SUNSTONE METALS LTD — Capital/Financing Update 2016

Feb 24, 2016

MARKET RELEASE

25 February 2016

Avalon Minerals Limited

SUSPENSION

The securities of Avalon Minerals Limited (the "Company") will be suspended from official quotation immediately at the request of the Company, pending the release of an announcement.

Security Code: AVI

Jill Hewitt

SENIOR ADVISER, LISTINGS COMPLIANCE (PERTH)

Level 40 Central Park 152-158 St Georges Terrace Perth WA 6000

www.asx.com.au Customer service 13 12 79 Phone: 08 9224 0000 Email: jill.hewitt@asx.com.au

25 February 2016

The Manager - Companies Australian Securities Exchange Limited Level 40, Central Park 152-158 St George's Tce PERTH WA 6000

By Email

VOLUNTARY SUSPENSION REQUEST – AVALON MINERALS LIMITED ("AVI")

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

The Company provides the following information in accordance with Listing Rule 17.2:-

• The request for the Voluntary Suspension is pending the release of an announcement regarding a material capital raising.
• The details relating to the material capital raising were unable to be finalised appropriately during the 2 day Trading Halt which commenced on Tuesday 23 February 2016.
• The Voluntary Suspension is to last until the earlier of the Company releasing an announcement, or the commencement of trade on Tuesday, 1 March 2016.
• It is expected that the Voluntary Suspension 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 Voluntary Suspension should not be granted.

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

Yours sincerely

Gavin Leicht Company Secretary Avalon Minerals Limited