SUNSTONE METALS LTD — Investor Presentation 2021

Dec 7, 2021

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ASX STM

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8 December 2021

Disclaimer

DISCLAIMER

To the maximum extent permitted by law, no representation, warranty or undertaking, express or implied, is made and, to the maximum extent permitted by law, no responsibility or liability is accepted by Sunstone or any of its officers, employees, agents or consultants or any other person as to the adequacy, accuracy, completeness or reasonableness of this Presentation. To the maximum extent permitted by law, no responsibility for any errors or omissions from this Presentation whether arising out of negligence or otherwise is accepted.

This Presentation contains general information about Sunstone Metals Limited (Sunstone) which is in the business of exploring for minerals which is a speculative and risky venture. It does not purport to contain all the information that a prospective investor may require. The Presentation should not be considered as an offer or invitation to subscribe for or purchase of any securities in Sunstone and no agreement to subscribe for securities will be entered into on the basis of this Presentation. Potential investors should conduct their own investigation and analysis and should check the accuracy, reliability, and completeness of the information provided and obtain independent and specific advice from appropriate professional advisors.

FORWARD-LOOKING STATEMENTS

This Presentation includes certain statements that may be deemed “forwardlooking statements”. All statements in this Presentation, other than statements of historical facts, that address future activities and events or developments that Sunstone expects, are forward looking statements.

Although Sunstone believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, continued availability of capital and financing, and general economic, market or business conditions.

Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in forward-looking statements.

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Corporate

Listed on the Australian Stock Exchange ASX:STM

A$203M A$19M 2,210M ~39% 4.8% MARKET CASH + EQUITY SHARES ON ISSUE TOP 20 SHAREHOLDERS BOARD & CAPITALISATION INVESTMENTS As of November 2021 Hold almost half of all MANAGEMENT shares on issue At share price of A$0.091 As of November Have participated in most (30-day VWAP) 2021 – unaudited placements in last 4-8 years Substantial Shareholders Valbonne II 5.8% STM 2020-21 SHARE PRICE GRAPH

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Investment Highlights

• Well funded junior, has a track record of discovery, has delivered recent discovery success across 2 projects

• Sunstone holds 51%, and is acquiring 100%, of the El Palmar Gold-Copper porphyry project in northern Ecuador

• Through a Staged Acquisition Agreement based on cash payments linked to milestones (US$300,000 payment to move to 70%, US$2mill to go from 70 to 100%)

• The project is located in northern Ecuador, in the same regional belt as the giant Cascabel copper-gold porphyry deposit, and Llurimagua copper-moly porphyry deposit

• Sunstone has drilled 7 holes so far, all mineralised to varying degrees

• 2 drill rigs now on site

• Assays for Holes EPDD001, 002, and 003 have delivered a significant gold-copper porphyry discovery

• Very significant upside yet to be delivered from more drilling and ongoing exploration defining new exciting targets

• Sunstone owns 87.5% of the Bramaderos Gold-Copper porphyry project in southern Ecuador

• Recent high grade gold discovery at the Alba target; visible gold, on margin of porphyry system

• Follow-up drilling at Alba in progress, we are encouraged by visuals so far

• Ore grade intercepts of gold and copper, from surface, in the Brama porphyry system and mineral resource estimate planned for 2022

• Several additional highly ranked porphyry gold-copper, and gold only systems which are only partially tested

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The Team A hi h- ualit team in Ecuador and Australia g q y

• A well qualified and focussed team in Ecuador, comprising 100% Ecuadorians, working across the El Palmar and Bramaderos Projects

• The team in Ecuador is expanding and covering all aspects of corporate, social, environmental, safety, technical exploration, logistics, and administration

• A small corporate team in Australia

• Consultant support in specialised areas as needed, including geology, geophysics, ESG, legal, and development

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Ecuador

Building an exploration and mining sector

New President, Guillermo Lasso, is a supporter of responsible mining

Ecuador is managing through the coronavirus pandemic, with over 70% of the population fully vaccinated

Mining is now playing an important part in Ecuadorian economic growth (source Bloomberg);

• mineral resources now represent one of Ecuador’s top five exports;

• US$810 million in exports generated by the mining sector in 2020

• US$430 million in taxes paid in 2020 by mining companies in Ecuador

• US$374 million direct foreign investment for Ecuador during 2020

• thousands of direct jobs generated across the industry in Ecuador

• significant expenditure for goods and services in local communities and at the provincial level

• mining products ~6% of total exports, and fourth behind oil, bananas and shrimp. Mining exports growing.

