SUNSTONE METALS LTD — AGM Information 2019

Oct 30, 2019

ASX:STM October 2019 - AGM

DISCLAIMER

DISCLAIMER

To the maximum extent permitted by law, no representation, warranty or undertaking, express or implied, is made and, to the maximum extent permitted by law, no responsibility or liability is accepted by Sunstone or any of its officers, employees, agents or consultants or any other person as to the adequacy, accuracy, completeness or reasonableness of this Presentation. To the maximum extent permitted by law, no responsibility for any errors or omissions from this Presentation whether arising out of negligence or otherwise is accepted.

This Presentation contains general information about Sunstone Metals Limited (Sunstone) which is in the business of exploring for minerals which is a speculative and risky venture. It does not purport to contain all the information that a prospective investor may require. The Presentation should not be considered as an offer or invitation to subscribe for or purchase of any securities in Sunstone and no agreement to subscribe for securities will be entered into on the basis of this Presentation. Potential investors should conduct their own investigation and analysis and should check the accuracy, reliability, and completeness of the information provided and obtain independent and specific advice from appropriate professional advisors.

FORWARD-LOOKING STATEMENTS

This Presentation includes certain statements that may be deemed "forwardlooking statements". All statements in this Presentation, other than statements of historical facts, that address future activities and events or developments that Sunstone expects, are forward looking statements.

Although Sunstone believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, continued availability of capital and financing, and general economic, market or business conditions.

Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in forward-looking statements.

A COMPELLING INVESTMENT OPPORTUNITY Gold and Copper | Discovery driven | Create Substantial Shareholder Wealth

ECUADOR

✓BRAMADEROS GOLD & COPPER PORPHYRY + EPITHERMAL

PROJECT

✓SIGNIFICANT UPSIDE POTENTIAL THROUGH DISCOVERY

In the background … SWEDEN

• ✓ SALE OF VISCARIA COPPER PROJECT FOR ~A$35 mill (cash + shares)
• ✓ EQUITY POSITION VALUED AT A$10-15 MILL PROTECTS DOWNSIDE RISK

CORPORATE

SUNSTONE IS WELL FUNDED WITH CASH AND EQUITY ASSETS THAT CAN BE MONETISED TO UNDERTAKE ITS PLANNED DRILLING PROGRAMS AT BRAMADEROS

MARKET CAPITALISATION Tightly held At share price of A$0.023 (30 day VWAP) TOP 10 SHAREHOLDERS Hold almost half of all shares on issue SHARES ON ISSUE As at 30.09.19 CASH As at 30.09.19 - unaudited BOARD & MANAGEMENT Have participated in most placements in last 4 years EQUITY INVESTMENTS In Nasdaq listed Copperstone Resources AB 92% Escrowed to Sept 2020

Listed on the Australian Stock Exchange ASX:STM

Substantial Shareholders
Darren Carter (UK)	6.4%
Valbonne II	5.6%

MULTI DISCIPLINARY STRONG BOARD

GRAHAM ASCOUGH CHAIRMAN

A senior resources executive with considerable experience evaluating mineral projects and resources in Australia and overseas. He is currently nonexecutive Chairman of ASX listed companies: PNX Metals Limited and Musgrave Minerals Limited. Mr Ascough was previously Falconbridge Limited.

MALCOLM NORRIS CEO & MANAGING DIRECTOR

Mining industry executive with a track record of discovery and growth. Previously with WMC Resources. Led team that discovered Tujuh Bukit porphyry Cu-Au in Indonesia with Intrepid Mines. Former CEO of SolGold and secured Cascabel Cu-Au project in Ecuador.

DON HYMA NON-EXECUTIVE DIRECTOR

Mining industry executive with more than 25 years of progressive capital project experience in the resource sector in Canada, Chile, New Caledonia and Australia. His experience includes direct involvement in delivering numerous major projects, taking them from studies through to implementation, for several multi-national resource companies in the nickel, copper and iron ore industries.

