==> picture [254 x 145] intentionally omitted <==

STELLAR RESOURCES LIMITED ABN 96 108 758 961

Annual Report - 30 June 2018

Stellar Resources Limited
Contents
30 June 2018
Corporate directory	2
Review of operations	3
Directors' report	8
Auditor's independence declaration	17
Consolidated statement of profit or loss and other comprehensive income	18
Consolidated statement of financial position	19
Consolidated statement of changes in equity	20
Consolidated statement of cash flows	21
Notes to the consolidated financial statements	22
Directors' declaration	46
Independent auditor's report to the members of Stellar Resources	47
Shareholder information	52

Stellar Resources Limited Corporate directory 30 June 2018

==> picture [59 x 35] intentionally omitted <==

Directors Phillip G Harman (Non-Executive Chairman) Peter G Blight (Managing Director) Thomas H Whiting (Non-Executive Director) Miguel Lopez de Letona (Non-Executive Director) Company Secretary Melanie Leydin Registered Office Level 17 530 Collins Street Melbourne VIC 3000 Facsimile: (03) 9649 7200 Telephone: (03) 9618 2540 Share register Boardroom Pty Limited Grosvenor Place Level 12, 225 George Street Sydney NSW 2000 Telephone: 1300 737 760 Auditor Deloitte Touche Tohmatsu 550 Bourke Street Melbourne VIC 3000 Bankers National Australia Bank Level 2, 330 Collins Street Melbourne VIC 3000 Stock exchange listing Stellar Resources Limited shares are listed on the Australian Securities Exchange (ASX code: SRZ and SRZO) Website www.stellarresources.com.au

Stellar Resources Review of operations 30 June 2018

==> picture [59 x 35] intentionally omitted <==

Stellar’s 100% owned Tasmanian tin assets are well located just 18 km southwest of Rension, one of the world’s largest and most productive tin mines. Stellar is continuing to improve its landholding in the area and arguably has the best portfolio of undeveloped tin assets in Australia. The attractiveness of this portfolio is expected to increase over time as existing mines suffer from declining grade and rising costs and new mine developments are delayed by funding constraints.

Figure 1: Location of Tasmanian Tin Assets

==> picture [384 x 366] intentionally omitted <==

Key Achievements

Granted 12-year Mining Leases over all land holdings of the Heemskirk Tin Project
Completed 3,379m of diamond drilling on the Queen Hill and Severn deposits
Acquired the highly prospective Mt Razorback exploration licence
Positive results from the first round of assaying Razorback tin tailings and ore
Demonstrated the potential of ore sorting technology to improve processing outcomes

Strategy

The company is focused on building a position as a supplier of battery metals. It plans to achieve this in the first instance by expanding and capitalizing on its strong portfolio of tin assets in Tasmania. It is also looking more widely for opportunities to invest in other battery metals both in Tasmania and in other jurisdictions.

In prosecuting this strategy, Stellar is advancing the Heemskirk Tin Project towards a definitive feasibility study. At the same time, the Company is searching for a suitable partner to help fund the project through to production.

Opportunities for earlier tin production from satellite tin assets is also being evaluated.

Positive Tin Market Outlook

Tin use is growing at an annual rate of 2.0% with consumption in lead-acid batteries and chemicals leading the way. This trend is particularly evident at higher growth rates in China which now accounts for 45% of the global market. Battery

Stellar Resources Review of operations 30 June 2018

==> picture [59 x 35] intentionally omitted <==

uses of tin are expected to proliferate over the next 5 years as second-generation lithium ion batteries move from the laboratory to mainstream production.

MIT, in a study conducted for Rio Tinto, captured the upside potential by ranking tin number 1 in an assessment of metals most likely to benefit from the adoption of new technologies. As the chart following shows, strong tin growth has historically evolved from new end-uses with the next period of growth imminent.

Figure 2: Tin Ranked Number 1 New Technology Metal

==> picture [349 x 223] intentionally omitted <==

The main question facing the tin industry is where will new supply come from to meet technology driven growth?

The LME tin price is not high enough to incentivise new production apart from projects with exceptional grade such as Bisie in DRC
Existing producers are facing declining grade, rising costs and falling volumes
Incremental expansions and reactivation of closed capacity occurred in 2017 – there are few opportunities remaining to be exploited
Myanmar, the source of the strongest supply growth between 2013 and 2017 has peaked and now is in decline

Figure 3: Tin Price Recovery Underway

==> picture [371 x 238] intentionally omitted <==

Stellar Resources Review of operations 30 June 2018

==> picture [59 x 35] intentionally omitted <==

Operational Overview

1) Mining Leases Secured

Stellar has now secured Mining Leases from the Tasmanian Government over all the critical landholdings required for development of the Heemskirk Tin Project. The ML’s provide Stellar with the right to extract tin and other metals, for 12 years, subject to approval of a Development Proposal and Environmental Management Plan.

Figure 4: Mining Leases Granted for All Heemskirk Tin Land Holdings

==> picture [343 x 228] intentionally omitted <==

2) Positive Drilling Outcomes at Heemskirk

Eight diamond drill holes for a total of 3,379m were completed over the Lower Queen Hill and Severn deposits. The last of the Severn holes was also re-conditioned for water quality and flow rate testing.

The drilling program returned strong tin assay results for 5 of the 8 holes with all mineralized intersections reported in ASX releases. The drilling program also provided structural data for the three main tin-mineralised vein systems, reduced drill hole spacing in Upper Severn and increased the spread of drill hole orientations.

The program demonstrated that more detailed grid drilling from surface or underground will be required to upgrade the resource estimate.

3) Ore Sorting Successfully Tested

Sighter testing of 200 samples of quarter drill core from the Severn deposit was undertaken using a Steinert KSS ore sorter. Satisfactory first pass results showed that head grade can be increased by 50% from 1.3% to 1.9% tin with the rejection of 37% of the mass. The tin loss of 6% is expected to decline with further testing and optimization of sorting parameters.

Stellar Resources Review of operations 30 June 2018

==> picture [59 x 35] intentionally omitted <==

Figure 5: Ore Sorting Sighter Test Shows 50% Increase in Head Grade

==> picture [318 x 230] intentionally omitted <==

4) Mt Razorback EL adds to Tin Portfolio

Stellar acquired Mt Razorback Exploration Licence EL11/2017, which lies 10km to the east of Zeehan and contains the historical Grand Prize and Razorback tin mines and a tailings dam. The initial focus is on the known tin assets with sampling of the tailings dam and Razorback mine pit floor to determine tin grade, distribution and metallurgical performance.

