SUNSTONE METALS LTD — Capital/Financing Update 2023

Apr 13, 2023

14 APRIL 2023

Bramaderos Gold-Copper Project, Southern Ecuador

Limon emerging as major discovery with visible gold in follow-up hole

The latest interval is ~700m away and geologically similar to hole LMDD017, which returned 177m at 1.1g/t AuEq from surface; Second rig now on site to accelerate growth of this discovery

Key Points

• Drilling at the Limon target, within the Bramaderos Project, has intersected further visible gold in an epithermal vein system at 600m below surface in hole LMDD020
• The interval shows geological similarities to that from hole LMDD017 which intersected 177m at 1.1g/t AuEq from surface
• The Limon target area is 2.7km from the Brama-Alba gold-copper deposit, which hosts a porphyry gold-copper-silver Mineral Resource of 2.7Moz AuEq; In addition, the Bramaderos project Exploration Target is 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)
• In light of the results from LMDD017 and 020, Sunstone expects to increase both the tonnes and grade of the Exploration Target
• This latest result at Limon significantly expands the search space for the epithermal system with two drilling rigs now focussed on defining the scale of what appears to be a large epithermal system, overlying or adjacent to a porphyry gold-copper system
• Assays from hole LMDD020 are expected in early-mid May
• Malcolm Norris, Sunstone Metals MD said "This could have very significant ramifications for the total resource, the overall grade and the upfront development options at Bramaderos. We stand by our objective of discovering a 10Moz gold district with multiple deposits within 4km of one another".

*The gold equivalent calculation formula is AuEq(g/t) = Au(ppm) + (Ag (ppm) x 0.0082). The prices used were US$1,770/oz gold and US$22/0z silver. Recoveries are estimated at 89% for gold and 60% for silver from metallurgical studies from Bramaderos. 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

Sunstone Metals Ltd (ASX: STM) is pleased to announce that drilling has intersected more visible gold at the Limon target within the Bramaderos project in southern Ecuador.

Hole LMDD020 intersected the visible gold within an intermediate sulphidation epithermal system at a down-hole depth of 665.2m. The vein containing the gold and base metals was close to parallel to the core axis (see Figure 2) and was measured over a distance of approximately 1m. Scattered elevated base metal intervals from visual logs and confirmed by pXRF were intersected in several intervals of LMDD020. This included 0 – 85m, 140 – 150m, 174 – 195m, 450 – 540m, 663 – 666m. These intervals will be prioritised for assay.

The Limon target area is located 2.7km north-east of the Brama-Alba gold-copper deposit, which hosts a porphyry gold-copper-silver Mineral Resource of 2.7Moz AuEq (Figure 1; see ASX announcement dated 13 December 2022, and qualifying statements in the 'About Sunstone Metals' section on page 9 of this announcement).

Sunstone Managing Director Malcolm Norris said: "Limon is emerging as a major gold discovery. We now have two rigs there. One is completing hole LMDD020, which has intersected this very exciting epithermal gold system, and is targeting a porphyry gold-copper system at depth. The second rig will test the phenomenal results from LMDD017 that intersected 177m grading 1.1g/t AuEq.

"The Limon epithermal system could be large in its own right. We are seeing geologically similar styles of mineralisation over a vertical distance of at least 600m, and it is open laterally. This greatly expands our area of exploration and increases our confidence that we are onto something significant at Limon.

"This could have very significant ramifications for the total resource, the overall grade and the upfront development options at Bramaderos. We stand by our objective of discovering a 10Moz gold district with multiple deposits within 4km of one another.

"We are preparing samples from LMDD020 for submittal to the assay laboratory and we will fast track selected intervals".

Mineralisation in LMDD020 comprises scattered intervals of epithermal alteration and some base metal veins from 0 to 666m. Locally there is visible gold at 665m, and this is associated with copper as chalcopyrite, sphalerite and tennantite-tetrahedrite (copper sulphides) (Figure 2). The geometry, plus full lateral and vertical extent, of this epithermal system will be tested with follow-up drilling (Figure 3).

A 2,200m drilling program was planned as follow-up to LMDD017 results. This program has commenced and will now be expanded to drill targets developed as a consequence of the presence of visible gold in LMDD020 at 665m down hole.

