SUNSTONE METALS LTD — Capital/Financing Update 2021

Jan 20, 2021

21 JANUARY 2021

Bramaderos Project, Ecuador

More bonanza grades at Espiritu silver-gold discovery

Plus, drilling to test gold-copper porphyry target to start in two weeks

Key Points

• Drilling at Espiritu has intersected more high-grade silver with gold, zinc and lead within a polymetallic epithermal system

• A significantly larger system at Espiritu is emerging based on mapping, soil sampling, interpretation of geophysics, and ongoing drilling. Narrow high-grade zones and intervening, mineralised but lower grade, zones can be bulked and outline larger mineralised bodies

• Drill hole ESDD006 intersected 5 significant lodes of silver-gold-zinc-lead mineralisation along with multiple lower grade intervals. High grade intercepts include:

• 3.75m at 11.8g/t silver, 1.54g/t gold from 102m

• 0.4m at 355g/t silver, 0.36g/t gold, 3.55% zinc from 173m

• 0.5m at 187g/t silver, 1.44g/t gold from 206m

• 0.5m at 550g/t silver, 0.26g/t gold from 278m

• 0.5 at 93g/t silver, 0.68g/t gold, 2.45% zinc from 313m

• Hole ESDD008 just completed at 359.97m and intersected altered and silverlead-zinc bearing zones, adding significant scale to the system with a strike extent now of over 200m. Drill hole ESDD009 is underway

• Drilling on the Brama gold-copper porphyry target is expected to commence the first week of February. The drill hole is targeting a magnetic anomaly below a mineralised breccia interpreted to represent a ‘pencil porphyry’ gold-copper target

• At El Palmar, in northern Ecuador, historical drill holes are being re-logged and the upper zones have been sampled and assayed, returning gold-copper mineralised intervals with up to 0.9g/t gold and 0.26% copper over individual samples of ~1m. Sunstone is targeting a giant copper-gold porphyry system at El Palmar

• Sunstone remains well capitalised with ~A$3.3 million cash to be received in early February as final payment of Tranche 2 Viscaria transaction. Sunstone continues to hold 154,020,781 Copperstone shares valued at A$15.8 million

Sunstone Metals Ltd (ASX: STM) is pleased to announce more bonanza drilling results from the Espiritu silvergold discovery within its Bramaderos project in Ecuador.

Assay results and geological interpretation from hole ESDD006 show multiple silver-gold bearing structures with various orientations (Tables 1, Figures 1, 2, 3) with high-grade mineralisation including:

• 3.75m at 11.8g/t silver, 1.54g/t gold from 102m

• 0.4m at 355g/t silver, 0.36g/t gold, 3.55% zinc from 173m

• 0.5m at 187g/t silver, 1.44g/t gold from 206m

• 0.5m at 550g/t silver, 0.26g/t gold from 278m

• • 0.5 at 93g/t silver, 0.68g/t gold, 2.45% zinc from 313m

Drilling of hole ESDD008 has just been completed at 359.97m and has intersected altered and mineralised intervals that deliver increasing confidence in the interpreted geometry and demonstrate that the Espiritu discovery has the potential to be a large system with currently over 200m of strike containing local bonanza silver grades. On a gold or silver-equivalent basis, the intersections reported are very significant.

Drill hole ESDD009 has been commenced and is targeting an area 250m south of ESDD008 (Figure 1).

Drilling to date has only tested to a depth of ~250m below surface in two locations at Espiritu. Evidence of multiple lodes means there are several opportunities to follow-up bonanza grades across the area drilled to date. Narrow high-grade zones and intervening lower grade zones can be bulked and outline larger mineralised bodies (Table 1). Both concepts are being explored – high grade narrow veins and larger lower grade systems.

