Annual Report 2023

During the year Sunstone announced promising assay results from EPDD026 from the T3 target (see ASX announcement dated 20 June 2023) showing substantial gold and copper widths and grades in line with other prominent porphyry deposits globally. This is a very important development for the El Palmar project for several reasons: – Strong gold-copper mineralisation in the first hole drilled into the very large T3 target – Mineralisation in EPDD026 is typical of many porphyry systems comprising chalcopyrite and some bornite, within transitional potassic alteration, and copper-sulphide-bearing A vein and B vein stockworks – Multiple geophysical anomalies to test within the broader T3 target area, some of which extend closer to surface – The early T3 results, combined with drilling at T1, T2 and T5 which all intersected gold-copper mineralisation from surface, outline a 2.3km x 1km cluster of porphyry deposits. This is an extensive system of mineralised centres – The Sunstone El Palmar targets bear many geological similarities with the nearby Alpala system (within the Cascabel project owned by SolGold) and are the same geological age – This scenario of clustered deposits is very similar to the giant Cobre Panama porphyry copper system in Panama (Mineral Resources of ~4.4Bt at 0.35% copper and 0.06g/t gold at 0.15% copper COG; www.firstquantum.com) in the sense of multiple close-spaced porphyry centres (7 contributing to mineral resources). Further drilling will be aimed at testing the multiple discrete and shallower high amplitude magnetic anomalies within the T3 area, and ultimately the deeper magnetic and MT anomalies at T3 and T1. Overview Operating Review continued Figure 5: Northwest-Southeast section through the T1, T2 and T3 targets, showing the T1 system which is mineralised from surface on the left of the diagram, and the trend of EPDD026, through the T2 MT geophysical anomaly, and into the T3 magnetic anomalies. Current hole EPDD028 is shown here. EPDD027, drilled but assays not yet received, tested a shallow magnetic body off section. The yellow to pink contours show a slice through the magnetic model with pink being more magnetic. 10 Sunstone Metals Limited Annual Report 2023

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