SUNSTONE METALS LTD — AGM Information 2023

Oct 16, 2023

STM AGM – 17 October 2023

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 "forward-looking 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 forwardlooking 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.

Sunstone Snapshot

Ecuador focussed, gold-copper explorer and discoverer

ASX - STM

Market Capitalisation 1	A\$55.5 mill
Cash and Equities 2	~A\$10.5 mill

3,082 million
36%
30%
5.0%

Desk notes and Analyst Coverage - Taylor Collison

- Morgans

Ecuador

• Pro-responsible mining
• 2 modern operating mines, several advanced projects, all majors present
• Hugely prospective
• Mining significant contributor to GDP, and will grow in significance

¹ based on share price of A\$0.018 (30 day VWAP) ² At June 30 2023; Quarterly Report; Q3 report due for release late October

Board and Leadership Teams

GRAHAM ASCOUGH CHAIRMAN

MALCOLM NORRIS CEO & MANAGING DIRECTOR

STEPHEN STROUD NON-EXECUTIVE DIRECTOR

GAVIN LEICHT CFO & COMPANY SECRETARY

RAY ROBINSON GENERAL MANAGER STUDIES &TECHNICAL SERVICES

DR. BRUCE ROHRLACH GENERAL MANAGER GEOLOGY

RACHEL HARRISON CONSULTING GEOLOGIST

VICENTE ACOSTA MANAGER - OPERATIONS

JEFFERSON GONZALEZ MANAGER - COMMUNITY

RODRIGO IZURIETA ECUADOR COUNTRY MANAGER

EDWIN TERAN EHS MANAGER

JAVIER BEDON HR MANAGER

ESG considered across the business

Sunstone appreciates the strong community support that it has at its projects and takes its environmental, social and governance issues very seriously. It is committed to advance its social performance in the areas where we work

Sunstone will release its inaugural Sustainability Report in Q4 2023

Sunstone

• has significant environmental monitoring programs across it projects
• is involved in various community programs at Bramaderos and El Palmar
• undertakes considerable training programs across a large range of skills for workers and the communities in which we operate
• works with the local communities to assist where possible, for example, during the coronavirus pandemic
• offers employment and skills development
• has implemented strict coronavirus operating plans while not compromising local health and safety

The Year in Review – External environment

• Very difficult conditions for junior explorers particularly gold and copper
• Commodity prices weak
• Interest rates rising
• BUT long-term outlook STRONG

The Year in Review – STM has delivered results

Sunstone has delivered some outstanding results

• 13 December 2022 Delivered an Initial MRE for Brama-Alba and an Exploration Target for Bramaderos; 2.7Mozs AuEq in MRE, and 3.3-8.6Mozs AuEq in Exploration Target for porphyry gold-copper-silver mineralisation (does not include recent Limon drilling)
• 18 January 2023 Drilled a high-grade porphyry intersection at Limon, 79m at 0.52g/t gold, 0.19% copper, 9.4g/t silver in LMDD010, below a trench that delivered 97.6m at 0.71g/t gold, 0.23% copper, 1.1g/t silver
• 29 March 2023 Discovery of the Limon gold-silver system with LMDD017 intersecting 176.7m at 1.1g/t AuEq (0.97g/t gold and 10.1g/t silver)
• 15 May 2023 Raised A\$12million with Institutions, family offices and HNW; funding for drilling and discovery
• 20 June 2023 Significant porphyry discovery at T3 at El Palmar intersecting 190m at 0.58g/t AuEq in EPDD026; first hole into target; opens very large search space
• 3 July 2023 Ongoing outstanding results from the Limon gold-silver discovery with hole LMDD026 intersecting 185m at 2.85g/t AuEq (2.67g/t gold and 15g/t silver) from 90m, including 31m at 12.9g/t AuEq
• 11 September 2023 Drilling at El Palmar T3 porphyry intersects another 251m at 0.56g/t AuEq, including high-grade intervals
• 12 October 2023 Limon results deliver more high-grade and show significant scale; Exploration Target to be released

7

Investment Opportunity

• Key messages
• Exposure to 2 giant gold-copper-silver assets
• In southern Ecuador, the Limon gold-silver discovery is a breakthrough opportunity supporting a highgrade front end to a targeted 10Mozs gold equivalent camp at the Bramaderos project
• In northern Ecuador, the T1 + T3 discoveries move the El Palmar Project towards joining the big league of gold-copper porphyry discoveries
• Ecuador is pro-responsible mining, major resources companies are investing in Ecuador, highly prospective
• Simple proposition – discovery adds significant shareholder value, especially in an optimistic market
• The Sunstone team has a track record of globally significant copper-gold porphyry discovery
• Tujuh Bukit, Indonesia (2008)
• Alpala, Cascabel, Ecuador (2013)

