SUNSTONE METALS LTD — Investor Presentation 2012

Apr 23, 2012

ASX / Media Release 24 April 2012

PRESENTATION

Attached is an investor presentation by the Company's Managing Director, Mr Jeremy Read, titled 'Viscaria Copper Project and Regional Exploration'.

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

Mr Jeremy Read Managing Director Avalon Minerals Limited Mob: 0409 484 322

Viscaria Copper Project&Regional Exploration

24 April 2012

Avalon Minerals Limited

Scandinavian focused Copper Exploration and Mineral Development Company

Assets

• •Viscaria Copper Project
• • Viscaria Regional Exploration
• •Adak Copper-Zinc Project

Company Snapshot

Capital Structure

• 290,873,602 shares
• Current Share Price: A$0.095
• Market Capitalisation circa A$27.2M
• Cash Position: A$2.9M
• Head Office – Brisbane, Australia
• Top 10 holders 53% of share capital
• Listed on the ASX, Code AVI

Share Register

Abu Sahid Bin Mohamed 17.1%Siew Mun Chuang 9.5%Galena Fund 7.3% Morgan Nominees 3.5%Brookman Resources 3.4%Bill Brooks Pty Ltd 2.4%Pershing Australia 2.2%Spectral Investments 1.7%Osiris Capital 1.6%David McSweeney 1.2%

Avalon's Objectives

Minimum of 500% increase to shareholder value within a 2-4 year time period

• Double currently defined Mineral Resources
  • •Focus activities between Scoping Study and completion of BFS
  • •Demonstrate viability of project
  • •Permit Project for development
  • •Assess development options

Well Credentialed Management Team

Excellent recent track record of shareholder value creation

• Discovery Metals Limited
  • 400% return (May 2006 to July 2010) - now increased to +700%)
  • ASX Top 200 Company
• Meridian Minerals Limited
  • Market cap from AU$1.5M (April 2009) to $68M (Dec 2011)
  • Captured 700% return via takeover by largest shareholder

Strong mineral discovery track record

• Boseto Copper Project – 20Mt @ 1.2% Cu to 103Mt @ 1.4% Cu
• Lennard Shelf Project – 8Mt to 18Mt @ 10% Pb+Zn

Value Creation Example - Discovery Metals

Viscaria - High Grade Copper Resources

• 9.4Mt @ 2.7% Cu within 44.7Mt @ 1.2% Cu*
• Global Average is 0.7% Cu
• Major potential to expand high grade resources via brownfields drilling
• Largely untapped regional exploration potential

* See Tables 1, 2 & 3 in Appendix For Mineral Resource Classification

Excellent Infrastructure and Mining Regulation

Infrastructure

• 4km from mining centre of Kiruna (pop. 23,000)
• Nearby smelters
• Rail – heavy haul
• Ports – Narvik (ice free), Luleå
• Power (3c/Kwatt hour)

Mining Regulation

• Sweden 7th Globally (Fraser Institute 2011-2012)
• Western Australia ranks 12th
• 26.3% company tax rate
• 2 of 3 Mining Exploitation Concessions already granted

Established Mining Culture

• LKAB – Europe's largest underground mine
• 20Mtpa iron concentrate and pellets

Previous Production – Viscaria Copper Mine

• World-class Iron Oxide Copper Gold (IOCG) and Iron province
• Discovered in the 1970's
• 15 years historical production to 1997 (Outokumpu)
• 12.5Mt of 2.3% Cu & 2% Zn
• Little IOCG exploration in last 25 years

Simplified Geology of the central Kiruna area, with location of the Viscaria and Pahtohavare deposits;(modified from Martinsson 2010).

Multiple Mineral Resources

See Tables 1, 2 & 3 in Appendix For Mineral Resource Classification

Exploration Strategy

• Understand controls on High Grade (>2% Cu) mineralisation
• Scoping Study to determine NPV of combined Open Pit and Underground Mining Operation
• Drill intensive program at A, B and D Zones to increase High Grade Mineral Resources by 200%
• Fully permit project including EIA
• Test selected regional exploration targets
• Extract value from Iron Ore Mineral Resources through JV with LKAB

Viscaria A Zone

A Zone Open Pit

• •Above historical Viscaria Copper Mine
• •2.5mt @ 1.4% Cu Mining Reserve*
• • Quality concentrate – 28% Cu, 3% Zn, 45g/t Ag, 3g/t Au
• •Low contaminants

A Zone Underground

• • Historical production of 12.5Mt @ 2.7% Cu
• • 30km of decline and development
• • Remaining High Grade 9.4Mt @ 2.7% Cu*

Economics of combined Underground / Open Pit Operation has not previously been determined

