2025 ABN 68 123 184 412 Sunstone Metals Limited
Contents 2 Chairman’s Review 4 Operating Review 17 Resource Statement 23 Tenement Schedule 24 Directors’ Report 28 Remuneration Report (Audited) 36 Auditor’s Independence Declaration 37 Corporate Governance Statement 41 Consolidated Statement of Profit or Loss and Other Comprehensive Income 42 Consolidated Statement of Financial Position 43 Consolidated Statement of Changes in Equity 44 Consolidated Statement of Cash Flows 45 Notes to the Financial Statements 66 Consolidated Entity Disclosure Statement 67 Directors’ Declaration 68 Independent Auditor’s Report 72 ASX Additional Information 74 Corporate Directory ABN 68 123 184 412
Sunstone Metals (ASX:STM) is an ASX-listed mineral exploration company with two world-class gold and copper assets in Ecuador. The porphyry projects at Bramaderos and El Palmar have the potential to evolve into large multi-decade goldcopper mining centres. 1 Sunstone Metals Limited Annual Report 2025
Overview Chairman’s Review Pursuing corporate partners to progress our projects Dear Fellow Shareholders, The past year has seen Sunstone move forward on several fronts – advancing our Ecuadorian projects with low cost exploration, advance funding options for ongoing exploration and development, and a strict focus on expenditures A small drilling program at the beginning of the year at Limon yielded promising high grade gold results, which continued to underlie its strategic importance as an initial lower-cost development option to the vast gold-copper porphyry deposits in the broader Bramaderos area. The potential of Bramaderos was further enhanced through the discovery of a new gold-copper porphyry deposit at Copete which is next to the current Brama-Alba resource, and adjacent to the large Melonal target. This discovery expanded the mineralised bodies at surface to 2.0km by 1.8km, highlighting the potential for a large pit operation. At El Palmar, we were pleased to publish an inaugural Mineral Resource estimate (MRE) of 1.2Moz gold equivalent (gold and copper). More importantly however was the establishment of a high conviction Exploration Target of 15M to 45Moz of gold equivalent in addition to the MRE. The potential quantity and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Resource for the exploration target area reported. It is uncertain if further exploration will result in the estimation of a Resource. With the growth in the size of the opportunities at both the Bramaderos and El Palmar projects, the Board reviewed options to advance our exploration opportunities and the ultimate development of these two globally significant projects. This review resulted in the decision to pursue a process to invite interested parties with the aim to arrive at project level joint ventures, business combinations, direct investment or other corporate transactions. Given the extensive mineralisation and opportunity of Sunstone’s projects, this process attracted interest from several mining companies and global investors, who have reviewed information in our data room and attended On behalf of the Board of Directors, it is my pleasure to present the 2025 Annual Report for Sunstone Metals Limited (‘Sunstone’ or ‘Company’), and to thank all shareholders for your continued support of Sunstone. 2 Sunstone Metals Limited Annual Report 2025
site visits. The strong interest shown by these groups supports the Board’s view that this is the appropriate strategy to unlock the true value of our discoveries. Moreover, since this process was initiated, demand for large copper and gold assets such as ours has grown substantially. There is now clearly a global race for projects with genuine scale and ongoing exploration upside, which has been demonstrated by the recent spate of corporate activity, including cross-border mergers and acquisitions in Ecuador and abroad. At the time of writing, we are considering an attractive opportunity which has advanced to the stage where an offer could be finalised. At the same time, other parties continue to participate in the process and site visits are being undertaken as they are requested while due diligence under signed confidentiality agreements is also conducted. It is important to note that at this stage, timeframes are unknown and there is no certainty or assurance that any binding proposals will be received or, if received, will be acceptable. However, the Board believes that based on the strong interest to date and the increasingly favourable macro environment, that this course of action currently presents the most attractive means of creating value for our shareholders. We will, of course, continue to assess this strategy and we remain open to opportunities. With a cash balance of $2.7 million at the end of the year, the Company is in a good position to have the bandwidth and ability to finalise any discussions. On behalf of the Board, I would like to thank our shareholders for their support during the past year. I also extend a special thank you to those who exercised their options ahead of the expiry date. This helped fortify our financial position while we pursue our discussions. I would like to reassure shareholders that we are cognisant of the need to continue advancing the process in a timely manner while balancing this consideration with the overall objective of maximising shareholder value. I look forward to updating you as the process advances. Yours sincerely Malcolm Norris Non-executive Chair Sunstone Metals Limited Company Highlights Establishing the El Palmar maiden Mineral Resource estimate of 1.2Moz of gold equivalent Establishing the El Palmar Exploration Target of 1545Moz of gold equivalent3 Expanding the known area of shallow gold-copper mineralisation at Bramaderos through continued trenching and soil sampling Emerging strategy to establish Limon as a complementary higher-grade open pit opportunity that is a stepping stone to developing the large gold-copper porphyries at Brama-Alba, Melonal and others Undertaking a corporate partnership strategic process to identify potential alternative funding pathways to develop Sunstone’s world-class projects 3 Sunstone Metals Limited Annual Report 2025