Sunstone Managing Director Malcolm Norris said: ““We commence 2021 very excited with a significant number of opportunities all delivering positive results and a very strong balance sheet that will support a significant amount of exploration. This combined with the team that has a track record of discovering giant copper-gold systems, a very strong Ecuadorian in-country team, land holdings in two emerging provinces that hold an abundance of gold, silver and copper opportunities and a supportive commodity market backdrop sets us up for an exciting year ahead.

We are very encouraged by the results coming from Espiritu. The key take-aways here are that the system has the potential to deliver bonanza grades and it is likely to have significant scale based on the surface sampling and mapping to date. The vein orientations may be complex but with each drill hole a more robust model is being developed, and with on-going drilling Espiritu could present an early development opportunity while the search for large porphyry gold-copper systems continues at Brama, Limon and other targets.

Ongoing mapping and soil sampling at Espiritu are defining an extensive system of polymetallic veins across an area up to 1.2km x 800m and genetically related to the Brama porphyry system. This geological scenario is not surprising and significant examples can be found through central and south America. Ongoing exploration is defining drill targets within this area and focussing on potential bonanza grade structural intersections, together with broader lower grade composite intervals with the potential for larger near-surface mineralised bodies.”

Bramaderos Porphyry Drilling

Drilling of the Brama porphyry gold-copper system is expected to commence in early February 2021. The target at Brama is a ‘pencil porphyry’ as interpreted from 3-D modelling of magnetics data (Figures 4 and 5). The drill hole will test beneath a well-mineralised potassic altered high level intrusive breccia zone of the Brama porphyry intersected in earlier drilling that returned 98m at 0.61g/t gold and 0.11% copper in BMDD005 and 103.6m at 0.56g/t gold and 0.13% copper in CURI 13.

The drill hole will be drilled to 900-1000m and is expected to be completed in early March.

El Palmar Project, Northern Ecuador

Exploration has commenced at El Palmar, with historical drill holes being re-logged and the upper zones that were not previously assayed have now been sampled and assayed. They have returned goldcopper mineralised intervals with up to 0.9g/t gold and 0.26% copper over individual samples of ~1.0m.

Work to date has focussed on stakeholder engagement, review and sampling of historical drill core, and planning for a ground magnetic survey which will commence in the next few weeks. It is expected that drilling can commence during March.

As stated above, the upper 33-51m of each of the 3 historic drill holes from 2012 had not been previously sampled and assayed. Sunstone has now done this, and the results returned encouraging intervals of goldcopper mineralisation, adding to the previously defined mineralised areas. Importantly, thin younger cover intersected in drill core from surface that is not mineralised masks the porphyry mineralisation hence limiting significantly the surface expression of the El Palmar system.

New intersections from the recent sampling of historic drillholes include: EPD-02 : 35.4m @ 0.34 g/t Au, 0.18% Cu from 8.12m, adding to the 34.5m historical intersection of 0.31g/t gold and 0.16% copper.

EPD-01 : 16.9m @ 0.20 g/t Au, 0.13% Cu from 12.89m, adding to the 186m historical intersection of 0.33g/t gold and 0.16% copper.

Widespread trace bornite has been logged (Figure 7). The assay results and the geological logging confirm a well mineralised porphyry with the current interpretation suggesting the historical drill holes passed over the top of, and to the side of the main target zone (Figure 7).

These results are very encouraging. 3-D modelling of the planned ground magnetics data will provide robust drilling targets for testing in March 2021.

Sunstone Managing Director Malcolm Norris said: “We are very enthusiastic about the Brama porphyry target. The targeting components are robust, and we are aiming to drill a system with considerable vertical extent. Once this concept is verified, then multiple other targets exist to be drill tested.

“At El Palmar, we have a very strong copper-gold porphyry opportunity in the vicinity of the giant Cascabel deposit and the Llurimagua deposit. We are searching here for giant copper-gold deposits and we expect to commence drilling in March. Prior to that, we will complete and model detailed ground magnetics to help map the geometry of the target area”.

