SUNSTONE METALS LTD — Capital/Financing Update 2021

Oct 6, 2021

7 OCTOBER 2021

Strong first assays confirm El Palmar is a significant gold-copper porphyry discovery Extremely wide intersections and mineralisation runs from surface

Key Points

• First assays have been received from drilling at the El Palmar gold-copper porphyry project in Ecuador

• Assays from hole EPDD001 include:

  • 163.55m at 0.71g/t gold and 0.20% copper (1.05g/t gold equivalent[1] ) from 52.35m

  • Within 480.85m at 0.41g/t gold and 0.15% copper (0.66g/t gold equivalent[1] ) from 11.3m

• Partial assays from hole EPDD002 for the interval 250 – 417.5m are:

  • 167.50m at 0.58g/t gold and 0.26% copper (1.02g/t gold equivalent[1] ) from 250m

• Assays from the remainder of hole EPDD002 and from hole EPDD003 are expected in ~six weeks

• Presence of bornite and other high-tenor copper sulphide minerals suggest higher copper grades can be expected within the system

• Sunstone can acquire 100% of the El Palmar project and has met all the obligations under the Staged Acquisition Agreement to move to 51% ownership, with the process to transfer the shares currently underway

• Sunstone is fully funded for ongoing exploration at El Palmar, with cash and equity investments totalling ~$21m

• “These assays show El Palmar is a significant discovery. These grades and widths, combined with the size of the magnetic target we are drilling, highlight the very compelling upside.”- Sunstone MD Malcom Norris

Sunstone Metals Ltd (ASX: STM) is pleased to announce a 480m intersection of gold and copper in its first drill hole at El Palmar, that includes high gold-grade sections that are characteristic of gold-rich porphyry systems.

1 - AuEq is calculated on a gold and copper basis only, using metals prices at 28[th] September 2021, being US$1,750/oz gold, US$4.29/lb copper using the formula: (gold grade in g/t) + 1.68 * (Cu grade in %). No metallurgical recoveries have been applied to exploration results.

These strong first assay results indicate a significant gold-copper porphyry discovery at the El Palmar project in Ecuador. Sunstone is acquiring 100% of the El Palmar project under the Stage Acquisition Agreement signed on 12 August 2020 (see ASX announcement dated 12 August 2020). Sunstone has met all the obligations under the Staged Acquisition Agreement to move to 51% ownership, with the process to transfer the shares currently underway.

The project is located in northern Ecuador in the vicinity of the 1.0Bt Llurimagua copper-molybdenum porphyry deposit, and in the same regional structural belt that hosts the 2.6Bt Alpala copper-gold deposit within the Cascabel project.

The El Palmar results comprise all assays from the first hole (EPDD001) and those from a portion of the second hole (EPDD002). Assays from the rest of the second hole and the third hole, which has been completed, are expected in about six weeks. Drill hole EPDD004 is nearing completion (Table 2). All holes are mineralised.

The assay results include (Table 1):

• 163.55m at 0.71g/t gold and 0.20% copper (1.05g/t gold equivalent[1] ) from 52.35m , within a broad interval of 480.85m at 0.41g/t gold and 0.15% copper (0.66g/t gold equivalent [1] ) from 11.3m in EPDD001

• 167.50m at 0.58g/t gold and 0.26% copper (1.02g/t gold equivalent1) in EPDD002 – only 167.5m assayed to date from 250m to 417.5m

• Peak values are 1m at 1.34g/t gold and 0.41% copper (2.03g/t gold equivalent[1] ) in EPDD001 from 192.2-193.2m

• Peak values are 1m at 1.65g/t gold and 0.59% copper (2.64g/t gold equivalent[1] ) in porphyry mineralisation in EPDD002 from 266-267m

• Local epithermal overprint in EPDD002 delivering assay results of 9.25m at 1.22g/t gold and 6.92g/t silver from 388.75m

Sunstone MD Malcolm Norris said it was clear the Company had made a major discovery at El Palmar.