Figure 6: Sampling of Razorback Tailings and Pit Floor

==> picture [264 x 214] intentionally omitted <==

Stellar Resources Review of operations 30 June 2018

==> picture [59 x 35] intentionally omitted <==

Figure 7: Extensive Exploration Potential along Razorback and Grand Prize Faults

The exploration potential of EL11/2017 is highlighted by historical soil sample results that have identified a number of targets along the 3km Razorback Fault and further to the north near the Grand Prize Fault. The exploration model at Razorback is comparable with that at Renison where tin bearing fluids moving through deep-seated faults form deposits when in contact with reactive sediments like the Red Lead Conglomerate.

Stellar Resources Limited Directors' report 30 June 2018

==> picture [59 x 35] intentionally omitted <==

The Directors of Stellar Resources Limited ("the company") and its controlled entities ("the consolidated entity") submit herewith the financial report for the year ended 30 June 2018. In order to comply with the provisions of the Corporations Act 2001, the Directors report as follows:

Directors

The names of Directors of the company in office at any time during or since the end of the period are:

Director Position held Phillip G Harman Non-Executive Chairman Peter G Blight Managing Director Thomas H Whiting Non-Executive Director Miguel Lopez de Letona Non-Executive Director

The above named Directors held office during the whole of the financial year and since the end of the financial year.

Principal activities

The principal activity of the consolidated entity during the year continued to be mineral exploration with the objective of identifying and developing economic reserves.

Operating Result

The net loss of the consolidated entity for the financial period was $690,492 (2017: $681,874).

The loss for the financial period was derived largely due to administration expenditure of $555,142 (2017: $658,347) from continuing operations and exploration expenditure and other costs written off in the amount of $152,703 (2017: $38,654).

Financial Position

The net assets of the consolidated entity decreased by $674,604 to $18,694,416 as at 30 June 2018 (2017: $19,369,020). The movements during the year was largely due to the continuing operations.

Working capital, being current assets less current liabilities, decreased by $1,563,577 to $1,223,032 (2017: $2,786,609). The consolidated entity had a net cash outflows from operating activities for the period of $561,068 (2017: $480,845).

The review of operations preceding this report outlines the exploration activities and corporate matters for the year.

Dividends Paid or Recommended

There were no dividends paid, recommended or declared during the current or previous financial year.

Significant changes in the state of affairs

There were no significant changes in the state of affairs of the consolidated entity during the financial year.

Subsequent Events

No matter or circumstance has arisen since 30 June 2018 that has significantly affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial years.

Stellar Resources Limited Directors' report 30 June 2018

==> picture [59 x 35] intentionally omitted <==

Business Strategies

The consolidated entity is committed to the corporate objective of:

“Enhancing shareholder wealth through mineral discovery”.

It seeks to meet this objective by:

Utilising cutting edge exploration technology;
Focusing on projects located within geological terrains hosting world-class ore bodies; and
Utilising an experienced, focused and success driven management team.

Where joint ventures seem appropriate and beneficial to the risk/reward profile of Stellar Resources, the Board has chosen to enter such agreements. Joint ventures provide financing whilst maintaining meaningful involvement and equity in the project.

Stellar Resources Limited is also prepared to sponsor or co-sponsor new IPO’s – including those where the consolidated entity’s assets may be included. In such cases, shareholders may also be eligible and entitled to subscribe for shares in any new IPO.

The consolidated entity’s prospects for future years depend very much on the rate of mineral discovery. The consolidated entity is an active minerals explorer and a material mineral discovery has the potential to add substantial value to the consolidated entity. Against this, company funds must be expended in this exploration/discovery endeavour and the Board may decide to raise new equity to replenish funds in order to advance its existing portfolio and seek additional opportunities.

Future Developments

The consolidated entity’s activities will continue to focus on the Heemskirk Tin Project in Tasmania. In the forthcoming year, the consolidated entity plans to attract funding partners to continue exploration around the known Mineral Resource ahead of in-fill drilling, metallurgical testing and various studies to support preparation of a Definitive Feasibility Study.

The consolidated entity will also seek new opportunities to add to its current portfolio to add additional shareholder value.

Environmental Issues

The consolidated entity’s exploration activities are subject to various environmental regulations under both state and federal legislation in Australia. The ongoing operation of these tenements is subject to compliance with the respective mining and environmental regulations and legislation.

Licence requirements relating to ground disturbance, rehabilitation and waste disposal exist for all tenements held. The Directors are not aware of any breaches of mining and environmental regulations and legislation during the financial year.

Information on Directors
Name:	Phillip G Harman
Title:	Chairman
Qualifications:	BSc (Hons) MAusIMM
Experience and expertise:	Mr Harman is a professional geophysicist who spent more than 30 years working for
	BHP Billiton in minerals exploration in a broad number of roles both technical and
	managerial, both in Australia and overseas. Mr Harman was material in bringing BHP
	Billiton’s proprietary FALCON® airborne gravity gradiometer technology to Gravity
	Capital Limited which was the precursor to Gravity Diamonds Limited in 2001.
Other current directorships:	Alice Queen Limited (ASX: AQX) (November 2015 – Current)
Former directorships (last 3 years): Callabonna Resources Limited (ASX: CUU) (November 2009 – November 2015)
Interests in shares:	2,779,704 fully paid ordinary shares
Interests in options:	5,000,000 unlisted options expiring 20 November 2019

