Sunstone Metals Accelerates Development of Ecuador Gold-Copper Projects Backed by DGR Global's Strategic Investment

El Palmar: Large-Scale Surface Gold-Copper Discovery in Northern Ecuador

El Palmar is Sunstone's flagship project, a significant bulk-tonnage deposit exposed at surface in Northern Ecuador along the copper-rich Toachi Fault. The project announced a 1.2 million ounce gold-equivalent maiden JORC resource in October 2024, based on 64 million tonnes grading 0.60 grams per tonne gold-equivalent, covering only the upper 450 metres of the T1 target. This early-stage resource highlights substantial near-surface mineralisation accessible via conventional mining methods, benefiting project economics and development timelines.

The exploration target for El Palmar ranges from 15 million to 45 million ounces gold-equivalent, supported by a conceptual tonnage estimate of 1.0 to 1.2 billion tonnes at grades between 0.3 and 0.7 grams per tonne gold and 0.1 to 0.3 percent copper. This target is additional to the maiden resource and reflects significant potential for expansion along strike and at depth of the Toachi Fault. While the company acknowledges that insufficient exploration has been conducted to estimate a mineral resource for this target area, ongoing drilling aims to define this substantial growth opportunity.

Bramaderos: Multi-Zone Porphyry Cluster with April 2026 Scoping Study

Bramaderos comprises a cluster of gold-copper-silver porphyry systems extending from surface, forming a distinct asset in Sunstone's portfolio. In November 2025, Sunstone reported a 3.6 million ounce gold-equivalent JORC resource, based on 220 million tonnes grading 0.50 grams per tonne gold-equivalent. This resource includes the primary porphyry deposit (315–505 million tonnes at 0.30–0.54 grams per tonne gold and 0.09–0.11 percent copper) and the Limon zone (30–40 million tonnes at 0.8–1.1 grams per tonne gold and 12–15.8 grams per tonne silver), offering operational and processing flexibility.

The April 2026 scoping study for Bramaderos marks a key step toward prefeasibility and development planning. The exploration target of 5.0 to 12.9 million ounces gold-equivalent, additional to the resource, reflects further potential along the porphyry and Limon structures. Supplementary information released in May 2026 on the scoping study and development activities indicates active project advancement. The project's large tonnage and moderate grades align with Sunstone's bulk-tonnage, low-cost operational model.

DGR Global's Strategic Investment and Board Appointment in June 2026

DGR Global Ltd (ASX:DGR), a resource company generator, acquired a 10% strategic cornerstone investment in Sunstone in June 2026, providing capital and independent validation to accelerate exploration and growth. DGR Global has proven Ecuador expertise, having previously supported SolGold plc, which was sold to Jiangxi Copper for A$1.7 billion in March 2026. The investment grants DGR Global the right to appoint a director to Sunstone's board, aligning governance and strategic goals.

DGR Global's investment was driven by the quality and potential of Sunstone's gold-copper projects, complementary technical and capital markets expertise, and participation in Ecuador's mining development ecosystem. Having backed successful resource companies like Atlantic Lithium and Orbis Coal, DGR Global's cornerstone stake signals confidence in Sunstone's portfolio and development strategy, enabling resource growth drilling, advanced studies, and stakeholder engagement.

Experienced Board and Management Team with Porphyry and South American Expertise

Patrick Duffy serves as Managing Director and CEO, bringing international leadership, capital markets experience, and mine development expertise from roles at Red 5, Glencore, and Xstrata. Non-Executive Chair Malcolm Norris has contributed to major porphyry discoveries with WMC, Intrepid Mines, and SolGold, adding vital exploration and management skills.

Non-Executive Directors Neal O'Connor, former Chief Legal Counsel for Xstrata Copper, offers deep experience in South American mining operations and infrastructure, while Stephen Stroud, Director – Corporate Finance at Morgans, provides capital markets and investor relations expertise. The management team includes Dr Bruce Rohrlach, General Manager – Exploration, a geologist with a history of major porphyry discoveries, and Ray Robinson, General Manager – Studies and Technical Services, with extensive mining studies and operations experience. CFO Lucas Welsh brings specialist financial and governance expertise, and Country Manager Rodrigo Izurieta maintains strong local industry and government relations.

