SUNSTONE METALS LTD — Capital/Financing Update 2011

Jul 31, 2011

MARKET RELEASE

1 August 2011

Avalon Minerals Limited

TRADING HALT

The securities of Avalon Minerals Limited (the "Company") will be placed in Trading Halt Session State at the request of the Company, pending the release of an announcement by the Company. Unless ASX decides otherwise, the securities will remain in Trading Halt Session State until the earlier of the commencement of normal trading on Wednesday 3 August 2011 or when the announcement is released to the market.

Security Code: AVI

of Hewill

Jill Hewitt Senior Adviser Listings (Perth)

Level 2, 91 Havelock St West Perth WA 6005 PO Box 165 West Perth WA 6872 Tel: + 61 8 9322 2752 Fax: + 61 8 9322 2827

1 August 2011

The Manager - Companies Australian Stock Exchange Limited Level 8, Exchange Plaza 2 The Esplanade PERTH WA 6000

By Fax: 08 9221 2020

REQUEST FOR TRADING HALT

Dear Sir

Further to our verbal advice this morning the Company confirms its request for a Trading Halt effective immediately.

In accordance with Listing Rule 17.1 the Company advises:

• The Trading Halt is requested pending an announcement to the market in connection with the Company's recently announced Capital Raising proposal
• " The Trading Halt is requested until the announcement is made or the commencement of trading on Wednesday 3 August 2011, whichever occurs earlier
• " The Trading Halt is expected to end following release of the announcement
• $\blacksquare$ The Company is not aware of any reason why the Trading Halt should not be granted.

Yours sincerely Avalon Minerals Ltd

Paul Bridson Company Secretary