SUNSTONE METALS LTD — Capital/Financing Update 2011

Aug 2, 2011

==> picture [483 x 83] intentionally omitted <==

3 August 2011

Company Announcements Platform Australian Stock Exchange Limited Level 8, Exchange Plaza 2 The Esplanade PERTH WA 6000

EXPIRY OF OPTIONS

Avalon Minerals Ltd (ASX:AVI) advises that the following unlisted options over its fully paid ordinary shares were not exercised prior to their expiry date and have now been cancelled:

Number Exercise Price Expiry Date 100,000 $0.20 31 July 2011

Yours sincerely AVALON MINERALS LTD

==> picture [131 x 86] intentionally omitted <==

PAUL BRIDSON Company Secretary