Sunstone Metals Ltd. announced that drilling has started at the highly compelling T2 porphyry target within its El Palmar porphyry gold-copper discovery in northern Ecuador and highly encouraging results have been received from drilling at T1 and T5, both adjacent to T2, and the Tituana epithermal target. T2 is a large porphyry copper-gold target which measures 1km long x 450m wide. It is part of a cluster of at least five porphyry systems that measures 2.6 x 1km.

Drilling has already established that the T1, T2 and T5 porphyry targets are mineralised. T3 and T4 are yet to be drill tested. The T2 target is bound by the regionally-significant Toachi Fault zone and is associated with orthogonal structures - a scenario strongly similar to the 3 billion-tonne Alpala copper-gold porphyry deposit, within SolGold's Cascabel project, located 65km to the north-east.

Age dating of the rocks associated with mineralisation at El Palmar T1 has confirmed that they are the same geological age as Alpala. T2 drilling progress: Drilling at Target T2, located east of the El Palmar T1 porphyry system, commenced in early March and is now at a down-hole depth of 300m. The first of 2 planned drill holes is expected to be completed in late March, with assays following in late April.

The upper part of the hole shows evidence of mineralisation consistent with adjacent hole EPDD024 (Figures 2 and 3). Trace chalcopyrite and molybdenite have been identified from 190m downhole. The T2 target has been defined at surface through rock chip and soil sampling delivering a coherent gold-copper-molybdenum anomaly coincident with an extensive alteration cap and some stockwork veining.

The target now being tested is a geophysical anomaly that plunges to the south from the surface mineralisation, where it expands and intensifies southward for a further 800m. The target abuts the regional Toachi Fault zone. The structural scenario at T2 is very significant and can be compared to the nearby Alpala copper-gold porphyry deposit at the SolGold Cascabel Project.

T1 assay results and 3-D model development Drill hole EPDD021 was drilled into the T1 target. It intersected 866.6m at 0.26g/t gold and 0.1% copper from surface, including 24m at 0.39g/t gold and 0.19% copper from 45.5m, and 11.25m at 0.81g/t gold and 0.2% copper from 501m. This result confirms the significant vertical extent of mineralisation at T1 which requires follow-up drilling.

3-D geological modelling (Figure 4) is being undertaken at T1 based on the 21 drill holes completed to date and follow-up drilling has been planned to target mineralisation in the down plunge and lateral extent of interpreted NNW trending mineralised domains. T5 confirmed porphyry gold-copper mineralisation: Hole EPDD025 has been completed and assay results returned 60m at 0.25g/t gold and 0.13% copper, within a broader 133m mineralised interval from 69m of 0.19g/t god and 0.11% copper. This is the first hole into this target (previous hole EPDD013 skimmed the underside of the target) and follow-up drilling will test the area below this drill hole.

Tituana Epithermal Gold Targets preliminary results Drilling at the Tituana epithermal gold target in the northern part of the El Palmar concession has intersected an epithermal system with mineralisation in multiple veins. This is a very promising start to drilling at Tituana. Visual assessment of holes 6 and 7 suggest improving mineralisation to the north based on the presence of galena and sphalerite which are often associated with gold and silver in these epithermal systems. The Tituana target is located on a NNE-trending structure, which may link to the south to the main El Palmar porphyry system - a common scenario in porphyry and epithermal systems. The target exhibits coincident path-finder elements zinc and arsenic anomalies in soil sampling.

Trenching has returned results of up to 6.7g/t gold. Rock chip sampling has yielded a >85m-long (and open) zone from which 101 surface samples averaged 1.2 g/t Au, 25 g/t Ag and 0.16% Cu, with peak values for these elements being 6.47 g/t Au, 225g/t Ag and 0.78% Cu.