SUNSTONE METALS LTD — Capital/Financing Update 2022

Jul 18, 2022

19 JULY 2022

- Bramaderos Gold Copper Project, Southern Ecuador

Wide intersections up to 1g/t gold equivalent pave way for maiden Resource estimate

Mineralisation now outlined over 1.2km by 500m to >400m deep and remains open in all directions, highlighting the global scale of the discovery

Key Points

• More strong assay results received from Brama for holes BMDD0019, and 027-032:

• 401.2m at 0.58g/t AuEq* (0.41g/t gold and 0.1% copper), from 31.5m in BMDD019, including

  • 50.0m at 1.01g/t AuEq* (0.83g/t gold, 0.10% copper), from 102m

• 66.0m at 0.62 AuEq* (0.45g/t gold and 0.09% copper), from 254m in BMDD027

• 72.0m at 0.55g/t AuEq* (0.30g/t gold and 0.14% copper), from 452m in BMDD028

• 72.7m at 0.68g/t AuEq* (0.55g/t gold and 0.07% copper) from surface in BMDD029

• These results provide more firm evidence that the Brama-Alba discovery is large by global standards and contains grades in line with many well-known porphyry projects

• Highly positive initial metallurgical results; With a combined flotation and leach circuit, the results indicate that recoveries in excess of 86% for copper and 88% for gold can be achieved when targeting a saleable concentrate grade of above 20% copper

• Higher-grade zones close to surface, as shown by contouring of gold-equivalent domains

• The adjacent Melonal and Playas targets are emerging as highly promising prospects with strong potential to grow the size of Bramaderos; These two targets will be drilled in 2022

• Ongoing drilling with three rigs underpinning strong news flow over remainder of CY22, culminating in a maiden Resource estimate at Brama-Alba in the December quarter

Sunstone Metals Ltd (ASX: STM) is pleased to announce more strong assays which continue to expand the size of its Brama-Alba porphyry discovery in southern Ecuador.

*The equivalent calculation formula is AuEq(g/t) = Au(g/t) + Cu% x 1.77. The prices used were US$1,770/oz gold and US$9,750/t copper, and A$:US$0.70. Recoveries are estimated at 89% for gold and 86% for copper from metallurgical studies. In Sunstone’s opinion all the elements included in the metal equivalents calculation have reasonable potential to be recovered and sold.

These assays will be incorporated into an initial Mineral Resource Estimate for the Brama-Alba deposit later this year.

The results from all holes drilled at Brama-Alba show that higher grade mineralisation occurs in sub-domains within the larger 1.2km-long Brama-Alba system (Figures 1, 2, 3) and that these higher-grade domains cluster in the upper 400m (Figure 2).

The results provide more firm evidence that Brama hosts a substantial gold-copper porphyry system (Figures 1, 2, 3). There is also potential for this system to extend significantly to adjacent targets Melonal (west) and Playas (east) (Figure 4). These areas are expected to be drill tested in 2022.

Assay results for drill holes BMDD019, and 027 to 032 are provided in Table 1 and shown in Figures 1, 2, and 3.

Gold equivalent results from all Sunstone drill holes at Brama-Alba are shown in Table 2 and clearly show the broad significant grades identified in this deposit.

Early-stage metallurgical testwork completed on a range of mineralisation styles from the Brama-Alba goldcopper porphyry deposit was undertaken by Base Metallurgical Laboratories in Kamloops, British Columbia.

Sighter metallurgical test work completed on the breccia and diorite lithologies, of the Alba and Brama deposits, yielded very encouraging results. The results indicate that recoveries in excess of 86% for copper and 88% for gold can be achieved with a combined flotation and leach circuit when targeting a saleable concentrate grade of above 20% copper.

Further test work, including alternative reagent and grind size regimes, will focus on improving recovery responses in a flotation-only circuit configuration to determine whether that configuration is feasible. Additional optimisation testing of the current flotation-leach selection, to further improve recoveries, will also be conducted. Further details are provided below.

Sunstone Managing Director Malcolm Norris said: “We continue to increase the size of the Brama-Alba discovery with wide intersections with very good gold-copper grades from surface.

“We are also very pleased with the early metallurgical testwork results. These results further strengthen the outlook for the initial Mineral Resource Estimate this year. The gold-equivalent data allows for comparisons to more readily be made with other global porphyry systems where results are often reported as goldequivalent or copper-equivalent.