STEPHEN STROUD NON-EXECUTIVE DIRECTOR

Corporate finance executive with over 20 years experience across all aspects of corporate finance both as an advisor and client. He has advised boards and management teams across a broad range of transactions including public and private equity raisings, debt/hybrid debt, Initial Public Offerings, mergers & acquisitions, sell-downs and restructures both in Australia and overseas.

A VERY HIGH QUALITY TEAM

MALCOLM NORRIS CEO & MANAGING DIRECTOR

Mining industry executive with a track record of discovery and growth. Previously with WMC Resources. Led team that discovered Tujuh Bukit porphyry Cu-Au in Indonesia with Intrepid Mines. Former CEO of SolGold and secured Cascabel Cu-Au project in Ecuador.

GAVIN LEICHT CFO & COMPANY SECRETARY

Finance professional with significant experience in developing and financing copper and gold projects through to production including marketing of copper concentrates.

RAY ROBINSON GENERAL MANAGER STUDIES &TECHNICAL SERVICES

Mining engineer with over 20 years operational, studies and construction experience worldwide. Delivered PEA, PFS and DFS level studies from 0.5Mtpa underground epithermal gold developments, 10Mtpa gold oxide heap leach projects to 40Mtpa copper-gold concentrator plants.

DR. BRUCE ROHRLACH GENERAL MANAGER GEOLOGY

Geologist who has played a key role in several significant discoveries and feasibility studies. Extensive international experience with both major and junior mining and exploration companies. Led the technical teams that discovered Tujuh Bukit and Cascabel porphyry copper-gold deposits.

DAMIEN MIZOW EXPLORATION MANAGER

Geologist with 12 years experience across copper, gold and nickel in both exploration and mine environments. Managed the 2016 Viscaria drilling program delivering some of the best results in the history of the project.

ECUADOR

Strongly promoting exploration and mining but also dealing with impediments

• Sunstone Phase 2 drilling underway at the Bramaderos Project
• Other companies active exploring and developing
• Majors and juniors have committed to spend hundreds of millions of dollars on exploration for world class gold and copper deposits – genuine large growth opportunities
• The Mines Ministry is strongly promoting the sector, wants a responsible mining industry, has enabled reductions in taxes, and has supported developments such as Fruta del Norte
• Ecuador is making some tough decisions to strengthen its economy and mining is a key component of a future prosperous Ecuador
• BUT …
• There is local anti-mining activity (not unique to Ecuador!) that is gaining press coverage
• There is also strong pro-mining actions and strong local community support in many areas

BRAMADEROS PROJECT – A WORLD-CLASS OPPORTUNITY Delivering a gold-copper discovery

Ecuador is host to world-class copper-gold deposits, in one of the world's most highly prospective belts for porphyry and epithermal copper-gold deposits

Bramaderos is a JV with TSXV listed Cornerstone Capital Resources (TSXV:CGP) where Sunstone has earned 51% through spending US$3.4 mill

Bramaderos contains multiple targets of both porphyry gold-copper and epithermal gold mineralised systems with strong potential to host a world-class discovery

BRAMADEROS PROJECT – A WORLD-CLASS OPPORTUNITY A strong commitment to community and environment

• Regular local community meetings and information sessions on current and planned work programs
• Local information centre established
• Environmental and social management plans being implemented
• Local plant nursery constructed
• Concession wide EIA to allow for exploration drilling was approved on March 12, 2019, an Environmental Licence to allow for drilling was issued on April 12, and drilling commenced on April 13
• Strong local community support for our drilling program

BRAMADEROS PROJECT – A WORLD-CLASS OPPORTUNITY Well located, good infrastructure and access

BRAMADEROS – A WORLD-CLASS OPPORTUNITY 'Bigger Picture' – a reminder of why we are here

