SUNSTONE METALS LTD — Capital/Financing Update 2015

Oct 18, 2015

19 October 2015

AVALON MINERALS LIMITED Disclosure under ASX Listing Rule 3.10.5A

Further to the announcement dated 16 October 2015, relating to the Avalon Minerals Ltd (‘Company’) placement of 14,851,852 fully paid ordinary shares.

Details of issue of 10% Placement Facility under ASX LR 7.1A

The Company provides the following information as required under ASX LR 3.10.5A in respect of the shares issued under the Placement:

• a) The dilutive effect of the Placement on existing shareholders is as follows:

Number of shares on issue prior to the Placement:	240,319,4788
Total dilution as a result of the Placement	6.18%
Number of shares on issue following the Placement	255,171,330

• b) The 14,851,852 shares under LR 7.1A were issued to four sophisticated and professional investors, in conjunction with a 1 for 2 non-renounceable Rights Issue, as it was considered to be the most efficient mechanism for raising the funds at the time.

• c) There were no underwriting arrangements entered into.

• d) No fees are payable on the amount raised from the placement.

Avalon also confirms that the source of the data for determining the placement issue price, which was at least 75% of the 15 Day VWAP as calculated under LR 7.1A.3, was Morgans Stockbroking and trading price-volume data available on market for Avalon shares.

Gavin Leicht Company Secretary Avalon Minerals Limited

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