SUNSTONE METALS LTD — Capital/Financing Update 2023

Nov 1, 2023

2 NOVEMBER 2023

- Limon Gold Silver Discovery, Southern Ecuador Limon continues to grow with mineralisation identified 1km from main discovery area

Plus, drilling near the main discovery area identifies more gold and silver; Exploration Target set for this month

Sunstone Metals Ltd (ASX: STM) is pleased to announce its latest exploration results which show that the Limon gold-silver discovery, within the Bramaderos Project, is continuing to grow, with more mineralisation identified surrounding the Central Shoot (see ASX announcement dated 18 October 2023) and up to 1km away.

Drill holes LMDD041, 042 and 043 have returned gold and silver assays which identify additional mineralised structures for follow-up drilling (Figures 1 & 2).

These results form the final batch of data required to enable the assessment of an Exploration Target at Limon due to be released in November. The Limon gold-silver discovery is currently not in the Bramaderos Exploration Target which was released to the market in December 2022 (see ASX announcement dated 13 December 2022).

In addition, surface rock chip sampling from a gold-in soil anomaly which measures 370m x up to 115m, and located 1km west of the Central Shoot, has returned an assay of 5.05g/t gold and 5.36 g/t silver. One previous sample in this area also returned 3.63g/t gold and 3.19g/t silver. This area will now be trench sampled to better define vein orientations which, together with the Exploration Target assessment, will be the focus of the Company in the current quarter, prior to drilling in 2024.

These results reinforce the ongoing definition of a large gold-silver epithermal system at Limon. Exploration is being guided by the potential of the 1.7km x 700m Limon alteration zone to host multiple gold-silver mineralised bodies (Figure 1).

Sunstone Managing Director Malcolm Norris said the latest results strengthen the Company’s view that Limon is a large gold-silver mineralised system with strong potential to host a significant open pit operation.

“We now know that where we intersect gold or silver at anomalous levels in drilling we have a live structure for follow up. Encouragingly, these results open up more new areas for drilling and enlarge our target zone,” Mr Norris said.

“We are ‘stepping out’ to test the other peripheral gold-in-soil anomalies which are arrayed on all sides of the central Limon porphyry system (Figure 1). To be sampling 5g/t gold bearing rocks at surface, 1km to the west is very exciting.

*** The gold equivalent calculation formula is AuEq(g/t) = Au(ppm) + (Ag (ppm)/82). The prices used were US$1,800/oz gold and US$22/oz silver. Recoveries are estimated at 90% for gold and 90% for silver from metallurgical studies. In Sunstone’s opinion all the elements included in the metal equivalents calculation have reasonable potential to be recovered and sold.**

1 See qualifying statements in the About Sunstone Metals section on page 9.

“These results will help underpin the Limon Exploration Target planned for November. We believe this will demonstrate the potential for a substantial mineral resource at Limon that can support an open pit development, which will in turn pave the way for a very large gold-copper-silver development across the wider Bramaderos project which houses the Limon, Brama, Alba, Melonal and potentially other mineralised porphyry systems”.

==> picture [459 x 373] intentionally omitted <==

Figure 1: Limon gold in soils map showing extensive anomalous gold over an area of 1.7km x 700m. The black circled areas have seen partial testing. Red circled areas show the multiple epithermal gold-silver targets, and most are scheduled for trenching during 2023. Recent rock chip samples are shown within the western most anomaly. The black dashed line shows the Limon porphyry target outline.

LMDD041 was drilled into the SE margin of the gold-in-soil anomaly (Figure 1) and intersected 2 shallow mineralised structures of greater than 1g/t. These combined with the intersections in parallel hole LMDD039 (Figures 1 & 2; also see ASX announcement 12 October 2023) open up this area to further drilling. The broad anomalous zone at the top of LMDD041 also intersected 40m of 32.6ppm Mo from 22m, and highly anomalous zinc from 22 to 46m.