Stellar Resources Limited Directors' report 30 June 2018

==> picture [59 x 35] intentionally omitted <==

Name:	Peter G Blight
Title:	Managing Director
Qualifications:	BSc (Hons) (Adelaide), MSc (USA)
Experience and expertise:	Mr Blight has been involved in the exploration, mining and finance industries for over
	35 years. Prior to joining Stellar Resources, he was Director of Research at Russian
	aluminium giant UC Rusal where he was responsible for market analysis and business
	development in China and India. He also had a 14 year career with investment bank,
	UBS, as Executive Director of commodity analysis in London and prior to that as a
	mining company analyst in Melbourne. Mr Blight’s wide range of experience from
	exploration to business development places him in a strong position to guide the
	commercialisation of the Heemskirk Tin Project.
Other current directorships:	Nil
Former directorships (last 3 years): Nil
Interests in shares:	3,000,000 fully paid ordinary shares
Interests in options:	5,000,000 unlisted options expiring 20 November 2019
Name:	Thomas H Whiting
Title:	Non-Executive Director
Qualifications:	BSc (Hons) PhD FINSIA
Experience and expertise:	Dr Whiting is currently a consultant, having retired from BHP Billiton in 2008, after a
	distinguished career covering over 35 years. He is a widely respected explorer with
	profound insights on the need for innovation in the mineral exploration sector. Dr
	Whiting was Vice President of Minerals Exploration for BHP Billiton from 2000 to 2004.
	Earlier in his career, he led the use of innovative reconnaissance airborne geophysical
	techniques which led to the discovery of the Cannington lead-zinc-silver mine in North
	Queensland and the development and deployment of the FALCON® system, the
	world’s first airborne gravity gradiometer.
Other current directorships:	Mineral Deposits Limited (ASX: MDL) (January 2012 – July 2018)
Former directorships (last 3 years): Nil
Interests in shares:	2,000,000 fully paid ordinary shares
Interests in options:	2,500,000 unlisted options expiring 20 November 2019
	1,170,000 quoted options expiring 18 May 2020
Name:	Miguel Lopez de Letona
Title:	Non-Executive Director
Qualifications:	BA (admin) (Brussels, Belguim)
Experience and expertise:	Mr Lopez de Letona is an experienced Luxembourg based investment advisor and
	private investor in the natural resources industry across mining, oil and gas, as well as
	other sectors. For more than a decade, he was responsible for sourcing, structuring,
	negotiating and managing private equity investments for international clients. Prior to
	his investment advisory activities in Europe and South America, Mr Lopez de Letona
	was a management consultant and banker with leading financial institutions.
Other current directorships:	Nil
Former directorships (last 3 years): Nil
Interests in shares:	Nil
Interests in options:	2,500,000 unlisted options expiring 20 November 2019

'Other current directorships' quoted above are current directorships for listed entities only and excludes directorships of all other types of entities, unless otherwise stated.

'Former directorships (last 3 years)' quoted above are directorships held in the last 3 years for listed entities only and excludes directorships of all other types of entities, unless otherwise stated.

Stellar Resources Limited Directors' report 30 June 2018

==> picture [59 x 35] intentionally omitted <==

Company secretary

Ms Melanie Leydin

Ms Leydin has 25 years’ experience in the accounting profession including 13 years in the Corporate Secretarial professions and is a company secretary and finance officer for a number of entities listed on the Australian Securities Exchange. She is a Chartered Accountant and a Registered Company Auditor. Since February 2000, she has been the principal of Leydin Freyer, specialising in outsourced company secretarial and financial duties.

Christina R Kemp retired as Company Secretary on the 26 October 2017.

Meetings of directors

The number of meetings of the company's Board of Directors ('the Board') held during the year ended 30 June 2018, and the number of meetings attended by each director were:

	Full Board
	Attended	Held
P G Harman	4		4
P G Blight	4		4
T H Whiting	4		4
M Lopez de Letona	3		4

Held: represents the number of meetings held during the time the director held office.

Remuneration report

Names and Positions Held of Key Management Personnel in Office at any time during the Financial Period were:

Director	Position held
Phillip G Harman	Non-Executive Chairman
Peter G Blight	Managing Director
Thomas H Whiting	Non-Executive Director
Miguel Lopez de Letona	Non-Executive Director

Directors’ and Executives’ Compensation

Remuneration Policy

The Board is responsible for determining and reviewing the remuneration of the Directors including the Managing Director and executive officers of the Company. This process requires consideration of the levels and form of remuneration appropriate to securing, motivating and retaining executives with the skills to manage the Company’s operations. In order to retain and attract executives of sufficient calibre to facilitate the efficient and effective management of the Company’s operations, the Board seeks where necessary the advice of external advisers in connection with the structure of remuneration packages. The Board also recommends the levels and form of remuneration for non-executive Directors with reference to performance, relevant comparative remuneration and independent expert advice. The total sum of remuneration payable to non-executive Directors shall not exceed the sum fixed by members of the Company in a general meeting. Shareholders fixed the maximum aggregate remuneration for non-executive Directors at $500,000.

The three key elements of Director and executive remuneration are:

base salary and fees, which are determined by reference to the market rate based on payments by similar size companies in the industry;
superannuation contributions; and
equity-based payments, the value of which are dependent on the Company’s share price and other factors.

Stellar Resources Limited Directors' report 30 June 2018

==> picture [59 x 35] intentionally omitted <==

Voting and comments made at the company's 26 October 2017 Annual General Meeting ('AGM')

The company received 96.82% of 'for' votes in relation to its remuneration report for the year ended 30 June 2017. The company did not receive any specific feedback at the AGM regarding its remuneration practices.

Relationship between the Remuneration Policy and Company Performance

The tables below set out summary information about the consolidated entity’s earnings and movements in shareholder wealth for the five years to June 2018. As the table indicates, earnings have varied significantly over the past five financial years, due to the nature of exploration activities. It has been the focus of the Board of Directors to attract and retain management personnel essential to continue exploration activities.

	30 June	2018 30 June	2018 30 June	2017 30 June 2016	2017 30 June 2016	30 June	2015	30 June	2014
	$		$		$	$		$
Revenue	37,853		48,431		54,256	110,048		101,879
Net profit/(loss) before tax	(690,492)		(681,874)		2,332	(2,383,200)		(1,137,279)
Net profit/(loss) after tax	(690,492)		(681,874)		2,332	(2,383,200)		(1,137,279)
	30 June	2018 30 June		2017 30 June 2016		30 June	2015	30 June	2014
Share price at end of year ($)		0.02		0.02	0.03		0.03		0.04
Basic and diluted earnings per share (cents per
share)		(0.18)		(0.21)	-		(0.80)		(0.40)

Remuneration of Directors and Senior Management

Amounts of remuneration

Details of the remuneration of key management personnel of the consolidated entity are set out in the following tables.