“We are very excited about these results,” Mr Norris said. “These grades and widths, combined with the size of the magnetic target we are drilling and the fact that mineralisation starts from surface, show that El Palmar is an outstanding discovery with huge potential. And it is early days, to have drilled mineralisation in all 4 holes drilled to date is an incredible start to this drilling program.

“Importantly, the copper and gold grades in drilling are aligning very well with the magnetic target, which gives us immense confidence in the size of the prize.

“We are now drilling hole four and we expect to have assays from the rest of hole two and all of hole three in about six weeks.”

Mr Norris said the discovery was a direct result of the skills and hard work of the Sunstone team both in Australia and in Ecuador.

“I would like thank our team and our highly regarded project vendor and geologist Mr. Edgar Salazar, who has believed in this project for many years. We look forward to advancing this discovery for the benefit of the Ecuadorean people, the communities we interact with every day, and our shareholders.

“We can now plan a significant drilling program on this new, large gold-copper porphyry system, which measures at least 500m in diameter at surface, is mineralised from surface and based on early drilling and 3- D magnetic modelling, has potential to extend vertically for at least several hundred meters. We are in the fortunate position of being fully funded to undertake this work.”

Drill Hole	From (m)	To (m)	Interval (m)	Au (g/t)	Cu (%)	Mo (ppm)	Ag (g/t)	AuEq (g/t)
EPDD001	11.30	492.15	480.85	0.41	0.15	3.40	0.74	0.66
incl	52.35	215.90	163.55	0.71	0.20	1.39	1.14	1.05
incl	66.90	96.80	29.90	0.73	0.20	0.70	1.06	1.07
incl	147.25	163.30	16.05	0.80	0.20	1.36	2.69	1.14
EPDD002	250.00	417.50	167.50	0.58	0.26	3.54	1.81	1.00
incl	252.00	274.00	22.00	1.06	0.33	3.87	1.49	1.59
incl	388.75	398.00	9.25	1.22	0.19	4.38	6.92	1.54
incl (end of sampling to date)	415.50	417.50	2.00	2.45	0.05	8.83	17.24	2.53

Table 1: Mineralised intervals in holes EPDD001 and part of EPDD002

Detailed logging of holes EPDD001 to 003 has identified an extensive porphyry system with multiple phases of intrusive rocks, alteration domains including potassic, sodic, phyllic and propylitic alteration domains, local areas of epithermal overprint with elevated gold-copper-lead-zinc-silver mineralisation, and within the porphyry system copper in chalcopyrite, bornite, chalcocite, and covellite – suggesting proximity to ‘hotter’ and higher-grade domains.

The degree of veining is variable and includes multiple phases of quartz and quartz-sulphide veins, and multiple populations of magnetite veins (Figure 3).

Statistical analysis of drill core assay results has shown strong correlation between copper, gold, silver, and magnetic susceptibility.

Drill hole EPDD004 is now at ~500m depth. It has intersected porphyry mineralisation with some visible chalcopyrite and bornite. These preliminary results from EPDD004, together with EPDD001 on the same section, deliver a mineralised porphyry system of at least 500m diameter (Figures 1 and 2). This is very encouraging and provides an early indication of the potential scale of this discovery.

The El Palmar auger soil sampling program has resumed and is covering several additional targets to the southeast and east of the main El Palmar target to bring these to the drill testing stage (Figure 4). The southeast area has had some historical rock chip sampling and 25 samples over a strike length of 60m, on the margin of a coincident bullseye magnetic anomaly, returned an average of 0.33g/t gold and 0.12% copper.

Sunstone’s cash and equity investments remain strong at ~$21m, allowing expanded exploration activities at El Palmar on the back of these positive results.

El Palmar is located in northern Ecuador (Figures 5 & 6) in the vicinity of the one-billion-tonne Llurimagua copper-molybdenum porphyry deposit and in the same regional structural belt that hosts the 2.6Bt Alpala copper-gold deposit within the Cascabel project (Figure 5 and see ASX announcement dated 12 August 2020).

