SUNSTONE METALS LTD — Interim / Quarterly Report 2017

Apr 25, 2017

26 April 2017

AVALON MINERALS LTD MARCH 2017 QUARTERLY REPORT

Viscaria Copper Project, Sweden (Avalon - 100%)

• Low risk copper development opportunity – will add significant value within an increasing copper price environment. The current Mineral Resource estimate is 52.4 million tonnes at 1.2% Cu;
• Considerable exploration upside exists with an Exploration Report outlining the key targets released during the March Quarter;
• Drilling is underway to test extensional targets outside of the current resource estimate, with first assay results expected in May;
• Ground magnetic surveys completed delivering better defined target areas;
• Detailed structural studies have identified additional copper targets.

Gold Portfolio, Scandinavia

• Expenditure commitment to earn 51% of the Nortec JV tenements has been met;
• Avalon (100%) continues to build a strong land position over additional areas considered to be prospective for gold in Finland;
• Assays received from previously unsampled intervals from historical government drill holes. Highlights include:
  • o 12m at 1.6g/t from 42m in R390
  • o 5m at 2.3g/t from 53.4m in R396
  • o 3m at 1.5g/t from surface in R341
• A large Induced Polarisation (IP) geophysical survey across areas of known gold mineralisation has been completed, and processed results are expected in late April;
• Several highly rated local and regional targets have been identified for follow-up, including some with very significant historical rock chip assays, including one area up to 77g/t gold, in addition to assays up to 6.5 g/t gold identified southeast of Satulinmäki;
• Next phase of drilling is planned and will be further refined once processing and interpretation of IP data is finalised.

26 April 2017

Lithium Portfolio, Scandinavia (Avalon's 80% subsidiary Scandian Metals Pty Ltd (Scandian) earning 80%)

• Expenditure commitment for Scandian to earn 51% has been met.

Corporate Highlights

• Subsequent to the end of the quarter, Avalon entered an agreement to earn a majority interest in the highly prospective Bramaderos gold-copper concession, southern Ecuador;
• The partnership is with Cornerstone Capital Resources (TSXV:CGP) which also holds a minority stake in the giant Cascabel porphyry copper-gold deposit in northern Ecuador;
• A$1.6 million in cash at 31 March 2017;

Scandinavian Project Locations

Exploration and Development Activities

Viscaria Copper Project

Exploration Targets and Opportunities

During the quarter, Avalon released a technical report outlining the exploration target areas and opportunities at the Viscaria Copper Project in Sweden. The purpose of this report is to list and describe the multiple opportunities that exist in and around the former Viscaria copper mine in the Kiruna district of northern Sweden, and to aid in planning and prioritising future drilling programmes.

Ongoing technical work by Avalon has identified a series of 26 target environments, of which 24 are for new and extensional copper mineral resources at Viscaria, plus additional target environments with potential for gold and cobalt. Twelve of these targets represent relatively low-risk targets to existing resources. In addition, there are a further 12 targets located between 0.5 and 7 kilometres from the Viscaria deposits with the potential to produce new discoveries in the region, within trucking distance of the central Viscaria deposits.

Diamond drilling to test five priority targets is underway (Figures 1 & 2). These targets have been prioritised on the basis of geophysical anomalies with minor complementary historical drilling over some of the targets. The targets are primarily within 1.5km of the currently defined Viscaria orebodies and one target (Target 5) is located 2.5km to the southwest of the D Zone orebody. All drilling targets are outside of any existing mineral resource domain (see also ASX announcement dated 20th February 2017).

The drilling schedule, based on ready access, will progress from the old Viscaria Mine area to the target which is an interpreted northern extension of the D Zone orebody, and then test the southern shoot at D Zone.

Ground magnetic surveys have been completed and reinforce the targets which have been identified. The surveys also identify additional potentially significant targets along the D Zone horizon to the north and south. These additional target areas will be modelled and considered for drilling.

Detailed structural geology studies have been progressed and are aimed at delivering:

• a 3-D structural model that will be used to target interpreted high-grade copper zones, at the deposit scale, associated with thickened magnetite zones and potentially higher copper grade feeder zones; and
• a set of prioritised, new and existing, targets within 2.5km of the Viscaria copper deposit.

This work has already provided significant breakthroughs in the geological understanding of Viscaria, and building a predictive exploration model at the district scale.

