SUNSTONE METALS LTD — Capital/Financing Update 2007

Mar 19, 2007

Level 1 33 Ord Street West Perth WA 6005

Telephone: +61 8 9420 9300 Fax: +61894812690

16 March 2007

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Australian Stock Exchange Limited Exchange Plaza 2 The Esplanade Perth WA 6000

Attention: Ben Donovan Adviser, Issuers (Perth)

Dear Sir

I wish to confirm the following:

• 1. The offer under the Prospectus dated 9 February 2007 has closed and the issue and allotment of 17,500,000 ordinary shares at an issue price of 20 cents has occurred.
• 1. The agreement with Gregory Wayne Down to acquire all the issued capital of Xmin Limited has been completed.
• 1. Despatch has been authorised to occur today for each of the following:
  • a. In relation to all holdings on the CHESS sub-register, a notice from the Company under ASTC Settlement Rule 8.9.1;
  • b. In relation to all other holdings, issuer sponsored holding statements;
  • c. Any refund money.

Attached is the pre-quotation information for announcement to the market.

Yours sincerely dinedier

Gary Steinepreis Director