Heemskirk Tin Project Highest grade undeveloped ASX-listed tin project

Annual General Meeting October 2015

ASX: SRZ

www.stellarresources.com.au

Agenda

Record of achievement over the last 12 months
Optimisation has increased NPV by 62% to A$99m over the 2013 Prefeasibility Study (PFS) outcome of A$61m
Opportunities to add value in a Definitive Feasibility Study (DFS)

Conclusion and valuation upside to a rising tin price

Corporate overview

100% owner of the highest grade undeveloped ASX-listed tin project

Company overview

100% owner of Heemskirk Tin Project, 150km south of Burnie, Tasmania
Stand-out high grade resource (1.1% Sn) with vision to be Australia's 2nd largest tin producer
Metallurgical optimisation announced in March 2015 increased recovery by 4.5% to 72.8%
Optimisation of PFS completed in September increasing NPV 62% to A$99.0m

Financial information

Share price (15-Oct-15)	A$0.028
Number of shares	300.2m
Market capitalisation	A$8.4m
Cash(30-Jun-15)	A$2.2m
Debt (30-Jun-15)	Nodebt
Enterprise value	A$6.2m

42.5m unlisted options (exercise prices A$0.06 to A$0.12, expiring 26-Feb-17 to 20-Nov-19)

Strong institutional ownership

CapetownS.A.	20.8%
BunnenbergFamily	14.9%
Resource Capital Funds	12.0%
Directors & Management	4.2%
Top20 Shareholders	70.2%

Investment case

Premier position in Australia's most productive tin field

100% owned Heemskirk Tin Project is the highest grade undeveloped tin resource on the ASX

Heemskirk is an unencumbered project with no offtake agreements yet in place; thus allowing for the development of new strategic relationships

Metallurgical optimisation work shows Heemskirk has several parallels to the early production from Metals X's Renison Bell

Premium projects with high grades will continue to attract investment, despite the challenging market conditions

ASX junior tin developers

Heemskirk is the premier pre-production tin opportunity on the ASX

Source: Company filings

Favourable project location

North-west Tasmania is a world-class tin jurisdiction

Significant mining district
- Many historical and current operating mines across various commodities
Supportive local community and skilled workforce
- Experienced workforce available with other mines in the region winding down
Established road and rail to port at Burnie, water readily available and power infrastructure in place
Low political risk
- Tasmanian government supportive of Heemskirk
Low environmental risk
- Issues faced by others in the region unlikely to be encountered

Record of achievement in updates

Operational achievements in 2015 have set the platform for a definitive feasibility study in 2016

February 2015	Environmental Protection Authority guidelines receivedguidelines
		Exploration licence granted to the south of HeemskirkHeemskirk
March20152015		Metallurgy optimisation upgrades PFS metrics
		Severn tin recovery increased by 7.4% and average tin recovery increased by 4.5%and4.5%
		Annual tin in concentrate production increased by 4.5%production
July 2015		Geological review flags new northwest trending structures and high grade tin infill zones presentingreviewun-tapped upside to the Heemskirkresource
		St Dizierscoping study completed --potential for development as a source of blending oreblending
		Tailings storage site secured ––low capital cost, life of mine facilityoffacility
September2015		Optimisation increased PFS NPV by 62% to A$99.0m -PFS NPVthrough+A$18m recovery increase,+A$16m reduction in pre-production capital and +$4m from accelerated mine developmentdevelopment

Simplified plant design

Metallurgical optimisation led to smaller primary grind and elimination of heavy media separation and silica float circuits saving A$5m from capex

High grade geological focus

Geological review has uncovered a number of additional high grade tin areas within structures and dilation zones

Dilation zones

(includes 2m @ 1.4% Sn)

St Dizier scoping study completed

Low cost open pit (capital and operating) - source of blending ore for processing in the Heemskirk plant

Low capital development cost of A$3.8m
Mining inventory of 424,000 tonnes @ 0.86% tin
Initial mine life of 30 months
- Annual ore production of 150kt @ 1.03% tin
- Annual tin in concentrate production of 700 tonnes
Low operating cost
- Delivered cost of ore to the processing plant is A$23/t

Quality tailings dam site secured

Tailings dam site in plan and oblique view

Capacity 3x initial mine life
Low capital containment
- Initial cost A$1.4m wall plus A$3.4m pipeline
- No observed geological flaws
Concealed valley
- Crown land
- No competing land use
- No observed flora or fauna values

Optimisation increased NPV by 62%

The 2013 PFS NPV has increased by A$38m to A$99m following an optimisation program that increased recovery and lowered capital cost

Recovery increase to 72.5% added $18m to NPV
Lower mining cost offset by higher processing cost
- Paste fill reduced mining cost by A$4/t
- Processing cost rose by A$4/t
Capex reduction added A$16m to NPV
- 80% of capex reduction due to process plant modifications
Accelerated development added A$4m to NPV
- Orebody access reduced from 17 to 12 months