Environmental and Social Impact Assessment (ESIA) and Permitting

The Viscaria ESIA process is being progressed. These activities will deliver the necessary documents for application for a Permit to Mine from the Swedish Land and Environmental Court. The process is focussed on the immediate Viscaria area and supports planning for mine development initially within the approved Exploitation Concessions K3 and K4.

The environmental permitting is the primary focus of activities at this stage to further de-risk the project and support ongoing studies.

Gold Portfolio

Tammela Gold Opportunity, Finland (Avalon earning 80% from Nortec Minerals)

The Nortec earn-in agreement, for which Avalon has earned 51%, includes two known gold opportunities, Satulinmäki and Riukka, held within the claim areas (Figures 3 and 4). All historical drilling is shallow and has only tested to ~70m below surface. Historical assays from diamond drilling by the Finnish Geological Survey (GTK) included 22m @ 3.6 g/t Au from 50 metres (hole 391) at Satulinmäki.

Assays have been received from several historical drill holes completed by the Finnish Geological Survey during the period 2000-2005, which were not previously sampled (Table 1 and Figure 6). The holes were reviewed by the Avalon team in the government core storage facility, with many previously unassayed intervals showing alteration. The intervals were assayed by Avalon, found to be gold bearing, and continue to support the definition of a significant gold system at Satulinmäki. Based on these results, additional intervals from historical government drill holes at Satulinmäki that were not previously assayed have been identified for sampling and assay. These intervals cover areas between known gold lodes, and may identify additional mineralised areas. Results from this sampling are expected in Q4.

The intersection in R390 (12m @ 1.62 g/t Au) further confirms and strengthens the main lode, and in hole R396 (5m @ 2.33 g/t Au) maps the northeast continuation of the main lode. This mineralisation remains open to the northeast. Intersections in R393 and R394 are potentially mapping lodes that could develop along strike since this area is poorly drilled (refer to ASX Announcement dated 22 February 2017).

An Induced Polarisation (IP) geophysical survey has been completed at the Satulinmäki gold prospect in southern Finland (Figure 7). Preliminary results from the IP survey suggest that anomalous domains have been mapped and that these extend to at least 250m deep. It is interpreted that these are mapping a sulphide envelope to gold mineralisation.

Historical data have also now shown an extension of gold mineralised rock approximately 1.5km to the southeast where rock chip samples have returned up to 6.5g/t Au (refer ASX announcement dated 7 April 2017). The alteration system, as mapped by the distribution of arsenopyrite, also extends to the northwest. This is a very significant development and expands the target area of gold mineralisation to nearly 3.5km long and 1 km wide.

The next phase of drilling will target the definition of high grade zones in the shallow parts of the Satulinmäki gold system (see ASX announcements dated 7 April 2017, 22 Feb 2017, 14 Nov 2016, and 17 Oct 2016), and will include drilling:

• on the north-western most vein set which has returned results of 1m at 19.5 g/t Au and 2m at 10.5g/t Au correlating along strike for at least 60m.
• on the main vein (Figure 5) below, and will be tested in its shallower zones where intervals up to 3m at 5.9g/t Au and 10m at 4.5 g/t Au correlate with deeper intervals of 9.2m at 7.3g/t Au delivering at least a 100m vertical extent.
• On an interpreted third vein set where historical drilling has delivered 1m at 17.8g/t Au and 3m at 5.9g/t Au.

Other Southern Finnish Gold Opportunities (Avalon 100%)

Ongoing regional targeting and assessments of all available data has identified several highly rated targets (Figure 8), including some with very significant historical rock chip assays (up to 77g/t Au), and some that correlate with the identification of regional structures. These areas will be the subject of follow-up programs to define prospect-scale targets.

Gold mineralisation appears to be controlled by a combination of northwest trending structures and arcuate east-west structures, with local splay faults. Alignment of areas of very significant anomalous gold values in rock chips and boulder samples along these structures provides a strong targeting regime. Several areas of gold anomalism have been identified associated with regional structures that incorporate the Satulinmäki system, and occur along a strike length of 16km (figure 8).

Based on Avalon's regional assessment of gold prospectivity in southern Finland, several applications have been lodged for Exploration Reservations covering known gold occurrences. These areas are held 100% by Avalon and will be explored systematically.

