SUNSTONE METALS LTD — Capital/Financing Update 2012

Jul 3, 2012

MARKET RELEASE

4 July 2012

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 Friday, 6 July 2012 or when the announcement is released to the market.

Security Code: AVI

Kerrie Papamihail Assistant Manager, Listings (Perth)

ABN 68 123 184 412 65 Park Road, PO Box 1565 Milton Qld 4064 Australia P+617 3368 9888 F+617 3368 9899 info@avalonminerals.com.au www.avalonminerals.com.au

4 July 2012

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

By Email

TRADING HALT REQUEST

I confirm that Avalon Minerals Limited ("Avalon" or "Company') wishes to request a Trading Halt in its securities effective immediately.

The Company provides the following information in accordance with Listing Rule 17.1:-

• The request for the Trading Halt is pending the release of an announcement regarding a material capital raising.
• The Trading Halt is to last until the earlier of the Company releasing an announcement, or the commencement of trade on Friday, 6 July 2012.
• It is expected that the Trading Halt will be ended by the Company making an announcement of the kind referred to above.
• The Company is not aware of any reason why the Trading Halt should not be granted.

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

Yours sincerely

.
Chr

Roslynn Shand Company Secretary Avalon Minerals Ltd