Annual Report 2023

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 2023 we publish 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 motor of change which 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, benefitting local businesses. We have also continued to invest in communities’ infrastructure, health and education, as well as business development, through joint initiatives with local organisations and authorities, to address local needs. Sunstone remains committed to respecting and protecting human rights, and to 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. Sustainability highlights: – 99.6% Ecuadorean personnel in Ecuador – 86% Local personnel – 39% Female professional personnel – 95% Procurement spend in Ecuador – 0 Major environmental non-compliances – 0 Environmental incidents To read more about our commitment to sustainability, our ESG performance and case studies, Sunstone will be publishing its first Sustainability Report in 2023. Material Business Risks The business of the Group is exploration, with a vision to be a discovery business in the porphyry copper-gold space. Exploration activities involve various inherent risks that could have a negative impact on the potential future results of the Group. The Group undertakes regular detailed risk assessments to identify risks to the business and develop mitigation strategies. A summary of the material business risks that may affect the Group are as follows: Overview Operating Review continued 12 Sunstone Metals Limited Annual Report 2023

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