“Drilling is continuing with two rigs at Brama-Alba and one at Limon. The Brama-Alba drilling is filling in any gaps leading to the Resource estimate and extending the scale of the system to the south-east and laterally. At the Alba end of the system, we are drilling holes that are discovering new areas of mineralisation and we will continue to expand this zone to the west of hole BMDD007.

“At the eastern end of Brama, the deposit is plunging towards a significant magnetic body, which has not yet been drilled. This gives us reason to be optimistic of further mineralisation in this area.

“It is also important to appreciate the outstanding location of Bramaderos, which is a key component to its value. The project is located immediately adjacent to the Pan American highway, and within reasonable distance of available hydroelectric power, supporting the economics of potential development opportunities. The project is also supported by nearby commercial airports and significant cities (Loja) and the project has strong community support. Ecuador sources 88% of its power from hydroelectricity and is ideally placed to participate in the global demand for clean energy sourced metals”.

Table 1: Summary of mineralised intersections in Brama drill holes BMDD019, and BMDD027 - 032.

Table 1:Summary of mi	neralised	intersecti	ons in Bra	ma drill holes B	MDD019, and	BMDD02	7 - 032.
Drill Hole	**EOH(m) **	From(m)	To(m)	Interval(m)	**AuEq (g/t) **	**Au(g/t) **	**Cu(%) **	**Mo(ppm) **	Ag (g/t)
BMDD019	470.73	31.50	433.25	401.75	0.58	0.41	0.10	34.5	1.4
		102.00	152.00	50.00	1.01	0.83	0.10	61.8	2.0
		112.00	142.00	30.00	1.10	0.93	0.09	56.1	2.0
		346.00	433.25	87.25	0.51	0.28	0.13	7.7	1.3
		448.55	469.50	20.95	0.58	0.29	0.16	8.7	1.6
BMDD027	962.24	87.50	111.00	23.50	0.27	0.23	0.02	87.1	0.4
		155.00	457.00	302.00	0.37	0.25	0.07	39.1	0.7
		254.00	320.00	66.00	0.62	0.45	0.09	44.7	1.0
		254.00	281.00	27.00	0.72	0.53	0.11	29.8	1.2
BMDD028	524.00	1.84	196.00	194.16	0.43	0.31	0.07	7.0	1.0
		410.20	432.00	21.80	0.64	0.37	0.15	8.2	1.1
		452.00	524.00	72.00	0.55	0.30	0.14	9.1	1.1
BMDD029	596.78	0.00	72.70	72.70	0.68	0.55	0.07	17.7	1.9
		0.00	16.50	16.50	1.47	1.25	0.12	9.4	4.5
		139.40	224.00	84.60	0.45	0.33	0.07	26.8	1.0
		248.00	324.00	76.00	0.41	0.20	0.12	6.2	1.1
BMDD030	591.74	49.00	76.00	27.00	0.22	0.14	0.05	33.7	0.3
		140.00	332.00	192.00	0.29	0.18	0.06	8.6	1.1
		248.00	276.00	28.00	0.44	0.29	0.08	14.2	1.0
		450.00	517.00	67.00	0.28	0.17	0.06	14.8	0.7
BMDD031	855.06	0.00	27.00	27.00	0.28	0.23	0.03	3.2	0.9
		177.00	220.31	43.31	0.66	0.38	0.16	5.1	1.0
		240.00	256.00	16.00	0.45	0.27	0.10	3.3	0.6
BMDD032	376.15	0.00	376.15	376.15	0.46	0.27	0.11	9.9	1.2
		86.00	279.00	193.00	0.60	0.34	0.15	8.6	1.4
		188.00	213.00	25.00	0.75	0.45	0.17	5.6	1.5

==> picture [386 x 632] intentionally omitted <==

Figure 1: Brama-Alba drill status plan showing the status of drilling on backdrops of satellite imagery and gold-in-soil results.

==> picture [395 x 312] intentionally omitted <==

==> picture [381 x 292] intentionally omitted <==

Figure 2: Brama-Alba long section showing geology (top) and grade (bottom) and the current interpreted relationship between Alba and Brama, and the potential for Brama to extend to the east. This area will be tested with planned drilling as shown. The area to the southwest of Alba is also open and will be drill tested.

==> picture [489 x 403] intentionally omitted <==

Figure 3: Northeast trending cross section through Alba showing potential width of the mineralised syn-mineral diorite bodies at Alba, and areas for further exploration at depth and to the southwest.