Assay results have also been received for holes LMDD018 and 019 (Table 1), which were drilled prior to the receipt of assays from LMDD017. Both holes have intersected zones of gold mineralisation and demonstrate that the epithermal domain remains open to the north, east and west, and at depth.

The Bramaderos project straddles the Pan American highway, and is close to available hydroelectric power, supporting the economics of potential development opportunities. Ecuador sources 88% of its power from hydroelectricity 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.

Drill Hole	EOH (m)	From(m)	To (m)	Interval (m)	AuEq (g/t)	Au (g/t)	Ag (g/t)
LMDD002	893.58	28.6	29.6	0.9	0.11	0.10	0.7
		40.0	42.0	2.0	0.28	0.28	0.5
		92.0	94.0	2.0	0.14	0.13	0.7
		110.0	112.0	2.0	0.15	0.14	1.5
LMDD004	1063.78	57.75	73.1	15.4	0.79*	0.1	2.3
LMDD006	1212.62	3.5	131.3	127.8	0.19	0.18	0.8
		3.5	22.4	18.9	0.21	0.20	1.2
		34.4	54.0	19.7	0.38	0.37	1.0
	incl.	44.3	52.5	8.2	0.62	0.61	0.8
		75.4	90.6	15.2	0.36	0.36	0.5
		111.0	131.3	20.3	0.22	0.21	0.9
LMDD012	178.08	0.0	126.0	126.0	0.29	0.28	0.8
		2.0	22.0	20.0	0.36	0.35	1.0
		48.0	66.0	18.0	0.75	0.74	1.1
		90.0	94.0	4.0	0.72	0.70	2.4
LMDD013	178.65	0.0	37.8	37.8	0.47	0.34	15.6
	incl.	2.0	6.0	4.0	1.76	1.72	5.5
	incl.	29.0	37.8	8.8	0.58	0.21	45.0
		43.8	49.2	5.5	0.13	0.10	3.3
		76.0	78.0	2.0	0.20	0.16	4.4
LMDD014	183.51	18	20	2.0	0.19	0.18	0.3
		56	58	2.0	0.12	0.12	0.6
		105.2	109.2	4.0	0.19	0.17	2.8
		121	123	2.0	0.13	0.12	1.5
		138.6	183.5	44.9	0.22	0.19	3.2
	incl.	157.5	163.5	6.0	0.52	0.45	8.3
LMDD015	201.02	14.5	37.0	22.5	0.17	0.15	1.9
LMDD017	214.92	6.8	183.5	176.7	1.05	0.97	10.1
		29.3	43.0	13.7	0.81	0.68	14.9
		81.2	96.2	15.0	3.97	3.91	7.69
	incl.	81.2	82.9	1.7	22.26	22.20	6.8
		114.5	134.5	20.0	1.04	0.96	9.6
		157.5	183.5	26.0	2.32	2.02	36.2
LMDD018	207.19	0.0	18.5	18.5	0.41	0.40	1.6
		30.042.0	80.450.0	50.48.0	0.360.57	0.350.55	1.11.9
	incl.	77.5	80.4	2.9	0.93	0.92	1.0
LMDD019	and222.70	0.0	2.0	2.0	0.45	0.45	0.3
		56.3	59.9	3.7	0.25	0.24	1.3
		95.7	107.8	12.1	0.38	0.38	0.4
		102.9	104.6	1.6	1.12	1.12	0.4

Table 1: Summary of mineralised epithermal intersections in Limon drill holes.

*this interval contained significant copper (15.4m at 0.42%) as chalcocite and that has been included in the AuEq. All other quoted AuEq values are for gold+silver only.

Figure 1: Bramaderos concession showing the location of Limon and other gold-copper porphyry targets in yellow. The background image is gold-in-soil highlighting the potential scale increase to be delivered with more drilling at Bramaderos across multiple porphyry centres. Drilling is now underway at Limon.

Figure 2: Photographs of visible gold and mineralisation style in LMDD020 at 665m down hole depth.

Figure 3: Area of epithermal mineralisation within the broader Limon target. Red lines show planned follow-up drilling to extend the multiple high-grade zones in LMDD017. Hole trace for LMDD020 is shown in the black and white dashed line, drilling from north to south at a dip of -66 degrees.

