SUNSTONE METALS LTD — Capital/Financing Update 2010

Mar 22, 2010

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ASX/Media Release 23 March 2010

AVALON ENTITLEMENTS ISSUE SHORTFALL PLACEMENT

Avalon Minerals Ltd (AVI) is pleased to announce that pursuant to the nonrenounceable entitlements issue prospectus dated the 17th day of December 2009, it has resolved to place the $1.7M shortfall and will issue 8,433,090 new shares at 21 cents each. This will complete the recent 1 for 7 entitlements issue. The Company has 3 diamond drilling rigs in the field at its 100% owned Viscaria Cu-Fe project in Northern Sweden.

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Mr David McSweeney Chairman Avalon Minerals Limited Telephone: +61 (0)8 9388 1474 Mobile: +61 0439 399 318

Avalon Minerals Ltd ACN 123 184 412

PO Box 165 West Perth WA 6872

Telephone: +61 8 9322 2752 Mobile: 0439 399 318 Email:

david@avalonminerals.com.au Web: www.avalonminerals.com.au

ASX Code: AVI

Directors David McSweeney (Executive Chairman) Tan Sri Abu Sahid Mohamed (Non-Executive Director) Stephen Stone (Non-Executive Director)

Gary Steinepreis (Non- Executive Director)