Introduction Sunstone Metals Limited (“Sunstone” or “Company”) is an ASX-listed mineral exploration company with two high-quality gold and copper projects in Ecuador: 1. The Bramaderos Project, located in Southern Ecuador, has both at-surface and deeper porphyry goldcopper systems and contains an initial Mineral Resource estimate of 156Mt at 0.53g/t AuEq for 2.7Moz AuEq1,2. JORC Classification Tonnage (Mt) Au (g/t) Cu (%) Ag (g/t) AuEq2 (g/t) AuEq2 (Mozs) Indicated 9 0.38 0.09 1.1 0.53 0.2 Inferred 147 0.35 0.11 1.3 0.53 2.5 Total 156 0.35 0.11 1.3 0.53 2.7 Additionally, the Bramaderos Project has a porphyry Exploration Target3 of between 3.3Moz and 8.6Moz AuEq within 255Mt to 360Mt at a grade between 0.40 and 0.74g/t AuEq1,2, and the Limon epithermal gold-silver Exploration Target of 0.9 - 1.7Moz AuEq4 within 30Mt - 44Mt at a grade between 0.9 - 1.2g/t AuEq4,5. The potential quantity and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Resource for the exploration target area reported. It is uncertain if further exploration will result in the estimation of a Resource. 2. The El Palmar Project is located in northern Ecuador, 60km north-west of Ecuador’s capital Quito. The property sits on the regionally significant Toachi Fault Zone that hosts a number of world-class copper porphyry systems. The Project has both at-surface and deeper porphyry gold-copper systems and an initial Mineral Resource estimate of 64Mt at 0.60g/t AuEq6,7 for 1.2Moz AuEq6. Average Grade Material Content JORC Classification Tonnage (Mt) AuEq6 (g/t) Au (g/t) Ag (g/t) Cu (ppm) Cu (%) AuEq6 (Koz) Au (Koz) Ag (Koz) Cu (Kt) Indicated 5 0.63 0.42 0.81 1,456 0.15 100 100 100 7 Inferred 59 0.59 0.40 0.65 1,290 0.13 1,100 700 1,200 70 Total 64 0.60 0.41 0.66 1,301 0.13 1,200 800 1,300 80 Additionally, the El Palmar Project has a porphyry Exploration Target3 of between 15Moz and 45Moz AuEq within 1.0Bt to 1.2Bt at a grade between 0.3 - 0.7g/t gold and 0.1 – 0.3% copper5. Overview Operating Review 1 Refer ASX Announcement on 13 December 2022. 2 The gold equivalent calculation formula for porphyry gold-copper-silver mineralisation at Bramaderos is AuEq(g/t) = (Au grade x Au price x Au recov / 31.1035) + (Ag grade x Ag price x Ag recov / 31.1035) + (Cu grade x Cu price x Cu recov / 100)) / (Au price x Au recov / 31.1035). The prices used were US$1,800/oz gold and US$9,500/t copper and US$22/oz silver. Recoveries are estimated at 89% for gold, 85% for copper, and 60% for silver based on metallurgical studies. Grades for the Exploration Target are 0.24g/t Au and 0.10% Cu. In Sunstone’s opinion all the elements included in the metal equivalents calculation have reasonable potential to be recovered and sold. 3 The potential quantity and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Resource for the exploration target area reported. It is uncertain if further exploration will result in the estimation of a Resource. 4 Refer ASX Announcement on 5 February 2024. 5 The gold equivalent calculation formula for the Limon epithermal gold-silver mineralisation is AuEq(g/t) = Au(ppm) + (Ag (ppm)/82). The prices used were US$1,800/oz gold and US$22/oz silver. Recoveries are estimated at over 90% for gold and 90% for silver from metallurgical studies. In Sunstone’s opinion all the elements included in the metal equivalents calculation have reasonable potential to be recovered and sold. 6 Refer ASX Announcement on 22 October 2024. 7 The gold equivalent calculation formula for porphyry gold-copper-silver mineralisation at El Palmar is AuEq (g/t) = ((Au grade x Au price x Au recov / 31.1035) + (Ag grade x Ag price x Ag recov / 31.1035) + (Cu grade x Cu price x Cu recov / 100)) / (Au price x Au recov / 31.1035). The prices applied were US$1,800/oz gold, US$4.50/lb copper and US$22/oz silver. Recoveries are estimated at 90% for gold, 78% for copper (excluded for oxide material), and 60% for silver based on metallurgical studies. Grades for the Exploration Target are 0.30g/t Au and 0.10% Cu. In Sunstone’s opinion all the elements included in the metal equivalents calculation have reasonable potential to be recovered and sold. 4 Sunstone Metals Limited Annual Report 2025
1. Prioritise value realisation The porphyry projects at Bramaderos and El Palmar have the potential to evolve into multi-decade goldcopper mining centres. At Bramaderos, the Limon epithermal deposit has been prioritised as a potential near-surface high-grade gold-silver development opportunity. This strategy allows for a scalable operation to be established first before developing the much larger porphyry gold-copper-silver opportunities at Bramaderos. The Company continues to evaluate potential new funding pathways and opportunities to continue to grow our business in Ecuador, where clear shareholder value can be demonstrated. It is also evaluating potential partnerships for its projects where this may maximise the value of the portfolio. 2. Track Record The team at Sunstone has been involved in significant discoveries of porphyry and epithermal copper-gold mineralisation at Tujuh Bukit in Indonesia and Cascabel in Ecuador, and the successful development of the King of the Hills Gold Mine in Western Australia and Koniambo Nickel Mine and Smelter in New Caledonia. The Company has the necessary skill sets to execute Tier 1 projects and is well-placed to repeat that success at Bramaderos and El Palmar. 3. Excellent infrastructure All projects are supported by established infrastructure by being close to power, road infrastructure and ports. 4.Community support The Board and Management Team take their responsibilities to the host communities seriously and have endeavoured to implement the highest ESG standards throughout our business. Sunstone released its inaugural Sustainability Report in 2023, which details the level of support and engagement with local communities and project stakeholders. Overview Operating Review continued 5 Sunstone Metals Limited Annual Report 2025
