SUNSTONE METALS LTD — Board/Management Information 2014

Mar 18, 2014

19 March 2014

MANAGING DIRECTOR AND NON-EXECUTIVE DIRECTOR APPOINTMENTS

Australian resources company Avalon Minerals Limited ('Avalon' or 'Company') (ASX: AVI) is pleased to announce the appointment of a new CEO/Managing Director and Non-Executive director. Mr Hyma's appointment as a Non-Executive Director is effective immediately, with Mr Norris to commence his role as CEO/Managing Director on 1 April 2014.

Mr Malcolm Norris (MSc, Grad Dip App Fin, FAusIMM) Chief Executive Officer and Managing Director

Mr Norris is a senior mining industry professional with extensive experience in business management, mineral exploration, development of new business opportunities and asset transactions. His roles have covered a wide range of commodities, geographic locations and management of global portfolios of projects in both large and small organisations.

Mr Norris holds an MSc in Geology and a Graduate Diploma in Applied Finance. He has more than 30 years of industry experience and in the last 15 years has focused primarily on corporate roles. Most recently he was CEO and Managing Director at SolGold PLC where he focussed on implementing significant change, building a new team and new portfolio, along with interacting with investors (Australia, UK, Europe, and North America), and raising equity to grow the company.

Mr Don Hyma (BSc, MSc, PEng, IED)

Non-Executive Director

Mr Hyma is a 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.

Mr Hyma holds a BSc in Mining Engineering and an MSc in Mineral Processing, along with an International Executive Management Diploma (INSEAD). Based in Perth, Mr Hyma currently provides independent advisory services to several multi-national trading and resource companies. Previously, Mr Hyma was Vice-President – Expansion Projects for the Iron Ore Company of Canada and General Manager, Mine and Infrastructure Projects for Rio Tinto Iron Ore. Mr Hyma has also held senior management and engineering roles at Falconbridge Limited working on the Koniambo nickel, Raglan nickel and Collahuasi copper projects.

The Chairman of Avalon, Mr Graham Ascough, said "It is extremely pleasing to have Malcolm and Don join the Company. Their wealth of experience and knowledge in the mining industry, particularly in developing and delivering projects, will be invaluable to Avalon as it moves forward with the Viscaria Project in Sweden."

"Malcolm has strong credentials and a solid track record of delivering significant shareholder wealth through discovery success and disciplined management. He is well regarded in capital markets throughout Australia, Asia, North America and the UK."

"Don's project development experience in iron ore and copper is clearly relevant to the Viscaria project. His involvement in the design and development of the Raglan mine in the Canadian Arctic in combination with his global experience will also be beneficial in guiding Viscaria towards development.

"I'm confident that they will be able to positively contribute to the future success of the Company and both I and my fellow directors look forward to working with Malcolm and Don."

With a new Board and management in place, the Company is now able to firmly focus on progressing through its next stage of development and deliver positive outcomes for all shareholders.

With these new appointments, the Board of Directors is as follows:

Mr Graham Ascough – Non-Executive Chairman Mr Malcolm Norris – Chief Executive Officer and Managing Director Mr Crispin Henderson – Non-Executive Director Mr Paul Niardone – Non Executive Director Mr Don Hyma - Non Executive Director

Remuneration details for Mr Norris are set out below and an Appendix 3X for Mr Hyma is attached.

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

Remuneration Details for CEO/Managing Director

Commencement Date

1 April 2013, for a minimum term of 18 months.

Base Salary

$270,000 per year plus statutory superannuation, first reviewed on 1 July 2015 and then annually.

Options offer

Subject to obtaining shareholder approval, the Company has offered a total of 40,000,000 options upon the following terms:

• 15 million options each to acquire one new ordinary share in Avalon Minerals exercisable at a price, rounded to the nearest tenth of a cent, 50% above the closing price of the company's shares on the date shareholder approval is granted with an exercise period of 3 years commencing on the date shareholder approval is granted and expiring on the third anniversary of that date; and
• 25 million options each to acquire one new ordinary share in Avalon Minerals exercisable at a price rounded to the nearest tenth of a cent, 100% above the closing price of the company's shares on the date shareholder approval is granted with an exercise period of 5 years commencing on the date shareholder approval is granted and expiring on the fifth anniversary of that date.

If employment is terminated within 12 months after the commencement date by Mr Norris or by the Company summarily, the Board of Directors may (in its absolute discretion) by notice cancel for no consideration all options held which have not then been exercised.

Termination Provisions

The Company or Mr Norris may terminate at any time by giving 6 months' notice.

Should Mr Norris be terminated within 18 months after commencement (other than by Mr Norris or summary termination, but including as a result of a merger or takeover of the Company), the Company will pay remuneration otherwise payable for the unexpired period of the initial term of employment (subject to the Company obtaining any shareholder approval that may be required). If that shareholder approval is not obtained, the Company will pay the maximum amount calculated in accordance with section 200F of the Corporations Act 2001 (Cth).

Appendix 3X

Rule 3.19A.1

Initial Director's Interest Notice

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX's property and may be made public.

Introduced 30/9/2001.

Name of entity: Avalon Minerals Ltd
ABN:	68 123 184 412

We (the entity) give ASX the following information under listing rule 3.19A.1 and as agent for the director for the purposes of section 205G of the Corporations Act.

Name of Director	Don Hyma
Date of appointment	19 March 2014

Part 1 - Director's relevant interests in securities of which the director is the registered holder

In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust

Note: In the case of a company, interests which come within paragraph (i) of the definition of "notifiable interest of a director" should be disclosed in this part.

Number & class of securities

Nil

+ See chapter 19 for defined terms.

Part 2 – Director's relevant interests in securities of which the director is not the

registered holder

In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust

Nameofholder & nature ofinterest	Number & class of Securities
Note: Provide details of the circumstances giving rise tothe relevant interest.
	Nil

Part 3 – Director's interests in contracts

Note: In the case of a company, interests which come within paragraph (ii) of the definition of "notifiable interest of a director" should be disclosed in this part.

Detail of contract	Nil
Nature of interest
Name of registered holder(if issued securities)
No. and class of securities towhich interest relates

Date: 19 March 2014

+ See chapter 19 for defined terms.