Lithium Portfolio

Kietyönmäki Lithium Project (Avalon's 80% subsidiary Scandian Metals Pty Ltd (Scandian) earning 80%)

The Nortec earn-in agreement area, for which Scandian has completed the requirements to earn 51%, includes the Kietyönmäki lithium occurrence which was discovered by the Finnish Geological Survey (GTK) in the mid-1980's. Lithium mineralisation at Kietyönmäki is hosted in a spodumenebearing pegmatite dyke swarm. The Kietyönmäki lithium pegmatite deposit was drilled by GTK during the period 1987 and 1988.

Ladum Lithium Project

In Sweden Avalon, through Scandian, has entered into a Heads of Agreement with private Australian interests to explore three approved Exploration Concessions and an application for an Exploration Concession in Vasternorrlands, collectively referred to as the Ladum Project.

Data compilation and an initial field program on the Ladum Project have been completed.

Tenements

During the quarter, Avalon's 80% owned subsidiary Scandian Metals Pty Ltd (through its 100% owned Swedish subsidiary Scandian Metals AB) had the Paimio Exploration Reservation, Somero, Finland approved.

In addition, the expenditure requirement under the Nortec agreement was met for Avalon and Scandian Metals Pty Ltd to achieve 51% interest in the gold and lithium tenements respectively.

Corporate

In early April, the Company announced that it entered a Binding Letter Agreement with Cornerstone Capital Resources Inc. (TSXV-CGP) (F-GWN) (B-GWN) (OTC-CTNXF) through its subsidiary La Plata Minerales S.A. ("PLAMIN"), whereby Avalon will have the right to earn a majority interest in the 4,949 hectare "Bramaderos" concession in southern Ecuador subject to satisfaction of certain conditions (see ASX announcements dated 10th April 2017, and 12th April 2017).

Cash Resources

The Company's unaudited cash position for 31 March 2017 was A$1.6 million.

Shareholder Information

As at 31 March 2017, the Company had 650,847,134 fully paid ordinary shares on issue and 845 shareholders.

1,329,573 shares were issued upon vesting of performance rights under the Company's Employee Performance Rights Plan related to achieving Total Shareholder Return performance hurdles.

Following approval at a General Meeting held on 14 February 2017, two directors participated in a placement of 500,000 shares each at a price of $0.02 per share, and a further 7.5 million listed options were issued to Hartleys Limited in lieu of cash advisory fees.

Research on Avalon was initiated by Hartleys Limited during the March quarter.

Notes Specific – March 2017 Quarter ASX Announcements

The following announcements, which relate to information in this Quarterly Report, were lodged with the ASX during the Quarter. Further details (including JORC 2012 Code Reporting Tables, where applicable) for the results summarised above can be found in the announcements:

Notice of General Meeting	13/01/2017
Initiation of Research by Hartleys Limited	18/01/2017
Exploration Report – Viscaria Targets and Opportunities	25/01/2017
Viscaria Drilling Targets	20/02/2017
Satulinmäki Gold Prospect Update	22/02/2017
Half Year Accounts	01/03/2017
Viscaria Copper Project Update	20/03/2017
Drilling Commenced at Viscaria Copper Project	05/04/2017
Southern Finland Gold Project Update	07/04/2017
Avalon to farm into gold-copper project Ecuador	10/04/2017

Figure 1: Drilling underway at Viscaria. The first holes are those over the target to the east of A Zone. The A Zone, B Zone and D Zone orebodies are outlined over a ground magnetics image.

Figure 2: The same figure as Figure 1, with the magnetics removed and showing drilling relative to the old mine site infrastructure.

Hole
Number	From (m)	To (m)	Intersection
R341	0	3	3m @ 1.45 g/t Au
R341	53	56	3m @ 0.47 g/t Au
R389	8	9	1m @ 1.33 g/t Au
R389	39	41	2m @ 0.51 g/t Au
R389	56	58	2m @ 0.31 g/t Au
R390	37	38	1m @ 2.97 g/t Au
R390	42	54	12m @ 1.62 g/t Au
R390	56	57.5	1.5m @ 0.55 g/t Au
R393	34	35	1m @ 0.46 g/t Au
R394	39	40	1m @ 0.58 g/t Au
R394	75	76	1m @ 0.14 g/t Au, 5.2 g/t Ag
R396	53.4	58.4	5m @ 2.33 g/t Au
R396	68.2	69.2	1m @ 0.66 g/t Au
R415	46.6	47.6	1m @ 0.51 g/t Au
R415	50	51	1m @ 2.88 g/t Au
R415	53	57	4m @ 0.54 g/t Au
R415	59	62.45	3.5m @ 0.32 g/t Au
R416	84	86	2m @ 0.48 g/t Au
R418	46	47	1m @ 0.51 g/t Au
R418	63	64	1m @ 0.55 g/t Au

Table 1: New assay results from historical government drill holes at Satulinmäki prospect, part of the Southern Finland Gold Project.