LMDD042 was drilled in the northwest in a new gold-in-soil anomaly (Figure 1). It intersected a 17m wide interval of anomalous gold and silver (Table 1), and other discrete intervals of anomalous zinc and tellurium, suggesting multiple mineralised structures for further follow-up.

LMDD043 was drilled on the south side of the Central Shoot and intersected multiple mineralised structures. These intersections enable us to improve our structural model and plan follow-up drilling. A noticeable feature of these intersections was, in most cases, a significantly higher silver-gold ratio, suggesting we should expect to see higher gold elsewhere on these structures.

The Limon epithermal gold and silver deposit is not included in the December 2022 2.7Moz AuEq Mineral Resource estimate or the 3.3 – 8.6Moz AuEq Exploration Target at Bramaderos (see ‘About Sunstone’ on page 9 of this announcement).

The current drill program has been completed and assay results have been received. These are being interpreted and an Exploration Target for the area will be completed in November.

The Limon target area is located 2.7km north-east of the Brama-Alba-Melonal gold-copper deposits. The Bramaderos Project currently hosts a porphyry gold-copper-silver Mineral Resource estimate of 2.7Moz AuEq at Brama-Alba, and an Exploration Target of between 3.3Moz and 8.6Moz AuEq within 255 to 360Mt at a grade between 0.40 and 0.74g/t AuEq (Figure 3; see ASX announcement dated 13 December 2022, and qualifying statements in the ‘About Sunstone Metals’ section on page 9 of this announcement).

==> picture [432 x 382] intentionally omitted <==

Figure 2: Limon epithermal gold-silver system in plan view, showing multiple mineralised structures in green. Highgrade domains are at intersections of NE and WNW trending structures. Several additional targets have been defined based on gold-in soil and zinc-in-soil anomalies, and structural interpretation. See Figures 1 and 3 for a broader context within the very large Limon target area.

About Bramaderos

The Bramaderos project straddles the Pan American highway (Figure 4), and is close to available hydroelectric power, supporting the economics of potential development opportunities. Ecuador sources 93% of its power from renewables and is ideally placed to participate in the global demand for clean energy sourced metals. The project is also supported by nearby commercial airports and significant cities (Loja, population 200,000) and has strong community support. The project area is covered by 3 valid concessions and exploration plans are in place to continue to explore multiple gold-silver epithermal and gold-coppersilver porphyry opportunities.

Table 1: Summary of mineralised epithermal intersections in selected Limon drill holes. AuEq is calculated using gold and silver only, there is no contribution from base metals.

Drill Hole	EOH(m)	From (m)	To (m)	Interval (m)	AuEq (g/t)	Au (g/t)	Ag (g/t)	Zn (%)	Cu (%)
LMDD043	370.03	0.0	35.0	35.0	0.20	0.14	4.9	0.20	0.01
		74.0	81.0	7.0	0.23	0.12	8.3	0.25	0.01
		94.0	109.0	15.0	0.29	0.09	16.1	0.16	0.00
		169.0	173.0	4.0	0.77	0.44	27.4	0.25	0.01
		182.5	183.5	1.0	0.68	0.60	6.8	0.14	0.00
		189.5	190.5	1.0	0.56	0.48	6.7	0.08	0.00
		201.5	225.0	23.5	0.37	0.32	4.0	0.19	0.03
	incl.	215.5	225.0	9.5	0.39	0.37	1.8	0.03	0.04
		280.0	281.0	1.0	0.56	0.55	0.9	0.01	0.00
		304.0	315.0	11.0	0.40	0.35	4.2	0.18	0.00
		333.0	339.0	6.0	0.15	0.15	0.4	0.05	0.01
LMDD042	359.26	241.8	259.0	17.2	0.17	0.16	0.4	0.01	0.00
LMDD041	398.43	0.0	88.0	88.0	0.20	0.19	0.8	0.06	0.01
	incl.	18.0	20.0	2.0	1.61	1.60	0.8	0.01	0.00
	and	63.0	67.0	4.0	1.37	1.37	0.3	0.01	0.00
LMDD040	407.50	15.0	17.0	2.0	1.05	1.01	2.9	0.03	0.02
		74.0	343.0	269.0	1.05	0.82	18.5	0.29	0.02
	incl.	78.0	80.0	2.0	1.80	0.92	72.2	0.89	0.15
	and	190.0	314.0	124.0	1.93	1.54	31.8	0.15	0.01
	incl.	191.0	217.0	26.0	1.53	1.21	26.1	0.27	0.01
	incl.	212.3	213.0	0.7	9.73	8.53	98.2	0.08	0.01
	and	256.0	265.5	9.5	1.07	0.69	30.9	0.06	0.01
	and	280.0	291.0	11.0	14.15	12.33	149.3	0.02	0.00
	incl.	283.0	285.0	2.0	72.04	62.95	745.5	0.01	0.00
	and	304.0	314.0	10.0	1.37	0.66	58.0	0.09	0.01
	and	328.0	332.5	4.5	0.64	0.52	9.8	0.29	0.10
		364.8	365.8	1.0	0.26	0.14	10.1	0.03	0.54
LMDD039	340.84	72.0	75.0	3.0	0.21	0.17	3.4	0.002	0.00
		88.0	90.0	2.0	0.35	0.27	6.9	0.03	0.00
		94.5	99.0	4.5	1.20	0.94	21.3	2.57	0.27
		177.0	179.0	2.0	0.59	0.47	9.7	1.11	0.02
		183.0	188.0	5.0	0.35	0.31	3.1	0.07	0.00
		207.0	209.0	2.0	0.60	0.51	7.5	0.59	0.01

