2026 ABN 68 123 184 412 Sunstone Metals Limited
Contents 2 Chairman’s Review 5 Strategy 6 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 65 Consolidated Entity Disclosure Statement 66 Directors’ Declaration 67 Independent Auditor’s Report 71 ASX Additional Information 73 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 2026
Overview Chairman’s Review Discovering new deposits and increasing our mineral resources Dear Fellow Shareholders, The past year has seen Sunstone continue to advance the Bramaderos Project with a resource upgrade in November 2025, a scoping study published in April 2026 and the discovery of a new gold-copper porphyry system at Porotillo and Copete. Pleasingly, we announced in November 2025 a 33% increase in the mineral resource estimate at Bramaderos, from 2.9Moz AuEq2 to 3.6Moz AuEq2. This increase was achieved primarily through the inclusion of the adjacent Melonal deposit into the existing Brama-Alba pit shell. When contemplating Bramaderos’ full resource potential, it’s important to note that the Bramaderos pit shell still excludes 31% of mineralised material which falls just below the current optimal pit shell. Given the increasingly predictable nature of the mineralisation, we expect that much of this material will eventually convert into mineral resources through further drilling at Alba, Brama and Melonal. We were also pleased to restart drilling in the March Quarter with an initial 5,000 metre diamond drilling campaign to investigate the large exploration target at Porotillo and Copete, just south of the current Brama-Alba-Melonal resource. The drilling program has been very successful, establishing a new discovery with consistently long intercepts with solid porphyry-style grades. The drill results are expected to add to the Bramaderos mineral resource estimate when we perform an MRE update in the December 2026 Quarter. The release of the Bramaderos Scoping Study during the year highlighted Bramaderos’ enormous multi-decade and strategic potential. Although the high proportion of Inferred resources in the mine plan meant the ASX required us to retract the full production targets, the scoping study showed the project was viable using only the small amount of Indicated resources. The study highlighted the potential value upside at Bramaderos, given the multiple opportunities to grow the Indicated resource base and the expected increase in resources when including the recent Porotillo and Copete results. Ongoing metallurgical testwork at Bramaderos continues to help optimise process flowsheets, gold-copper recoveries, and ultimately the value of the project. Baseline studies for water management and power options will also commence during FY2027. On behalf of the Board of Directors, it is my pleasure to present the 2026 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 2026
Exploration drilling is being undertaken at Bramaderos to test the Limon gold-copper deep porphyry target and further understand the potential extent of the porphyry mineralisation within the Bramaderos Project. Following completion of the Placement in July 2026, we are planning a series of holes at El Palmar to test the deep gold-copper porphyry targets. Rigs are currently being mobilised, and we expect to start seeing assay results towards the end of 2026. This is an important and exciting drill program for the company, as it begins testing the very large, high-conviction exploration deep targets at El Palmar, a project on the same Toachi fault system that hosts the giant Casbabel and Llurimagua copper projects. With funding secured to conduct the drilling programs at Bramaderos and El Palmar during the 2027 financial year, the Board continues to review options to advance our exploration opportunities, increase the mineral resources, and fund the ultimate development of these two globally significant projects. Recent transactions in Ecuador, including Jiangxi Copper’s acquisition of SolGold, which owns the Cascabel projects just to the north of El Palmar, show strong interest in quality projects with genuine scale and continued exploration upside. Company Highlights 33% upgrade to Bramaderos Mineral Resource estimate to 3.60 Moz gold equivalent Porotillo and Copete discoveries adjacent to the current Brama-Alba-Melonal resource at Bramaderos Release of Bramaderos Scoping Study Secured funding to test deep gold-copper porphyry targets at both Bramaderos and El Palmar We will, of course, continue to assess this strategy and we remain open to opportunities. With a cash balance of $10.9 million at the end of the year (including the $9.3M received from the Placement announced on 29 June), the Company is in a healthy position to fund continued drilling to expand our current mineral resources and test the large exploration targets at El Palmar and Bramaders. 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 advance our projects. Yours sincerely Malcolm Norris Non-executive Chair Sunstone Metals Limited 3 Sunstone Metals Limited Annual Report 2026