• Exploration Investment Protection Agreements being signed over key exploration properties (Cascabel, Cangrejos)

Major global mining companies have a presence in Ecuador – BHP, Newcrest, Anglo American, Fortescue, Hancock, Codelco, Lundin

There will be several very significant gold and copper discoveries and developments in Ecuador over the next few years. Sunstone will be part of that industry growth

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Ecuador Exploration and development is active

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Fruta del Norte

Lundin Gold (TSX:LUG)

High grade underground gold mine; Reserve of 20.8Mt at 8.1g/t gold + 11.8g/t silver; 5.4Moz gold In production; 2021 guidance 380,000 - 420,000 ounces gold; AISC US$800/ounce; 10.4g/t head grade Ecuador’s first modern underground gold mine

Mirador

EcuaCorriente

Open Pit producing and exporting concentrate; 62,000t copper and 34,000 ounces gold annual production 673Mt at 0.58% copper and 0.19g/t gold

Cascabel

SolGold 85%/ Cornerstone 15%

Alpala resource

2,663 Mt @ 0.37% copper and 0.25g/t gold in the Measured and Indicated categories, and 544 Mt @ 0.24% copper and 0.11g/t gold in the Inferred category.

Top of main orebody ~500m below surface

Cangrejos

Lumina Gold (TSX.V:LUM) 100%

568Mt at 0.55g/t gold and 0.11% copper in the Indicated category, and 476 Mt @ 0.41g/t gold and 0.08% copper in the Inferred category.

Llurimagua

Codelco/Enami (Ecuador) JV; 982Mt at 0.89% copper and 0.04% molybdenum (1.55Bt at 0.51% copper)

Warintza

Solaris (TSX.V:SLS); small initial resource, huge new drill intersections, 7km x 5km area containing cluster of porphyry systems

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Sunstone Metals

Community, Safety and Environment

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Sunstone takes its environmental, social and governance issues very seriously and is committed to improving the quality of life in the areas where we work

Sunstone

• has significant environmental monitoring programs across it projects

• is involved in various community programs at Bramaderos and El Palmar

• undertakes considerable training programs across a large range of skills for workers and the communities in which we operate

• works with the local communities to assist where possible, for example, during the coronavirus pandemic

• Offers employment and skills development

• • has implemented strict coronavirus operating plans while not compromising local health and safety

• appreciates the strong community support that it has at its projects

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El Palmar Project

Within a mineralised belt in northern Ecuador

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• Highly prospective belt of rocks related to the Toachi Fault Zone

• • Together with orthogonal structural control delivers target zones for porphyry mineralisation

• • To date includes the 2.7Bt Alpala copper-gold porphyry deposit at Cascabel and the 1Bt Llurimagua copper-moly porphyry deposit

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El Palmar Project Active, and expanding, exploration program

Upgraded road access; soil sampling in progress; ground magnetics completed; drilling with 2 rigs in progress

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El Palmar Project Initial drill hole assays deliver a significant discovery

Drill Hole		From (m)	To (m)	Interval (m)	Au (g/t)	Cu (%)	Mo (ppm)	Ag (g/t)
EPDD001		11.30	492.15	480.85	0.41	0.15	3.40	0.74
	incl	52.35	215.90	163.55	0.71	0.20	1.39	1.14
	incl	66.90	96.80	29.90	0.73	0.20	0.70	1.06
	incl	147.25	163.30	16.05	0.80	0.20	1.36	2.69
EPDD002		4.7	34	29.30	0.18	0.06	1.3	0.57
		250.00	463.75	213.75	0.48	0.22	3.84	1.58
	incl	250.00	417.50	167.50	0.58	0.26	3.54	1.81
	incl	252.00	274.00	22.00	1.06	0.33	3.87	1.49
	and	388.75	398.00	9.25	1.22	0.19	4.38	6.92
EPDD003		10.44	270.00	259.56	0.41	0.14	1.77	0.80
	incl	31.91	137.00	105.09	0.75	0.20	1.14	0.89
	incl	46.10	106.10	60.00	0.89	0.21	0.97	0.91

