SUNSTONE METALS LTD — Capital/Financing Update 2020

May 18, 2020

Announcement Summary

Entity name SUNSTONE METALS LTD

Announcement Type

Update to previous announcement

Date of this announcement

Tuesday May 19, 2020

Reason for update to a previous announcement

Acceptance of oversubscriptions in SPP resulting in more than previously disclosed 430 million maximum securities to be issued

Total number of +securities proposed to be issued for an offer of securities under a securities purchase plan

ASX +Security Code	+Security Description	Maximum Number of+securities to be issued
STM	ORDINARY FULLY PAID	480,600,000

+Record date

Tuesday April 21, 2020

Offer closing date

Thursday May 14, 2020

+Issue date

Thursday May 21, 2020

Refer to next page for full details of the announcement

Part 1 - Entity and announcement details

1.1 Name of +Entity

SUNSTONE METALS LTD

We (the entity named above) give ASX the following information about a proposed issue of +securities and, if ASX agrees to +quote any of the +securities (including any rights) on a +deferred settlement basis, we agree to the matters set out in Appendix 3B of the ASX Listing Rules.

1.2 Registered Number Type

ABN

Registration Number

68123184412

1.3 ASX issuer code

STM

1.4 The announcement is

Update/amendment to previous announcement

1.4a Reason for update to a previous announcement

Acceptance of oversubscriptions in SPP resulting in more than previously disclosed 430 million maximum securities to be issued

1.4b Date of previous announcement(s) to this update

Tuesday April 28, 2020

1.5 Date of this announcement

Tuesday May 19, 2020

1.6 The Proposed issue is:

An offer of +securities under a +securities purchase plan

Part 4 - Details of proposed offer under securities purchase plan

Part 4A - Conditions

4A.1 - Are any of the following approvals required for the offer of +securities under the +securities purchase plan issue to be unconditional?

• +Security holder approval
• Court approval
• Lodgement of court order with +ASIC
• ACCC approval
• FIRB approval
• Another approval/condition external to the entity

No

Part 4B - Offer details

Class or classes of +securities that will participate in the proposed issue and class or classes of +securities proposed to be issued

ASX +Security Code and Description

STM : ORDINARY FULLY PAID

Will the proposed issue of this +security include an offer of attaching +securities? No

Details of +securities proposed to be issued

ASX +Security Code and Description

STM : ORDINARY FULLY PAID

Maximum Number of +securities proposed to be issued

480,600,000

Minimum Number of +securities proposed to be offered to each individual +security holder

500,000

Maximum Number of +securities proposed to be offered to each individual +security holder 6,000,000

4C.3 Date on which offer documents will be made available to investors

Thursday April 30, 2020

4C.4 Offer open date Thursday April 30, 2020

4C.5 Offer closing date

Thursday May 14, 2020

4C.6 Announcement of results

Tuesday May 19, 2020

4C.7 +Issue date Thursday May 21, 2020

Part 4D - Listing Rule requirements

• 4D.1 Does the offer under the +securities purchase plan meet the requirements of listing rule 7.2 exception 5 that: the number of +securities to be issued is not greater than 30% of the number of fully paid +ordinary securities already on issue; and
• the issue price of the +securities is at least 80% of the +volume weighted average market price for +securities in that +class, calculated over the last 5 days on which sales in the +securities were recorded, either before the day on which the issue was announced or before the day on which the issue was made?

Yes

Part 4E - Fees and expenses

4E.1 Will there be a lead manager or broker to the proposed offer? Yes

4E.1a Who is the lead manager/broker?

Morgans Corporate Limited

4E.1b What fee, commission or other consideration is payable to them for acting as lead manager/broker?

5% on funds raised through broker nominated clients (2.5% management and 2.5% selling fee)

4E.2 Is the proposed offer to be underwritten? No

4E.3 Will brokers who lodge acceptances or renunciations on behalf of eligible +security holders be paid a handling fee or commission?

Yes

4E.3a Will the handling fee or commission be Dollar based or Percentage based? Percentage based (%)

4E.3b Amount of any handling fee or commission payable to brokers who lodge acceptances on behalf of investors

2.000000 %

4E.3c Please provide any other relevant information about the handling fee or commission method

Fee to brokers to be paid out of fee paid to Lead Manager

4E.4 Details of any other material fees or costs to be incurred by the entity in connection with the proposed offer

Part 4F - Further Information

4F.1 Will the entity be changing its dividend/distribution policy if the proposed offer is successful? No

4F.2 Countries in which the entity has security holders who will not be eligible to accept the proposed offer

Canada, Switzerland, Ecuador, United Kingdom, Hong Kong, Liechtenstein, Malaysia, Philippines, Singapore, Sweden and Thailand

4F.3 URL on the entity's website where investors can download information about the proposed offer

https://www.sunstonemetals.com.au/asx-announcements

4F.4 Any other information the entity wishes to provide about the proposed offer