SUNSTONE METALS LTD — M&A Activity 2013

Oct 23, 2013

24 October 2013

NOTICE OF NON-BINDING APPROACHES Avalon Minerals Limited (ASX: AV1) ("Avalon" or "Company")

Avalon announces that, in recent days, it has received non-binding, written approaches from more than one unrelated third party proposing discussions be commenced with a view to merger. The approaches are very preliminary and nonspecific in most key respects, including as to the possible consideration to be offered, though each seeks the opportunity to undertake due diligence on the Company.

The Avalon Board intends to carefully consider its response to these approaches but, as the market is aware, the Company is currently primarily focussed on the reopening of its rights issue pursuant to the orders of the Takeovers Panel. The Board will consider the approaches received in more detail and its responses once it has initiated the re-opening of the rights issue.

Avalon will keep the market updated with developments (if any) as they occur.

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For further information please visit www.avalonminerals.com.au