SUNSTONE METALS LTD — Capital/Financing Update 2016

Feb 22, 2016

MARKET RELEASE

23 February 2016

Avalon Minerals Limited

TRADING HALT

The securities of Avalon Minerals Limited (the "Company") will be placed in Trading Halt Session State at the request of the Company, pending the release of an announcement by the Company. Unless ASX decides otherwise, the securities will remain in Trading Halt Session State until the earlier of the commencement of normal trading on Thursday, 25 February, 2016 or when the announcement is released to the market.

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

23 February 2016

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

By Email

TRADING HALT REQUEST – AVALON MINERALS LIMITED ("AVI")

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

The Company provides the following information in accordance with Listing Rule 17.1:-

• The request for the Trading Halt is pending the release of an announcement regarding a material capital raising.
• The Trading Halt is to last until the earlier of the Company releasing an announcement, or the commencement of trade on Thursday, 25 February 2016.
• It is expected that the Trading Halt 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 Trading Halt 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

Avalon Minerals Limited ACN 123 184 412 9 Gardner Close PO Box 1565 Milton Qld 4064