Project Overview Bramaderos Gold-Copper Porphyry Project (Sunstone 87.5%) The Bramaderos Project is ideally located immediately adjacent to the Pan American highway in Loja province, southern Ecuador, some 90km (1.5-hour drive) from the city of Loja. It is within close proximity to available hydroelectric power, supporting the economics of potential development opportunities. The project has gentle topography with an average elevation of around 1,100m above sea level. It is supported by nearby commercial airports and significant population centres including the regional city of Loja. The project employs members of the local communities and has ongoing strong community support. Brama-Alba target In 2022, the Company released an initial BramaAlba Mineral Resource Estimate (“MRE”), reported in accordance with the JORC Code 2012, of 156Mt at 0.53g/t AuEq (0.35g/t gold and 0.11% copper)9, for 2.7Mozs gold-equivalent. Preliminary pit optimisation was applied to the deposit to constrain the MRE and demonstrate its potential to be mined economically by open pit methods. In addition, an initial Exploration Target3, reported in accordance with the JORC Code 2012, consists of between approximately 255 and 360Mt at a grade between 0.40 and 0.74g/t AuEq (gold + copper) for contained metal of between 3.3Mozs and 8.6Mozs AuEq9. The Exploration Target range is in addition to the initial MRE (see Mineral Resource Estimate information on page 17). Overview Operating Review continued 6 Sunstone Metals Limited Annual Report 2025
Figure 1: The Bramaderos project tenure showing the location of the gold-copper porphyry targets (black outlines) and gold-silver epithermal targets (yellow outlines). The background image is gold-in-soil, highlighting the potential scale increase to be delivered with more drilling at Bramaderos across multiple targets. Drilling activity early in FY25 was focused on the Limon gold-silver epithermal opportunity. Figure 2: Panorama of the valley hosting the Brama and Alba deposits, showing the porphyry systems emerging at surface. The Limon area is behind these hills. Overview Operating Review continued 7 Sunstone Metals Limited Annual Report 2025
Overview Limon gold-silver epithermal deposit Located 2.7km northeast of the Brama-Alba-Melonal gold-copper porphyry deposits, the Limon gold-silver epithermal discovery moved from exploration concept to discovery in less than ten months and new highgrade results from recent drilling continue to expand the size of Limon. The regional Limon gold-silver epithermal domain has an exploration target of between 0.9 and 1.7Moz AuEq10 within 30 to 44Mt at a grade between 0.9 and 1.2g/t AuEq. The potential quantity and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource for the target area reported. It is uncertain if further exploration will result in the estimation of a Mineral Resource. Importantly, the higher-grade Limon deposit allows for a scalable, lower capital cost operation to be first built, before developing the much larger porphyry opportunities at Bramaderos. Operating Review continued Figure 3: The Limon epithermal gold-silver system in plan view, showing multiple mineralised structures in green. High-grade domains are at intersections of NE and WNW trending structures. Recent intersections in holes LMDD048-051 extend mineralisation on the western and eastern sides of the Limon epithermal system. Several additional targets have been defined based on gold-in soil and zincin-soil anomalies, and structural interpretation. 8 Sunstone Metals Limited Annual Report 2025
Figure 4: Plan map showing the distribution of porphyry gold-copper targets in the immediate vicinity of the Brama-Alba MRE at Bramaderos that are associated with gold anomalism in soil samples (backdrop to image). Overview Operating Review continued Copete gold-copper porphyry discovery The new Copete gold-copper porphyry discovery is in addition to the previously released Bramaderos Project porphyry Exploration Target and therefore presents significant scope for that Bramaderos Exploration Target to be increased. The Copete target remains largely under-explored, with no drilling by Sunstone – but now with a coherent and mineralised trench intersection, a magnetic anomaly plunging to the southeast comparable to that seen at Brama and mapped stockwork veining interpreted to represent the upper levels of an intact porphyry system. The Copete discovery means Sunstone has now outlined a 1.8km-long cluster of porphyry gold-copper mineralised intrusions along the Melonal – Copete trend. This trend runs parallel to the Brama-Alba trend and is located only a few hundred meters to the south (see Figure 4). 9 Sunstone Metals Limited Annual Report 2025
Overview Operating Review continued Strong assays outline scope of new areas of high-grade gold at Bramaderos Surface sampling and geological mapping during the June quarter identified additional areas of epithermal gold-silver mineralisation, with up to 14.4g/t gold in surface rock chip samples. The results confirm that multiple higher-grade epithermal mineralised corridors extend from the defined porphyry gold-copper deposits at Brama-Alba within Bramaderos. The discovery of more high-grade gold areas would have major ramifications for the economics at Bramaderos. Geological mapping programs have been undertaken in the areas to the north and west of the large BramaAlba porphyry gold-copper deposit as follow-up work to previous exploration at the outcropping Espiritu and West Zone epithermal gold-silver-lead-zinc occurrences. Refer to Figure 5. The follow-up is based on the evolving geological model of structural corridors – based largely on the Limon epithermal gold-silver deposit and related Limon porphyry gold-copper target – and defined at surface throughout the Bramaderos Project area by domains of altered rock and their geochemical signature. Figure 5: Brama-Alba gold-copper porphyry deposit surrounded by alteration corridors related to epithermal gold mineralisation at West Zone, Espiritu, Espiritu Southeast, and newly defined areas within the blue rectangle. The green background contours show the epithermal pathfinder element arsenic in soil samples. New key epithermal exploration targets are developing in the four white shaded areas. 10 Sunstone Metals Limited Annual Report 2025