==> picture [488 x 295] intentionally omitted <==

Figure 4: Melonal-Alba-Brama-Playas porphyry systems and their soil signatures highlighting the potential scale increase to be delivered with more drilling at Bramaderos. The drilling results at Alba and Brama have upgraded the nearby drill targets, and these will see some initial testing during 2022. Some of these targets extend to surface and have gold-in-soil anomalies and anomalous gold and copper in rock chip samples.

Table 2: Summary of mineralised intervals, showing gold equivalents, in all Sunstone drill holes to date in the BramaAlba deposit. All are within 400m of surface.

Drill Hole	EOH (m)	From (m)	To (m)	Interval (m)	AuEq (g/t)	Au (g/t)	Cu (%)
BMDD001	669.49	3.45	175.40	171.95	0.79	0.52	0.16
		287.70	440.50	152.80	0.62	0.37	0.14
	incl.	289.80	364.20	74.40	0.76	0.46	0.17
BMDD002	834.84	68.65	310.30	241.65	0.67	0.42	0.14
		234.30	307.00	72.70	0.96	0.68	0.16
		250.00	305.80	55.80	1.01	0.74	0.15
		266.00	284.00	18.00	1.38	1.04	0.19
		291.60	297.70	6.10	1.06	0.81	0.14
BMDD003	55.25	abandoned
BMDD004	515.18	4.80	45.25	40.45	0.53	0.30	0.13
		73.10	95.85	22.75	0.56	0.35	0.12
		131.20	160.00	28.80	0.53	0.34	0.11
BMDD005	510.25	9.10	21.25	12.15	1.05	0.93	0.07
		84.00	464.00	380.00	0.47	0.33	0.08

		216.80	344.00	127.20	0.75	0.57	0.10
		295.00	334.00	39.00	0.95	0.72	0.13
BMDD006	391.64	7.40	391.64	384.24	0.50	0.27	0.13
		15.00	61.20	46.20	0.77	0.45	0.18
		15.00	32.15	17.15	0.81	0.56	0.14
		319.15	391.64	72.49	0.63	0.42	0.12
BMDD007	543.17	8.00	240.00	232.00	0.55	0.39	0.09
		55.70	237.40	181.70	0.60	0.43	0.10
		55.70	107.50	51.80	0.67	0.47	0.11
		125.30	158.65	33.35	0.66	0.47	0.11
		170.65	211.20	40.55	0.69	0.49	0.11
BMDD008	1039.34	0.55	450.45	449.90	0.65	0.47	0.10
		2.50	437.10	434.60	0.66	0.48	0.10
		5.20	21.00	15.80	0.85	0.71	0.08
		135.10	437.10	302.00	0.75	0.54	0.12
		135.10	264.00	128.90	0.86	0.68	0.10
		179.70	264.00	84.30	0.99	0.80	0.11
		328.00	437.10	109.10	0.72	0.44	0.16
BMDD008W1	850.61	347.09	505.60	158.51	0.52	0.29	0.13
		347.09	460.50	113.41	0.64	0.37	0.15
Combined
BMDD008+008W1		0.55	505.60	505.05	0.61	0.43	0.10
BMDD009	719.63	49.70	546.00	496.30	0.50	0.29	0.12
		67.70	310.00	242.30	0.62	0.37	0.14
		116.80	302.10	185.30	0.67	0.40	0.15
BMDD010	600.75	289.20	296.00	6.80	0.68	0.45	0.13
		311.75	482.40	170.65	0.73	0.46	0.15
		347.00	416.60	69.60	1.00	0.65	0.20
BMDD011	471.06	0.20	405.00	404.80	0.48	0.32	0.09
		0.20	51.50	51.30	0.66	0.54	0.07
		0.20	13.30	13.10	1.12	0.93	0.11
		102.00	166.80	64.80	0.68	0.54	0.08
BMDD012	452.32	93	353.4	260.40	1.25	1.11	0.08
		93.00	204.00	111.00	2.47	2.35	0.07
		106.80	136.00	29.20	7.76	7.68	0.05
		116.80	134.00	17.20	12.55	12.45	0.05
		124.80	132.00	7.20	26.95	26.88	0.04
		154.00	188.00	34.00	0.78	0.61	0.10
BMDD013	299.58	107.00	180.45	73.45	0.55	0.32	0.13
		165.00	167.00	2.00	2.14	2.02	0.07
BMDD014	503.04	0.40	430	429.60	0.54	0.36	0.10
		0.40	222.00	221.60	0.62	0.43	0.11
		0.40	7.60	7.20	1.36	1.09	0.15
		91.65	137.45	45.80	0.85	0.61	0.14
		142.10	203.15	61.05	0.75	0.49	0.15
		249.15	293.25	44.10	0.60	0.39	0.12

