site visits. The strong interest shown by these groups supports the Board’s view that this is the appropriate strategy to unlock the true value of our discoveries. Moreover, since this process was initiated, demand for large copper and gold assets such as ours has grown substantially. There is now clearly a global race for projects with genuine scale and ongoing exploration upside, which has been demonstrated by the recent spate of corporate activity, including cross-border mergers and acquisitions in Ecuador and abroad. At the time of writing, we are considering an attractive opportunity which has advanced to the stage where an offer could be finalised. At the same time, other parties continue to participate in the process and site visits are being undertaken as they are requested while due diligence under signed confidentiality agreements is also conducted. It is important to note that at this stage, timeframes are unknown and there is no certainty or assurance that any binding proposals will be received or, if received, will be acceptable. However, the Board believes that based on the strong interest to date and the increasingly favourable macro environment, that this course of action currently presents the most attractive means of creating value for our shareholders. We will, of course, continue to assess this strategy and we remain open to opportunities. With a cash balance of $2.7 million at the end of the year, the Company is in a good position to have the bandwidth and ability to finalise any discussions. 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 pursue our discussions. I would like to reassure shareholders that we are cognisant of the need to continue advancing the process in a timely manner while balancing this consideration with the overall objective of maximising shareholder value. I look forward to updating you as the process advances. Yours sincerely Malcolm Norris Non-executive Chair Sunstone Metals Limited Company Highlights Establishing the El Palmar maiden Mineral Resource estimate of 1.2Moz of gold equivalent Establishing the El Palmar Exploration Target of 1545Moz of gold equivalent3 Expanding the known area of shallow gold-copper mineralisation at Bramaderos through continued trenching and soil sampling Emerging strategy to establish Limon as a complementary higher-grade open pit opportunity that is a stepping stone to developing the large gold-copper porphyries at Brama-Alba, Melonal and others Undertaking a corporate partnership strategic process to identify potential alternative funding pathways to develop Sunstone’s world-class projects 3 Sunstone Metals Limited Annual Report 2025
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