Overview 4 Sunstone Metals Limited Annual Report 2026
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, a Scoping Study has been completed which indicated project viability and large growth potential. Sunstone plans to further grow the Bramaderos resource while continuing to advance the project studies towards development. At El Palmar, Sunstone is testing the deep gold-copper targets, with drilling expected to recommence in September 2026. Sunstone has an ongoing strategic process to determine a preferred long-term funding model to unlock the substantial value of its two world-class projects. The Company also continues to monitor and evaluate potential opportunities to continue to grow our business in Ecuador, where clear shareholder value can be demonstrated. 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, being close to water, 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 Strategy 5 Sunstone Metals Limited Annual Report 2026
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. Bramaderos Nov-25 Mineral Resource and Exploration Target In November 2025, the Company updated the Bramaderos Mineral Resource Estimate (“MRE”), reported in accordance with the JORC Code 2012, of 220Mt at 0.50g/t AuEq (0.33g/t gold and 0.10% copper), for 3.6Mozs gold-equivalent1,2. 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, the Total Bramaderos Project Exploration Target (covering both porphyry and epithermal deposit styles) is now between 345 - 549Mt at a grade between 0.45g/t AuEq and O.73 g/t AuEq for 5.0 and 12.9 Moz AuEq2. The Exploration Target range is in addition to the MRE (see Mineral Resource Estimate information on page 17). Overview Operating Review 1 Refer ASX Announcement on 24 November 2025. 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$4.50/lb 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. 6 Sunstone Metals Limited Annual Report 2026
Figure 1: Overview of key prospects on the Bramaderos project, the Brama-Alba-Melonal resource area, and Exploration Target areas defined on the Bramaderos properties. The background image is gold-in-soil, highlighting the potential scale increase to be delivered with more drilling at Bramaderos across multiple targets. Figure 2: Panorama of the valley taken from Porotillo of Copete, Melonal, Alba and Brama deposits, showing the porphyry systems emerging at surface. The Limon area is behind these hills. Overview Operating Review continued Brama Alba Melonal Copete 7 Sunstone Metals Limited Annual Report 2026
Overview Porotillo and Copete During FY2026, the Company commenced drilling the Porotillo and Copete deposits to the south of Brama-Alba-Melonal, with a total of 25 holes drilled from February 2026 to June 2026 for 4,776m of drilling. The program delivered consistently long mineralised intersections (as noted in Figure 3 below), with notable intersections at Porotillo including: – PTDD001: 200m @ 0.42 g/t AuEq2 – PTDD004: 116m @ 0.57 g/t AuEq2 – PTDD006: 200m @ 0.62 g/t AuEq2 – PTDD009: 298m @ 0.40 g/t AuEq2 – PTDD012: 213m @ 0.53 g/t AuEq2 – PTDD017: 106m @ 0.62 g/t AuEq2 – PTDD018: 137m @ 0.58 g/t AuEq2 The Porotillo discovery covers an area of approximately 550m x 240m. The recent drilling results from Porotillo, Copete and Melonal will be included in an expected update to the Mineral Resource Estimate, due to be released in second quarter of FY2026. Operating Review continued Figure 3: Drill holes and trenching results from exploration program at Porotillo and Copete conducted to 30 June 2026. 8 Sunstone Metals Limited Annual Report 2026
Figure 4: The cluster of five porphyry gold-copper systems in the Bramaderos concessions (Brama, Alba, Melonal, Copete and Porotillo), showing the area where resource drilling in the recent drill program was undertaken at Porotillo, Copete and Melonal to grow the Bramaderos Mineral Resource. Background colour shading is gold in soils. Overview Operating Review continued The Porotillo-Copete discovery means Sunstone has now outlined a 1.8km-long cluster of porphyry goldcopper mineralised intrusions along the Melonal – Copete trend. This trend runs parallel to the Brama-Alba trend and is located only a few hundred metres to the south (see Figure 4). 9 Sunstone Metals Limited Annual Report 2026
Overview Operating Review continued Figure 5: 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. 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. The regional Limon gold-silver epithermal domain has an exploration target of between 0.9 and 1.7Moz AuEq4 within 30 to 44Mt at a grade between 0.9 and 1.2g/t AuEq3,4. 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. 3 Refer ASX Announcement on 5 February 2024. 4 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. 10 Sunstone Metals Limited Annual Report 2026