		313.10	430.00	116.90	0.56	0.33	0.13
BMDD015	464.39	5.00	98.30	93.30	0.69	0.55	0.08
		5.00	29.00	24.00	1.04	0.86	0.10
		106.00	217.70	111.70	0.45	0.29	0.09
		153.60	158.00	4.40	0.95	0.76	0.11
		271.50	309.65	38.15	0.72	0.42	0.17
		283.95	309.65	25.70	0.86	0.51	0.20
BMDD016	552.28	0.00	552.30	552.30	0.48	0.31	0.10
		0.00	97.70	97.70	0.55	0.42	0.07
		256.00	343.25	87.25	0.69	0.47	0.12
		308.00	336.00	28.00	0.80	0.55	0.14
		354.00	396.00	42.00	0.72	0.42	0.17
BMDD017	383.63	0.00	308.00	308.00	0.48	0.27	0.12
		0.00	84.00	84.00	0.79	0.50	0.16
		10.50	48.00	37.50	0.98	0.65	0.18
		100.50	144.00	43.50	0.55	0.30	0.14
extensionpending to 616.77m		378.00	383.60	5.60	0.49	0.28	0.12
BMDD018	248.78	30.00	87.00	57.00	1.14	0.74	0.23
		30.00	76.50	46.50	1.27	0.84	0.24
		30.00	60.00	30.00	1.55	1.10	0.26
BMDD019	470.73	31.50	433.25	401.75	0.58	0.41	0.10
		102.00	152.00	50.00	1.01	0.83	0.10
		112.00	142.00	30.00	1.10	0.93	0.09
		346.00	433.25	87.25	0.51	0.28	0.13
		448.55	469.50	20.95	0.58	0.29	0.16
BMDD020	359.73	95.00	359.73	264.73	0.71	0.49	0.13
		119.00	139.00	20.00	0.99	0.91	0.04
		126.00	133.00	7.00	1.87	1.77	0.05
		164.00	357.70	193.70	0.78	0.5	0.16
BMDD021	407.64	107.6	331.3	223.7	0.81	0.58	0.13
		135	272.4	137.4	1.05	0.75	0.17
		136	196.7	60.7	1.35	1.01	0.19
		219.8	234.4	14.6	1.20	0.85	0.2
BMDD022	453.12	82.50	428.00	345.50	0.60	0.37	0.13
		118.00	140.00	22.00	0.73	0.57	0.09
		212.00	346.00	134.00	0.72	0.44	0.16
		306.00	330.00	24.00	1.02	0.7	0.18
BMDD023	379.66	76.6	299	222.4	0.60	0.37	0.13
		137	140.4	3.4	1.00	0.66	0.19
		183	267.2	84.2	0.79	0.51	0.16
BMDD024	241.97	174.80	177.60	2.80	1.30	1.21	0.05
BMDD025	662.59	113.00	378.00	265.00	0.61	0.39	0.12
		120.00	126.00	6.00	0.59	0.47	0.07
		141.00	266.00	125.00	0.69	0.44	0.14
		159.00	181.00	22.00	0.85	0.61	0.14
BMDD026	526.58	0.00	93.30	93.30	0.52	0.41	0.06

BMDD027	962.24	155.00	457.00	302.00	0.37	0.25	0.07
		254.00	320.00	66.00	0.62	0.45	0.09
		254.00	281.00	27.00	0.72	0.53	0.11
BMDD028	524.00	1.84	196.00	194.16	0.43	0.31	0.07
		410.20	432.00	21.80	0.64	0.37	0.15
		452.00	524.00	72.00	0.55	0.30	0.14
BMDD029	596.78	0.00	72.70	72.70	0.68	0.55	0.07
		0.00	34.50	34.50	1.02	0.85	0.09
		0.00	16.50	16.50	1.47	1.25	0.12
		139.40	224.00	84.60	0.45	0.33	0.07
		248.00	254.00	6.00	0.60	0.48	0.07
BMDD030	591.74	248.00	276.00	28.00	0.44	0.29	0.08
		318.00	332.00	14.00	0.31	0.13	0.10
BMDD031	855.06	0.00	8.00	8.00	0.45	0.36	0.05
		177.00	220.31	43.31	0.66	0.38	0.16
		240.00	256.00	16.00	0.45	0.27	0.10
BMDD032	376.15	0.00	376.15	376.15	0.46	0.27	0.11
		86.00	279.00	193.00	0.60	0.34	0.15
		188.00	213.00	25.00	0.75	0.45	0.17