30 June 2018 Non-Executive Directors: P G Harman T H Whiting M Lopez de Letona Executive Directors: P G Blight Other Key Management Personnel: C R Kemp *	Short-term benefits Cash salary Other and fees Compensation $ $ 42,305 - 21,151 - 23,160 - 128,696 - 32,900 - 248,212 -	Short-term benefits Cash salary Other and fees Compensation $ $ 42,305 - 21,151 - 23,160 - 128,696 - 32,900 - 248,212 -	Post- employment benefits Super- annuation $ 4,019 2,009 - 25,003 -	Share-based payments Equity- settled $ - - - - -	Total $ 46,324 23,160 23,160 153,699 32,900 279,243
		-	31,031	-

C R Kemp retired as Company Secretary on 26 October 2017.

Stellar Resources Limited Directors' report 30 June 2018

==> picture [59 x 35] intentionally omitted <==

30 June 2017 Non-Executive Directors: P G Harman T H Whiting M Lopez de Letona Executive Directors: P G Blight Other Key Management Personnel: C R Kemp	Short-term benefits Cash salary Other and fees Compensation $ $ 28,411 - 14,205 - 15,555 - 101,370 - 82,962 - 242,503 -	Short-term benefits Cash salary Other and fees Compensation $ $ 28,411 - 14,205 - 15,555 - 101,370 - 82,962 - 242,503 -	Post- employment benefits Super- annuation $ 2,699 1,350 - 35,000 -	Share-based payments Equity- settled $ - - - - -	Total $ 31,110 15,555 15,555 136,370 82,962
		-	39,049	-	281,552

All key management personnel compensation is paid by Stellar Resources Limited. Key management personnel receive no remuneration from group subsidiary companies. No Director or key management personnel appointed during the year received a payment as part of consideration for agreeing to hold the position.

The proportion of remuneration linked to performance and the fixed proportion are as follows:

	Fixed remuneration	Fixed remuneration	At risk - STI		At risk - LTI
Name	30 June 2018 30 June 2017 30 June 2018 30 June			2017 30 June 2018 30 June		2017
Non-Executive Directors:
P G Harman	100%	100%	-	-	-	-
T H Whiting	100%	100%	-	-	-	-
M Lopez de Letona	100%	100%	-	-	-	-
Executive Directors:
P G Blight	100%	100%	-	-	-	-
Other Key Management
Personnel:
C R Kemp	100%	100%	-	-	-	-

Stellar Resources Limited Directors' report 30 June 2018

==> picture [59 x 35] intentionally omitted <==

Details Concerning Share-based Remuneration of Directors and Executives

The Company’s policy for determining the nature and amount of emoluments of Board members and executives of the Company is as follows:

The remuneration structure for executive officers, including Directors, is based on a number of factors, including length of service, particular experience of the individual concerned, and overall performance of the Company. The contracts for service between the Company and Directors and executives are on a continuing basis the terms of which are not expected to change in the immediate future. There are no termination benefits or incentives provided. Should the Company terminate the Managing Director’s contract immediately, the Company shall pay an amount equal to the total remuneration for 12 months. Any options not exercised before or on the date of termination will lapse.

The objective of the share-based schemes is to both reinforce the short and long-term goals of the Company and to provide a common interest between management and shareholders.

The Board is responsible for the review and operation of the Stellar Option Plan including terms and conditions for all options issued. The number of options offered under the plan is limited to less than 5% of the total number of shares on issue at the time of the offer.

Compensation Options: Granted and Vested during the Year

No options were issued to Directors or executives during or since the end of the financial year for 2018 and 2017 financial year.

Number of Shares held by Key Management Personnel

The number of shares in the company held during the financial year by each director and other members of key management personnel of the consolidated entity, including their personally related parties, is set out below:

Ordinary shares P G Harman P G Blight T H Whiting C R Kemp*	Balance at the start of the year 2,779,704 3,000,000 2,000,000 281,161	Received as part of remuneration - - - -	Additions - - - -	Disposals/ other - - - (281,161)	Balance at the end of the year 2,779,704 3,000,000 2,000,000 - 7,779,704
	8,060,865	-	-	(281,161)

Chris Kemp retired as Company Secretary on 26 October 2017

Option holding

The number of options over ordinary shares in the company held during the financial year by each director and other members of key management personnel of the consolidated entity, including their personally related parties, is set out below:

Options over ordinary shares P G Harman P G Blight T H Whiting M Lopez de Letona	Balance at the start of the year 5,000,000 5,000,000 2,500,000 2,500,000	Granted - - - -	Exercised - - - -	Expired/ forfeited/ other - - 1,170,000 -	Balance at the end of the year 5,000,000 5,000,000 3,670,000 2,500,000 16,170,000
	15,000,000	-	-	1,170,000

Stellar Resources Limited Directors' report 30 June 2018

==> picture [59 x 35] intentionally omitted <==

Shares Issued on Exercise of Compensation Options

There were no ordinary shares of Stellar Resources issued on the exercise of options during the year ended 30 June 2018 and up to the date of this report.

Loans to Key Management Personnel

There were no loans to key management personnel at any time during the current or prior financial year.

This concludes the remuneration report, which has been audited.

Share under option

Unissued ordinary shares of Stellar Resources under option at the date of this report are as follows:

Exercise Grant date Expiry date price 18/11/2014 20/11/2019 $0.06 18/11/2014 20/11/2019 $0.08 18/11/2014 20/11/2019 $0.10 18/11/2014 20/11/2019 $0.12 18/05/2017 18/05/2020 $0.05	Number under option 1,500,000 3,000,000 4,500,000 6,000,000 59,142,857 74,142,857

No person entitled to exercise the options had or has any right by virtue of the option to participate in any share issue of the company or of any other body corporate.

Shares issued on exercise on share options

No shares were issued during or since the end of financial year as a result of exercise of a share option.

Options expired

During the financial year, there were nil expired options (2017: 25,000,000 options expired).

Indemnity and insurance of officers

The Company has paid premiums to insure each of the Directors, Company Secretary and executive officers against liabilities for costs and expenses incurred by them in defending any legal proceedings arising out of their conduct while acting in the capacity of Director/officer of the Company, other than conduct involving a wilful breach of duty in relation to the Company. The terms and conditions of the insurance are confidential and cannot be disclosed.