Table 1: Details of assay results from hole ESDD006

	From(m)	To(m)	Interval(m)	Au(g/t)	Ag (g/t)	Pb(%)	Zn(%)
	16.10	26.30	10.20	0.17	13.1		0.22
	36.50	66.05	29.55	0.18	18.6
	89.70	90.85	1.15	0.18	16.7
	95.75	97.75	2.00	0.25	23.5
includes	96.75	97.25	0.50	0.71	64.7		0.29
	102.25	106.00	3.75	1.54	11.8
includes	104.00	106.00	2.00	2.80	6.7
	136.00	143.00	7.00	0.15	15.3
	171.50	173.65	2.15	0.18	88.3
includes	172.75	173.15	0.40	0.36	355.0	0.76	3.55
	176.50	178.00	1.50	0.32	125.3
includes	176.50	177.50	1.00	0.38	182.1	0.42	1.23
	187.00	190.10	3.10	0.16	6.8		0.13
	195.25	196.25	1.00	0.11	13.7
	202.30	206.65	4.35	0.27	41.5
includes	206.15	206.65	0.50	1.44	187.0	0.27	0.71
	223.60	224.00	0.40	1.11	4.5
	224.40	224.70	0.30	0.35	54.1	0.43	4.65
	276.00	278.50	2.50	0.19	142.5		0.39
includes	277.50	278.00	0.50	0.26	550.0	0.37	0.64
	281.50	282.00	0.50	0.06	19.0		0.42
	283.50	284.00	0.50	0.11	12.6	0.24
	305.00	316.00	11.00	0.14	17.2	0.11	0.23
includes	305.00	307.90	2.90	0.22	10.4	0.12	0.24
includes	306.90	307.40	0.50	0.63	26.6	0.28	0.56
	311.50	316.00	4.50	0.17	32.6	0.19	0.36
includes	313.00	313.50	0.50	0.68	93.0	0.80	2.45
includes	315.00	316.00	1.00	0.04	74.4
	372.00	374.00	2.00	0.12	8.8
	400.00	401.14	1.14	0.07	11.3

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Figure 1: Espiritu silver-gold epithermal target drill status plan.

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Figure 2: Cross section showing drill holes ESDD005 and 006.

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Figure 3: Location and status of other Espiritu style targets in the vicinity of the Espiritu drilling program, and adjacent to the Brama porphyry system.

Table 2: Espiritu drill hole location details

Hole ID	Easting	Northing	RL	Dip	Azimuth_ GRID	Plan EOH	Final EOH	Pad Prep	Start_Date	Finish_Date
	PSAD56	PSAD56
ESDD001	632470	9550572	1119	-40	294	90	99.29	Complete	9-Sep-20	14-Sep-20
ESDD002	632470	9550572	1119	-65	294	75	75.11	Complete	15-Sep-20	18-Sep-20
ESDD003	632300	9550604	1136	-35	146	135	183.14	Complete	21-Sep-20	30-Sep-20
ESDD004	632300	9550604	1136	-52	146	190	267.02	Complete	1-Oct-20	13-Oct-20
ESDD005	632300	9550604	1136	-50	170	260	301.07	Complete	16-Oct-20	29-Oct-20
ESDD006	632300	9550604	1136	-60	295	60	401.14	Complete	30-Oct-20	14-Nov-20
ESDD007	631995	9550738	1112	-30	320	170	219.51	Complete	17-Nov-20	26-Nov-20
ESDD002 (Ext)	632470	9550572	1119	-65	294	175	176.26	Complete	29-Nov-20	5-Dec-20
ESDD001 (Ext)	632470	9550572	1119	-40	294	140	201.32	Complete	6-Dec-20	13-Dec-20
ESDD008	632435	9550300	1037.5	-50	290	350	359.97	Complete	20-Dec-20	16-Jan-2020

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Figure 4: Plan view of proposed drill hole BMDD008 at the Brama gold-copper porphyry target.