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

Drill HoleNumber	Easting(PSAD56)	Northing(PSAD56)	RL (m)	Dip(degrees)	Azimuth(PSAD56 Grid)(degrees)	EOH(m)
LMDD001	634344.5	9550929.9	904.0	-44.86	31.02	490.6
LMDD002	634744.0	9551129.2	844.4	-45	178	893.58
LMDD003	635059.0	9550743.5	880.7	-68	202	130.48
LMDD004	635051.9	9550732.9	880.7	-68	202	1063.78
LMDD005	635084.3	9550854.3	901.0	-77	244	289.65
LMDD006	635085.8	9550855.2	900.9	-77	242	1212.62
LMDD007	634700.4	9550094.1	879.7	-77	350	1015.71
LMDD008	634305.7	9551202.7	868.7	-70	188	455.33
LMDD009	634340.2	9550929.7	903.7	-45	275	414.89
LMDD010	634344.0	9550930.0	903.9	-45	50	254.72
LMDD011	634547.5	9550953.5	861.7	-53	275	308.32
LMDD012	634859	9551025	882	-45	290	178.08
LMDD013	634859	9551025	882	-45	110	178.65
LMDD014	634993	9550977	899	-45	290	183.51
LMDD015	634993	9550977	899	-45	110	201.02
LMDD016	634345	9550931	903	-65	45	260.64
LMDD017	634842	9551147	905	-45	110	214.92
LMDD018	634859	9551025	882	-40	202	207.19
LMDD019	635051	9550733	880	-60	9	222.70
LMDD020	635072	9551003	905	-66	182	active

Table 2: Limon drill hole location details for LMDD001 – 020. LMDD001 to 011 have been located with Differential GPS.

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, 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).

JORCClassification	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.

1. 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
Samplingtechniques	•Nature and quality of sampling (e.g. cut channels,random chips, or specific specialised industry standardmeasurement tools appropriate to the minerals underinvestigation, such as downhole gamma sondes, orhandheld XRF instruments, etc.). These examples shouldnot be taken as limiting the broad meaning of sampling.•Include reference to measures taken to ensure sample	• The results announced here are from diamond drillingsamples. The drill core sampling was carried out usinghalf core, generally at 1-2m intervals.• Core recovery was good, and core aligned prior to
	representivity and the appropriate calibration of anymeasurement tools or systems used.	splitting.
	•Aspects of the determination of mineralisation that areMaterial to the Public Report. In cases where 'industrystandard' work has been done this would be relativelysimple (e.g. 'reverse circulation drilling was used toobtain 1 m samples from which 3 kg was pulverised toproduce a 30 g charge for fire assay'). In other cases,more explanation may be required, such as where thereis coarse gold that has inherent sampling problems.Unusual commodities or mineralisation types (e.g.submarine nodules) may warrant disclosure of detailedinformation.	• Diamond drilling, rock chip and channel samplingpoints have been guided by geological mapping. Thedrill samples from Limon were dried, crushed to 70%passing 2mm, Split 1000g and pulverised to 85%passing 75microns. A 20g portion of this sample wasused for multi-element analysis (IMS-230) and a 30gsample for Fire Assay Au (FAS-111).
Drillingtechniques	•Drill type (egcore, reverse circulation, open-holehammer, rotary air blast, auger, Bangka, sonic, etc) anddetails (e.g. core diameter, triple or standard tube, depthof 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 drillingand has drilled to various depths up to 720m. Thediamond core was drilled deliveringeither HTW(70.9mm) or NTW (56mm) core. Drill core is orientedusing a Reflex ACT II tool for bottom of hole.
Drill samplerecovery	•Method of recording and assessing core and chip samplerecoveries and results assessed.	• Diamond core recovery data for the Limon drillingwas measured for each drill run and captured in adigital logging software package. The data has beenreviewed and core recovery was approximately 100%throughout.
	•Measures taken to maximise sample recovery and ensurerepresentative nature of the samples.	• Core recovery at Limon was good, no extra measureswere taken to maximise sample recovery.
	•Whether a relationship exists between sample recoveryand grade and whether sample bias may have occurreddue to preferential loss/gain of fine/coarse material.	• No relationship between sample recovery and gradehas been established.
Logging	•Whether core and chip samples have been geologicallyand geotechnically logged to a level of detail to supportappropriateMineralResourceestimation,miningstudies and metallurgical studies.	•Drill samples, trench samples and rock chips wereloggedforlithology,weathering,structure,mineralogy, mineralisation, colour, and other features.Logging and sampling were carried out according toSunstone's internal protocols and QAQC procedureswhich 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 areloggedforlithology,weathering,structure,mineralogy, mineralisation, colour, and other features.
	•The total length and percentage of the relevantintersections logged.	•The drill holes and trenches are logged in full, fromstart to finish of the excavation.
Sub-samplingtechniques andsamplepreparation	•If core, whether cut or sawn and whether quarter, half orall core taken.	•Half core was used to provide the samples that weresubmitted for assay. Quarter core samples were taken~1 in every 28 samples for duplicate sampling. Theremaining 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.
	•Forallsampletypes,thenature,qualityandappropriateness of the sample preparation technique.	• Surface and drill core samples from Limon were sent tothe LAC y Asociados Cia. Ltda. Sample PreparationFacility in Cuenca, Ecuador for sample preparation.The standard sample preparation for drill core samples(Code PRP-910) is: Drying the sample, crushing to size