Figure 3: Location of the Satulinmäki gold prospect in southern Finland. The area is supported by high quality infrastructure and exploration can be undertaken year round.

Figure 4: Location of the Satulinmäki gold prospect, Riukka gold prospect, and the Kietyönmäki lithium prospect. Backdrop image is topography.

Figure 5: Satulinmäki Gold Prospect cross section through the main vein sets. The yellow areas are interpreted gold mineralised vein sets and breccia zones shown dipping and plunging to the northwest (see ASX announcements on 17th Oct 2016 and 14th Nov 2016).

Figure 6: Location of historical drill holes that were sampled and assayed by Avalon Minerals. Interpreted vein sets are outlined in red and these are limited to areas of outcrop.

Figure 7: Satulinmäki Prospect showing area of the completed IP geophysical survey within the large gold bearing alteration area that extends along a strike extent of 3km, and the location of the cross section shown in Figure 6.

Figure 8: Regional geological interpretation showing significant boulder rock chip assays from GTK boulder analysis, and the interpreted controlling structures in this area, including Satulinmäki. See figure 3 for details of Avalon Exploration Reservations.

TENEMENT SCHEDULE

At the end of the quarter, the Company holds the following tenements:

Copper Tenements

Tenement Holder	Tenement Name	Location	Status	Avalon Ownership
Avalon Minerals Viscaria AB	Viscaria No 1	Norrbotten, Sweden	Granted	100%
Avalon Minerals Viscaria AB	Viscaria No 2	Norrbotten, Sweden	Granted	100%
Avalon Minerals Viscaria AB	Viscaria No 101	Norrbotten, Sweden	Granted	100%
Avalon Minerals Viscaria AB	Viscaria No 107	Norrbotten, Sweden	Granted	100%
Avalon Minerals Viscaria AB	Viscaria No 112	Norrbotten, Sweden	Granted	100%
Avalon Minerals Viscaria AB	Huornas No 1	Norrbotten, Sweden	Granted	100%
Avalon Minerals Viscaria AB	Huornas No 2	Norrbotten, Sweden	Granted	100%
Avalon Minerals Viscaria AB	Viscaria K No 3	Norrbotten, Sweden	Granted	100%
Avalon Minerals Viscaria AB	Viscaria K No 4	Norrbotten, Sweden	Granted	100%
Avalon Minerals Viscaria AB	Viscaria K No 7	Norrbotten, Sweden	Granted	100%x
Avalon Minerals Viscaria AB	Nihka East	Norrbotten, Sweden	Granted	100%
Avalon Minerals Adak AB	Goddevarri	Norrbotten, Sweden	Granted	100%

Gold Tenements

Tenement Holder	Tenement Name	Location	Status	Avalon Ownership
Tammela Minerals Oy	Somero 1-12	Somero, Finland	Granted	51%*
Tammela Minerals Oy	Rehumäki	Somero, Finland	Granted	51%*
Scandian Metals AB	Niinimäki	Somero, Finland	Granted	100%
Scandian Metals AB	Kaila	Somero, Finland	Granted	100%
Scandian Metals AB	Ypäjä	Somero, Finland	Granted	100%
Scandian Metals AB	Kukonharja	Somero, Finland	Application	100%
Scandian Metals AB	Paimio	Somero, Finland	Granted	100%

Lithium Tenements

Tenement Holder	Tenement Name	Location	Status	Avalon Ownership
Scandian Metals AB	Ladumyrberget nr 1	Vasternorrlands,Sweden	Granted	80%
Scandian Metals AB	Ojaklacken nr 1	Vasternorrlands,Sweden	Granted	80%
Scandian Metals AB	Fannbyasen nr 1	Vasternorrlands,Sweden	Granted	80%
Scandian Metals AB	Fannbyasen nr 2	Vasternorrlands,Sweden	Granted	80%
Tammela Minerals Oy	Tammela 1-3	Somero, Finland	Granted	40.8%*
Tammela Minerals Oy	Rehumäki	Somero, Finland	Granted	40.8%*
Scandian Metals AB	Niinimäki	Somero, Finland	Granted	80%
Scandian Metals AB	Kaila	Somero, Finland	Granted	80%
Scandian Metals AB	Loulus	Kaustinen, Finland	Granted	80%
Scandian Metals AB	Kivijärvi	Seinäjoki, Finland	Granted	80%
Scandian Metals AB	Hietahauta	Kaustinen, Finland	Application	80%
Scandian Metals AB	Viitala	Kaustinen, Finland	Application	80%

