SUNSTONE METALS LTD — Capital/Financing Update 2017

May 10, 2017

11 MAY 2017

RELEASE OF SECURITIES SUBJECT TO ESCROW

Avalon Minerals Ltd advises, in accordance with Listing Rule 3.10A, that the following securities subject to voluntary escrow will be released from escrow on 26 May 2017:

1,000,000 fully paid ordinary shares, issued to Nortec Minerals Corp. (TSX.V-NVT). (refer to ASX Announcement dated 19 May 2016 for further details).

Yours faithfully

Gavin Leicht Company Secretary Avalon Minerals Limited

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