		211.0	212.0	1.0	1.11	1.05	4.9	0.53	0.00
		279.0	280.0	1.0	0.59	0.56	2.7	0.37	0.01
		282.0	284.0	2.0	0.42	0.22	16.3	1.59	0.02
LMDD038	312.58	6.0	186.1	180.1	0.96	0.87	7.7	0.22	0.01
	incl.	6.0	74.0	68.0	0.57	0.51	4.8	0.29	0.03
	incl.	29.0	34.0	5.0	1.07	1.04	2.4	0.41	0.07
	incl.	51.6	59.6	8.0	1.13	1.06	5.5	0.05	0.00
	incl.	61.6	64.0	2.5	1.14	1.05	7.4	0.44	0.01
	incl.	69.0	71.0	2.0	1.09	0.81	23.2	1.13	0.07
		82.0	86.0	4.0	0.26	0.22	3.1	0.86	0.01
		98.0	186.1	88.1	1.50	1.36	11.6	0.17	0.00
	incl.	99.0	107.0	8.0	4.43	3.72	58.5	0.79	0.01
	incl.	102.0	107.0	5.0	6.27	5.29	80.6	1.07	0.01
	and	112.0	122.6	10.6	1.78	1.59	15.4	0.05	0.00
	and	136.0	144.0	8.0	2.10	2.07	2.1	0.01	0.00
	incl.	138.0	140.0	2.0	6.53	6.48	4.3	0.03	0.00
	and	150.0	166.0	16.0	2.83	2.66	14.3	0.14	0.00
	incl.	158.0	163.4	5.3	5.74	5.41	27.4	0.16	0.00
	incl.	158.0	159.0	1.0	16.51	15.30	98.8	0.24	0.00
LMDD037	303.17	33.0	40.0	7.0	0.20	0.19	0.6	0.00	0.01
		220.0	221.0	1.0	0.26	0.26	0.1	0.00	0.01
LMDD036	235.70	7.0	8.0	1.0	0.54	0.52	1.8	0.12	0.02
		18.0	22.0	4.0	0.17	0.15	1.5	0.49	0.05
		40.0	44.0	4.0	0.19	0.18	0.7	0.08	0.02
		180.3	186.3	6.0	0.20	0.19	0.8	0.01	0.11
LMDD035	237.48	51.0	146.0	95.0	0.58	0.52	4.5	0.04	0.02
		71.8	77.8	6.0	3.30	2.70	48.9	0.10	0.03
		98.0	101.1	3.1	0.99	0.98	1.1	0.03	0.01
		120.0	128.0	8.0	1.02	1.01	1.2	0.01	0.00
		183.0	204.1	21.1	0.54	0.52	1.3	0.12	0.00
LMDD033	277.86	0.0	10.0	10.0	0.21	0.17	3.2	0.01	0.01
		16.0	20.0	4.0	0.29	0.28	1.1	0.06	0.01
		261.4	272.0	10.6	2.34	2.33	0.6	0.01	0.02
		261.4	262.5	1.1	2.48	2.47	0.9	0.01	0.09
		270.0	272.0	2.0	9.35	9.35	0.1	0.01	0.00
LMDD032	343.26	6.0	215.0	209.0	0.58	0.51	5.7	0.23	0.02
		26.0	41.0	15.0	0.77	0.65	9.8	0.35	0.08
		76.0	84.0	8.0	1.50	1.40	8.5	0.30	0.03
		106.0	115.0	9.0	1.05	0.94	8.6	0.15	0.00
		141.0	145.0	4.0	1.10	1.03	5.4	0.07	0.00
		155.0	167.2	12.2	1.76	1.59	13.8	0.23	0.01
		159.9	165.8	5.8	2.66	2.50	13.0	0.31	0.00
		176.4	188.5	12.2	1.38	1.23	12.1	0.07	0.00
		184.5	188.5	4.0	2.98	2.68	24.6	0.10	0.00
LMDD031	397.13	6.0	161.0	155.0	0.47	0.37	7.9	0.59	0.03
	incl.	17.4	20.3	2.9	1.61	1.32	24.0	2.13	0.09
	and	41.0	49.0	8.0	1.99	1.69	24.3	0.61	0.03
	and	106.5	125.0	18.5	1.17	0.89	22.9	0.26	0.04