Bramaderos, Southern Ecuador

• 4,984 ha concession
• Adjacent to the Pan American Highway
• At ~900m asl
• The project is supported by good infrastructure (hydroelectric power, regional airport nearby)
• 93% of Ecuador's power is generated from renewables, primarily hydro power

Bramaderos – targeting 10Mozs opportunity

LIMON - gold-copper-silver porphyry and epithermal

Epithermal gold and silver (2023 drilling)

Multiple broad >100m intersections at >1g/t AuEq* Including high-grade shoots with >4g/t AuEq* and locally up to multi-ounce grades

Porphyry gold-copper silver

97.6m at 0.71g/t gold and 0.23% copper in trench 79m at 0.52g/t gold, 0.19% copper, 9.4g/t silver from 90m in LMDD010

BRAMA-ALBA only - Mineral Resource Estimate - 2022

156Mt at 0.53g/t AuEq (0.35g/t gold, 0.11% copper, 1.3g/t silver) for 2.7Mozs AuEq * 2

Exploration Target - 2022 in addition to MRE 255 - 360Mt for 3.3 to 8.6Mozs AuEq * 3

1 Limon epithermal AuEq is based on gold+silver only See page 28 for *² and *³ details

*

Brama-Alba – mineralisation from surface

• View looking NE; December 2022
• MRE, undertaken by Tier 1 consultants CSA (pit constrained, reasonable prospects)
• 1.2km long mineralised system so far
• Outcropping gold-copper-silver
• Development would initially mine a hill very low strip ratio
• Higher grade domains close to surface
• Many opportunities to grow resource, and define higher grades

Brama-Alba – pit constrained MRE

Limon – the game changer - view to NE

Limon – the game changer – recent drill results

Significant high-grade intersections in LMDD017 and LMDD026, include;

• 176.7m at 1.1g/t AuEq* (0.97g/t gold and 10.1g/t silver), from 6.8m in LMDD017, including
• 15.0m at 4.0g/t AuEq* (3.9g/t gold, 7.7g/t silver), from 81.2m, and
• 26.0m at 2.3g/t AuEq* (2.0g/t gold, 36.2g/t silver), from 157.5m
• 185m at 2.85g/t AuEq* (2.67g/t gold and 15g/t silver) from 90m in LMDD026, including
• 31m at 12.93g/t AuEq* (12.53g/t gold and 32.7g/t silver) from 146m

LMDD029 intersected significant mineralisation south of the main shoot, defining a target for a second high grade shoot, intersecting

• 76.5m at 0.78g/t AuEq* (0.74g/t gold and 3.6g/t silver) from 21m, including
• 28.2m at 1.31g/t AuEq* (1.25g/t gold and 5.3g/t silver) from 40.1m

LMDD030 intersected

• 243m at 1.32g/t AuEq* (1.11g/t gold and 16.9g/t silver) from 46m, including
• 42m at 3.9g/t AuEq* (3.37g/t gold and 43.3g/t silver) from 152m within;

Results from holes LMDD031, 032, 034, 035, and 038 include:

• 18.5m at 1.17g/t AuEq* (0.89g/t gold and 22.9g/t silver) from 106.5m in LMDD031
• 209m at 0.58g/t AuEq* (0.51g/t gold and 5.7g/t silver) from 6m in LMDD032, including
• 12.2m at 1.76g/t AuEq* (1.59g/t gold and 13.8g/t silver) from 155m
• 35.0m at 0.85g/t AuEq* (0.83g/t gold and 2g/t silver) from 3m in LMDD034, and
• 14.0m at 3.58g/t AuEq* (2.92g/t gold and 54.1g/t silver) from 225m in LMDD034
• 180.1m at 0.96g/t AuEq* (0.87g/t gold and 7.7g/t silver) from 6m in LMDD038

LMDD033 was drilled on a separate target, located 250m west of the main high-grade zone, and intersected high-grade gold:

▪ 2.0m at 9.35g/t gold from 270m, within 10.6m at 2.33g/t gold from 261.4m

LMDD039 was drilled on a separate target, located 400m southeast of the main high-grade zone, and intersected high-grade gold:

▪ 4.5m at 1.2g/t AuEq* from 94.5m, and 1.0m at 1.11g/t AuEq* from 211m

Limon – gold-silver epithermal

Limon – gold-silver epithermal

• Very significant discovery; delivers the higher-grade front end for a larger development
• Hills in background • Large search space for epithermal goldsilver-base metal mineralisation
• Evidence of epithermal veins to depths exceeding 600m from previous drilling
• Evidence of multiple epithermal vein occurrences within 1.7km x 700m Limon alteration zone
• Current interpretation of mineralised structures trending NW and NE, and higher grades developed at the intersections of these structures