Figure 6: Location of the El Palmar project (and Verde Chico property) relative to the Llurimagua and Cascabel Alpala and TandayamaAmerica deposits, and the Toachi fault system which is considered important for the localisation of porphyry copper-gold-molybdenum mineralisation in northern Ecuador. Also shown are the concessions held by ENAMI that surround Llurimagua, and which Hanrine (a subsidiary of Hancock Prospecting) have committed to spend US$120 million to earn 49%. El Palmar Copper-Gold Porphyry Project – Northern Ecuador (Sunstone 74.5% - acquiring up to 100%) El Palmar is located in northern Ecuador, 60km north-west of Ecuador’s capital Quito. Sunstone is acquiring 100% of the El Palmar project and currently holds 74.5% under the Staged Acquisition Agreement. The agreement was initially signed on 12th August 2020, with an Amendment signed in June 2024 to enable Sunstone to acquire the outstanding percentage by 30 June 2026. The property sits on the regionally significant Toachi Fault Zone, the same regional structural belt that hosts the 2.66Bt Alpala copper-gold porphyry deposit grading 0.25g/t gold and 0.37% copper, and the 0.53Bt Tandayama-America deposit grading 0.19g/t gold and 0.24% copper within the Cascabel project (see www.solgold.com.au for details), and is in close vicinity of the 1Bt Llurimagua copper-molybdenum porphyry deposit grading 0.89% copper and 0.04% molybdenum (Figure 6). Sunstone has identified five porphyry gold-copper targets, with mineralisation extending from surface at the T1, T2 and T5 targets covering an area of 600m by 600m, and mineralisation at depth for the T3 target. Overview Operating Review continued 11 Sunstone Metals Limited Annual Report 2025
El Palmar Mineral Resource estimate Based on drilling to date at the T1 target at El Palmar, the Company released the inaugural Mineral Resource estimate (MRE) for the T1 target at El Palmar on 22 October 2024 of 64Mt at 0.60g/t AuEq (0.41g/t gold, 0.13% copper and 0.7g/t silver) for 1.2Mozs AuEq11. The MRE is based on 21 drill holes for 17,699m of drilling (18 drilled by Sunstone in the period August 2021 to July 2022 and 3 drilled by Codelco in 2012) and 1,498 linear metres of trenching in 5 trenches. T1, which is at surface, is one of five target gold-copper porphyry deposits at El Palmar, and has the potential to be advanced as a large open pit opportunity before undertaking exploration and development of the deeper porphyry opportunities. This MRE establishes a strong platform on which to build a world-scale gold and copper resource inventory at El Palmar. Figure 7: El Palmar T1 resource block model for grades >0.2 g/t Au-Eq and pit outline along a 240-060o cross-section and showing the exploration targets which are located within, on the sides, and immediately below the modelled T1 open pit. Overview Operating Review continued 12 Sunstone Metals Limited Annual Report 2025
El Palmar Exploration Target In addition to the inaugural MRE, the Company announced an initial Exploration Target for El Palmar of between 15Moz and 45Moz AuEq within 1.0Bt and 1.2Bt at a grade between approximately 0.3g/t to 0.7g/t gold and approximately 0.1% to 0.3% copper for contained metal of between 10Mozs to 27Mozs gold and 1.0Mt to 3.7Mt copper. The potential quantity and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource for the target area reported. It is uncertain if further exploration will result in the estimation of a Mineral Resource. The Exploration Target comprises material from the T1, T2 and T3 targets and extends across an area of 1.6km x 1.1km. It includes near-surface mineralisation and deeper mineralisation to depths of 1,500m below surface. The areas of mineralisation captured in the Exploration Target are of dominantly high conviction, geologically robust domains consistent with high aspect ratio, clustered porphyry gold-copper deposits. There is potential for the copper content to increase in areas interpreted to be central to the porphyry systems. Figure 8: Overview of 9 of the 10 exploration targets defined on the El Palmar concession. View is looking at -20 degrees towards azimuth 215o. Overview Operating Review continued 13 Sunstone Metals Limited Annual Report 2025
As the Exploration Target has been estimated from only three of the five target deposits, there is still immense potential to grow at El Palmar, including in the larger untested magnetic anomalies as highlighted in Figure 9. Figure 9: Cross-section showing the T2-related Exploration Targets from surface extending to depth to the large T3 target. Note that the MRE and pit are located ‘behind’ this image to the west (refer to Figures 7 & 8). Operating Review continued Overview 14 Sunstone Metals Limited Annual Report 2025
Verde Chico Project Sunstone is acquiring the Verde Chico Project through a Staged Acquisition Agreement signed on 23 September 2022. Verde Chico is located to the west of Sunstone’s El Palmar gold-copper porphyry discovery and quadruples Sunstone’s land position to 3,672ha in this highly prospective copper-gold belt. The Verde Chico project was explored by the Rio Tinto group (then called RTZ) in 1992-1995, and by Canadian junior Balaclava Mines in 1998. No exploration has been undertaken on the land since 1998. The historical exploration identified a 1.1kmlong gold-in-soil anomaly that is open to the north and south, and which includes several high-grade gold-bearing veins at surface and wide lowergrade zones of gold mineralisation in some drill holes. A total of 12 trenches for 683m were opened and sampled following mineralised structures. A total of 28 drill holes for 4,436m were drilled by RTZ and Balaclava. Historical exploration comprised regional stream sediment sampling, soil sampling, limited geophysics (CSAMT), trench sampling, and diamond drilling. The soil sampling by Rio Tinto, which defined the >1.1km long gold-in-soil anomaly, is coincident with a CSAMT resistivity anomaly. This area was drilled at several locations and returned significant intervals of gold mineralisation including 68.5m at 1.05g/t gold from surface in hole RVC-08, including 1m at 11.3g/t gold from 40.5m. Overview Operating Review continued 15 Sunstone Metals Limited Annual Report 2025
