Sunstone Metals Annual Report 22

MATERIAL BUSINESS RISKS The business of the Group is exploration, with a vision to be a discovery business in the porphyry copper-gold space. Exploration activities involve various inherent risks including the risk that exploration may be unsuccessful, or the risk that laws may change in various jurisdictions in which we operate, that could have a negative impact, resulting in potential impairment in the value of the tenements, diminishing the cash reserves of the Group and possible relinquishment of the tenements. INVESTMENT IN COPPERSTONE RESOURCES AB In March 2019, the Company sold its interest in the Viscaria Copper Project in Sweden to Copperstone Resources AB (Nasdaq First North (Stockholm) COPP B) for a combination of cash and shares. As at 30 June 2022 Sunstone held 10,595,878 shares in Copperstone (2021: 61,638,652). During the financial year ended 30 June 2022 Sunstone sold a total of 51,042,774 shares held in Copperstone realising ~$10.2 million in cash, with the remaining shares held at year end valued at ~$1.4 million (10,595,878 shares at 0.958 SEK). Since the closing of the transaction to sell Viscaria to Copperstone, Sunstone has to date received cash of approximately $33.3 million (comprising 35 million Swedish Kronor (MSEK) equal to approximately $5.4 million, 12.5 million shares in lieu of 5 MSEK cash owed plus interest, sold on market for ~$0.9m, 26 MSEK in cash for early payout of the at-risk contingent tranche 2 consideration due upon receipt of an environmental permit equal to approximately $4.1 million and sale of 149,404,122 of the 160 million shares in Copperstone for 149.5 MSEK equal to approximately $22.9 million). Further details on Copperstone can be found on their website https://copperstone.se/ LITHIUM PORTFOLIO During the financial year ending 30 June 2022 Sunstone sold its interest in the Finland Lithium project to Canadian Securities Exchange-listed United Lithium Corp (‘CSE:ULTH’). Consideration payable to Sunstone on closing was CAD420,000 cash (A$459,900) and CAD420,000 worth of shares (871,803 shares equivalent to A$486,858) in United Lithium. As at 30 June 2022 the value of the shares held in United Lithium was recorded as A$186k (871,803 shares at closing price of CAD0.19). TENEMENT SCHEDULE Gold-Copper Tenements – Ecuador Tenement Holder Tenement Name Location Status Sunstone Ownership La Plata Minerales S.A. Bramaderos1 Loja, Ecuador Granted 87.5% La Plata Minerales S.A. Cueva de Leon1 Loja, Ecuador Granted 87.5% Golden Exploration Ecuador S.A. El Palmar2 Ibarra, Ecuador Granted 70% Minera Verde Chico S.A. Verde Chico3 Ibarra, Ecuador Granted 0% 1 Sunstone announced on 7 January 2020 that the terms of the Earn-in Joint Venture with TSX-V listed Cornerstone Capital Resources (TSXV:CGP) had been amended to provide Sunstone with an immediate 87.5% interest and Cornerstone with a loan carried 12.5% interest in La Plata Minerales S.A. (PLAMIN) the holder of the Bramaderos concession. Cueva de Leon is a small scale mining concession contiguous with Bramaderos. 2 Subject to Staged Acquisition Agreement to acquire 100%. 3 Subject to Staged Acquisition Agreement to acquire 100%. Tenement in process of being transferred to Minera Verde Chico S.A. 14 SUNSTONE METALS LIMITED ANNUAL REPORT 2022 Sunstone Metals Limited Annual Report 2022

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