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Figure 5: Cross section showing target zone for BMDD008 showing 3-D modelling of magnetics which demonstrate potential for a ‘pencil porphyry’ target below a high level mineralised intrusive breccia.

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Figure 6: Plan diagram showing the El Palmar concession area and the location of the 3 historical drill holes and areas of anomalous copper in surface sampling.

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Figure 7: Section diagram showing the target zone at El Palmar as currently interpreted from surface sampling and one drill hole on section. 3-D magnetic modelling will refine this target definition to be drilled.

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 significant equity interest of ~24% in Stockholm listed Copperstone Resources (COPP-B.ST) following the sale of the Viscaria Copper project to Copperstone in 2019.

4. The Southern Finland Gold Project includes the Satulinmäki gold prospect. Shallow diamond drilling was completed by the Geological Survey of Finland (GTK) during the period 2000-2005 and this was followed by a 7-hole diamond drilling program by Sunstone Metals in 2016. Intersections from GTK include 18m @ 4.1g/t Au from 50m downhole, including 3m @ 9.3g/t Au, and 4m @ 10.3g/t Au in drill hole R391. Intersections by Sunstone include 23.5m at 3.3g/t in SMDD007 and 2m at 10.5g/t in SMDD005. The Satulinmäki gold prospect is part of an earn-in JV with Canadian company Nortec Minerals, where Sunstone holds an ~83% interest.

5. The Scandinavian Lithium Project includes the Kietyönmäki lithium prospect. Drilling by Sunstone has delivered 24.2m at 1.4% Li2O in a spodumene-bearing pegmatite. Kietyönmäki is also part of the JV with Nortec Minerals.

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.

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

APPENDIX 1

The following Table and Sections are provided to ensure compliance with the JORC Code (2012 Edition)

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 results announced here are from soil samples, historical rock chip samples, hand cut trench samples, and drilling samples. The drill core sampling was carried out using half core, generally at 1m intervals and where appropriate sampled to 0.3m intervals. • Drill hole sampling at El Palmar was carried out on half the remaining core from the historical 2012 drilling at approximately 1m intervals.
	• Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.	• Soil samples were taken on a grid basis • Rock samples were taken randomly with focus on those exhibiting alteration and mineralisation, and samples from within a hand dug trench and hand cut channel samples. • Core recovery was good, and core aligned prior to splitting. • Core recovery from El Palmar was variable but is considered to adequately represent the drilled interval
	• 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 drill samples from Espiritu and 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). • The El Palmar drill core was processed at Sunstone’s Bramaderos facility
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 Espiritu target area has not been drilled by any phases of historical exploration. • Current drilling by Sunstone is diamond core drilling and has drilled to various depths up to 301m. The diamond core was drilled delivering either HTW (70.9mm) or NTW (56mm) core. Drill core is oriented using a Reflex ACT II tool for bottom of hole. • Diamond drilling at El Palmar was completed in 2012 by Codelco using Kluane Drilling (the same company that Sunstone has engaged for drillingat Bramaderos)
Drill sample recovery	• Method of recording and assessing core and chip sample recoveries and results assessed.	• Diamond core recovery data for the Espiritu drilling was measured for each drill run and captured in a digital logging software package. The data has been reviewed and core recovery was approximately 100% throughout.
	• Measures taken to maximise sample recovery and ensure representative nature of the samples.	• Core recovery at Espiritu was good, no extra measures were taken to maximise sample recovery. • Core recovery from El Palmar was variable but is considered to adequately represent the drilled interval
	• 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.