Competitive cost structure

At 0.70USD/AUD the Heemskirk project has moved down the international tin industry cost curve towards the 40th percentile position

Heemskirk DFS

DFS timeline for the Heemskirk project – 15 month program

Diamond drilling to commence once funding secured
Metallurgical testing to commence as sample becomes available

DFS timeline from commencement

	T	T + 3months	T + 6months	T + 9months	T + 12months	T + 15months
Drilling
Metallurgicaltesting
Geologicalstudies
Miningengineering
Environmental permitting

DFS - opportunity to add value

The DFS provides an opportunity to further improve grade, tonnes and mine life

Conversion resources to reserves
- 24,250m of diamond drilling
- Test high grade geological model
- Upgrade deeper inferred resource
Metallurgical testing of all ore sources
- Higher recovery?
Detailed mine planning
- Lower cost mining?
Detailed plant design
- Opportunity to lower capital and operating cost?

Substantial leverage to tin price

Significant upside for the Heemskirk NPV as the spot tin price increases over the next 3 years (production expected 2018)

Concluding remarks

Stellar is in a sound position with a high quality tin asset
Significant progress over the last 12 months project momentum maintained despite difficult market conditions

NPV increased by 62% to A$99m – through a number of positive outcomes from the optimisation program

DFS to proceed once funding secured an opportunity to add further value
Considerable valuation upside as the tin price recovers

Appendix

Heemskirk PFS mine plan Board of Directors

Heemskirk 2013 PFS mine plan

Board of Directors

Experienced and multi-disciplinary Board with strong global connections

Phil Harman Non-Executive Chairman

Geophysicist

Over 30 years experience in BHP Billiton minerals exploration
Past and present Director of several ASX listed companies

Peter Blight Managing Director

Geologist

30 years experience in exploration, mining and finance sectors
Previously worked for UBS, UC Rusal and Rio Tinto

Dr Markus Elsasser Non-Executive Director Finance

Based in Germany, provides advice to a number of European based investors
Has extensive experience as a Managing Director in the chemical and food industries

Miguel Lopez de Letona Non-Executive Director

Management Consultant

Experience as a management consultant and banker with leading financial institutions
Based in Belgium and advises on investment in the mining and oil and gas sectors

Christina Kemp Company Secretary

Accountant

Over 30 years experience as an accountant and senior financial manager
Has experience in the resources, manufacturing, retail and utility industries

Thomas Whiting Non-Executive Director

Geophysicist

Former manager of BHP Billiton exploration
Chairman of Deep Exploration Technologies Cooperative Research Centre

Disclaimer

Forward Looking Statement

This presentation was prepared by Stellar Resources Limited ( the "company"). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the company or as an offer or invitation with respect to those securities. It may contain a number of forward-looking statements. Known and unknown risks and uncertainties, and factors outside of Stellar's control, may cause the actual results, performance and achievements of Stellar to differ materially from those expressed or implied in this presentation. To the maximum extent permitted by law and stock exchange listing rules, Stellar does not warrant the accuracy, currency or completeness of the information in this presentation, nor the future performance of Stellar, and will not be responsible for any loss or damage arising from the use of the information.

Competent Persons Statement – Heemskirk and St Dizier Mineral Resources

The information in this report that relates to Heemskirk Tin Mineral Resources was last reported on 24th July 2013 in an ASX release titled "Pre-feasibility Study Advances Heemskirk Tin". The information was prepared in accordance with the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' by Tim Callaghan of Resource and Exploration Geology. The information in this report that relates to the St Dizier Mineral Resource was announced on 12 March 2014 in an ASX release titled "Heemskirk Tin Project: New Open Pittable Resource at St Dizier". The information was prepared in accordance with the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (JORC Code) by Tim Callaghan of Resource and Exploration Geology. Tim Callaghan is a Member of The Australasian Institute of Mining and Metallurgy ("AusIMM"), has a minimum of five years experience in the estimation and assessment and evaluation of Mineral Resources of this style and is the Competent Person as defined in the JORC Code. This report accurately summarises and fairly reports his estimations and he has consented to the resource report in the form and context in which it appears.

Competent Persons Statement – Exploration

The drill and exploration results reported herein, insofar as they relate to mineralisation, are based on information compiled by Mr R.K. Hazeldene who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Hazeldene has sufficient experience relevant to the style of mineralisation and type of deposits being considered to qualify as a Competent Person as defined by the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Mr Hazeldene consents to the inclusion in the presentation of the matters based on his information in the form and context in which it appears.

Stellar Resources Limited

Level 17, 530 Collins Street Melbourne VIC 3000 Phone +61 3 9618 2540 Fax +61 3 9649 7200 www.stellarresources.com.au