SUNSTONE METALS LTD — Capital/Financing Update 2011

Jul 4, 2011

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5 July 2011

Notice under Section 708A of the Corporations Act 2001

On 30 June 2011 and 5 July 2011 Avalon Minerals Ltd (“ Company ”) issued respectively 6,500,000 and 1,862,222, fully paid ordinary shares (“ Shares ”) under a share placement (8,362,222 Shares in total).

The Company gives notice under section 708A(5)(e) of the Corporations Act 2001 (Cth) (“ Act ”) that:

• 1 the Company issued the Shares without disclosure to investors under Part 6D.2 of the Act;

• 2 as at the date of this notice, the Company has complied with:

  • (a) the provisions of Chapter 2M of the Act as they apply to the Company; and (b) section 674 of the Act; and

• 3 as at the date of this notice, there is no information to be disclosed which is excluded information (as defined in section 708A(7) of the Act) that is reasonable for investors and their professional advisers to expect to find in a disclosure document.

AVALON MINERALS LTD

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Paul Bridson Company Secretary