Viscaria D Zone

• Wider and higher grade copper intersections than outlined from PFS resource model:
  • 20m @ 1.1% Cu and 21% Fe
  • 28m @ 1.9% Cu, incl. 18m @ 2.1% Cu
  • 43m @ 1.4% Cu and 31% Fe
• Drilling to follow high grade shoots down plunge

Regional Exploration Targets

• Viscaria Regional Exploration
  • 720km² tenure, 100km of cumulative strike

Targets Criteria:

• VMS deposits of + 20Mt @ 2% Cu
• IOCG deposits of +200Mt

Key targets:

• Tjärro
  • Anomalous Cu and Fe, 7km long target
  • Geologically similar to Viscaria D Zone
  • Consistent Cu geochemical anomaly in Till
• Karkejaure
  • 50km north of Viscaria
  • Large 8km by 9km high amplitude magnetic and gravity anomaly
• Copper Lake (Vittangijarvi)
  • Numerous historic Cu mines and workings
  • Extensive - 10km by 6km

Drill Program Currently in Progress

• • 2000m five hole drill program testing for extensions of high-grade copper mineralisation at the A and D Zone Mineral Resources
• • Following up results from A Zone such as:
  • 7.1m @ 3.5% Cu in hole D-7616 from 60.3m
  • 8.3m @ 3.1% Cu in hole D-7612 from 46.2m
  • 11.3m @ 2.2% Cu in hole D-6670 from 60.3m
• • Follow up results from D Zone such as:
  • 7.5m @ 2.0% Cu in hole VDD0111 from 218m
  • 19.8m @ 1.9% Cu in hole VDD0088 from 68m
  • 38.0m @ 1.6% Cu in hole VDD0086 from 128m
• • Valuable information to assist with the planning of a larger copper drill program to be undertaken later in 2012

Drill Program Currently in Progress

• Copper mineralisation intersected in drill hole VDD0125 from 451 – 468m (17m down-hole thickness) – Assays pending

Work Program Timeline 2012-2013

	M-1ar	2Ap1r-	2M-1ay	2Ju12n-	l-Ju12	Au12g-	Se12p-	Oc12t-	No1v-	2De12c-	Ja13n-	b-Fe13	M-1ar	3Ap1r-	3M-1ay	3Ju13n-
iialillInDrtProgram
indyScStuopgOpen/idedPUntrgroun
lStrtuucraloldyGeicaStuog
ieldkFWtooriolPrReeparegnalliinTaFoDrtsrgerg
lljiMDraorPrtoograminighHcreaseGdeCorapperResources
llDriPrtoogramiolRetetsgnaTatsrge
isioDecnonreinBFScommencg

Peer Comparison

Australian Copper Pre-Producers With Off Shore Assets

• Average EV/Mineral Resource – US$0.08/lb
• Avalon Minerals
  • EV/Mineral Resource – US$0.02/lb

Peer Comparison

	AlMilvaonneras	Altona
Pjtroec	Viiscara	Oktompuuu
Litocaon	Sdween	Fildnan
Stage	AddElitanceporaonvx	Pditroconu
MilRneraesorceu	@CMihi9427%ttnuw@CM44712%tu	@CM8413%&07tu/Atgu
Milneraogy	Slhidupe	Slhidupe
MiiMhdtnngeo	OPidtpenanUddnergroun	Uddnergroun
AlPditnnaroconuu	?	Mff0558000ttoreoro,COdA8400anuzu,
PldMiLifannenee	()10ttearsargey	89earsy-
Pdtrouc	CC()28%ttuoncenrae	CC()24%ttuoncenrae
MkCtareap	$M27	$M140

Conclusions

Viscaria Copper Project contains high grade Copper Mineral Resources (9.4Mt @ 2.7% Cu )

Objective is to create shareholder value by:

• •Doubling the >2% Cu Mineral Resources
• • Scoping study on NPV of combined open pit underground mining operation
• •Fully permit project
• Sweden 7th best mining destination globally
• Well credentialed Management Team with quality mineral discovery track record
• Drill program in progress producing short term news flow

Contact

Jeremy Readjeremy.read@avalonminerals.com.auMobile: +61 409 484 322

ASX Code: AVI

www.avalonminerals.com.au

APPENDIX

Table One – A Zone Mineral Resources

×
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Category	2011 CSA Mineral Resources				2010 Avalon MineralResources		Comparison
	Tonnes	Grade$(Cu%)$	CopperMetal(T)	Tonnes	Grade$(Cu%)$	CopperMetal(T)	Tonnes	Grade$(Cu% )$	CopperMetal(T)
Measured	14,439,000	1.66	239.000	6.700.000	2.47	165.000	116%	$-33%$	45%
Indicated	4,690,000	1.22	57.000	4.100.000	1.76	72.000	14%	$-31%$	$-21%$
Meas $+$Ind	19,128,000	1.55	296.000	10,800,000	2.20	238,000	77%	$-30%$	24%
Inferred	2,480,000	1.03	26,000	6500000	1.24	81,000	$-62%$	$-17%$	$-68%$
Total	21,609,000	1.49	322,000	17,300,000	1.84	318,000	25%	$-19%$	1%