ASX ANNOUNCEMENT -

Criteria	JORC Code explanation	Commentary
	• Quality control procedures adopted for all sub-samplingstages to maximise representivity of samples.	fraction $70%$ <2mm and splitting the sample to a 250gportion by riffle or Boyd rotary splitter. The 250gsample is then pulverised to $>85%$ passing 75 micronsand then split into two 50g pulp samples. Then one ofthe pulp samples was sent to the MS AnalyticalLaboratory in Vancouver (Unit 1, 20120 102ndAvenue, Langley, BC V1M 4B4, Canada) for gold andbase metal analysis.• The sample preparation is carried out according toindustry standard practices using highly appropriatesample preparation techniques.· Sunstone used an industry standard QAQCprogramme involving Certified Reference Materials"standards" and blank samples, which were introducedin the assay batches.• Standards (Certified Reference Materials) or analyticalblanks 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 alongwith the sample assay values in the final analysisreport.
	• Measures taken to ensure that the sampling isrepresentative of the in-situ material collected, includingfor instance results for field duplicate/second-halfsampling.	• For diamond core, the routine sample procedure is toalways take the half/quarter core to the right of theorientation line (looking down hole) or the cut line (incases where the orientation line was not reliable).• Once assay results are received the results fromduplicatesamplesarecomparedwiththecorresponding routine sample to ascertain whether thesampling is representative.
	Whether sample sizes are appropriate to the grain size ofthe material being sampled.	Sample sizes are considered to be appropriate for thestyle of sampling undertaken and the grainsize of thematerial, and correctly represent the style and type ofmineralisation at the exploration stage.
Quality ofassay data andlaboratorytests	• The nature, quality and appropriateness of the assayingand laboratory procedures used and whether thetechnique is considered partial or total.	Sunstone uses a fire assay gold technique for Auassays (FAS-111) and a four acid multi elementtechnique (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) attrace levels. IMS-20 is considered a near total 4 acidtechnique using a 20g aliquot followed by multi-element analysis by ICP-AES/MS at ultra-trace levels.• This analysis technique is considered suitable for thisstyle of mineralisation.
	• For geophysical tools, spectrometers, handheld XRFinstruments, etc., the parameters used in determining theanalysis including instrument make and model, readingtimes, calibrations factors applied and their derivation,etc.	Handheld XRF data, together with detailed geological$\bullet$logging, are used as a guide to areas of potentialmineralisation and samples from these areas are sentfor laboratory analysis as described above.
	• Nature of quality control procedures adopted (e.g.standards, blanks, duplicates, external laboratorychecks) and whether acceptable levels of accuracy (i.e.lack of bias) and precision have been established.	• Standards, blanks and duplicates are inserted $\sim$ 1/28samples. The values of the standards range from lowto high grade and are considered appropriate tomonitor performance of values near cut-off and nearthe mean grade of the deposit.• The check sampling results are monitored, andperformance issues are communicated tothelaboratory if necessary.
	• The verification of significant intersections by eitherindependent or alternative company personnel.	• Procedure checks have been completed by theCompetent Person for exploration results for thisannouncement.