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Figure 1: RTP magnetics image showing the circular magnetic anomaly being targeted with drilling by Sunstone. Holes EPDD001, EPDD002 and EPDD003 have been completed, and hole EPDD004 is in progress. Prepared drill collars to allow for future drilling are shown as yellow stars. Also shown are three historical drill holes (EPD01-03, drilled by Codelco), which drilled away from the Sunstone defined target area (see ASX announcement dated 12[th] August 2020 for details of historical drilling results). CED prefixed drill holes are historical (2012) drilling by Codelco.

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Figure 2 : Cross section through EPDD001 at El Palmar. The 480.85m long intersection of porphyry gold and copper mineralisation is hosted by a quartz diorite porphyry intrusion that coincides with the southeast section of a 700m diameter magnetic intrusive complex. Surface copper and gold responses in auger soil samples (Figure 4) suggest significant portions of this magnetic complex may be mineralised.

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Figure 3 : Photograph of drill core from EPDD001 from 152.5m to 159.5m, and EPDD002 from 303m to 310m showing sampling intervals and gold and copper assay results.

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Figure 4: Auger soil sampling image showing the coverage area of soil sampling to date and the current area of sampling to the southeast where copper and gold anomalous rock chip results are associated with a magnetic bullseye anomaly. Note – only the middle portion of hole EPDD002 has been assayed – full assays are expected in early November. CED prefixed drill holes are historical (2012) drilling by Codelco.

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Figure 5: Location of the El Palmar project relative to the Llurimagua and Alpala (Cascabel) deposits, and the Toachi fault system.

Drill Hole Number	Easting (m)	Northing (m)	Dip (degrees)	Azimuth (UTM/Mag) (PSAD56 Grid) (degrees)	EOH (m)
EPDD001	746,737	10,030,181	-70	348/352	708.5
EPDD002	746,737	10,030,181	-60	018/022	595.05
EPDD003	746,737	10,030,181	-70	290/294	605.3
EPDD004	746,650	10,030,749	-55	175/179

Table 2: Drill hole details for the El Palmar Project.

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Figure 6: Location of the El Palmar project in northern Ecuador

For further information, please visit www.sunstonemetals.com.au

Mr Malcolm Norris Managing Director Sunstone Metals Ltd Tel: 07 3368 9888 Email: mnorris@sunstonemetals.com.au

Media: Paul Armstrong Read Corporate

+61 8 9388 1474

About Sunstone Metals

Sunstone has an advanced portfolio of exploration and development projects in Ecuador and Scandinavia. The portfolio comprises:

1. The Bramaderos Gold-Copper Project where Sunstone owns an 87.5% interest with TSXV listed Cornerstone Capital Resources holding 12.5% (see ASX announcement dated 10[th] April 2017, 28[th] August 2019, and 7 January 2020). The Bramaderos gold-copper project is located in Loja province, southern Ecuador, and is highly prospective for the discovery of large porphyry gold-copper systems, and high-grade epithermal gold systems. Historical exploration results from drilling at Bramaderos together with recent exploration by Sunstone and joint venture partner Cornerstone Capital Resources (TSXV:CGP) indicate multiple fertile mineralised systems with significant discovery potential.

2. The El Palmar Copper-Gold Project where the highly prospective 800ha El Palmar copper-gold porphyry project in Ecuador will be acquired through a Staged Acquisition Agreement, which will ultimately deliver 100 per cent ownership to Sunstone.

3. Sunstone has a large equity interest in Stockholm listed Copperstone Resources (COPP-B.ST) following the sale of the Viscaria Copper project to Copperstone in 2019.

4. The Finland Lithium Project includes the Kietyönmäki lithium prospect. Drilling by Sunstone has delivered 24.2m at 1.4% Li2O in a spodumene-bearing pegmatite. The project is a JV with Nortec Minerals. As announced on 5 May 2021, a Letter of Intent has been signed to sell the Finland Lithium Project.