Sustainability Activities Sunstone is committed to building its Environmental, Social, and Governance (ESG) credentials. Through our actions, we can make our operations safer, our decision-making more transparent, our communities increasingly resilient and our environmental stewardship stronger. In short, how we can improve our business. In November 2023 we published our first sustainability report which marks an important milestone in our efforts to provide greater transparency regarding our ESG performance. More significantly, it serves as a benchmark against which we can identify opportunities for improvement and measure future progress. We firmly believe that responsible mining can be transformative for the development of communities in Ecuador, and we are committed to being a part of this positive change. Our prioritisation of local employment and procurement is one element of change that has significant indirect benefits, such as supporting the growth of the formal economic sector in rural areas and the greater participation in the local economy, benefiting local businesses. We have also continued to invest in communities’ infrastructure, health, education, and business development through joint initiatives with local organisations and authorities to address local needs. Sunstone remains committed to respecting and protecting human rights and ensuring early, transparent, and inclusive consultation and engagement with landowners and communities related to our activities. This includes incorporating their views into our decision-making and developing long-term partnerships. We are conscious of our responsibility to safeguard Ecuador’s natural heritage. We are committed to maintaining high standards of environmental management, which is reflected in our consistently strong environmental compliance. We also strive to maximise our positive impact on the environment through reforestation activities and by contributing to research and data collection about local species. Sunstone has continued its efforts to provide a safe, healthy and diverse workplace, which is essential to being able to attract and retain employees of the highest calibre. Our health and safety performance, as well as the representation of women within our technical teams, are steps in the right direction within our ESG strategy. To read more about our commitment to sustainability, our ESG performance and case studies, refer to Sunstone’s inaugural Sustainability Report which was published in November 2023. Material Business Risks The business of the Group is a mineral exploration company 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, limiting access to capital, diminishing the cash reserves of the Group and possible relinquishment of the tenements. The Group undertakes regular detailed risk assessments to identify risks to the business and develop mitigation strategies. Overview Operating Review continued 16 Sunstone Metals Limited Annual Report 2025
Overview Operating Review continued Bramaderos Mineral Resource and Exploration Targets The initial Mineral Resource estimate (MRE), from the Brama-Alba target, reported in accordance with the JORC Code8 is 156Mt at 0.53g/t AuEq9 (0.35g/t gold and 0.11% copper), at a cut-off grade of 0.3g/t AuEq, for 2.7Mozs AuEq (see Table 1 below for more detail). Preliminary pit optimisation was applied to the deposit to constrain the MRE and demonstrate the potential to be mined economically by open pit methods. In addition to this MRE, the Bramaderos project has a porphyry Exploration Target reported in accordance with the JORC Code. It consists of between approximately 255 and 360Mt at a grade between 0.40 and 0.74g/t AuEq9 (gold + copper) for contained metal of between 3.3Mozs and 8.6Mozs AuEq (see Table 2). Further, an initial Exploration Target for the Limon epithermal gold-exploration target was developed during the year in accordance with the JORC code, consists of 0.9Moz to 1.7Moz AuEq within 30 to 40Mt at a grade of 0.9 to 1.2g/t AuEq10 (see Table 3). Table 1 - Mineral Resource estimate at various cut-off grades (reported at 0.3g/t AuEq) Cut Off AuEq (g/t) Tonnage (Mt) AuEq (g/t) AuEq (Moz) Au (g/t) Au (Moz) Cu (%) Cu Metal (Kt) Ag (g/t) Ag Metal (Moz) 0.2 176 0.50 2.8 0.33 1.9 0.10 180 1.2 7.0 0.3 156 0.53 2.7 0.35 1.8 0.11 169 1.3 6.5 0.4 117 0.59 2.2 0.40 1.5 0.12 138 1.4 5.1 0.5 75 0.68 1.6 0.46 1.1 0.13 97 1.4 3.5 The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement for the Mineral Resource estimate and Exploration Target referred to above and, that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement. 8 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. The JORC Code, 2012 Edition. Prepared by: The Joint Ore Reserves Committee of The Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia (JORC). 9 The gold equivalent calculation formula for porphyry gold-copper-silver mineralisation is AuEq(g/t) = (Au grade x Au price x Au recov / 31.1035) + (Ag grade x Ag price x Ag recov / 31.1035) + (Cu grade x Cu price x Cu recov / 100)) / (Au price x Au recov / 31.1035). The prices used were US$1,800/oz gold and US$9,500/t copper and US$22/oz silver. Recoveries are estimated at 89% for gold, 85% for copper, and 60% for silver based on metallurgical studies. In Sunstone’s opinion all the elements included in the metal equivalents calculation have reasonable potential to be recovered and sold. 10 The gold equivalent calculation formula for epithermal gold-silver mineralisation is AuEq(g/t) = Au(ppm) + (Ag (ppm)/82). The prices used were US$1,800/oz gold and US$22/oz silver. Recoveries are estimated at over 90% for gold and 90% for silver from metallurgical studies. 17 Sunstone Metals Limited Annual Report 2025
Overview Operating Review continued Table 2 - Bramaderos porphyry exploration target Tonnage (Mt) Minimum Grade Maximum Grade Metal Content (AuEq Mozs) Exploration Target Min Max Au (g/t) Cu (%) Au Eq (g/t) Au (g/t) Cu (%) Au Eq (g/t) Min Max Brama-Alba (excluding MRE areas) 70 100 0.2 0.1 0.35 0.6 0.12 0.8 0.79 2.57 Melonal 150 200 0.25 0.1 0.4 0.5 0.12 0.7 1.93 4.50 Limon 35 60 0.33 0.1 0.5 0.6 0.12 0.8 0.56 1.54 Total 255 360 0.40 0.74 3.3 8.6 Table 3 - Limon epithermal gold exploration target Tonnage (Mt) Minimum Grade Maximum Grade Metal Content (AuEq Mozs) Exploration Target Min Max Au (g/t) Cu (%) Au Eq (g/t) Au (g/t) Cu (%) Au Eq (g/t) Min Max Central Shoot 20 31 0.8 12.0 0.9 1.1 15.8 1.2 580 1,200 Domain surrounding Central Shoot 5 7 0.8 12.0 0.9 1.1 15.8 1.2 145 270 Anomaly A 1.7 2 0.8 12.0 0.9 1.1 15.8 1.2 50 75 Anomaly B 1.7 2 0.8 12.0 0.9 1.1 15.8 1.2 50 75 Anomaly C 1.7 2 0.8 12.0 0.9 1.1 15.8 1.2 50 75 Total 30 44 0.9 1.2 875 1,700 Due to the effect of rounding, the total may not represent the sum of all components 18 Sunstone Metals Limited Annual Report 2025