Stellar Resources Limited Directors' report 30 June 2018

==> picture [59 x 35] intentionally omitted <==

Dealing in the Company’s Securities

The Company’s share trading policy restricts Directors, executives, employees and contractors to only trade in the Company’s securities during the 30 days (the “trade window”) commencing immediately after each of the following occasions:

the release by the Company of its quarterly report to the ASX;
the release by the Company of its half-yearly results to the ASX;
the release by the Company of its annual results to the ASX;

A Director, executives, employees or contractors may not trade in the Company’s securities outside of the trading window unless approval is given in accordance with the share trading policy.

Prior to trading in (either buying or selling) the Company’s securities, Directors, executives, employees and contractors must notify the appropriate person of their intention to trade and confirm that they are not in possession of any published price sensitive information. This requirement does not apply to the acquisition of securities through an incentive plan, nor to the exercise of any security that has vested in accordance with any incentive plan resulting in the holding of a listed security in the Company. However, the requirement does apply to the trading of the listed securities once they have been acquired.

The share trading policy requires the Company Secretary to maintain a register of all trades and holdings in Company securities by Directors, executives, employees and contractors. Directors, executives, employees and contractors must notify the Company Secretary of any trade in the Company’s securities within 2 days of such trade occurring. The Company Secretary will comply with the ASX Listing Rule 3.19A requirement to notify the ASX of any change in a notifiable interest held by a Director.

Proceedings on behalf of the company

No person has applied for leave of court to bring proceedings on behalf of the Company or intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of these proceedings.

Non audit services

Details of the amounts paid or payable to the auditor for non-audit services provided during the financial year by the auditor are outlined in note 22 to the financial statements.

The directors are satisfied that the provision of non-audit services during the financial year, by the auditor (or by another person or firm on the auditor's behalf), is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001.

Auditor's independence declaration

The auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out immediately after this directors' report.

Auditor

Deloitte Touche Tohmatsu continues in office in accordance with section 327 of the Corporations Act 2001.

This Directors’ Report is signed in accordance with a resolution of Directors made pursuant to s.298(2) of the Corporations Act 2001.

On behalf of the directors

==> picture [145 x 43] intentionally omitted <==

----- Start of picture text -----

_________
----- End of picture text -----

_________ Phillip G Harman Non-Executive Chairman

29 August 2018 Melbourne

Deloitte Touche Tohmatsu A.B.N. 74 490 121 060

550 Bourke Street Melbourne VIC 3000 GPO Box 78 Melbourne VIC 3001 Australia

Tel: +61 (0) 3 9671 7000 Fax: +61 (0) 3 9671 7001 www.deloitte.com.au

The Board of Directors Stellar Resources Limited Level 4, 530 Collins Street Melbourne VIC 3000

29 August 2018

Dear Board Members

Stellar Resources Limited

In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration of independence to the directors of Stellar Resources Limited.

As lead audit partner for the audit of the financial statements of Stellar Resources Limited for the financial year ended 30 June 2018, I declare that to the best of my knowledge and belief, there have been no contraventions of:

(i) the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(ii) any applicable code of professional conduct in relation to the audit.

Yours sincerely

==> picture [165 x 43] intentionally omitted <==

DELOITTE TOUCHE TOHMATSU

==> picture [116 x 36] intentionally omitted <==

Ryan Hansen Partner Chartered Accountants

Liability limited by a scheme approved under Professional Standards Legislation.

Member of Deloitte Touche Tohmatsu Limited

Stellar Resources Limited Consolidated statement of profit or loss and other comprehensive income For the year ended 30 June 2018

==> picture [59 x 35] intentionally omitted <==

Note Revenue Interest received Expenses Depreciation and amortisation expenses Exploration expenditure and other costs written off 11 Finance costs Administration expenditure Fair value loss on financial assets Loss before income tax expense Income tax expense 5 Loss after income tax expense for the year attributable to the owners of Stellar Resources Other comprehensive income/(loss) Items that may be reclassified subsequently to profit or loss Gain on the revaluation of available-for-sale financial assets, net of tax Loss on the revaluation of available-for-sale financial assets, net of tax Other comprehensive income/(loss) for the year, net of tax Total comprehensive income for the year attributable to the owners of Stellar Resources Basic earnings per share 31 Diluted earnings per share 31	Consolidated 30 June 2018 30 June 2017 $ $ 37,853 48,431 (19,154) (5,771) (152,703) (38,654) (1,346) (315) (555,142) (658,347) - (27,218) (690,492) (681,874) - - (690,492) (681,874) 15,888 - - (10,277) 15,888 (10,277) (674,604) (692,151) Cents Cents (0.18) (0.21) (0.18) (0.21)
	(690,492) -
	(690,492) 15,888 -
	15,888
	(674,604)
	Cents (0.18) (0.18)

The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes

Stellar Resources Limited Consolidated statement of financial position As at 30 June 2018

==> picture [59 x 35] intentionally omitted <==

Note Assets Current assets Cash and cash equivalents 6 Trade and other receivables 7 Other financial assets 8 Prepayments Total current assets Non-current assets Trade and other receivables 9 Property, plant and equipment 10 Exploration and evaluation assets 11 Total non-current assets Total assets Liabilities Current liabilities Trade and other payables 12 Provisions 13 Other liabilities 14 Total current liabilities Non-current liabilities Provisions 15 Other liabilities 16 Total non-current liabilities Total liabilities Net assets Equity Issued capital 17 Reserves 18 Accumulated losses Total equity	Consolidated 30 June 2018 30 June 2017 $ $ 1,222,238 2,901,944 6,207 37,277 88,880 72,991 20,200 18,100 1,337,525 3,030,312 157,470 148,440 134,905 153,686 17,188,699 16,334,301 17,481,074 16,636,427 18,818,599 19,666,739 60,538 218,025 44,991 8,469 8,964 17,209 114,493 243,703 3,574 38,937 6,116 15,079 9,690 54,016 124,183 297,719 18,694,416 19,369,020 36,867,490 36,867,490 1,754,589 2,236,127 (19,927,663) (19,734,597) 18,694,416 19,369,020
	1,337,525
	157,470 134,905 17,188,699
	17,481,074
	18,818,599
	60,538 44,991 8,964
	114,493
	3,574 6,116
	9,690
	124,183
	18,694,416
	36,867,490 1,754,589 (19,927,663)
	18,694,416

The above consolidated statement of financial position should be read in conjunction with the accompanying notes