Table Two – B Zone Mineral Resources

Category	2011 CSA Mineral Resources			2010 CSA Mineral Resources			Comparison
	Tonnes	Grade$(Cu% )$	CopperMetal(T)	Tonnes	Grade$(Cu% )$	CopperMetal(T)	Tonnes	Grade$(Cu% )$	CopperMetal(T)
Measured	123,000	1.33	2000
Indicated	4.118.000	0.72	30.000
Meas +Ind	4,240,000	0.74	32,000
Inferred	15,410,000	0.77	118.000	25,388,000	0.76	192,900	$-39%$	2%	$-38%$
Total	19,650,000	0.76	149,000	25,388,000	0.76	192,900	$-23%$	0%	$-23%$

Table Three – D Zone Mineral Resources

2011 Mineral ResourcesGrade Tonnage Reported below a Cut off Grades of 15% Mass Rec and above a Cut off of 0.3% Cu
Deposit	Category	Tonnes	Cu (%)	Fe $(%$	Mass Rec(%)	Fe Conc(%)	SiO 2 _Conc(%)	CopperMetal(T)
D Zone	Measured	32,000	0.58	14.74	9.19	49.47	3.20	190
	Indicated	489.000	0.65	10.84	9.16	43.60	2.89	3,160
	Meas +Ind	521,000	0.64	11.08	9.16	43.96	2.91	3.340
	Inferred	274.000	0.89	22.12	4.39	16.01	1.12	2,420
	Total	795,000	0.73	14.88	7.52	34.33	2.29	5,770

Competent Person's Statement

Competent Persons Statement

The information in this report that relates to Mineral Resources and exploration targets is based uponinformation reviewed by Mr Jeremy Read BSc (Hons) who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Read 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 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Read consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The Mineral Resource estimate for A, B and D Zones was compiled and prepared by Dr Bielin Shi (MAusIMM, MAIG) of CSA Global Pty. Ltd. who is a Competent Person as defined by the Australasian Code for the reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) 2004 Edition and who consents to the inclusion in this report of the matters based on the information in the form and context in which it appears.

Managing DirectorJeremy Read

• 23 year career in mineral exploration and project development in Australia, Africa, India and Indonesia
• Founding Managing Director of Discovery Metals
  • Secured Boseto Copper Project in NW Botswana,
  • Built exploration team and financed PFS and BFS studies,
  • Listed Discovery Metals on AIM in London as well as ASX
  • Discovery Metals is now ASX 200 Company
  • 700% share price increase
• Founding Managing Director for Meridian Minerals
  • secured Lennard Shelf Project
  • sourced cornerstone investor from China
  • negotiated takeover of Meridian Minerals by largest shareholder
  • 700% share price increase
• 11 years with BHP Minerals Exploration
  • Africa Tech Services Manager (gold, copper, nickel, PGM's)
  • Australian Exploration Manager

Exploration Manager

Dr Quinton Hills

Previous Experience

• Exploration Manager, Meridian Minerals Limited – Lennard Shelf Project (Kimberley, WA), Thomson Fold Belt Project (NSW), Lachlan Fold Belt Project (NSW)
• Senior Geologist, Discovery Metals Limited – Boseto Copper Project (Botswana) and Dikoloti Nickel Project (Botswana)
• Discovered Plutus Copper Deposit (67Mt @ 1.4% Cu)
• Discovered Kubra Pb-Zn deposit (0.4Mt @ 10.4% Pb+Zn)
• Expert in mineral exploration concept/target generation with a successful discovery track record
• Ph.D in Structural Geology with extensive experience in multiply deformed and highly metamorphosed terranes
• Managed Scoping, Prefeasibility and Feasibility studies of Lennard Shelf Pb-Zn

Key Management Personnel

Management Team has a demonstrated track record in the following:

• Unlocking value in projects through brownfield exploration
• Significant growth of known Mineral Resources by stepping outside of the known exploration paradigm
• Understanding the geological structure of deposits and increasing higher grade Mineral Resources
• Management of large technical teams
• Capturing of shareholder value (mergers and takeovers)
• Raising of significant capital
• Corporate governance

Adak Copper / Zinc Project

• Discovered in 1940's in Skelleftea Base Metals Belt
  • Over 80 VMS zones Cu, Zn, Pb + Au/Ag
• Historical production
  • 6.3Mt @ 2.0% Cu
  • •4.7Mt @ 0.9% Cu and 3.0% Zn
• Attractive exploration address
  • Dome structure with draped VMS deposits
  • • Recent high grade discoveries, including Storliden (8% Zn and 3% Cu)
• Concentrators and smelters within transport distance
  • •Kristeneberg
  • Boliden