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SUNSTONE METALS LTD Capital/Financing Update 2015

Nov 11, 2015

65870_rns_2015-11-11_3b2e47d3-b9cf-45d6-b3cd-c2572cbd9abe.pdf

Capital/Financing Update

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Avalon Minerals Limited (ASX:AVI) ("Avalon" or "Company")

Notification of Under-Subscription Non-Renounceable 1:2 Rights Issue

Avalon confirms that the 1 for 2 non-renounceable Rights Issue announced on 16[th] October 2015, has closed.

The Rights Issue offered up to 127,585,665 new shares at an issue price of $0.027 per share to existing shareholders, and has raised $1,791,035.66 as below:

Number ofShares $
Entitlements available under theOffer 127,585,665 3,444,812.96
Acceptancesreceived 66,213,442 1,787,762.93
Additional shares applied and paidforunderthe Shortfalloffer 121,212 3,272.72
Totals applied and paid for bycurrent shareholders 66,334,654 1,791,035.66
Unplaced Shortfall 61,251,011 1,653,777.30

The allotment of new shares under the Entitlement Offer is scheduled to take place on 13 November 2015.

The remaining shortfall shares can be placed at the discretion of the Board no later than three months after the closing date of the offer (i.e. by 9 February 2016), and Avalon is in discussions to place these shortfall shares at a price no less than the issue price under the Rights Issue of $0.027 per share.

This announcement has also been put on the Company's website.

For further information please visit www.avalonminerals.com.au or contact:

Mr Malcolm Norris Managing Director Avalon Minerals Limited Tel: 07 3368 9888 Email: [email protected]