SUNSTONE METALS LTD — Capital/Financing Update 2015

Mar 9, 2015

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AVALON MINERALS LIMITED Disclosure under ASX Listing Rule 3.10.5A

Further to the announcement dated 2 March 2015, Avalon Minerals Ltd (‘Company’) has today issued 33,583,870 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:	144,735,608
Contemporaneous issue under LR 7.1 of 19,110,309 shares	13.2%
Placement issue under LR 7.1A of 14,473,561 shares	10%
Total dilution as a result of the Placement	23.2%
Number of shares on issue following the Placement	178,319,478

• b) The 14,473,561 shares under LR 7.1A were issued to one sophisticated and professional investor 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) Fees of 6% are payable on the amount raised.

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.

Roslynn Shand Company Secretary Avalon Minerals Limited

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