		175.0	181.0	6.0	0.22	0.17	4.0	0.89	0.05
		195.0	200.2	5.2	0.12	0.05	5.7	0.94	0.04
		295.2	328.7	33.5	0.15	0.11	3.4	1.83	0.05
LMDD030	406.25	46.0	289.0	243.0	1.32	1.11	16.9	0.36	0.02
		48.0	224.0	176.0	1.49	1.27	18.0	0.22	0.01
		152.0	194.0	42.0	3.90	3.37	43.3	0.29	0.01
LMDD026	334.30	90.0	275.0	185.0	2.85	2.67	15.0	0.50	0.02
		106.0	207.0	101.0	4.88	4.65	18.9	0.14	0.00
		146.0	177.0	31.0	12.93	12.53	32.7	0.16	0.00
		171.4	179.0	7.6	42.69	42.15	43.9	0.26	0.01
		201.0	207.0	6.0	2.60	2.38	18.2	0.19	0.00
		235.0	252.0	17.0	1.01	0.59	34.3	1.81	0.10
		268.0	275.0	7.0	1.11	0.92	15.6	2.78	0.20
LMDD017	214.92	6.8	183.5	176.7	1.09	0.97	10.1	0.20	0.11
	incl.	81.2	96.2	15.0	4.00	3.91	7.69	0.34	0.01
	incl.	81.2	82.9	1.7	22.28	22.20	6.8	0.09	0.00
	and	157.5	183.5	26.0	2.46	2.02	36.2	0.14	0.00

==> picture [371 x 348] intentionally omitted <==

Figure 3: Bramaderos concession showing the location of Limon and other gold-copper porphyry (yellow) and goldsilver epithermal targets (orange). The background image is gold-in-soil highlighting the potential scale increase to be delivered with more drilling at Bramaderos across multiple targets. Drilling activity during 2023 has been focussed on the Limon gold-silver epithermal opportunity.

==> picture [488 x 523] intentionally omitted <==

Figure 4: Location of Sunstone’s Bramaderos and El Palmar projects, Ecuador.

Table 2: Limon drill hole location details for LMDD030 – 043. Collars for holes up to LMDD040 have been surveyed with differential GPS.