	Criteria	JORC Code explanation	Commentary
	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. Logging and sampling 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, and trench and rock chip samples are logged for lithology, weathering, structure, mineralogy, mineralisation, colour, and other features.
		• The total length and percentage of the relevant intersections logged.	• The drill holes and trenches are logged in full, from start to finish of the excavation.
	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. Quarter core samples were taken ~1 in every 28 samples for duplicate sampling. The remaining core is left in the core trays.
		• If non-core, whether riffled, tube sampled, rotary split, _etc. and whether sampled wet or dry. _	• Standard soil, rock chip samples, and channel samples.
		• For all sample types, the nature, quality and appropriateness of the sample preparation technique.	• Surface and drill core samples from Espiritu, and drill core from El Palmar, were sent to the LAC y Asociados Cia. Ltda. Sample Preparation Facility in Cuenca, Ecuador for sample preparation. The standard sample preparation for drill core samples (Code PRP-910) is: Drying the sample, crushing to size fraction 70% <2mm and splitting the sample to a 250g portion by riffle or Boyd rotary splitter. The 250g sample is then pulverised to >85% passing 75 microns and then split into two 50g pulp samples. Then one of the pulp samples was sent to the MS Analytical Laboratory in Vancouver (Unit 1, 20120 102nd Avenue, Langley, BC V1M 4B4, Canada) for gold and base metal analysis. • 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). • At El Palmar the Sunstone sample procedure was to take the half/quarter core of the historical core remaining. • 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 correctlyrepresent the style and type of

	Criteria	JORC Code explanation	Commentary
			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, etc.	• Handheld XRF data are used as a guide to areas of potential mineralisation and samples from these areas are sent for laboratory analysis as described above.
		• 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

	Criteria	JORC Code explanation	Commentary
		• 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 were collected from one diamond drill hole from the Espiritu target, and with sample length generally ranging between 0.3-1m. • Sampling of the historical El Palmar holes was completed at~1msampleinterval.
		• 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 to geological structure	• 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 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. There has been no historical drilling on this target.
	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. • Sampling and sample management for El Palmar was undertaken at Sunstone’s secure core processing facility at Bramaderos in Southern Ecuador. Drill core was transported to Bramaderos from El Palmar under secure conditions. • 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 (and previously Cornerstone’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 Bramaderos Exploration Concession is located in the Loja Province of southern Ecuador. The concession was granted to La Plata Minerales S.A. (“PLAMIN”) in January 2017. PLAMIN is a subsidiary of Sunstone Metals Ltd. The concession is subject to a Joint Venture between Cornerstone Capital Resources Inc. and Sunstone Metals Ltd. 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. • 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.
	• 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 Bramaderos Exploration Concession was granted to La Plata Minerales S.A. (“PLAMIN”) in January 2017. PLAMIN is now a subsidiary of Sunstone Metals Ltd. The Bramaderos Concession is subject to a Joint Venture between Sunstone Metals and Cornerstone. Sunstone has an 87.5% interest in the JV. • The El Palmar exploration concession was granted in 2003 and held 100% byGoex.
Exploration done by other parties	• Acknowledgment and appraisal of exploration by other parties.	• The historic exploration at Bramaderos was completed by various groups over the period 1970-1984, 2001-2002 and 2004-2007. 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 (888 samples) and grid-based soil sampling (1324 samples), trenching and channel sampling (17 trenches), ground magnetic surveys (31 line kilometres), electrical IP surveys and diamond drilling (10426m). • No significant historical exploration has been undertaken in the Espiritu target area. • The El Palmar property has been historically explored by Lowell Exploration,Codelco and Goex.
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 Espiritu is a volcanic arc setting of Cretaceous age intrusions. • At El Palmar the geology is interpreted to be an Eocene to Miocene aged volcanic arc with Miocene aged 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 Figures 1-3 for the location of soil sampling and trenching activities at Espiritu, and nearby areas. • See Figures 6-7 for the location of historical sampling and drill holes at El Palmar.

	Criteria	JORC Code explanation	Commentary
		• 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.	• Figures 1-3 shows the interpreted strike orientation of the mineralised lodes based on mapping and interpretation of detailed magnetic data.
		• 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 1-7 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 1-7 above show 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.	• Figures 1-7 above show various datasets that are being used to identify target areas and to guide current and future drilling.
	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 Figures1-7which show areas for further exploration.