Ecuador's Mining Jurisdiction: Cost Advantages and Major Producer Presence

Sunstone's projects are located in Ecuador, home to two world-class, low-cost operating mines: Lundin Gold's Fruta del Norte gold mine and the Chinese-owned Mirador copper mine. These benchmarks establish Ecuador as a competitive global mining jurisdiction. Leading international miners including BHP, Newmont, Barrick Gold, CMOC, and Jiangxi Copper actively operate or develop projects in the country, supported by established infrastructure and regulatory familiarity.

Significantly lower energy and labour costs compared to Australia and other developed mining nations provide a structural operating cost advantage. Ecuador's mining pipeline includes advanced projects like Silvercorp's El Domo Curipamba copper-gold, Solaris Resources' Warintza copper, CMOC's Cangrejos gold, and Jiangxi Copper–SolGold's Cascabel copper project, underlining the country's attractiveness for major mining investments and ongoing infrastructure development.

Strategic Location in Ecuador's Copper-Gold Belt and Supportive Government Policies

Both El Palmar and Bramaderos lie within a highly endowed copper-gold belt, hosting significant precious and base metal mineralisation. Anchored by world-class operating mines, the belt attracts continuous exploration and development from junior and major miners, reducing technical and regulatory uncertainties for early-stage projects.

Following President Noboa's April 2025 re-election, the government has signaled support for responsible mining investment, including establishing a single national mining department to streamline regulatory processes. This centralized policy framework enhances predictability for Sunstone's exploration, studies, and permitting phases, contrasting with more challenging Latin American mining jurisdictions and positioning Ecuador as a favorable environment for capital investment and project advancement.

Focused Strategy on Resource Growth, Development Studies, and Funding

Sunstone's strategy centers on three pillars: expanding resources through drilling, defining scalable development pathways via engineering and scoping studies, and securing funding to progress projects toward construction and operation. The maiden JORC resource at El Palmar and 2025 resource at Bramaderos mark initial milestones, with exploration targets indicating multi-stage growth potential. The April 2026 Bramaderos scoping study exemplifies advancement toward development decisions.

DGR Global's cornerstone investment explicitly supports accelerated exploration and resource drilling, enabling rapid mineral inventory expansion. Established funding pathways, including this strategic investment, validate investor appetite and provide capital access. Future funding may include prefeasibility studies, financing arrangements, or infrastructure partnerships as projects mature toward production, contingent on continued resource definition and study outcomes.

Gold and Copper Portfolio Complementarity Enhances Market Resilience

Sunstone's portfolio benefits from complementary gold and copper mineralisation. El Palmar is predominantly gold-rich along the Toachi Fault, while Bramaderos features multiple gold-copper-silver porphyry zones. This commodity diversification offers operational and market hedging advantages: rising gold prices enhance El Palmar's economics, while copper price strength benefits Bramaderos. Potential integration of processing flowsheets could allow combined ore treatment, leveraging shared infrastructure and services.

This dual-commodity approach aligns with market trends driven by renewable energy and electrification, which increase copper demand, while gold remains a valued store of wealth and jewelry commodity. Sunstone's strategy reduces volatility risk compared to single-commodity peers by aligning asset characteristics with long-term commodity fundamentals.

Exploration Target Uncertainty and Development Risks

Sunstone's update presents exploration targets for El Palmar (15–45 million ounces gold-equivalent) and Bramaderos (5.0–12.9 million ounces gold-equivalent) alongside mineral resource estimates. The company notes these targets are conceptual, with insufficient exploration to estimate resources in target areas. Further drilling may or may not result in resource estimates, and no guarantee exists that targets will be realized. Investors should understand that resource growth depends on successful drilling, favorable assay results, and qualified resource estimation.

Additional risks include commodity price volatility impacting economics and funding, permitting and political risks despite supportive Ecuador policies, capital cost inflation affecting study assumptions, and operational execution risks during construction and production. Sunstone remains in exploration with no revenue-generating operations, reliant on capital markets funding. Investors are advised to conduct thorough due diligence, review technical documentation, and seek independent professional advice before investing.