SUNSTONE METALS LTD — Capital/Financing Update 2015

Mar 1, 2015

2 March 2015

AVALON MINERALS TO COMPLETE $2M PLACEMENT

Highlights

• Placement to existing major shareholders and new, professional investors to raise a total of AUD$2 million at $0.025 per share;

  • 33.5M shares to be issued under the Company’s current available capacity under the ASX Listing Rules to raise $0.84 million;

  • a further 46.4 million shares to be issued on receipt of shareholder approval to raise $1.16M;

• Proceeds from the equity raising will be used to progress Avalon’s flagship Viscaria Copper Project in northern Sweden and for working capital.

Avalon Minerals Ltd (ASX: AVI) (‘Avalon’ or ‘Company’ ) announces that it has arranged a placement to raise up to AUD $2 million (before costs). The placement will be made to existing shareholders and new, professional investors in Australia and Europe. The funds will be used to progress the Company’s Viscaria Copper Project in northern Sweden and for working capital

Avalon’s Managing Director, Mr Malcolm Norris said, “It is extremely pleasing to complete this placement of AUD$2 million to fund ongoing work programs and drilling at the Viscaria Project. Despite the resources sector facing challenging times, this placement confirms the solid financial support Avalon continues to receive”.

Viaticus Capital LLC (New York), the Company’s corporate advisors, assisted with the placement.

The issue and allotment of the initial 33,583,902 shares is scheduled to occur on Friday, 6 March 2015.

The Company will seek approval at a shareholders meeting for the issue of the additional 46 million shares under the placement. Details of the general meeting will be announced in due course.

The placement now of 33,583,902 shares is within the Company’s available capacity under the ASX Listing Rules. An Appendix 3B and other requisite information will be lodged with ASX upon issue and allotment of the placement shares.

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

Mr Malcolm Norris Managing Director Avalon Minerals Ltd Tel: 07 3368 9888

Email: malcolm.norris@avalonminerals.com.au