Drill Hole Number Easting (PSAD56)	Northing (PSAD56) RL (m) Dip (degrees) Azimuth (PSAD56 Grid) (degrees) EOH (m)
LMDD030 635020.368	9551070.371 919.359 -70 303 406.25
LMDD031 635021.456	9551070.536 919.286 -80 330 397.13
LMDD032 634842.587	9551146.089 863.942 -55 105 343.26
LMDD033 634717.431	9551358.275 902.284 -45 199 277.86
LMDD034 634842.333	9551145.384 863.91 -55 120 346.10
LMDD035 634889.235	9550978.497 887.91 -50 330 237.48
LMDD036 634848.567	9551146.506 863.756 -45 263 235.70
LMDD037 634889.702	9550976.625 887.794 -65 286 303.17
LMDD038 634842.58	9551146.291 863.798 -55 95 312.58
LMDD039 635139.27	9550960.247 899.685 -45 142 340.84
LMDD040 635004.168	9551183.445 945.382 -63 202 407.5
LMDD041 635085	9550855 901 -45 152 398.43
LMDD042 634572	9551431 877 -35 264 359.26
LMDD043 635072	9551003 898 -35 290 370.03

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 projects in Ecuador. The portfolio comprises:

The Bramaderos Gold-Copper Project where Sunstone owns an 87.5% interest, and SolGold Canada, Inc. (formerly Cornerstone Capital Resources) a subsidiary of SolGold, holding 12.5% (loan carried through to start of commercial production) (see ASX announcement dated 10th April 2017, 28th 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. The Bramaderos concession is host to multiple fertile mineralised systems with significant discovery potential.

The Brama-Alba deposit, within the Bramaderos concession contains an initial Mineral Resource estimate of 156Mt at 0.53g/t AuEq for 2.7Moz gold-equivalent*. In addition to this is the Bramaderos project Exploration Target of between 3.3Moz and 8.6Moz AuEq within 255 to 360Mt at a grade between 0.40 and 0.74g/t AuEq (see ASX release dated December 13, 2022).

JORC Classification	Tonnage (Mt)	Au (g/t)	Cu (%)	Ag (g/t)	AuEq (g/t)	AuEq (Mozs)
Indicated	9	0.38	0.09	1.1	0.53	0.2
Inferred	147	0.35	0.11	1.3	0.53	2.5
Total	156	0.35	0.11	1.3	0.53	2.7

The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement for the Mineral Resource estimate and Exploration Target referred to above and, that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

The potential quantity and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource for the target area reported. It is uncertain if further exploration will result in the estimation of a Mineral Resource.

*The gold equivalent calculation formula is AuEq(g/t) = (Au grade x Au price x Au recov / 31.1035) + (Ag grade x Ag price x Ag recov / 31.1035) + (Cu grade x Cu price x Cu recov / 100)) / (Au price x Au recov / 31.1035). The prices used were US$1,800/oz gold and US$9,500/t copper and US$22/oz silver. Recoveries are estimated at 89% for gold, 85% for copper, and 60% for silver based on metallurgical studies. In Sunstone’s opinion all the elements included in the metal equivalents calculation have reasonable potential to be recovered and sold.

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 Staged Acquisition Agreement to acquire the nearby Verde Chico Project 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 Limon 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). _	• 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 Limon 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 Limon 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.
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 whichcomply 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 Limon 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 sampleis thenpulverised to>85% passing 75microns

	Criteria	JORC Code explanation	Commentary
			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 preparationtechniques.
		• 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, 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

	Criteria	JORC Code explanation	Commentary
			assigned assay values of zero where present.
	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 were collected from diamond drill holes from the Limon target, and with sample length generally ranging between 1.0–2.0m.
		• 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

	Criteria	JORC Code explanation		Commentary
				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 SolGold Canada 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 SolGold. Sunstone has an 87.5% interest in the JV. SolGold’s 12.5% interest is loan carried.
	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 Limon 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 and drilling activities at Limon, 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.

	Criteria	JORC Code explanation	Commentary
		• 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 1-4 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 1-2 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 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 1-2 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.