• Interpretation of regional datasets reinforces the high prospectivity of a broad suite of targets at Bramaderos
• The recent drill results together with other datasets are delivering a robust and predictive model to guide exploration
• Multiple targets identified for both porphyry goldcopper and epithermal gold
• Detailed soil sampling and ground magnetics surveys are in progress over several additional targets to prepare them for drilling
• Drilling at Limon and Bramaderos Main is ongoing to follow-up the highly encouraging drill results received to date from the Phase 1 program
• Sunstone is confident of delivering to its discovery goals

BRAMADEROS – A WORLD-CLASS OPPORTUNITY 'Bigger Picture'

Multiple targets, multiple opportunities, increases the likelihood of discovery

BRAMADEROS – A WORLD-CLASS OPPORTUNITY 'Bigger Picture'

BRAMADEROS – A WORLD-CLASS OPPORTUNITY 'Bigger Picture'

BRAMADEROS PROJECT Multiple gold-copper targets, 2 being tested, others being prepared

Multiple targets developed from multiple datasets Phase 1 drilling 5,347m completed Phase 2 commenced, expected 4-5,000m Multiple Drill Targets

• 1. Limon – porphyry gold-copper target, 4 holes completed, another underway
• 1. Bramaderos Main porphyry gold-copper target, 3 holes completed, hole 4 in progress
• 1. West Zone epithermal gold target, 8 shallow holes completed
• 1. Porotillo and Gangue to come once we learn from Bramaderos Main

BRAMADEROS PROJECT – A WORLD-CLASS OPPORTUNITY Limon – a large porphyry target, no historical drilling

Early results from Limon are very encouraging – we have drilled altered and mineralised rock in 2 holes with all indications that we have drilled adjacent, but within close proximity to, a significant porphyry system

LMDD002:

267m (from 627m downhole) at 0.05g/t gold, 750ppm copper, 22ppm molybdenum

Bottom 14m (880-894m downhole) at 0.1g/t gold, 0.2% copper, 41 ppm molybdenum

LMDD004:

Drilled a shallow 'high sulphidation' system, and significant alteration proximal to a porphyry

BRAMADEROS PROJECT – A WORLD-CLASS OPPORTUNITY Very encouraging geology

B veins, LMDD002, 723.2m LMDD002, 890.5m,

coarse grained chalcopyrite + pyrite

5.4g/t silver. LMDD004 125-135m: Examples of porphyry clasts containing B, A and M type porphyry stockwork veining hosted in breccia pipes that have been ripped up from underlying diorite porphyry. A) Dense quartz B-veins in altered quartz diorite porphyry B) Fragment of a porphyry-related B-vein in a clast within a breccia pipe. C) Large 15cm clast of quartz Bvein stockwork (porphyry-related) in a breccia pipe.

17

BRAMADEROS PROJECT – A WORLD-CLASS OPPORTUNITY Limon – Current oblique view of target zone

Collected detailed ground magnetics

Created 3-D models

Integrated with geology and geochemistry. Both reflect a large complex system – in porphyry exploration complex systems are good. They reflect multiple overlapping hydrothermal events

Developed drill targets

• Deep porphyry target between, and below, LMDD002 and LMDD004
• Magnetic modelling has identified a body interpreted to be part of the target zone

Important to remember that mineralisation does extend to surface as seen in trench LM-01. The new magnetics have identified targets associated with this and these need to be tested

BRAMADEROS PROJECT Multiple gold-copper targets, 2 being tested, others being prepared

Multiple targets developed from multiple datasets Phase 1 drilling 5,347m completed Phase 2 commenced, expected 4-5,000m Multiple Drill Targets

• 1. Limon porphyry gold-copper target, 4 holes completed, another underway
• 2. Bramaderos Main – porphyry gold-copper target, 3 holes completed, hole 4 in progress
• 1. West Zone epithermal gold target, 8 shallow holes completed
• 4. Porotillo and Gangue to come once we learn from Bramaderos Main

BRAMADEROS PROJECT – A WORLD-CLASS OPPORTUNITY Bramaderos Main – drilling in progress