- ASX ANNOUNCEMENT -

Criteria	JORC Code explanation	Commentary
Verification of	The use of twinned holes.$\bullet$	Twin holes have not been drilled in these areas.
sampling andassaying	Documentation of primary data, data entry procedures,• Sunstone sampling data were imported and validateddata verification, data storage (physical and electronic)using Excel.protocols.
	Discuss any adjustment to assay data.	• Assay data were not adjusted. Core loss intervals areassigned assay values of zero where present.
Location ofdata points	• Accuracy and quality of surveys used to locate drill holes(collar and down-hole surveys), trenches, mine workingsand other locations used in Mineral Resource estimation.	Sample co-ordinates are located by GPS and for trenchsamples measured along the length of the trench.
	Specification of the grid system used.$\bullet$	Ecuador projection parameters:
		ParameterValue
		Reference EllipsoidInternational 1924
		Semi Major Axis
		Inverse Flattening (1/f)
		UTM Zone -17S (DatumType of ProjectionPSAD56)
		Central Meridian:$-81.0000$
		Latitude of Origin0.0000
		Scale on Central Meridian0.9996
		False Northing10000000
		False Easting500000
	Quality and adequacy of topographic control.$\bullet$	• The topographic control was compared againstpublished maps and satellite imagery and found to begood quality.
Data spacinganddistribution	• Data spacing for reporting of Exploration Results.	• The drill core samples were collected from diamonddrill holes from the Limon target, and with samplelength generally ranging between $1.0 - 2.0$ m.
Whether the data spacing, and distribution is sufficient$\bullet$to establish the degree of geological and gradecontinuity appropriate for the Mineral Resource and OreReserve estimation procedure(s) and classificationsapplied.		• The data from these samples does not contribute to anyresource estimate nor implies any grade continuity.
	Whether sample compositing has been applied.$\bullet$	• No sample compositing was done.
Orientation ofdata in relationto geologicalstructure	Whether the orientation of sampling achieves unbiasedsampling of possible structures and the extent to whichthis is known, considering the deposit type.	Drilling orientations were appropriate for theinterpreted geology providing representative samples.Trench orientations and rock chip locations were$\bullet$appropriate for the interpreted geology providingrepresentative samples.
	• If the relationship between the drilling orientation andthe orientation of key mineralised structures isconsidered to have introduced a sampling bias, thisshould be assessed and reported if material.	• No sampling bias is expected at this stage.
Samplesecurity	• The measures taken to ensure sample security.	· Sunstone sampling procedures indicate individualsamples were given due attention.• Sample security was managed through sealedindividual samples and sealed bags of multiplesamples for secure delivery to the laboratory bypermanent staff of the joint venture.• MS Analytical is an internationally accreditedlaboratory that has all its internal procedures heavilyscrutinised in order to maintain their accreditation. MS

Criteria	JORC Code explanation	Commentary
		Analytical is accredited to ISO/IEC 17025 2005Accredited Methods.
Audits orreviews	•The results of any audits or reviews of samplingtechniques and data.	• Sunstone's sampling techniques and data have beenaudited multiple times by independent miningconsultants during various project assessments. Theseaudits have concluded that the sampling techniquesand data management are to industry standards.• All historical data has been validated to the bestdegree possible and migrated into a database.

