SUNSTONE METALS LTD — Capital/Financing Update 2012

Oct 30, 2012

MARKET RELEASE

31 October 2012

Avalon Minerals Limited

SUSPENSION FROM OFFICIAL QUOTATION

The securities of Avalon Minerals Limited (the "Company") will be suspended from quotation immediately, at the request of the Company, pending the release of an announcement.

Security Code: AVI

Jill Hewitt Senior Adviser Listings (Perth)

ABN 68 123 184 412 65 Park Road, PO Box 1565 Milton Old 4064 Australia P +61 7 3368 9888 F +61 7 3368 9899 info@avalonminerals.com.au www.avalonminerals.com.au

31 October 2012

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

By Email

Voluntary Suspension

I confirm that Avalon Minerals Limited ('Company') requests a voluntary suspension in its securities and provides the following information in accordance with Listing Rule 17.1:-

• The request for a voluntary suspension is pending the release of an announcement $\bullet$ regarding a material capital raising.
• The voluntary suspension is to last until the earlier of the Company releasing an $\bullet$ announcement, or the commencement of trade on Thursday, 1 November 2012.
• We expect that the voluntary suspension will be ended by the Company making an $\bullet$ announcement of the kind referred to above.
• The Company is not aware of any reason why the voluntary suspension should not $\bullet$ be granted.

Please contact me if you require any further information concerning this matter.

Yours sincerely

Roslynn Shand Company Secretary Avalon Minerals Ltd