*Subject to earn-in joint venture with Nortec Minerals Corp. (Tammela Minerals Oy). 51% earned by Avalon for gold and Scandian for lithium, and tenements in process of being transferred to JV entity.

x The approved, but under appeal, K7 Exploitation Concession at Viscaria has been returned to the Swedish Mines Inspectorate for further review as part of an industry wide review of appealed exploitation concessions in Sweden.

Resource Area	Classification	Tonnes(Mt)	Cu Grade(%)	Contained Cu(kt)
	Measured	14.44	1.7	240.0
	Indicated	4.69	1.2	57.2
A Zone	Inferred	2.48	1.0	25.5
	Subtotal	21.61	1.5	322.7
	Measured	0.12	1.3	1.6
	Indicated	4.12	0.7	29.7
B Zone	Inferred	15.41	0.8	118.7
	Subtotal	19.65	0.8	149.0
	Indicated	3.11	0.81	25.2
	Inferred	0.01	0.32	0.02
	Subtotal	3.11	0.81	25.2
D Zone	Indicated	7.26	1.37	99.8
	Inferred	0.78	1.57	12.2
	Subtotal	8.03	1.39	111.9
Overall Cu	Total	52.4	1.2	608.9

Table 1 Total combined resource figure for A Zone, B Zone and D Zone at Viscaria

Note: D Zone subtotals represent open pit at an average grade of 0.81% copper, and underground at an average grade of 1.39% copper.

Refer to Annual Report released 16 August 2016 for the Competent Persons Statement in relation to the estimates of mineral resources. The Company confirms that it is not aware of any new information or data that materially affects the information and all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed.

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 Avalon Minerals 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.

DIRECTORY

AVALON MINERALS LIMITED ABN 68 123 184 412

Stock Exchange Listing

Australian Stock Exchange ASX Code: AVI

Web site: www.avalonminerals.com.au Email: info@avalonminerals.com.au

Investor Information Contacts:

Mr Gavin Leicht - Company Secretary Avalon Minerals Limited Tel: 07 3368 9888 Email: gavin.leicht@avalonminerals.com.au

Shareholder Enquiries: Registered Office:

9 Gardner Close

Share registry matters should be directed to:

Computershare Investor Services Milton Queensland 4064 Phone: 1300 850 505 Phone: 07 3368 9888 Website: www.computershare.com.au Fax: 07 3368 9899

Issued capital:

Ordinary shares: 650,847,134 (AVI) Quoted Options: 154,837,500 (AVIO)* (at 31 March 2017)

* exercisable at 3 cents on or before 31 August 2019

Directors: Company Secretary:

Graham Ascough – Non-Executive Chairman Gavin Leicht Malcolm Norris – CEO/Managing Director Crispin Henderson – Non-Executive Director Don Hyma - Non-Executive Director

For further information please visit www.avalonminerals.com.au or contact:

Avalon Minerals Limited T: 07 3368 9888 E: info@avalonminerals.com.au www.avalonminerals.com.au

+Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16

Name of entity
Avalon Minerals Limited
ABN	Quarter ended ("current quarter")
68 123 184 412	31 March 2017

	Consolidated statement of cash flows	Current quarter$A'000	Year to date (9months)$A'000
1.	Cash flows from operating activities
1.1	Receipts from customers
1.2	Payments for
	(a)exploration & evaluation	(774)	(2,091)
	(b)development
	(c)production
	(d)staff costs	(380)	(1,127)
	(e)administration and corporate costs	(261)	(621)
1.3	Dividends received (see note 3)
1.4	Interest received	3	9
1.5	Interest and other costs of finance paid
1.6	Income taxes paid
1.7	Research and development refunds	343	468
1.8	Other (provide details if material)
1.9	Net cash from / (used in) operatingactivities	(1,069)	(3,363)