==> picture [488 x 444] intentionally omitted <==

Figure 5: Location of the Brama-Alba target and the multiple gold-copper porphyry systems within the Bramaderos concession. Sunstone is currently drilling at Limon and has plans for further exploration leading to drilling at Melonal, Playas, Porotillo and Sandia.

==> picture [488 x 524] intentionally omitted <==

Figure 6: Location of Sunstone’s Bramaderos and El Palmar projects, Ecuador

Table 3: Brama drill hole location details for BMDD014 - 18, 026

Table 3:Brama d	rill hole location details	for BMDD014 - 18, 0	26
Hole ID	Easting_PSAD56	Northing_PSAD56	RL	Dip	Azimuth GRID	EOH
BMDD019 BMDD027 BMDD028 BMDD029 BMDD030 BMDD031	632630.633 632301.720 631861.383 632559.648 632304.327 632403.763	9549339.309 9549375.343 9549263.289 9549187.430 9549260.143 9549314.705	872.018 919.961 881.950 957.856 896.806 935.229	-63 -72 -50 -70 -55 -63	170 289 65 275 293 307	470.73 962.24 524.00 596.78 591.74 855.06 367.15
BMDD032	632220.465	9549463.470	951.208	-30	316

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 Sunstone holds 70% of the highly prospective 800ha El Palmar gold-copper porphyry project in Ecuador. Sunstone can acquire 100% through a Staged Acquisition Agreement. A Letter of Intent to acquire the nearby Verde Chico Project through a Staged Acquisition Agreement has also been signed. The El Palmar and Verde Chico gold-copper projects are located in Imbabura province, northern Ecuador, within the same geological belt that includes the giant Alpala, Tandayama-America and Llurimagua porphyry copper-gold and copper-molybdenum deposits.

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 results announced here are from diamond drilling samples. The drill core sampling was carried out using half core, generally at 1-2m intervals.
	• Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.	• 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 drill samples from Brama 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 Brama target area is now undergoing Phase 2 exploration. • Current drilling by Sunstone is diamond core drilling and has drilled to various depths up to 720m. The diamond core was drilled delivering either HTW (70.9mm) or NTW (56mm) core. Drill core is oriented usinga Reflex ACT II tool for bottom of hole.
Drill sample recovery	• Method of recording and assessing core and chip sample recoveries and results assessed.	• Diamond core recovery data for the Brama 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 Brama was good, no extra measures were taken to maximise sample recovery.
	• 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. _	• N/A.
		• For all sample types, the nature, quality and appropriateness of the sample preparation technique.	• Surface and drill core samples from Brama 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). • 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	• 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,

	Criteria	JORC Code explanation	Commentary
	laboratory tests		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, together with detailed geological logging, 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
		• Quality and adequacy of topographic control.	• The topographic control was compared against published maps and satellite imagery and found to be goodquality.
		• Data spacing for reporting of Exploration Results.	• The drill core samples were collected from diamond drill holes from the Brama target, and with sample lengthgenerallyranging between 1.0– 2.0m.

Criteria	JORC Code explanation	Commentary
Data spacing and distribution	• 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.
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 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. (12.5%) and Sunstone Metals Ltd. (87.5%). There are no declared wilderness areas or national parks within or adjoining the concession area. There are no established 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.

	Criteria	JORC Code explanation	Commentary
	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).
	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 Brama is a volcanic arc setting of Cretaceous 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 Figures 1-3 for the location of soil sampling, drilling, and trenching activities at Brama, and nearby areas.
		• 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.	• Preliminary metallurgical studies are indicating a standard grind with a flotation circuit. Stage one will recover copper and the majority of gold as a saleable concentrate. Stage two is a finer grind with a cyanide leach for gold on site. Current, overall estimated recoveries for the combined process are 86% for copper and 89% forgold.
	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 show 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 1-3 for maps showing distribution of samples.

	Criteria	JORC Code explanation	Commentary
	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 1-3 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 1-3 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 Figures 1-3 which show areas for further exploration.