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 82.6% - 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 82.6% under the Staged Acquisition Agreement. The agreement was initially signed on 12th August 2020, with Amendments signed in June 2024 and July 2026 to enable Sunstone to acquire the outstanding percentage by 1 July 2027. 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 2026
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 AuEq5,6. 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 worldscale gold and copper resource inventory at El Palmar. Following the placement completed in July 2026, the Company is planning on drilling a series of diamond drill holes at El Palmar, including two deep holes targeting the deep gold-copper porphyry target at T3. These holes are expected to be completed within the first half of FY2026, with assay results to be announced when available. 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 5 Refer ASX Announcement on 22 October 2024. 6 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. 12 Sunstone Metals Limited Annual Report 2026
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 AuEq5,6 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 215°. Overview Operating Review continued 13 Sunstone Metals Limited Annual Report 2026
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 2026
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 2026
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 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 2026
Overview Operating Review continued Bramaderos Mineral Resource and Exploration Targets The current Mineral Resource estimate (MRE), from the Brama-Alba target, reported in accordance with the JORC Code7F is 220Mt at 0.50g/t AuEq2 (0.33g/t gold and 0.10% copper) at a cut-off grade of 0.3g/t AuEq, for 3.6Mozs AuEq2 (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 315 and 505Mt at a grade between 0.41 and 0.68g/t AuEq1,2 (gold + copper) for contained metal of between 4.1Moz and 11.2Moz AuEq (see Table 3). Further, an initial Exploration Target for the Limon epithermal gold-exploration target has been developed in accordance with the JORC code, consisting of 0.9Moz to 1.7Moz AuEq within 30 to 40Mt at a grade of 0.9 to 1.2g/t AuEq3,4 (see Table 4). Table 1 – Bramaderos Mineral Resource estimate JORC Classification Tonnage (Mt) Au (g/t) Cu (%) Ag (g/t) AuEq2 (g/t) AuEq2 (Mozs) Indicated 40 0.38 0.10 1.26 0.56 0.6 Inferred 190 0.32 0.10 1.14 0.49 2.9 Total 220 0.33 0.10 1.16 0.50 3.6 Table 2 – 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) 0.2 300 0.44 4.2 0.29 2.7 0.09 260 1.05 10.1 0.3 220 0.50 3.6 0.33 2.3 0.10 220 1.16 8.2 0.4 150 0.58 2.8 0.38 1.8 0.11 170 1.28 6.2 0.5 90 0.66 1.9 0.45 1.3 0.12 110 1.38 4.0 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. 7 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). 17 Sunstone Metals Limited Annual Report 2026
Overview Operating Review continued Table 3 – Bramaderos porphyry exploration target Exploration Target Min Tonnage (MT) Max Tonnage (MT) Metal Content Min kAuEq2,4 ounces Metal Content Max kAuEq2,4 ounces Metal Content Min Moz AuEq2,4 Metal Content Max Moz AuEq2,4 New Copete-Porotillo (Po)2 135 180 1,700 3,500 1.70 3.50 Updated Brama-Alba-Melonal-Limon (Po)2 180 325 2,400 7,700 2.40 7.70 SUB-TOTAL PORPHYRY 315 505 4,100 11,200 4.10 11.20 Limon (Epithermal)3,4 30 44 900 1,700 0.90 1.70 BRAMADEROS PROJECT TOTAL 345 549 5,000 12,900 5.00 12.90 Exploration Target Min Tonnage (MT) Max Tonnage (MT) Min Grade Au (g/t) Min Grade Cu (%) Min Grade Ag (g/t) Min Grade AuEq (g/t)1,4 New Copete-Porotillo (Po) 135 180 0.25 0.10 – 0.40 Updated Brama-Alba-Melonal-Limon (Po) 180 325 0.26 0.10 – 0.41 SUB-TOTAL PORPHYRY 315 505 0.26 0.10 – 0.41 Limon (Epithermal) 30 44 0.80 – 12 0.90 BRAMADEROS PROJECT TOTAL 345 549 0.30 0.09 1.0 0.45 Exploration Target Min Tonnage (MT) Max Tonnage (MT) Max Grade Au (g/t) Max Grade Cu (%) Max Grade Ag (g/t) Max Grade AuEq (g/t)1,4 New Copete-Porotillo (Po) 135 180 0.40 0.12 – 0.60 Updated Brama-Alba-Melonal-Limon (Po) 180 325 0.54 0.12 – 0.74 SUB-TOTAL PORPHYRY 315 505 0.48 0.12 – 0.68 Limon (Epithermal) 30 44 1.10 – 15.8 1.20 BRAMADEROS PROJECT TOTAL 345 549 0.54 0.11 1.3 0.73 Table 4 – 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 2026