Stellar Resources Limited Consolidated statement of changes in equity For the year ended 30 June 2018

==> picture [59 x 35] intentionally omitted <==

Issued capital $ 34,372,833 - -	Reserves $ 2,158,404 - (10,277)	Accumulated losses $ (19,052,723) (681,874) -
- 2,600,000 (17,343) (88,000)	(10,277) - - 88,000	(681,874) - - -
36,867,490	2,236,127	(19,734,597)
Issued capital $ 36,867,490 - -	Reserves $ 2,236,127 - 15,888	Accumulated losses $ (19,734,597) (690,492) -
- -	15,888 (497,426)	(690,492) 497,426
36,867,490	1,754,589	(19,927,663)

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes

Stellar Resources Limited Consolidated statement of cash flows For the year ended 30 June 2018

==> picture [59 x 35] intentionally omitted <==

Note Cash flows from operating activities Payments to suppliers and employees Net cash used in operating activities 30 Cash flows from investing activities Interest received Payments for exploration expenditure Security and bond deposit payments Proceeds from security deposit Net cash used in investing activities Cash flows from financing activities Proceeds from issue of shares Payments of share issue costs Payments for finance lease Net cash from/(used in) financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year Cash and cash equivalents at the end of the financial year 6	Consolidated 30 June 2018 30 June 2017 $ $ (561,068) (480,845) (561,068) (480,845) 54,082 40,651 (1,146,511) (765,711) (9,000) (60,440) - 11,000 (1,101,429) (774,500) - 2,600,000 - (17,343) (17,209) (2,778) (17,209) 2,579,879 (1,679,706) 1,324,534 2,901,944 1,577,410 1,222,238 2,901,944
	(561,068)
	54,082 (1,146,511) (9,000) -
	(1,101,429)
	- - (17,209)
	(17,209)
	(1,679,706) 2,901,944
	1,222,238

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes

Stellar Resources Limited Notes to the consolidated financial statements 30 June 2018

==> picture [59 x 35] intentionally omitted <==

Note 1. General information

The financial statements cover Stellar Resources as a consolidated entity consisting of Stellar Resources and the entities it controlled at the end of, or during, the year. The financial statements are presented in Australian dollars, which is Stellar Resources's functional and presentation currency.

Stellar Resources is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business is:

Level 17 530 Collins Street Melbourne VIC 3000

The financial statements were authorised for issue, in accordance with a resolution of directors, on 29 August 2018. The directors have the power to amend and reissue the financial statements.

Note 2. Significant accounting policies

The principal accounting policies adopted in the preparation of the financial statements are set out either in the respective notes or below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Amendments to AASBs and the new Interpretation that are mandatorily effective for the current reporting period

The Consolidated Entity has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (the AASB) that are relevant to its operations and effective for the current half-year.

All new accounting standards required, were adopted and they did not have a material impact.

The adoption of all the new and revised Standards and Interpretations has not resulted in any changes to the consolidated entity’s accounting policies and has no effect on the amounts reported for the current or prior years.

Going concern

Stellar Resources Limited’s consolidated financial statements are prepared on a going concern basis which assumes continuity of normal business activities and the realisation of assets and settlement of liabilities and commitments in the normal course of business.

During the year ended 30 June 2018, the consolidated entity recognised a loss of $690,492, had net cash outflows from operating activities of $561,068, payments for exploration activities of $1,146,511 and had an accumulated loss of $19,927,663 as at 30 June 2018. The continuation of the consolidated entity as a going concern is dependent upon its ability to generate sufficient cash from operating and financing activities and manage the level of exploration and other expenditure within available cash resources. The Directors consider that the going concern basis of accounting is appropriate for the following reasons:

As at 30 June 2018, the consolidated entity had cash assets of $1,222,238, net working capital of $1,223,032, including investments in Twenty Seven Co. (formerly UraniumSA Limited) of $31,106, Samphire Uranium Limited of $21,774 and Renascor Resources Limited of $36,000 which can be liquidated if and when required.

The most recently prepared cash flow forecast prepared by management and reviewed by the Directors indicates that the consolidated entity will require additional funding either through raising additional equity raising, debt funding or sale of liquid investments in order to continue as a going concern. The cash flow forecast takes into account the consolidated entity’s implementation of cost reviews which includes exploration activity and overhead expenditure. The Directors note that historically the entity has been successful in raising equity to fund its ongoing requirements.

In the event that the consolidated entity is unsuccessful in the matters set out above, there is material uncertainty whether the consolidated entity will continue as a going concern and therefore whether it will realise its assets and discharge its liabilities in the normal course of business and at the amounts stated in the financial report.

This financial report does not include any adjustments relating to the recoverability and classification of recorded asset amounts or to the amounts and classification of liabilities that might be necessary should the consolidated entity not continue as a going concern.

Stellar Resources Limited Notes to the consolidated financial statements 30 June 2018

==> picture [59 x 35] intentionally omitted <==

Note 2. Significant accounting policies (continued)

Basis of preparation

These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as appropriate for for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as issued by the International Accounting Standards Board ('IASB').

Historical cost convention

The financial statements have been prepared under the historical cost convention, except for, where applicable, the revaluation of available-for-sale financial assets, financial assets and liabilities at fair value through profit or loss, investment properties, certain classes of property, plant and equipment and derivative financial instruments.

Critical accounting estimates

The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the consolidated entity's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 3.

Parent entity information

In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity only. Supplementary information about the parent entity is disclosed in note 26.

Principles of consolidation

The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Stellar Resources ('company' or 'parent entity') as at 30 June 2018 and the results of all subsidiaries for the year then ended. Stellar Resources and its subsidiaries together are referred to in these financial statements as the 'consolidated entity'.

Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls an entity when the consolidated entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the consolidated entity. They are de-consolidated from the date that control ceases.

Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated entity are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the consolidated entity.

The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest, without the loss of control, is accounted for as an equity transaction, where the difference between the consideration transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity attributable to the parent.

Where the consolidated entity loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and non-controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The consolidated entity recognises the fair value of the consideration received and the fair value of any investment retained together with any gain or loss in profit or loss.

Revenue recognition

Revenue is recognised when it is probable that the economic benefit will flow to the consolidated entity and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable.

Interest

Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset.

Other revenue

Other revenue is recognised when it is received or when the right to receive payment is established.