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El Palmar Project What do the discover results mean? y

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Mineralisation from
surface
Very significant vertical
extent from magnetic
modelling
Copper-gold-silver-
magnetic susceptibility all
500m
correlate – guides initial
exploration
Hints to expect higher
copper values elsewhere
in system
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El Palmar

Drilling progressing very well, scale and potential will become evident

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500m
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El Palmar – main

target; drill holes and vertical slice through magnetic model

Upper 500m of subvertical SE magnetic body shown to be mineralised from assays from holes EPDD001, 2, and 3 EPDD006 & 7 tested a bit deeper

Holes EPDD004 and EPDD005 initial test of sub-vertical NW magnetic body - mineralised

Planned deep drill holes to test deep magnetic targets, rig setting up now

Alpala, Cascabel – (SolGold) x-section of bornite and chalcopyritepyrite ratio; and showing CuEq grade domains 200m

(see Garwin, 23 July 2021 GeoHug presentation)

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0.3% CuEq
>0.9% CuEq
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DIAGRAMS AT SAME SCALE

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El Palmar Project Additional tar ets bein defined and re ared for drillin in 2022 g g p p g

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• 2.5km long cluster of porphyry targets identified to date

• • First results in the coming days

• • Several Epithermal Targets

• • Reconnaissance underway

• Gold in rock chips

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El Palmar Project

still early days, building an understanding of the geology, petrography samples in the laboratory, multi le intrusive hases identified p p

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0.43g/t Au / 0.18% Cu
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EPDD001: 304m

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1.03g/t Au / 0.33% Cu
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0.22g/t Au / 0.14% Cu
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0.42g/t Au / 0.16% Cu
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EPDD001 320m . Coarse-grained bornite along shear zone + actinolite.

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0.46g/t Au / 0.25% Cu
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EPDD001 225.8m. Quartz-magnetite-chalcopyrite vein in quartz-chloritemagnetite-actinolite-epidote-calcite altered porphyry

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1.6g/t Au / 0.30% Cu
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EPDD002 256m .

fine-grained diorite with quartz-magnetite veining

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0.20g/t Au / 0.92% Cu
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EPDD002 332.15m . Sulphide veins in quartz diorite

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EPDD001 173m

EPDD001 354.3m

Bramaderos Project

Multiple Targets – Porphyry and epithermal gold and gold-copper

Alba – high-grade gold discovery; drilling now Brama – Sunstone drilling; ore grade porphyry intercepts

Limon – Sunstone drilling; drilled the margins of a porphyry, and drilled a mineralised high sulphidation epithermal system, potential for ‘Alba’ style targets

Playas – no drilling

Alba

Melonal – very minor historical drilling found copper and gold Porotillo – historical drilling, some good grades Sandia – no drilling

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Alba high grade gold target – Drilling in progress, and geophysics in January

Brama porphyry gold-copper target – preparing for Inaugural Mineral Resource estimate

Limon porphyry gold-copper and epithermal gold target – preparing for electrical geophysical survey to generate drilling targets

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Bramaderos Project Alba Target – High-grade gold – drilling now

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300m
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Sunstone Metals

What’s ahead in 2021 and into 2022

✓ 2021-22 – Demonstrate significant upside to El Palmar discovery, no near-term plans for raising capital

• ✓ El Palmar

2021 – Q1 2022

• drilling - 2[nd] rig on site

• assays from holes EPDD004, 005, 006 in early February

• drill holes EPDD007 & 008 continue to drill the upper 600m of southern mineralised area

• EPDD009 first of the deep holes, starting in next few days; 1500m @ 30m/day = early Feb completion

• • wedge holes likely off EPDD009

• expanded soil sampling coverage ongoing – next set of results very soon

• concession wide geological mapping and sampling

• drilling on both main anomaly and on satellite targets

✓ Bramaderos

2021 – Q1 2022

• drilling at Alba – next drill assays early February

• deep penetrating electrical geophysics at Alba and Limon

• Initial Mineral Resource Estimate over Brama target

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Com etent Persons Statement p

The information in this report that relates to exploration results and exploration targets and 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

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