TABLE 1 – Section 2: Exploration Results

Criteria	JORC Code explanation	Commentary
Mineraltenement andland tenurestatus	•Type, reference name/number, location and ownershipincluding agreements or material issues with thirdparties such as joint ventures, partnerships, overridingroyalties, nativetitle interests,historicalsites,wilderness or national park and environmentalsettings.	•The Bramaderos Exploration Concession is located inthe Loja Province of southern Ecuador. The concessionwas granted to La Plata Minerales S.A. ("PLAMIN") inJanuary 2017. PLAMIN is a subsidiary of SunstoneMetals Ltd. The concession is subject to a Joint Venturebetween Cornerstone Capital Resources Inc. (12.5%) andSunstone Metals Ltd. (87.5%). There are no declaredwilderness areas or national parks within or adjoining theconcession area. There are no established native titleinterests.
	•The security of the tenure held at the time of reportingalong with any known impediments to obtaining alicence to operate in the area.	•The Bramaderos Exploration Concession was granted toLa 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 Venturebetween Sunstone Metals and Cornerstone. Sunstone hasan 87.5% interest in the JV.
Explorationdone by otherparties	•Acknowledgment and appraisal of exploration by otherparties.	•The historic exploration at Bramaderos was completedby various groups over the period 1970-1984, 2001-2002and 2004-2007. Most of the readily available historicdata has been acquired and compiled into databases anda GIS project. Exploration by other parties has includedstream sediment surveys, geological mapping, rock chipsampling (888 samples) and grid-based soil sampling(1324 samples), trenching and channel sampling (17trenches), ground magnetic surveys (31 line kilometres),electrical IP surveys and diamond drilling (10426m).
Geology	•Deposittype,geologicalsettingandstyleofmineralisation.	•The deposit style being explored for includes intrusionrelated and stockwork hosted porphyry Au-Cu systemsplus epithermal gold-silver-polymetallic veins. Thesetting at Limon is a volcanic arc setting of Cretaceousage intrusions.
Drill holeInformation	•A summary of all information material to theunderstanding of the exploration results including atabulation of the following information for all Materialdrill holes:a. easting and northing of the drill hole collarb. elevation or RL (Reduced Level – elevation abovesea level in metres) of the drill hole collarc.dip and azimuth of the holed. down hole length and interception depthe.hole length.	•Details of the samples discussed in this announcementare in the body of the text.•See Figures 1-3 for the location of soil sampling anddrilling activities at Limon, and nearby areas.
	•If the exclusion of this information is justified on thebasis that the information is not Material and thisexclusion does not detract from the understanding ofthe report, the Competent Person should clearly	•Information included in announcement.

- ASX ANNOUNCEMENT -

Criteria	JORC Code explanation	Commentary
	explain why this is the case.
Dataaggregationmethods	• In reporting Exploration Results, weighting averagingmaximum and/or minimum gradetechniques,truncations (e.g. cutting of high grades) and cut-offgrades are usually Material and should be stated.	Weighted averages were calculated over reportedintervals according to sample length.No grade cut-offs were applied.$\bullet$
	Where aggregate intercepts incorporate short lengths$\bullet$of high-grade results and longer lengths of low-graderesults, the procedure used for such aggregationshould be stated and some typical examples of suchaggregations should be shown in detail.	No aggregating of intervals undertaken at this stage.
	• The assumptions used for any reporting of metalequivalent values should be clearly stated.	Preliminary metallurgical studies are indicating astandard grind with a flotation circuit. Stage one willrecover copper and the majority of gold as a saleableconcentrate. Stage two is a finer grind with a cyanideleach for gold on site. Current, overall estimatedrecoveries for the combined process are 86% for copperand 89% for gold.
Relationshipbetweenmineralisation	• If the geometry of the mineralisation with respect to thedrill-hole angle is known, its nature should bereported.	Figures 1-3 show the interpreted strike orientation of themineralised lodes based on mapping and interpretationof detailed magnetic data.
widths andinterceptlengths	• If it is not known and only the down hole lengths arereported, there should be a clear statement to thiseffect (e.g. 'down hole length, true width not known').	True widths of mineralised lodes are not known at thisstage.
Diagrams	• Appropriate maps and sections (with scales) andtabulations of intercepts should be included for anysignificant discovery being reported. These shouldinclude, but not be limited to a plan view of drill holecollar locations and appropriate sectional views.	See Figures 1-3 for maps showing distribution ofsamples.
Balancedreporting	Where comprehensive reporting of all Exploration$\bullet$Results is not practicable, representative reporting ofboth low and high grades and/or widths should bepracticed to avoid misleading reporting of ExplorationResults.	Figures 1-3 show the current interpretations of geology.
Othersubstantiveexplorationdata	• 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 andmethod of treatment; metallurgical test results; bulkdensity, groundwater, geotechnical and rockcharacteristics; potential deleterious or contaminatingsubstances.	Figures 1-3 above show various datasets that are being$\bullet$used to identify target areas and to guide current andfuture drilling.
Further work	• The nature and scale of planned further work (e.g. testsfor lateral extensions or depth extensions or large-scale step-out drilling).	The planned exploration program is outlined in theannouncement.
	• Diagrams clearly highlighting the areas of possibleincludingextensions.themaingeologicalinterpretations and future drilling areas, provided thisinformation is not commercially sensitive.	See Figures 1-3 which show areas for furtherexploration.