Stellar Resources Limited Notes to the consolidated financial statements 30 June 2018

==> picture [59 x 35] intentionally omitted <==

Note 2. Significant accounting policies (continued)

Current and non-current classification

Assets and liabilities are presented in the statement of financial position based on current and non-current classification.

An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.

A liability is classified as current when: it is either expected to be settled in the consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-current.

Deferred tax assets and liabilities are always classified as non-current and are offset if legally enforceable right however they are unrecognised within the consolidated entity's financial statements .

New Accounting Standards and Interpretations not yet mandatory or early adopted

Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the consolidated entity for the annual reporting period ended 30 June 2018. The consolidated entity's assessment of the impact of these new or amended Accounting Standards and Interpretations, most relevant to the consolidated entity, are set out below.

AASB 9 Financial Instruments

This standard is applicable to annual reporting periods beginning on or after 1 January 2018 and the consolidated entity will adopt this standard by 1 July 2018. The standard replaces all previous versions of AASB 9 and completes the project to replace IAS 39 'Financial Instruments: Recognition and Measurement'. AASB 9 introduces new classification and measurement models for financial assets. A financial asset shall be measured at amortised cost, if it is held within a business model whose objective is to hold assets in order to collect contractual cash flows, which arise on specified dates and solely principal and interest. All other financial instrument assets are to be classified and measured at fair value through profit or loss unless the entity makes an irrevocable election on initial recognition to present gains and losses on equity instruments (that are not held-for-trading) in other comprehensive income ('OCI'). For financial liabilities, the standard requires the portion of the change in fair value that relates to the entity's own credit risk to be presented in OCI (unless it would create an accounting mismatch). New simpler hedge accounting requirements are intended to more closely align the accounting treatment with the risk management activities of the entity. New impairment requirements will use an 'expected credit loss' ('ECL') model to recognise an allowance. Impairment will be measured under a 12-month ECL method unless the credit risk on a financial instrument has increased significantly since initial recognition in which case the lifetime ECL method is adopted. The standard introduces additional new disclosures. There will be no material impact on the carrying values. Changes in fair value are expected to continue being recorded through OCI, with the one-time election to record equity investments as such expected to be undertaken by the directors. Under AASB 9 the fair value gains/losses in relation to equity are not recycled to the Statement of Profit and Loss (even on disposal of the investment) and are not subject to impairment testing.

Stellar Resources Limited Notes to the consolidated financial statements 30 June 2018

==> picture [59 x 35] intentionally omitted <==

Note 2. Significant accounting policies (continued)

AASB 15 Revenue from Contracts with Customers

This standard is applicable to annual reporting periods beginning on or after 1 January 2018. The standard provides a single standard for revenue recognition. The core principle of the standard is that an entity will recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard will require: contracts (either written, verbal or implied) to be identified, together with the separate performance obligations within the contract; determine the transaction price, adjusted for the time value of money excluding credit risk; allocation of the transaction price to the separate performance obligations on a basis of relative stand-alone selling price of each distinct good or service, or estimation approach if no distinct observable prices exist; and recognition of revenue when each performance obligation is satisfied. Credit risk will be presented separately as an expense rather than adjusted to revenue. For goods, the performance obligation would be satisfied when the customer obtains control of the goods. For services, the performance obligation is satisfied when the service has been provided, typically for promises to transfer services to customers. For performance obligations satisfied over time, an entity would select an appropriate measure of progress to determine how much revenue should be recognised as the performance obligation is satisfied. Contracts with customers will be presented in an entity's statement of financial position as a contract liability, a contract asset, or a receivable, depending on the relationship between the entity's performance and the customer's payment. Sufficient quantitative and qualitative disclosure is required to enable users to understand the contracts with customers; the significant judgements made in applying the guidance to those contracts; and any assets recognised from the costs to obtain or fulfil a contract with a customer. The consolidated entity will adopt this standard from 1 July 2018 but it is expected to have no material impact as there are no contracts with customers.

AASB 16 Leases

This standard is applicable to annual reporting periods beginning on or after 1 January 2019. The standard replaces AASB 117 'Leases' and for lessees will eliminate the classifications of operating leases and finance leases. Subject to exceptions, a 'right-of-use' asset will be capitalised in the statement of financial position, measured at the present value of the unavoidable future lease payments to be made over the lease term. The exceptions relate to short-term leases of 12 months or less and leases of low-value assets (such as personal computers and small office furniture) where an accounting policy choice exists whereby either a 'right-of-use' asset is recognised or lease payments are expensed to profit or loss as incurred. A liability corresponding to the capitalised lease will also be recognised, adjusted for lease prepayments, lease incentives received, initial direct costs incurred and an estimate of any future restoration, removal or dismantling costs. Straight-line operating lease expense recognition will be replaced with a depreciation charge for the leased asset (included in operating costs) and an interest expense on the recognised lease liability (included in finance costs). In the earlier periods of the lease, the expenses associated with the lease under AASB 16 will be higher when compared to lease expenses under AASB 117. However EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) results will be improved as the operating expense is replaced by interest expense and depreciation in profit or loss under AASB 16. For classification within the statement of cash flows, the lease payments will be separated into both a principal (financing activities) and interest (either operating or financing activities) component. For lessor accounting, the standard does not substantially change how a lessor accounts for leases. The consolidated entity will adopt this standard from 1 July 2019 but no material impact is expected as the consolidated entity currently has no material leases.

Note 3. Critical accounting judgements, estimates and assumptions

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events, management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed below.

Share-based payment transactions

The consolidated entity measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is determined by using either the Binomial or BlackScholes model taking into account the terms and conditions upon which the instruments were granted. The accounting estimates and assumptions relating to equity-settled share-based payments would have no impact on the carrying amounts of assets and liabilities within the next annual reporting period but may impact profit or loss and equity.

Stellar Resources Limited Notes to the consolidated financial statements 30 June 2018

==> picture [59 x 35] intentionally omitted <==

Note 3. Critical accounting judgements, estimates and assumptions (continued)

Fair value measurement hierarchy

The consolidated entity is required to classify all assets and liabilities, measured at fair value, using a three level hierarchy, based on the lowest level of input that is significant to the entire fair value measurement, being: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date; Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3: Unobservable inputs for the asset or liability. Considerable judgement is required to determine what is significant to fair value and therefore which category the asset or liability is placed in can be subjective.

