Scoping Study also indicated additional ~$40M of potential value from mineral resource at D Zone that could potentially be extracted by underground mining methods and still open at depth.
• • Regional exploration work has identified two excellent new prospects:
  • • Tjarro: Drilling has uncovered over 200m of anomalous copper and gold mineralisation
  • • Tjavelk: Completed a ground EM survey to produce Drill Ready Targets

SUMMARY

• Sweden is a Top 5 mining destination with excellent infrastructure
• Viscaria Project value has significantly increased with NPV now $373M up from $25M 12 months ago (Scoping Study).
• Clear path to deliver on Viscaria Project potential
  • •Complete DFS
  • •Get outstanding Mining Exploitation Concessions granted
  • •Resubmit EIA
  • •Finalise purchase of Discovery Zone
• Potential Additional Value opportunities

APPENDIX: PRICE OF IRON ORE PELLETS

VISCARIA PROJECT JORC MINERAL RESOURCES BREAKDOWN

ResNaourceme	Classification	(t)Tonnes	de(%)CuGra	tal(t)CuMe
	redMeasu	14,439000,	1.7	239687,
*	Indtedica	4,690000,	1.2	57,218
A Zone	Infedrre	2,480000,	1.0	25,544
	Subaltot	21,609000,	1.5	322449,
	Meredasu	123000,	1.3	1,636
*	Indicated	4,118000,	0.7	29,650
B Zone	Infedrre	15,410000,	0.8	118657,
	Subaltot	19,651000,	0.8	149943,
	Indted**ica	5,100000,	1.1	54,570
D ZCu Roneesource	d**Inferre	8,500000,	1.0	81,600
	Subaltot	13,600000,	1.0	136170,
DisZoCuRescoveryneource	Infed***rre	10,900000,	0.3	31,200
ll COverau	Total	65,760000,	1.0	641262,

ResNaourceme	ssifClaication	()ToMtnnes	(%)FeGrade	(%)MaRecssovery	()Coined lrMtntaon	tedbleEstimarecoverairon ()Mt
D ZFeReonesource	Indted**ica	11.7	27.5	33.4	3.2	2.7
	Infed****rre	13.9	25.7	31.0	3.6	3.0
DisZoFeRescoveryneource	Infed*****rre	10.9	38.7	49.5	4.2	3.7
ll FOverae	Total	36.5	30.2	37.4	11.0	9.4

* 2011 Mineral Resources for A Zone and B Zone are reported above a Cut off Grade of 0.4% Cu

** 2013 Copper Mineral Resource for D Zone above Cut off Grade of 0.4% Cu

*** 2012 Copper Mineral Resource for Discovery above Cut off Grade of 15% Fe

**** 2013 Iron Mineral Resource for D Zone above a Cut off of 15% Mass Recovery

***** 2012 Iron Mineral Resource for Discovery above a Cut off Grade of 15% Fe

Note that the total D Zone Indicated and Inferred Mineral Resource reported for the Copper and Iron above 15% Mass Recovery are not mutually exclusive; the Mineral Resource for Iron above 15% Mass Recovery excludes 4.4 million tonnes at 0.89% Cu above a cut-off grade of 0.4% Cu.

Note that the total Discovery Zone Inferred Mineral Resource reported for the Copper and Iron are not mutually exclusive.

Contained iron is tonnes x Fe%, which may include iron content in silicates that could not be recovered. Estimated recoverable iron is based on Davis Tube Recovery test work at a 75 micron grind size. Estimated contained iron is tonnes x mass recovery % x Fe % in concentrate (69% Fe).

Competent Persons Statement

The information in this report that relates to Exploration Results is based upon information reviewed by Dr Quinton Hills who is a Member of theAustralasian Institute of Mining and Metallurgy. Dr Hills is a full time employee of Avalon Minerals Ltd and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person asdefined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Dr Hills consentsto the inclusion in the report of the matters based on his information in the form and context in which it appears.

The Mineral Resource estimate for the D Zone Prospect was compiled and prepared by Matthew Readford (MAusIMM) of Xstract MiningConsultants who is a Competent Person as defined by the Australasian Code for the reporting of Exploration Results, Mineral Resources and OreReserves (JORC Code) 2004 Edition and who consents to the inclusion in this report of the matters based on the information in the form and context in which it appears.

The Mineral Resource estimate for A and B Zones was compiled and prepared by Dr Bielin Shi (MAusIMM, MAIG) of CSA Global Pty. Ltd. who is aCompetent Person as defined by the Australasian Code for the reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) 2004 Edition and who consents to the inclusion in this report of the matters based on the information in the form and context in which it appears.

The Mineral Resource estimate for the Discovery Zone is effective from 13 January 2012 and has been prepared by Mr Thomas Lindholm, MSc of GeoVista AB, Luleå, Sweden acting as an independent "Competent Person". Mr Lindholm is a Fellow of the Australasian Institute of Mining andMetallurgy (Member 230476). Mineral resources of the Rakkuri iron deposits have been prepared and categorised for reporting purposes by MrLindholm, following the guidelines of the JORC Code (2004 Edition). Mr Lindholm is qualified to be a Competent Person as defined by the JORCCode on the basis of training and experience in the exploration, mining and estimation of mineral resources of gold, basemetal and iron deposits.

The Scoping Study results were compiled and prepared by Tim Horsley (MAusIMM) of Xstract Mining Consultants who is a Competent Person asdefined by the Australasian Code for the reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) 2004 Edition and whoconsents to the inclusion in this report of the matters basedon the information in the form and context in which it appears.

The Scoping Study referred to in this announcement is based on low level technical and economic assessments and is insufficient to support OreReserves or to provide assurance of an economic development case at this stage or to provide certainty that the conclusions of the Scoping Studywill be realised.

Open Pit Mining Scenario includes some material from Inferred Mineral Resources and therefore, exploration drilling and re-estimation may result in changes to the economicallyminable portion of the resources.

Copper Equivalent Formula

*% CuEq = % Cu + ((%Fe x Fe price US$/tonne x Fe recovery)/(Cu price US$/tonne x Cu recovery)Cu price US$/tonne = $7,163.00 (US$3.25/lb)Cu Recovery = 90%Fe price US$/tonne = $144.93 (calculated from US$100 Net Price per tonne of magnetite concentrate containing 69% Fe)Fe Recovery = 70%

Results from extensive metallurgical test work completed by Avalon Minerals Limited indicates that both copper (Cu) and iron (Fe) have a reasonable potential to be recovered from the mineral resource contained within the Viscaria Project.