2.	Cash flows from investing activities
2.1	Payments to acquire:
	(a)property, plant and equipment
	(b)tenements (see item 10)
	(c)investments
	(d)other non-current assets

• See chapter 19 for defined terms

1 September 2016 Page 1

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

	Consolidated statement of cash flows	Current quarter$A'000	Year to date (9months)$A'000
2.2	Proceeds from the disposal of:
	(a)property, plant and equipment
	(b)tenements (see item 10)
	(c)investments
	(d)other non-current assets
2.3	Cash flows from loans to other entities
2.4	Dividends received (see note 3)
2.5	Other (provide details if material)
2.6	Net cash from / (used in) investingactivities	0	0

3.	Cash flows from financing activities
3.1	Proceeds from issues of shares	20	4,647
3.2	Proceeds from issue of convertible notes
3.3	Proceeds from exercise of share options
3.4	Transaction costs related to issues ofshares, convertible notes or options	(2)	(330)
3.5	Proceeds from borrowings
3.6	Repayment of borrowings
3.7	Transaction costs related to loans andborrowings
3.8	Dividends paid
3.9	Other (provide details if material)
3.10	Net cash from / (used in) financingactivities	18	4,317

4.	Net increase / (decrease) in cash andcash equivalents for the period
4.1	Cash and cash equivalents at beginning ofperiod	2,672	631
4.2	Net cash from / (used in) operatingactivities (item 1.9 above)	(1,069)	(3,363)
4.3	Net cash from / (used in) investing activities(item 2.6 above)	0	0
4.4	Net cash from / (used in) financing activities(item 3.10 above)	18	4,317
4.5	Effect of movement in exchange rates oncash held	5	41
4.6	Cash and cash equivalents at end ofperiod	1,626	1,626

• See chapter 19 for defined terms

1 September 2016 Page 2

5.	Reconciliation of cash and cashequivalentsat the end of the quarter (as shown in theconsolidated statement of cash flows) to therelated items in the accounts	Current quarter$A'000	Previous quarter$A'000
5.1	Bank balances	56	160
5.2	Call deposits	1,570	2,512
5.3	Bank overdrafts
5.4	Other (provide details)
5.5	Cash and cash equivalents at end ofquarter (should equal item 4.6 above)	1,626	2,672

6.	Payments to directors of the entity and their associates	Current quarter$A'000
6.1	Aggregate amount of payments to these parties included in item 1.2	115
6.2	Aggregate amount of cash flow from loans to these parties includedin item 2.3
6.3	Include below any explanation necessary to understand the transactions included initems 6.1 and 6.2
	Directors remuneration includes Managing Director salary.

7.	Payments to related entities of the entity and their
	associates

7.1	Aggregate amount of payments to these parties included in item 1.2

• 7.2 Aggregate amount of cash flow from loans to these parties included in item 2.3
• 7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2

N/A

Current quarter $A'000

8.	Financingfacilities availableAdd notes as necessary for anunderstanding of the position	Total facility amountat quarter end$A'000	Amount drawn atquarter end$A'000
8.1	Loan facilities
8.2	Credit standby arrangements
8.3	Other (please specify)
8.4	Include below a description of each facility above, including the lender, interest rate and

whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

N/A

9.	Estimated cash outflows for next quarter	$A'000
9.1	Exploration and evaluation	800
9.2	Development
9.3	Production
9.4	Staff costs	345
9.5	Administration and corporate costs	200
9.6	Other (provide details if material)
9.7	Total estimated cash outflows	1,345

10.	Changes intenements(items 2.1(b) and2.2(b) above)	Tenementreference andlocation	Nature of interest	Interest atbeginningof quarter	Interestat endofquarter
10.1	Interests inmining tenementsand petroleumtenementslapsed,relinquished orreduced
10.2	Interests inmining tenementsand petroleumtenementsacquired orincreased	Somero 1-12 andTammela1-3,Somero, Finland;RehumäkiExplorationReservation,Somero, Finland	Exploration PermitsExplorationReservation granted*51% interest achievedunder earn-in agreementwith Nortec Minerals	0%0%	51%51%

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.
• 2 This statement gives a true and fair view of the matters disclosed.

(Director/Company secretary)

Sign here: Date: 26 April 2017

Print name: GAVIN LEICHT

Notes

• 1. The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.
• 1. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.
• 1. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.