Overview Operating Review continued El Palmar Mineral Resource and Exploration Target The initial MRE, from the T1 target only, is 64Mt at 0.60g/t AuEq11 (0.41g/t gold, 0.13% copper and 0.7g/t silver) for 1.2Mozs AuEq1 at a cut-off grade of 0.4g/t AuEq11 (reported in accordance with the JORC Code12, see Table 4 below for more details). Preliminary pit optimisation was applied to the deposit to constrain the MRE and demonstrate the potential to be mined economically by open pit methods (Figures 7 and 8). A very low strip ratio is implied by the block model geometry within the pit. Table 4 – El Palmar Mineral Resource estimate at various cut-off grades (Total as both Indicated and Inferred) Average Grade Material Content Material Cutoff AuEq (g/t) Tonnage (Mt) AuEq (g/t) Au (g/t) Ag (g/t) Cu (ppm) Cu (%) AuEq (Koz) Au (Koz) Ag (Koz) Cu (Kt) Oxide 0.10 12 0.30 0.29 0.56 793 0.08 100 100 200 0 0.20 8 0.39 0.39 0.63 923 0.09 100 100 200 0 0.30 5 0.48 0.48 0.71 1,036 0.10 100 100 100 0 0.40 3 0.55 0.54 0.75 1,109 0.11 100 100 100 0 0.50 2 0.65 0.64 0.84 1,138 0.11 0 0 0 0 0.60 1 0.74 0.73 0.73 1,067 0.11 0 0 0 0 Transitional and Fresh 0.10 119 0.43 0.28 0.51 984 0.10 1,600 1,600 1,000 120 0.20 101 0.48 0.31 0.55 1,088 0.11 1,600 1,500 1,000 110 0.30 80 0.54 0.36 0.61 1,203 0.12 1,400 1,300 900 100 0.40 61 0.60 0.40 0.66 1,311 0.13 1,200 1,100 800 80 0.50 41 0.67 0.45 0.73 1,435 0.14 900 900 600 60 0.60 25 0.75 0.51 0.82 1,566 0.16 600 600 400 40 All 0.10 131 0.42 0.28 0.51 966 0.10 1,800 1,700 1,200 120 0.20 109 0.47 0.32 0.55 1,076 0.11 1,700 1,600 1,200 110 0.30 85 0.54 0.36 0.61 1,193 0.12 1,500 1,400 1,000 100 0.40 64 0.60 0.41 0.66 1,301 0.13 1,200 1,200 900 80 0.50 43 0.67 0.46 0.74 1,424 0.14 900 900 600 60 0.60 26 0.75 0.52 0.82 1,548 0.15 600 600 400 40 The initial El Palmar Exploration Target is between approximately 1.0Bt and 1.2Bt at a grade between approximately 0.3g/t to 0.7g/t gold and approximately 0.1% to 0.3% copper for contained metal of between 10M ozs to 27Mozs gold and 1.0Mt to 3.7Mt copper (see Table 5). The Exploration Target range is in addition to the maiden MRE. 11 The gold equivalent calculation formula is AuEq (g/t) = ((Au grade x Au price x Au recov / 31.1035) + (Ag grade x Ag price x Ag recov / 31.1035) + (Cu grade x Cu price x Cu recov / 100)) / (Au price x Au recov / 31.1035). The prices applied were US$1,800/ oz gold, US$4.50/lb copper and US$22/oz silver. Recoveries are estimated at 90% for gold, 78% for copper (excluded for oxide material), and 60% for silver based on metallurgical studies. In Sunstone’s opinion, all the elements included in the metal equivalents calculation have reasonable potential to be recovered and sold. 12 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. The JORC Code, 2012 Edition. Prepared by: The Joint Ore Reserves Committee of The Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia (JORC). 19 Sunstone Metals Limited Annual Report 2025
Overview Operating Review continued The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement for the Mineral Resource estimate and Exploration Target referred to above and, that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement. Table 5 – El Palmar Exploration Target Target Area Tonnes Lower (Mt) Tonnes Upper (Mt) Gold Grade Range (g/t) Copper Grade Range (%) Type T1 Additional Southwest Dyke target 18 22 0.30-0.60 0.10-0.18 Porphyry T1 Northeast and Southeast Side Extension (In and Out of Pit) 35 41 0.30-0.60 0.10-0.18 Porphyry T1 In-Pit infill between Dykes 8 9 0.30-0.60 0.10-0.18 Porphyry T1 Depth Extensions of Main Orebody 50 55 0.20-0.40 0.10-0.30 Porphyry T1 Western Deep Target 300 340 0.30-0.60 0.10-0.20 Porphyry T2 Shallow Porphyry Mineralisation around Collars of EPDD022/023 1 2 0.20-0.40 0.1-0.2 Porphyry T2 Porphyry finger above/below EPDD022: 217-287m intersection 3 4 0.20-0.40 0.10-0.20 Porphyry T2 Vertical extents of epithermal domain above/below EPDD024 20 30 0.30-0.40 0.02-0.05 Epithermal T2 Deep Porphyry Target below EPDD024 intrusive breccia 200 225 0.30-0.70 0.10-0.30 Porphyry T3 Magnetic anomalies around EPDD026/028 400 500 0.30-0.70 0.10-0.30 Porphyry Subtotal 1,035 1,228 0.30-0.70 0.10-0.30 Grade Weighted + Rounded Contained gold 10.0 – 27.6 Mozs Contained copper 1.0 – 3.7 Mt Contained gold-equivalent 15 – 45 Mozs Due to the effect of rounding, the total may not represent the sum of all components 20 Sunstone Metals Limited Annual Report 2025
Overview Operating Review continued Mineral Resource Estimation Governance Statement All Mineral Resource estimates reported by Sunstone Metals Limited are prepared by independent, qualified mining industry professionals and in accordance with the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (the JORC Code) 2012 Edition. Competent Persons named by the Company are Members of the Australasian Institute of Mining and Metallurgy and qualify as Competent Persons as defined in the JORC Code. The Competent Persons have reviewed Sunstone’s sampling and Quality Control and Quality Assurance (QA/QC) practices to ensure samples are representative and unbiased, and that assay results are obtained with the appropriate level of confidence. Sunstone also produces internal Mineral Resource estimates synchronously with, but independent of, the Mineral Resource Estimates determined by the qualified mining industry professionals as an audit of the external result. The tables above set out Mineral Resources for 2025, with no change to the overall tonnes and grade or Mineral Resource classification from the Initial Mineral Resource reported on 22 October 2024. The potential tonnage, grade and quantity of an Exploration Target are conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource for the target area reported. It is uncertain if further exploration will result in the estimation of a Mineral Resource. Competent