Limon – gold-copper-silver porphyry

• 97.6m at 0.71g/t gold and 0.23% copper in trench
• 79m at 0.52g/t gold, 0.19% copper, 9.4g/t silver from 90m in LMDD010
• Subtle direct surface expression, strong vectors
• Compelling large porphyry target (gold-copper-silver)

Bramaderos – gold-copper-silver camp

• Aiming to deliver 10 million ounce gold equivalent camp
• Current MRE – 2.7Mozs AuEq – porphyry gold-copper-silver
• Current Exploration Target – 3.3 – 8.6 Mozs AuEq – porphyry gold-copper-silver
• MRE and Exploration target DO NOT include the recent high-grade Limon gold-silver opportunity
• MRE and Exploration target Do NOT include upgraded Limon gold-copper-silver porphyry target
• Possible development scenario is taking shape
• Higher grade starter development from Limon gold-silver deposit, but may grow to be significant development in its own right
• Expansion to capture large lower grade porphyry gold-copper-silver (multiple targets)
• Both 'at surface', open pits, low strip ratio, much infrastructure in place, low-cost power
• Preparing next exploration phase to expand higher grade zones and significantly expand MRE
• Potential for global Tier 2 deposit (by definition >250,000ozs pa, min. 10 year mine life, sub US\$1,000 AISC)

El Palmar, northern Ecuador

• To date includes the 2.7Bt Alpala copper-gold porphyry deposit (0.53% CuEq) at Cascabel, the 0.53Bt Tandayama-America coppergold porphyry deposit (0.36% CuEq) at Cascabel, and the 1Bt Llurimagua copper-moly porphyry deposit (1.0% CuEq)
• Highly prospective belt of rocks related to the Toachi Fault Zone
• 3,671 ha total concession coverage

El Palmar - T1-T2-T3-T5 porphyry cluster

• Mineralisation from surface at T1, T2, and T5
• 2.3km long cluster of porphyry targets identified to date; T1 to T5
• Targets could all be related and have geometries that relate to their position on or adjacent to the Toachi fault, and subsidiary orthogonal faults
• Results from holes EPDD026 and 028 in T3 are extremely significant – first holes into a large target delivering ore grade mineralisation. Drill hole intersections are deep, but targets extend towards surface.
• Potential to deliver a very large gold-copper deposit camp

El Palmar - multiple large targets

• T1; 800m long (in NW-SE orientation) already an orebody in its own right
• T1; 21 drill holes completed, gold-copper from surface to 500m below surface, intersections include 160m at 0.7g/t gold and 0.2% copper from 52m (LMDD001)
• T3; EPDD026 and 028 intersections deep but coincident magnetic anomalies extend towards surface
• Increasing confidence that magnetic bodies correlate with gold-copper
• HUGE opportunity

El Palmar - comparison with SolGold-Cascabel-Alpala

El Palmar; comparison with SolGold-Cascabel-Alpala

• Plan view, same scale comparison with the 3Bt Alpala deposit at Cascabel (SolGold)
• At >0.3% CuEq Alpala orebody measures 500m x 900m
• Depth to top of the main Alpala orebody is ~700m
• Comparable scale to the evolving El Palmar exploration

El Palmar - cluster of opportunities

EPDD026

Targets T1 to T5 could all be related and have geometries that relate to their position on or adjacent to the Toachi fault

Porphyries have very large vertical extent – can be > 1,000m

EPDD026 and 028 grades suggest the T3 system can deliver very high grades relative to other porphyry deposits

Depth and vertical extent of El Palmar opportunities are in line with major company exploration search space

El Palmar – taking shape

• Early days
• T1 at surface - porphyry gold-copper deposit
• T1 at depth - not yet explored
• T3 porphyry gold-copper system discovered at depth, possible shallower domains
• Several other porphyry systems with very limited drilling (T2, T4, T5)
• Scale has potential to be very large
• High-grade Verde Chico gold system nearby, and initial exploration commencing

What's ahead

• ✓ Bramaderos
• Limon gold-silver epithermal discovery will fundamentally change Bramaderos
• Limon gold-silver epithermal discovery will deliver the near surface higher-grade front end needed for a larger development
• Deliver additional discoveries at Melonal, Limon porphyry, Porotillo, and other epithermals
• Strengthen expectation of 10Mozs AuEq district with Exploration Target updates
• ✓ El Palmar
• Continue to advance compelling T3 target follow-up to holes EPDD026 & 028, and drill in shallower domains
• Continue not refine target areas with ongoing surface mapping, sampling, and trenching
• Exploration Target
• In the same belt as >1Bt orebodies – will El Palmar join that club?
• ✓ Verde Chico
• Advance exploration to demonstrate high-grade gold system of considerable scale
• Expands district opportunities

Competent Persons Statement

Competent Persons Statement

The information in this report that relates to Mineral Resources is based on information compiled by Mr Aaron Meakin. Mr Aaron Meakin is a full-time employee of CSA Global Pty Ltd and is a Member and Chartered Professional of the Australasian Institute of Mining and Metallurgy. Mr Aaron Meakin has sufficient experience 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 the Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code). Mr Aaron Meakin consents to the disclosure of the information in this report in the form and context in which it appears.

