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SUNSTONE METALS LTD Major Shareholding Notification 2012

Sep 13, 2012

65870_rns_2012-09-13_9edeb90d-4723-480d-8c7b-76ccd227b482.pdf

Major Shareholding Notification

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Form 603

Corporations Act 2001 Section 671B

Notice of initial substantial shareholder

To Company Name/Scheme AVALON MINERALS LIMITED
ACN 123 184 412
1.Details of substantial holder (1)
Name The Goldman Sachs Group, Inc. on behalf of itself and its subsidiaries ("GSGI") includingits significant subsidiaries listed in Annexure A.
ACN/ARSN (ifapplicable) Not applicable

The holder became a substantial holder on 11 September 2012

2. Details of voting power

The total number of votes attached to all the voting shares in the company or voting interests in the scheme that the substantial holder or an associate (2) had a relevant interest (3) in on the date the substantial holder became a substantial holder are as follows:

Class of securities Number of securities Persons' votes Voting power
Ordinary Fully Paid Shares
19,924,858 19,924,858 6.02%

3. Details of relevant interests

The nature of the relevant interest the substantial holder had in the following voting securities on the date the substantial holder became a substantial holder are as follows:

Holder of relevant interest Nature of relevant interest Class and number of securities
The Goldman Sachs Group Inc("GSGI") GSGI has a relevant interest in these shares byvirtue of section 608(3) of the Corporations Act2001 19,924,858 Ordinary Fully Paid Shares
Goldman Sachs International("GSI") Prime Brokerage with power to control theexercise of the power to dispose of sharespursuant to a Prime Broking Agreement(See Annexure B) 19,924,858 Ordinary Fully Paid Shares

4. Details of present registered holders

The persons registered as holders of the securities referred to in paragraph 3 above are as follows:

Holder of relevantinterest Registered holder ofsecurities Person entitled to beregistered as holder Class and number of securities
GSI HSBC Custody NomineesAustralia Limited GSI 19,924,858 Ordinary Fully Paid Shares

5. Consideration

The consideration paid for each relevant interest referred to in paragraph 3 above, and acquired in the four months prior to the day that the substantial holder became a substantial holder is as follows:

Holder of Relevant Interest Date of Acquisition Number ofPerpetual Preferred Units Total Consideration
GSI 11/09/2012 19,924,858 Prime Brokerage Agreement

6. Associates

The reasons the persons named in paragraph 3 above are associates of the substantial holder are as follows:

Name and ACN (if applicable) Nature of association
N/A N/A

7. Addresses

The addresses of persons named in this form are as follows:

Name Address
GSGI Corporation Trust Center, 1209 Orange Street, Wilmington DE19801, U.S.A.
Goldman Sachs International Peterborough Court133 Fleet Street London EC4A 2BB UnitedKingdom
HSBC Custody Nominees Australia Limited GPO Box 5302, Sydney NSW 2001

Signature

Print name Michael Corwin(signing under power of attorney inaccordance with section 52 of theCorporations Act) Capacity Authorised Person
Sign here Date 13 September 2012

Annexure A

Significant Subsidiaries of The Goldman Sachs Group, Inc.

The following are significant subsidiaries of The Goldman Sachs Group, Inc. as of December 31, 2011 and the states or jurisdictions in which they are organized. Indentation indicates the principal parent of each subsidiary. The Goldman Sachs Group, Inc. owns, directly or indirectly, at least 99% of the voting securities of substantially all of the subsidiaries included below. The names of particular subsidiaries have been omitted because, considered in the aggregate as a single subsidiary, they would not constitute, as of the end of the year covered by this report, a "significant subsidiary" as that term is defined in Rule 1-02(w) of Regulation S-X under the Securities Exchange Act of 1934.

