SUNSTONE METALS LTD — Capital/Financing Update 2011

Jan 26, 2011

ASX/Media Release 27 January 2011

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AVALON PROSPECTUS DISPATCHED

The Directors of Avalon Minerals Ltd (ASX: AVI ; “Avalon”) are pleased to announce that the dispatch of the one for five non-renounceable Entitlement Issue Prospectus has been completed today.

Further Information

For further information on this release and Avalon Minerals generally, please contact:

Andrew Munckton Managing Director Ph: +61 8 9322 2752 Email: andrew.munckton@avalonminerals.com.au

Avalon Minerals Ltd ACN 123 184 412 PO Box 165 West Perth WA 6872 www.avalonminerals.com.au

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Released by: Nicholas Read Read Corporate Telephone: +61 (0)8 9388 1474

On behalf of: Mr Andrew Munckton Managing Director Avalon Minerals Limited Mobile: +61 0435 635 598