Longitudinal trench - 397m at 0.69g/t Au and 0.14% Cu cumulative interval; for all intervals >0.3g/t and >10m length

Aerial extent of >0.5g/t gold and >0.1% copper is ~600m x 400m

Mineralised body is interpreted to be steep

• BMDD001 and 002 complete and all assays received
• BMDD003 abandoned
• BMDD004 currently being drilled

BRAMADEROS PROJECT – A WORLD-CLASS OPPORTUNITY Bramaderos Main – BMDD001 and BMDD004

BRAMADEROS PROJECT – A WORLD-CLASS OPPORTUNITY Bramaderos Main – BMDD002

Drilled quartz stockwork veined altered intrusive rocks similar to those in BMDD001 and delivered similar grades, and similar geometry

• 72.8m at 0.68g/t gold and 0.16% copper, within 241.6m at 0.42g/t gold and 0.14% copper from 68.7m downhole, including,
• 55.8m at 0.74g/t gold and 0.15% copper, including
• 18.1m at 1.04 g/t gold and 0.19% copper

Similar geometry and grade distribution to the BMDD001 traverse, with the north-eastern side displaying better gold grades than the southwestern side

BRAMADEROS PROJECT – A WORLD-CLASS OPPORTUNITY Bramaderos Main – further 3-D modelling of magnetics and drilling results

• Further drilling to be undertaken to NW and SE of recent drilling. Significant scope to define a large mineralised system
• Current drilling is defining higher-grade gold and copper zones within a large lower-grade gold and copper mineralised magnetic body
• Detailed ground magnetics data recently collected and will be processed
• Previously collected heli-mag data modelled to show a down plunge extent of at least 1km
• Where this body comes to surface it correlates with anomalous gold and copper in trenches
• Bramaderos Hill is a target in its own right and will be drill tested

BRAMADEROS PROJECT Epithermal gold corridor, 1 target drill tested in Phase 1

Multiple targets developed from multiple datasets Phase 1 drilling 5,347m completed Phase 2 commenced, expected 4-5,000m Multiple Drill Targets

• 1. Limon porphyry gold-copper target, 4 holes completed, another underway
• 1. Bramaderos Main porphyry gold-copper target, 3 holes completed, hole 4 in progress
• 3. West Zone – epithermal gold target, 8 shallow holes completed
• 1. Porotillo and Gangue to come once we learn from Bramaderos Main

BRAMADEROS – A WORLD-CLASS OPPORTUNITY West Zone – epithermal gold, 8 shallow drill holes completed

• 8 holes completed
• Intervals of alteration, veining and brecciation identified
• Structurally complex
• Will deliver a full interpretation once all assay results received

Results will then be integrated with other datasets to build our interpretation of the larger north-east trending 'epithermal corridor'

The corridor is along trend from the Dynasty Goldfield, a multi million ounce epithermal gold system

PLANNED WORK AND NEWS FLOW Focus is on Bramaderos in Ecuador – Deliver a Discovery

A COMPELLING INVESTMENT OPPORTUNITY Gold and Copper | Discovery driven | Create Substantial Shareholder Wealth

COMPETENT PERSONS STATEMENT

The information in this report that relates to exploration results and exploration targets and results is based upon information reviewed by Dr. Bruce Rohrlach who is a member of the Australasian Institute of Mining and Metallurgy.

Dr. Rohrlach is a full-time employee of Sunstone Metals 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 as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Dr. Rohrlach consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Further details (including JORC 2012 Code Reporting Tables, where applicable) for the information included in this Presentation can be found in the following announcements by Sunstone Metals Limited lodged with the ASX:

• 15 October 2019
• 27 August 2019
• 26 August 2019
• 20 August 2019
• 18 July 2019
• 11 July 2019
• 2 July 2019
• 30 May 2019
• 29 May 2018
• 9 May 2018
• 8 November 2017