Name atate urJurisdiction ofOrganization ofEntity
The Goldman Sachs Group, Inc. Delaware
Goldman, Sachs & Co. New York
Goldman Sachs (UK) L.L.C. Delaware
Goldman Sachs Group Holdings (U.K.) United Kingdom
Goldman Sachs International Bank United Kingdom
Goldman Sachs Holdings (U.K.) United Kingdom
Goldman Sachs International United Kingdom
Goldman Sachs Asset Management International United Kingdom
Shire UK Limited United Kingdom
KPL Finance Limited Cayman Islands
GS Financial Services L.P. (Del) Delaware
JIOHC Cayman Islands
Jupiter Investment Co., Ltd. Japan
Goldman Sachs Global Holdings L.L.C. Delaware
GS Asian Venture (Delaware) L.L.C. Delaware
Triumph II Investments (Ireland) Limited Ireland
GS Diversified Funding LLC Delaware
Panda Investments Ltd Mauritius
GS (Asia) L.P. Delaware
Goldman Sachs (Japan) Ltd. British Virgin Islands
Goldman Sachs Japan Co., Ltd. Japan
J. Aron Holdings, L.P. Delaware
J. Aron & Company New York
Horizon Fundo De Investimento Multimercado Credito Privado - Investimento No Exterior Brazil
Goldman Sachs Asset Management, L.P. Delaware
Goldman Sachs Hedge Fund Strategies LLC Delaware
Goldman Sachs (Cayman) Holding Company Cayman Islands
Goldman Sachs (Cayman) Trust, Limited Cayman Islands
Goldman Sachs (Asia) Corporate Holdings L.P. Delaware
Goldman Sachs Holdings (Hong Kong) Limited Hong Kong
Goldman Sachs (Asia) Finance Mauritius
Goldman Sachs (Asia) LLC Delaware
Goldman Sachs (Asia) Securities Limited Hong Kong
Goldman Sachs Financial Markets, L.P. Delaware
MTGLQ Investors, L.P. Delaware
ELQ Investors, Ltd United Kingdom
GS European Opportunities Fund B.V.GS European Strategic Investment Group B.V. NetherlandsNetherlands
Delaware
Opal Resources LLCGS Mehetia LLC Delaware
Mehetia Holdings Inc. Delaware
GS Lending Partners Holdings LLC Delaware
Goldman Sachs Lending Partners LLC Delaware
Goldman Sachs Bank USA New York
Goldman Sachs Mortgage Company New York
GSCP (DEL) Inc. Delaware
Goldman Sachs Credit Partners L.P. Bermuda
GSTM LLC Delaware
SLK LLC New York
Goldman Sachs Execution & Clearing, L.P. New York
GS Financial Services II, LLC Delaware
GS Funding Europe United Kingdom
GS Funding Europe I Ltd. Cayman Islands
Name State orJurisdiction ofOrganization ofEntity
GS Funding Europe II Ltd. Cayman Islands
GS Investment Strategies, LLC Delaware
GSEM (Del) Inc. Delaware
GSEM (Del) Holdings, L.P. Delaware
GSEM Bermuda Holdings, L.P. Bermuda
GSEM (Del) LLC Delaware
GS Equity Markets, L.P. Bermuda
GSIP Holdco A LLC Delaware
Special Situations Investing Group, Inc. Delaware
GS Mortgage Derivatives, Inc. Delaware
GS Direct, L.L.C. Delaware
Commonwealth Annuity and Life Insurance Company Massachusetts
First Allmerica Financial Life Insurance Company Massachusetts
Goldman Sachs Specialty Lending Holdings, Inc. II Delaware
Goldman Sachs Specialty Lending CLO-I, Ltd. Cayman Islands
GS Power Holdings LLC Delaware
Natural Resources Investments S.L. Spain
Comercializadora Internacional Colombian Natural Resources I S.A.S. Colombia
Mitsi Holdings LLC Delaware
Metro International Trade Services LLC Delaware
MLQ Investors, L.P. Delaware
AR Holdings (Delaware) L.L.C. Delaware
AR Holdings GK Japan
GK Kagurazaka Holdings Japan
GK Arisugawa Finance Japan
K.K. Minato Saiken Kaishu Japan
GS PIA Holdings GK Japan
Crane Holdings Ltd. Japan
Goldman Sachs Realty Japan Ltd. Japan
Goldman Sachs Ireland Group Holdings LLC Delaware
Goldman Sachs Ireland LLC DelawareIreland
Goldman Sachs Ireland Group Limited Ireland
Goldman Sachs Ireland Holdings Limited Ireland
Goldman Sachs Bank (Europe) plc Delaware
Rothesay Life, L.L.C.Rothesay Life (Cayman) Limited Cayman Islands
Rothesay Life Limited United Kingdom
ELQ Holdings (Del) LLC Delaware
ELQ Holdings (UK) Ltd United Kingdom
ELQ Investors II Ltd United Kingdom
Goldman Sachs Specialty Lending Holdings, Inc. Delaware
Goldman Sachs Holdings ANZ Pty Limited Australia
GS HLDGS ANZ II Pty Ltd Australia
Goldman Sachs Australia Group Holdings Pty Ltd Australia
Goldman Sachs Australia Pty Ltd Australia
Archon International Inc. Delaware
Archon Group Deutschland GMBH Germany
Goldman Sachs Private Equity Group Master Fund I, LLC Delaware

THE GOLDMAN SACHS GROUP, INC AND ITS SUBSIDIARIES

Signature

print name
print name Michael Corwin(signing under power of attorneyin accordance with section 52 ofthe Corporations Act) capacity Authorised Person

sign here date 13 September 2012

Annexure B

This is Annexure B referred to in the Form 603: Notice of Initial Substantial Holder issued by The Goldman Sachs Group, Inc. and its subsidiaries.

The following is description of the Prime Brokerage Agreement referenced in the accompanying Form 603:

Type of agreement Prime Brokerage Agreement ("PBA")
Parties to agreement Goldman Sachs International ("GSI"), Galena Special Situations
Master Fund Limited ("Lender")
Transfer date 11 September 2012
Holder of voting rights The current registered legal owner of the referenced voting shares is
GSI.
Are there any restrictions on Not to our knowledge.
voting rights? Yes/no
If yes, detail
Scheduled return date (if N/A
any)
Does the borrower have the No
right to return early? Yes/no
If yes, detail
Does the lender have the Yes, Clauses 4.5 and 4.6 of the PBA allow the Lender to call for the
right to recall early? Yes/no redelivery of the Equivalent Collateral (as defined in the PBA) upon
If yes, detail request.
Will the securities be Yes, save the PBA allows the Lender to return Equivalent Collateral
returned on settlement? (as that term is defined in the PBA) rather than the relevant
Yes/no securities.
If yes, detail any exceptions

A copy of the agreement will be provided to Avalon Minerals Limited or the Australian Securities and Investments Commission upon request.

Signature

Print name Michael Corwin(signing under power of attorney inaccordance with section 52 of theCorporations Act) Capacity Authorised Person
Sign here Date 13 September 2012