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 AuEq10F6 (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 AuEq6 (reported in accordance with the JORC Code11F7, 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 5 – El Palmar Mineral Resource estimate Average Grade Material Content JORC Classification Tonnage AuEq6 Au (g/t) Ag (g/t) Cu (ppm) Cu (%) AuEq (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 Table 6 – 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 0.08 100 200 100 0 0.20 8 0.39 0.39 0.63 923 0.09 100 200 100 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 1,000 1,600 120 0.20 101 0.48 0.31 0.55 1,088 0.11 1,600 1,000 1,500 110 0.30 80 0.54 0.36 0.61 1,203 0.12 1,400 900 1,300 100 0.40 61 0.60 0.40 0.66 1,311 0.13 1,200 800 1,100 80 0.50 41 0.67 0.45 0.73 1,435 0.14 900 600 900 60 0.60 25 0.75 0.51 0.82 1,566 0.16 600 400 600 40 All 0.10 131 0.42 0.28 0.51 966 0.10 1,800 1,200 1,700 120 0.20 109 0.47 0.32 0.55 1,076 0.11 1,700 1,200 1,600 110 0.30 85 0.54 0.36 0.61 1,193 0.12 1,500 1,000 1,400 100 0.40 64 0.60 0.41 0.66 1,301 0.13 1,200 800 1,300 80 0.50 43 0.67 0.46 0.74 1,424 0.14 900 600 900 60 0.60 26 0.75 0.52 0.82 1,548 0.15 600 400 600 40 Due to the effect of rounding, the total may not represent the sum of all components 19 Sunstone Metals Limited Annual Report 2026
Overview Operating Review continued 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 7). The Exploration Target range is in addition to the maiden MRE. The Exploration Target has been reported in accordance with the JORC Code7. 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 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 7 – 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 1035 1228 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 2026
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 2026, with no change to the overall tonnes and grade or Mineral Resource classification from the Initial Mineral Resource reported on 22 October 2024 for El Palmar, and 24 November 2025 for Bramaderos. 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 and 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 Spiers holds 0.012% of the ordinary shares on issue of Sunstone Metals, and this shareholding does not constitute a substantial holding in the Company, nor does it impair Mr Spiers’s ability to provide an objective and unbiased assessment. The shareholding is disclosed in accordance with the JORC code transparency provisions. Mr Rob Spiers consents to the disclosure of the information in this report in the form and context in which it appears. 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. 21 Sunstone Metals Limited Annual Report 2026
Overview Operating Review continued 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. Copete and Porotillo The Copete and Porotillo exploration targets are areas of outcropping porphyry stockwork veining that occur within an extensive gold and copper soil geochemical anomaly. These areas have seen substantial historical drilling (13 drill holes) with extensive mineralised intersections, plus widespread rockchip sampling of surface mineralisation, channel sampling in ravines and an extensive mineralised trench ML-01 at Copete that assayed 214m @ 0.50 g/t AuEq2 (ASX announcement 12 November 2024). At Porotillo, within the main body of the goldin-soil geochemical anomaly, an extensive earlymineral quartz diorite intrusion hosts overprinting porphyry-related, disseminated and vein stockwork mineralisation over an area spanning up to approximately 530m by 310m. Very substantial historic drill intersections were encountered at Porotillo. Two domains were modelled to generate the Copete-Porotillo exploration target to depths of 200m and 400m below surface. 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. 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. 22 Sunstone Metals Limited Annual Report 2026
Overview Operating Review continued 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 Mandari-yacus (El Pal-mar)B Imbabura, Ecuador Granted 82.6%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, as amended in June 2024 and July 2026. Sunstone can acquire the remaining 17.4% by 1 July 2027. 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 2026
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 2026. 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 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: 2026 $ 2025 $ Interest and other income 105,522 104,628 Profit/(loss) before income tax (2,607,786) (2,406,942) Income tax expense – – Profit/(loss) attributable to members of Sunstone Metals Limited (2,607,786) (2,406,942) Profit/(loss) attributable to non-controlling interests – – Earnings per share 2026 cents 2025 cents Basic and diluted earnings per share1 (1.2) (1.4) (1) Restated for 1:30 consolidation completed in March 2026 Financial Performance During the year ended 30 June 2026, the Group incurred a loss of $2,607,786 (2025: loss of $2,406,942). Lower administration costs have been offset by higher salary costs to support increased site activities, including the restart of drilling at Bramaderos. Employee benefits expense increased to $1,666,348 (2025: $1,315,441). Interest income increased, with $105,522 earned in the current year (2025: $67,661), with the increase attributable to higher cash balances held during the year compared with prior year. Financial Position The Company’s non-current