SUNSTONE METALS LTD — AGM Information 2016

Nov 15, 2016

16 November 2016

Avalon Minerals Limited (ASX:AVI) ("Avalon" or "Company")

Chairman's Address - Annual General Meeting

Please find attached the Chairman's address to the Company's Annual General Meeting being held today, 16 November 2016 at 11.30am in Brisbane.

Gavin Leicht Company Secretary Avalon Minerals Limited

For further information please visit www.avalonminerals.com.au

ADDRESS BY THE CHAIRMAN OF AVALON MINERALS LIMITED ANNUAL GENERAL MEETING 2016

On behalf of the Board of Directors, it is my pleasure to welcome you to the 2016 Annual General Meeting for Avalon Minerals Limited ('Avalon' or 'Company').

Avalon has made significant progress towards its goal of becoming a european copper producer with its flagship Viscaria Copper Project in Sweden. During the year the Company achieved excellent drilling results at Viscaria, completed a new Mineral Resource Estimate for the D Zone copper deposit, published the re-focussed copper only Scoping Study and commenced the Environmental Impact Assessment. Significantly, the Scoping Study shows the project has the potential to deliver strong financial returns to Avalon and its shareholders. The Prefeasibility Study is now underway to confirm and build confidence in these results as Viscaria is advanced towards a development decision. A strengthening copper price combined with the exploration and resource upside potential that the Avalon team has identified gives us great confidence that the Viscaria project will be developed.

During the year, Avalon moved to broaden its portfolio in Scandinavia applying for new exploration leases in Finland, and signing two joint venture agreements to secure new interests over known lithium and gold properties in both Finland and Sweden. Early results from this initiative have been positive.

Recent drilling on the Satulinmäki and Riukka gold prospects located in southern Finland intersected multiple gold bearing structures and confirmed the presence of a significant gold system near-surface that remains largely untested by drilling at depth.

The initial drilling program at the Kietyönmäki lithium pegmatite project, also located in southern Finland, returned significant intersections of lithium bearing pegmatite including 24.2m at 1.44% Li2O.

Malcolm Norris, our Managing Director will provide further information on these exciting results in his presentation at the end of todays meeting.

While the Company's share price performance has improved significantly over the past twelve months owing to the efforts of the Avalon team in generating these strong results, the Directors are of the view that it does not yet reflect the Company's true potential.

The Company continues to receive strong support from its shareholders, and in July 2016, Avalon completed a successful fundraising to new, professional investors as well as to existing large shareholders with a placement at market price, to raise approximately $2M. The proceeds raised are being utilised primarily to progress Avalon's gold and lithium projects and to advance the ESIA at Viscaria.

I would like to take this opportunity to express my thanks to Avalon's staff, management and my fellow directors for their dedication and hard work during the past 12 months. We are committed to progressing the Company, its flagship Viscaria Copper Project in Sweden, and the new gold and lithium projects in Scandinavia for the benefit of all Avalon shareholders.

I also take this opportunity to thank all shareholders for your continued support of Avalon.

Yours sincerely Graham Ascough Chairman Avalon Minerals Limited