Competent Persons Statement

The information in this report that relates to exploration results is based upon information reviewed by Dr Bruce Rohrlach who is a Member of the Australasian Institute of Mining and Metallurgy. Dr Rohrlach is a full-time employee of Sunstone Metals Ltd and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Dr Rohrlach consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Mr Malcolm Norris, Managing Director of Sunstone Metals Ltd., has authorised this announcement to be lodged with the ASX.

TABLE 1 – Section 1: Sampling Techniques and Data

Criteria	JORC Code explanation	Commentary
Sampling techniques	• Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as downhole gamma sondes, or handheld XRF instruments, etc.). These examples should _not be taken as limiting the broad meaning of sampling. _	• The historical results announced here are from rock chip samples and drill core from El Palmar. The drill core sampling was carried out using half core, generally at 1.5 to 2m intervals. • New results are based on visual observation of drill core.
	• Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.	• Historical rock samples were taken randomly with focus on those exhibiting alteration and mineralisation. Trench samples from within a hand dug trench and hand cut channel samples were continuously sampled for representivity. • Core recovery was good, and core aligned prior to splitting.
	• Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases, more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.	• Diamond drilling, rock chip and channel sampling points have been guided by geological mapping. The rock chip and drill samples from El Palmar were dried, crushed to 70% passing 2mm, Split 1000g and pulverised to 85% passing 75microns. A 20g portion of this sample was used for multi-element analysis (IMS- 230) and a 30g sample for Fire Assay Au (FAS-111).
Drilling techniques	• Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, _whether core is oriented and if so, by what method, etc). _	• The El Palmar target areas were drilled by historical exploration.
Drill sample recovery	• Method of recording and assessing core and chip sample recoveries and results assessed.	• Diamond core recovery data for the El Palmar historical drilling was good from visual review of drill core.
	• Measures taken to maximise sample recovery and ensure representative nature of the samples.	• Historical core recovery at El Palmar was good.
	• Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	• No relationship between sample recovery and grade has been established.
Logging	• Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.	• Drill samples, trench samples and rock chips were logged for lithology, weathering, structure, mineralogy, mineralisation, colour, and other features. Recent logging and sampling for the El Palmar project were carried out according to Sunstone’s internal protocols and QAQC procedures which comply with industry standards.
	• Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.	• Drill samples are logged for lithology, weathering, structure, mineralogy, mineralisation, colour, and other features.
	• The total length and percentage of the relevant intersections logged.	• The historical drill holes have been re-logged in full.
Sub-sampling techniques and sample preparation	• If core, whether cut or sawn and whether quarter, half or all core taken.	• Half core was used to provide the samples that were submitted for assay from the upper zones of the El Palmar historical drilling.
	• If non-core, whether riffled, tube sampled, rotary split, _etc. and whether sampled wet or dry. _	• Standard rock chip samples and channel samples. Samples were dried in the laboratory.