Persons Statement The information in this report that relates to Exploration Targets and exploration 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. The information in this report that relates to Mineral Resources for Bramaderos are based on the information compiled by Mr Aaron Meakin. Mr Aaron Meakin is a full-time employee of ERM Australia Consultants Pty Ltd and is a Member and Chartered Professional of the Australasian Institute of Mining and Metallurgy. Mr Aaron Meakin has sufficient experience 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 the Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code). Mr Aaron Meakin consents to the disclosure of the information in this report in the form and context in which it appears. The information in this report that relates to Mineral Resources for El Palmar is based on information compiled by Mr Rob Spiers. Mr Rob Spiers is a full-time employee of Spiers Geological Consultants (SGC), and is a Member of the Australasian Institute of Geoscientists (AIG). Mr Rob Spiers has sufficient experience 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 the Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code). Mr Rob Spiers consents to the disclosure of the information in this report in the form and context in which it appears. 21 Sunstone Metals Limited Annual Report 2025
Overview Operating Review continued Information on Exploration Targets Bramaderos The Bramaderos porphyry Exploration Target within the Bramaderos concession is estimated from 3 areas – the extensions to the BramaAlba system that are not captured in the Mineral Resource estimate (MRE), and mineralisation drilled at the targets of Melonal and Limon porphyry mineralisation. The Exploration Target does not include known porphyry mineralisation at Sandia, Porotillo, Playas, Copete or Yeso. It was decided to not include these areas because Sunstone has not yet completed any or sufficient drilling in these areas. Some historical drilling has been completed at Porotillo. Further work in these areas will be undertaken and they are expected to contribute to an expanded Exploration Target in future. Several areas of mineralisation have been identified outside of the area of the MRE. The MRE captured all material within a ‘Mineralisation Wireframe’, and within an economically modelled pit. Some drill holes that intersected mineralisation are outside the mineralisation wireframe, and either within or outside the pit. Inadequate drilling exists in these areas to show continuity. Furthermore, the effect of the reasonable prospects of economic extraction was to exclude 14% of material. This material has been captured in the Exploration Target. Six domains were identified as having clear potential for additional mineralisation and these were reviewed either on a depth slice basis, or a block basis. Volumes were calculated and grade was assigned based on nearby data and on comparison with the overall Brama-Alba grade. The Melonal target is a continuation of the Brama-Alba system. It is geologically grouped with Brama-Alba. Recent drilling by Sunstone, and historical drilling from 2007, has confirmed that the Melonal target is mineralised, and that mineralisation is hosted in rocks the same as those drilled at the nearby Brama-Alba deposit. The mineralised rocks are coincident with a discrete sub-vertical magnetic anomaly measuring up to 400m in diameter, and with a vertical extent of over 1,000m. The Exploration Target for Melonal was considered to a depth of 500m. The Melonal target straddles the approved Bramaderos-01 and Bramaderos-02 concessions. Sunstone has drilled 8 effective diamond holes at the Limon porphyry target. Mineralisation has been intersected in a number of holes. A trench (LM_ TR_01) was completed at Limon prior to drilling in an area of outcropping stockwork veining and minor secondary copper mineralisation. It returned 97m at 0.73g/t gold and 0.23% copper. A recent hole drilled under the trench has intersected similar stockwork veined intrusive and contains chalcopyrite. This area around Trench TR_LM_01 has been included in the porphyry Exploration Target where more drilling is required to allow inclusion in a Mineral Resource estimate. This target area will be further explored with drilling programs to be executed over the next two years, subject to the Company’s funding ability. Limon epithermal The Limon epithermal Exploration Target was estimated on target prospects where there was a combination of diamond drilling (by Sunstone), geological mapping, trenching, geochemistry (soils) and to a lesser extent geophysical data (magnetics) which could support the geological and mineralisation concept model. The Limon alteration area has been covered with soil sampling on a 50m x 50m grid. This survey is an important exploration method which identified several gold-in soil anomalies that are primary targets for drilling. The soil geochemical data is further interpreted using related element associations typical of epithermal systems, such as areas of somewhat coincident gold, silver, zinc, lead, copper, tellurium and arsenic. Target areas have also been strengthened using alteration mineralogy from a hand-held Terraspec instrument. These data assist in mapping the alteration zones most likely to be associated with epithermal mineralisation. Drilling at Limon has also intersected a high sulphidation system in holes LMDD004 and 006, which included intersections of 13.3m at 0.43% copper and 0.11g/t gold, within 59.6m at 0.16% copper. Standard geological mapping and rock chip sampling has also been undertaken across the Limon target area. 22 Sunstone Metals Limited Annual Report 2025