Exploration Target Competent Person

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

See ASX announcements th October 2023 – Limon drilling growing scale th September 2023 – High grade, near surface gold at Limon th September 2023 - El Palmar 2nd hole confirms T3 strongly mineralised porphyry th August 2023 - Limon gold discovery continues to grow 3 rd July 2023 – High grade gold and silver at Limon, Bramaderos th June 2023 – El Palmar T3 gold-copper porphyry discovery th April 2023 – El Palmar drilling intersects porphyry copper system th April 2023 – Limon emerging as major discovery with visible gold in hole th March 2023 – Limon epithermal drilling results th March 2023 – Drilling commences at T2 porphyry target, El Palmar th January 2023 – Limon delivers porphyry discovery th December 2022 – Bramaderos MRE and Exploration Target th October 2022 – More wide intersections at Brama-Alba to support initial MRE th September 2022 – El Palmar drilling results and new target defined th August 2022 – Brama-Alba – best porphyry intersection to date th July 2022 – Brama-Alba drilling, met test work, resource preparation th June 2022 – El Palmar drilling expands gold-copper discovery 27

About Sunstone Metals

Sunstone has an advanced portfolio of exploration projects in Ecuador. The portfolio comprises:

•The Bramaderos Gold-Copper Project where Sunstone owns an 87.5% interest with Cornerstone Capital Resources, a subsidiary of SolGold, holding 12.5% (see ASX announcement dated 10th April 2017, 28th August 2019, and 7 January 2020). The Bramaderos gold-copper project is located in Loja province, southern Ecuador, and is highly prospective for the discovery of large porphyry gold-copper systems, and high-grade epithermal gold systems. The Bramaderos concession is host to multiple fertile mineralised systems with significant discovery potential. The Brama-Alba deposit, within the Bramaderos concession contains an initial Mineral Resource estimate of 156Mt at 0.53g/t AuEq for 2.7Moz gold-equivalent*. In addition to this is the Bramaderos project Exploration Target of between 3.3Moz and 8.6Moz AuEq within 255 to 360Mt at a grade between 0.40 and 0.74g/t AuEq (see ASX release dated December 13, 2022).

JORC Classification	Tonnage (Mt)	Au (g/t)	Cu (%)	Ag (g/t)	AuEq*1 (g/t)	AuEq (Mozs)*1
Indicated	9	0.38	0.09	1.1	0.53	0.2
Inferred	147	0.35	0.11	1.3	0.53	2.5
Total	156	0.35	0.11	1.3	0.53	2.7

The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement for the Mineral Resource estimate and Exploration Target referred to above and, that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement. The potential quantity and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource for the target area reported. It is uncertain if further exploration will result in the estimation of a Mineral Resource.

* ¹ The gold equivalent calculation formula for porphyry gold-copper-silver mineralisation is AuEq(g/t) = (Au grade x Au price x Au recov / 31.1035) + (Ag grade x Ag price x Ag recov / 31.1035) + (Cu grade x Cu price x Cu recov / 100)) / (Au price x Au recov / 31.1035). The prices used were US\$1,800/oz gold and US\$9,500/t copper and US\$22/oz silver. Recoveries are estimated at 89% for gold, 85% for copper, and 60% for silver based on metallurgical studies. In Sunstone's opinion all the elements included in the metal equivalents calculation have reasonable potential to be recovered and sold.

* ² The gold equivalent calculation formula for epithermal gold-silver mineralisation is AuEq(g/t) = Au(ppm) + (Ag (ppm)/82). The prices used were US\$1,800/oz gold and US\$22/oz silver. Recoveries are estimated at 90% for gold and 90% for silver from metallurgical studies. In Sunstone's opinion all the elements included in the metal equivalents calculation have reasonable potential to be recovered and sold

•The El Palmar Copper-Gold Project where Sunstone holds 70% of the highly prospective 800ha El Palmar gold-copper porphyry project in Ecuador. Sunstone can acquire 100% through a Staged Acquisition Agreement. A Staged Acquisition Agreement to acquire the nearby Verde Chico Project has also been signed. The El Palmar and Verde Chico gold-copper projects are located in Imbabura province, northern Ecuador, within the same geological belt that includes the giant Alpala, Tandayama-America and Llurimagua porphyry copper-gold and coppermolybdenum deposits.