	Criteria	JORC Code explanation	Commentary
		• For all sample types, the nature, quality and appropriateness of the sample preparation technique.	• Historical drill core samples from El Palmar (drilled by Codelco) were analysed by ACME Labs in Vancouver. Samples were crushed and split with 250 grams pulverized to 200 mesh (Method - R200-250). Analysis on drill core was undertaken on a sample split (Method - VAN split pulp). • Surface rocks at El Palmar are historical and were collected by 3 different companies. GOEX S.A. samples were analysed at Bureau Veritas Laboratories in Peru. Lowell Mineral Exploration rocks were analysed by ALS Minerals, with sample preparation involving fine crushing 70% passing 2mm (Method CRU-31), crushed sample split (Method SPL-21) and pulverise 1000g to 85% passing 75um (Method PUL- 32). Codelco surface rock samples were analysed by ACME Labs in Vancouver. Samples were crushed and split with 250 grams pulverized to 200 mesh (Method - R200-250) • The sample preparation is carried out according to industry standard practices using highly appropriate sample preparation techniques.
		• Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.	• Sunstone used an industry standard QAQC programme involving Certified Reference Materials “standards” and blank samples, which were introduced in the assay batches. • Standards (Certified Reference Materials) or analytical blanks were submitted at a rate of 1 in 28 samples. Field duplicates were also taken at a rate of approximately 1 in 28 samples. • The check or duplicate assay results are reported along with the sample assay values in the final analysis report.
		• Measures taken to ensure that the sampling is representative of the in-situ material collected, including for instance results for field duplicate/second-half sampling.	• For diamond core, the routine sample procedure is to always take the half/quarter core to the right of the orientation line (looking down hole) or the cut line (in cases where the orientation line was not reliable). • Once assay results are received the results from duplicate samples are compared with the corresponding routine sample to ascertain whether the sampling is representative.
		• Whether sample sizes are appropriate to the grain size of the material being sampled.	• Sample sizes are considered to be appropriate for the style of sampling undertaken and the grainsize of the material, and correctly represent the style and type of mineralisation at the exploration stage.
	Quality of assay data and laboratory tests	• The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.	• Sunstone uses a fire assay gold technique for Au assays (FAS-111) and a four acid multi element technique (IMS-230) for a suite of 48 elements. FAS- 111 involves Au by Fire Assay on a 30-gram aliquot, fusion and atomic absorption spectroscopy (AAS) at trace levels. IMS-20 is considered a near total 4 acid technique using a 20g aliquot followed by multi- element analysis by ICP-AES/MS at ultra-trace levels. • This analysis technique is considered suitable for this style of mineralisation.
		• For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation,	• A handheld “Niton” XRF instrument is used on site for verification of anomalous metal values and to assist with the geological logging and mineral identification. No specific data from this instrument

	Criteria	JORC Code explanation	Commentary
		etc.	are referenced in this announcement.
		• Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.	• Standards, blanks and duplicates are inserted ~1/28 samples. The values of the standards range from low to high grade and are considered appropriate to monitor performance of values near cut-off and near the mean grade of the deposit. • The check sampling results are monitored, and performance issues are communicated to the laboratoryif necessary.
	Verification of sampling and assaying	• The verification of significant intersections by either independent or alternative company personnel.	• Procedure checks have been completed by the Competent Person for exploration results for this announcement.
		• The use of twinned holes.	• Twin holes have not been drilled in these areas.
		• Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.	• Sunstone sampling data were imported and validated using Excel.
		• Discuss any adjustment to assay data.	• Assay data were not adjusted. Core loss intervals are assigned assayvalues of zero wherepresent.
	Location of data points	• Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.	• Sample co-ordinates are located by GPS and for trench samples measured along the length of the trench.
		• Specification of the grid system used.	• Ecuadorprojectionparameters: Parameter Value Reference Ellipsoid International 1924 Semi Major Axis Inverse Flattening (1/f) Type of Projection UTM Zone -17S (Datum PSAD56) Central Meridian: -81.0000 Latitude of Origin 0.0000 Scale on Central Meridian 0.9996 False Northing 10000000 False Easting 500000
			Parameter	Value
			Reference Ellipsoid	International 1924
			Semi Major Axis
			Inverse Flattening (1/f)
			Type of Projection	UTM Zone -17S (Datum PSAD56)
			Central Meridian:	-81.0000
			Latitude of Origin	0.0000
			Scale on Central Meridian	0.9996
			False Northing	10000000
			False Easting	500000
		• Quality and adequacy of topographic control.	• The topographic control was compared against published maps and satellite imagery and found to be goodquality.
	Data spacing and distribution	• Data spacing for reporting of Exploration Results.	• The drill core samples reported were collected from three historical diamond drill holes from the El Palmar targets, and with sample length generally ranging between 0.3-2m.
		• Whether the data spacing, and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.	• The data from these samples does not contribute to any resource estimate nor implies any grade continuity.
		• Whether sample compositing has been applied.	• No sample compositing was done.
	Orientation of data in relation	• Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.	• Drilling orientations were appropriate for the interpreted geology providing representative samples. • Trench orientations and rock chip locations were appropriate for the interpreted geology providing

