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
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