Overview Operating Review continued The volume ranges for the initial Exploration Target in the Central Shoot were estimated using cross sections and 3-D modelling in Leapfrog software, based upon an analysis of drilling, mineralised rock types, grade distribution, potential for extrapolation of mineralisation continuity and interpreted geological risk. The volume ranges for the other components were estimated from geological interpretation and guided by extent of surface geochemical anomalism, supplemented by preliminary drilling. A conservative approach was taken to the potential distribution of gold and silver bearing veins. This target area will be further explored with drilling programs to be executed over the next two years, subject to the Company’s funding ability. El Palmar The Exploration Target within the El Palmar concession is estimated from within the T1, T2 and T3 areas. The Exploration Target does not include interpreted or known porphyry mineralisation at the T4 and T5 target areas. It was decided to not include these areas because Sunstone has not yet completed any drilling at T4 and has conducted only minor drilling at T5. Further work in these areas will be undertaken and they are expected to contribute to an expanded Exploration Target in future. The components of the exploration target are based on a combination of diamond drilling conducted by Codelco (during 2012) and by Sunstone (during 2022 and 2023), ground magnetics, multi-element soil sampling, multielement rock chip and channel sampling, mulitelement trench sampling and deep magnetic inversion anomalies modelled from ground magnetic data. Wireframes of the areas within the Exploration Target areas were created in Leapfrog software using data interpreted from the Mineral Resource block model, iso-surface contours of modelled magnetic intensities, and grade ranges in available diamond drill holes. The volumes were multiplied by a specific gravity of 2.72g/cc (the average density of the T1 resource) to determine the tonnage range of the target. Grade ranges were determined with reference to drill intersection and surface rock chip assays. The next step in testing these targets is primarily diamond drill testing. The targets have been adequately defined, but drill programs still require detailed planning regarding the number of drill holes, their azimuths, dips, and final depths. Drilling of these targets will be undertaken over the next two years, subject to the company’s funding availability. TENEMENT SCHEDULE Gold-Copper Tenements – Ecuador Tenement Holder Tenement Name Location Status Sunstone Ownership Bramaderos S.A. BramaderosA Loja, Ecuador Granted 87.5% Bramaderos S.A. Bramaderos 02 Loja, Ecuador Granted 87.5% Bramaderos S.A. Cueva de Leon Loja, Ecuador Granted 87.5% Golden Exploration Ecuador S.A. Los Mandariyacus (El Palmar)B Imbabura, Ecuador Granted 74.5%B Compania Minera Verde Chico CIA Ltda Verde ChicoC Imbabura, Ecuador Granted 0% Notes A: Sunstone announced on 7 January 2020 that the terms of the Earn-in Joint Venture with TSX-V listed Cornerstone Capital Resources (subsequently merged with SolGold PLC) had been amended to provide Sunstone with an immediate 87.5% interest and SolGold with a loan carried 12.5% interest in Bramaderos S.A. (formerly named La Plata Minerales S.A.) the holder of the Bramaderos concession. B: Sunstone announcement 12 August 2020 regarding a Staged Acquisition Agreement for 100% of the El Palmar project. Sunstone acquired a further 4.5% of El Palmar following an instalment payment in July 2024. Sunstone can acquire the remaining 25.5% by 30 June 2026. C: S unstone announcement 21 June 2022 regarding a Letter of Intent to acquire 100% of the Verde Chico Project, located to the west of Sunstone’s El Palmar gold-copper porphyry discovery in northern Ecuador, through a Staged Acquisition Agreement, signed 23 September 2022, from the Verde Chico Group. 23 Sunstone Metals Limited Annual Report 2025
Your Directors present their report on Sunstone Metals Ltd (“Sunstone” or “Company”) and the entities it controlled (“Consolidated Entity” or “Group”) for the financial year ended 30 June 2025. Directors The following persons were Directors of Sunstone Metals Ltd any time during the financial year and up to the date of this report: Mr Malcolm Norris Non-executive Chair (appointed 16 September 2024) Executive Director – Exploration (until 15 September 2024) Mr Graham Ascough Non-executive Chair (retired 16 September 2024) Mr Patrick Duffy CEO & Managing Director Mr Stephen Stroud Non-Executive Director Mr Neal O’Connor Non-Executive Director Principal activities During the period, the principal activities of the Group consisted of mineral exploration and evaluation. Dividends No dividends were paid or recommended to be paid to members during the financial period. Review of operations Refer to the Operating Review contained in the Annual Report for further discussion regarding the Company’s operations. A summary of consolidated other income and results is set out below: 2025 $ 2024 $ Interest and other income 104,628 125,798 Profit/(loss) before income tax (2,406,942) (2,293,242) Income tax expense – – Profit/(loss) attributable to members of Sunstone Metals Limited (2,406,942) (2,293,242) Profit/(loss) attributable to non-controlling interests – – Earnings per share 2025 cents 2024 cents Basic and diluted earnings per share (0.0) (0.1) Financial Performance During the year ended 30 June 2025 the Group incurred a loss of $2,406,942 (2024: loss of $2,293,242). The increase in the loss compared with prior year is largely due to a reduction in the amount of corporate costs capitalised with the reduction in exploration activity compared with prior year. Interest income also declined, with $67,661 earned in the current year (2024: $125,798), with the reduction attributable to lower cash balances held during the year compared with prior year. Employee benefits expense reduced to $1,315,441 (2024: $1,380,280) with the absence of a bonus accrued for FY2025 offset by a decrease in salaries capitalised as a result of the reduction in exploration activities compared with prior year. Financial Position The Company’s non-current assets increased from $82,866,040 at 30 June 2024 to $91,896,094 at 30 June 2025, and the Company’s current assets were consistent at $3,168,636 (30 June 2024: to $3,121,402) at 30 June 2025. At the end of the financial year, the Group had cash balances of $2,674,579 (2024: $2,669,044) and net assets of $94,129,224 (2024: $83,915,712). Total liabilities amounted to $935,506 (2024: $2,071,730) and included trade, other payables, and provisions. Directors’ Report 24 Sunstone Metals Limited Annual Report 2025
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