Criteria	JORC Code explanation	JORC Code explanation	Commentary
to geological structure			representative samples.
	• If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.		• No sampling bias is expected at this stage.
Sample security	• The measures taken to ensure sample security.		• Sunstone sampling procedures indicate individual samples were given due attention. • Sample security was managed through sealed individual samples and sealed bags of multiple samples for secure delivery to the laboratory by permanent staff of the joint venture. • MS Analytical is an internationally accredited laboratory that has all its internal procedures heavily scrutinised in order to maintain their accreditation. MS Analytical is accredited to ISO/IEC 17025 2005 Accredited Methods.
Audits or reviews	• The results of any audits or reviews of sampling techniques and data.		• Sunstone’s sampling techniques and data have been audited multiple times by independent mining consultants during various project assessments. These audits have concluded that the sampling techniques and data management are to industry standards. • All historical data has been validated to the best degreepossible and migrated into a database.
TABLE 1– Section 2:	Exploration Results
Criteria	JORC Code explanation	Commentary
Mineral tenement and land tenure status	• Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.	• The El Palmar property is located in Imbabura province and is held by an Ecuadorian registered company ‘Goex’. Due diligence to date show that there are no wilderness areas or national parks or areas of environmental significance within or adjoining the concession area. There are no native title interests. • Sunstone and Goex have entered into a Staged Acquisition Agreement where Sunstone may earn up to 100% based on defined milestones.
	• The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	• The El Palmar exploration concession was granted in 2003 and is held 100% by Goex.
Exploration done by other parties	• Acknowledgment and appraisal of exploration by other parties.	• The historic exploration at El Palmar was completed by various groups over the period 1990’s, 2007-2008, 2011- 2012 and GOEX (2012 to 2020). Most of the readily available historic data has been acquired and compiled into databases and a GIS project. Exploration by other parties has included stream sediment surveys, geological mapping, rock chip sampling, some local soil sampling, channel samplingand limited diamond drilling (3 holes).

	Criteria	JORC Code explanation	Commentary
	Geology	• Deposit type, geological setting and style of mineralisation.	• The deposit style being explored for includes intrusion- related and stockwork hosted porphyry Au-Cu systems plus epithermal gold-silver-polymetallic veins. The setting at El Palmar is a volcanic arc setting of Miocene age intrusions.
	Drill hole Information	• A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: a. easting and northing of the drill hole collar b. elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar c. dip and azimuth of the hole d. down hole length and interception depth e. hole length.	• Details of the samples discussed in this announcement are in the body of the text. • See Figure 4 for the location of historical drilling at El Palmar.
		• If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	• Information included in announcement.
	Data aggregation methods	• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.	• Weighted averages were calculated over reported intervals according to sample length. • No grade cut-offs were applied.
		• Where aggregate intercepts incorporate short lengths of high-grade results and longer lengths of low-grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.	• No aggregating of intervals undertaken at this stage.
		• The assumptions used for any reporting of metal equivalent values should be clearly stated.	• Metal equivalents are not presented.
	Relationship between mineralisation widths and intercept lengths	• If the geometry of the mineralisation with respect to the drill-hole angle is known, its nature should be reported.	• The geometry of the mineralisation relative to the drill holes is not completely known at this stage of exploration. .
		• If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not known’).	• True widths of mineralised lodes are not known at this stage.
	Diagrams	• Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported. These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	• See Figures 1 and 4 for maps showing distribution of samples.
	Balanced reporting	• Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	• Figures 1-2 and 4-5 above shows the current interpretations of geology.
	Other substantive exploration data	• Other exploration data, if meaningful and material, should be reported) including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	• Figure 1 and 4 above shows various datasets that are being used to identify target areas and to guide current and future drilling.

	Criteria	JORC Code explanation	Commentary
	Further work	• The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large- _scale step-out drilling). _	• The planned exploration program is outlined in the announcement.
		• Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	• See Figure4which show areas for further exploration.