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
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