assets increased from $91,896,094 at 30 June 2025 to $97,458,657 at 30 June 2026 with capitalised drilling costs at Bramaderos driving the current year increase, The Company’s current assets were lower at $2,169,083 (30 June 2025: to $3,168,636) at 30 June 2026, largely due to a lower cash balance, with $9,250,945 (net of fees) received in July 2026 from the Placement announced on 29 June 2026. At the end of the financial year, the Group had cash balances of $1,666,655 (2025: $2,674,579) and net assets of $98,160,754 (2025: $94,129,224). Total liabilities amounted to $1,466,986 (2025: $935,506) and included trade, other payables, and provisions. During the year, the Company had an increase in contributed equity of $7,508,837, after fees, for the placement in December 2025. The contribution from options exercised during the period was $2,138,846. Additionally, a Placement was announced on 29 June 2026, with $9,250,945 received on 7 July 2026 (net of fees). Directors’ Report 24 Sunstone Metals Limited Annual Report 2026
Cash flow The Company’s net cash outflow from operating activities improved to $1,768,336 (2025: $2,963,341), while the net cash outflow from investing activities was slightly higher at $8,668,594 (2025: $8,011,121), for a total operating and investing cash outflow of $10,436,930 (2025: $10,974,462). Although total expenditure was lower than the prior financial year, the Company was able to conduct a scoping study and commence a drilling program at Porotillo and Copete within the Bramaderos project, whereas minimal exploration and studies expenditure was incurred in the prior year. Events occurring after reporting date Except as noted below, no matter or circumstance has occurred subsequent to year end that has significantly affected, or may significantly affect, the operations of the Group, the results of those operations or the state of affairs of the Group or economic entity in subsequent financial periods. – On 29 June 2026, Sunstone announced it had raised $9,940,591 (before fees) by way of a share placement. Funds were received on 7 July 2026, and 56,803,378 shares were issued on 8 July 2026. – On 3 July 2026, Sunstone signed an Amended Staged Acquisition Agreement with respect to Gold Exploration Ecuador S.A (“GOEX”), owner of the El Palmar Project, to amend the final payment terms to acquire 100% of the project. A payment of US$540,000 was made on 6 July 2026 to increase Sunstone’s ownership in GOEX from 75.5% to 82.6%. Sunstone can increase its ownership in GOEX to 100% with a final payment of US$1,160,000 due by 1 July 2027. Significant changes in the state of affairs Other than those matters discussed in this report, no significant changes in the state of affairs of the Group occurred during the financial period. Likely developments and expected results The Group will continue exploration and development activities. The Group assesses commercial opportunities for corporate growth, including the acquisition of interests in projects, as they arise. Due to the unpredictable nature of these opportunities, developments could occur at short notice. Environmental regulation The Group is subject to the environmental laws and regulations imposed under the Environmental Codes in the jurisdictions in which it operates. The Group is currently engaged in exploration activities which are governed by conditions or recommendations imposed through the granting of a licence or permit to explore. Compliance with these laws and regulations is regarded as a minimum standard for the Group to achieve. There were no known breaches of any environmental laws or regulations during the year. Information on Directors The Directors of the Company at any time during or since the end of the financial year were: Mr Malcolm Norris MSc, MAppFin, FAusIMM Non-executive Chair: Appointed 16 September 2024 Executive Director – Exploration: Appointed 15 April 2024, ceased 15 September 2024 CEO and Managing Director: Appointed 1 April 2014, ceased 14 April 2024 Special responsibilities Member of the Audit and Financial Risk Committee Experience and expertise Mr Norris is a senior mining industry professional with extensive experience in business management, mineral exploration, development of new business opportunities and asset transactions. His roles have covered a wide range of commodities, geographic locations and management of global portfolios of projects in both large and small organisations. Mr Norris holds an MSc in Geology and a Masters in Applied Finance. He has more than 35 years of industry experience including 23 years with WMC Resources, followed by executive roles with Intrepid Mines and SolGold. Other directorships of listed companies in the past three years Magmatic Resources Limited (appointed 16 October 2024) Nordic Resources Limited (appointed 1 June 2025) 25 Sunstone Metals Limited Annual Report 2026
RkJQdWJsaXNoZXIy MjE2NDg3