The fair value of assets and liabilities classified as level 3 is determined by the use of valuation models. These include discounted cash flow analysis or the use of observable inputs that require significant adjustments based on unobservable inputs.

Estimation of useful lives of assets

The consolidated entity determines the estimated useful lives and related depreciation and amortisation charges for its property, plant and equipment and finite life intangible assets. The useful lives could change significantly as a result of technical innovations or some other event. The depreciation and amortisation charge will increase where the useful lives are less than previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will be written off or written down.

Recovery of deferred tax assets

Deferred tax assets are recognised for deductible temporary differences only if the consolidated entity considers it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

Employee benefits provision

As discussed in the notes to the financial statements, the liability for employee benefits expected to be settled more than 12 months from the reporting date are recognised and measured at the present value of the estimated future cash flows to be made in respect of all employees at the reporting date. In determining the present value of the liability, estimates of attrition rates and pay increases through promotion and inflation have been taken into account.

Note 4. Segment information

The consolidated entity operates in the Australian mineral exploration sector where it is actively pursuing opportunities for a number of mineral targets through various tenements all of which are currently at exploration stage and require further funding to proceed to revenue generation stages. As such the consolidated entity is required to prioritise its funding allocation and does so based on the assessment of the market sentiment and the potential of finding a viable mineral resource. Each exploration licence may be identified as a separate business activity that has revenue earning potential. However, licences of the same mineral exploration targets have been aggregated into the same segment based on similar economic characteristics. Various corporate and investing activities have been allocated to a corporate operating segment of the consolidated entity.

Information reported to the chief operating decision maker for the purposes of resource allocation and assessment of segment performance focuses on the types of resources held.

The following is an analysis of the consolidated entity’s revenue and results from operations by reportable segment.

Stellar Resources Limited Notes to the consolidated financial statements 30 June 2018

==> picture [59 x 35] intentionally omitted <==

Note 4. Segment information (continued)

Corporate $ (555,142) (17,905) (1,346) -	Tin $ - (1,249) - (149,735)	Copper/Gold $ - - - -	Other $ - - - (2,968)
(574,393)	(150,984)	-	(2,968)
1,615,288	17,203,311	-	-
124,183	-	-	-
Corporate $ (658,347) (4,521) - (27,218) (315)	Tin $ - (1,250) (17,175) - -	Copper/Gold $ - - (3,267) - -	Other $ - - (18,212) - -
(690,401)	(18,425)	(3,267)	(18,212)
3,178,752	16,487,987	-	-
297,719	-	-	-

Stellar Resources Limited Notes to the consolidated financial statements 30 June 2018

==> picture [59 x 35] intentionally omitted <==

Note 4. Segment information (continued)

Accounting policy for operating segments

Operating segments are presented using the 'management approach', where the information presented is on the same basis as the internal reports provided to the Chief Operating Decision Makers ('CODM'). The CODM is responsible for the allocation of resources to operating segments and assessing their performance.

Note 5. Income tax

Numerical reconciliation of income tax expense and tax at the statutory rate Loss before income tax expense Tax at the statutory tax rate of 27.5% (2017: 30%) Non-deductible expenses Effect of income that is exempt from taxation Effect of deductible items not expensed in determining profit Tax losses and tax offsets not recognised as deferred tax assets Income tax expense The following deferred tax assets have not been brought to account as assets: Tax losses - revenue Tax losses - capital Capitalised exploration costs Other Total tax benefit	Consolidated 30 June 2018 30 June 2017 $ $ (690,492) (681,874) (189,885) (204,562) 42,150 27,075 4,622 (2,334) (310,335) (250,979) 453,448 430,800 - - Consolidated 30 June 2018 30 June 2017 $ $ 6,701,773 6,816,355 736,848 803,835 (4,726,892) (5,439,966) 89,888 - 2,801,617 2,180,224
	2,801,617

Numerical reconciliation of income tax expense and tax at the statutory rate
Loss before income tax expense
Tax at the statutory tax rate of 27.5% (2017: 30%)
Non-deductible expenses
Effect of income that is exempt from taxation
Effect of deductible items not expensed in determining profit
Tax losses and tax offsets not recognised as deferred tax assets
Income tax expense

The following deferred tax assets have not been brought to account as assets:
Tax losses - revenue
Tax losses - capital
Capitalised exploration costs
Other
Total tax benefit

Consolidated
30 June 2018 30 June 2017
$
$
(690,492)
(681,874)
(189,885)
(204,562)
42,150
27,075
4,622
(2,334)
(310,335)
(250,979)
453,448
430,800
-
-
Consolidated
30 June 2018 30 June 2017
$
$
6,701,773
6,816,355
736,848
803,835
(4,726,892)
(5,439,966)
89,888
-
2,801,617
2,180,224

2,801,617

The above potential tax benefit, which excludes tax losses, for deductible temporary differences has not been recognised in the statement of financial position as the recovery of this benefit is uncertain.

The Company and all its wholly-owned Australian resident entities have formed a tax-consolidated group under Australian taxation law. Stellar Resources Limited is the head entity in the tax-consolidated group. Tax expense/income, deferred tax liabilities and deferred tax assets arising from temporary differences of the members of the tax-consolidated group are recognised in the separate financial statements of the members of the tax-consolidated group using the “separate taxpayer within group” approach. Current tax liabilities and assets and deferred tax assets arising from unused tax losses and tax credits of the members of the tax consolidated group are recognised by the Company (as head entity in the tax-consolidated group). Under the tax sharing arrangements, amounts will be recognised as payable or receivable between group companies in relation to their contribution to the tax benefits and amounts of tax paid or payable. No amounts have been recognised in the financial statements in respect of this agreement as payment of any amounts under the tax sharing arrangement is considered remote.

Stellar Resources Limited Notes to the consolidated financial statements 30 June 2018

==> picture [59 x 35] intentionally omitted <==

Note 5. Income tax (continued)

Tax Consolidation

Relevance of tax consolidation to the consolidation entity

The Company and its wholly-owned Australian resident entities have formed a tax-consolidated group with effect from 1 October 2004 and are therefore taxed as a single entity from that date. The head entity within the tax-consolidated group is Stellar Resources Limited.

Nature of tax sharing agreements

Entities within the tax-consolidated group have entered into a tax sharing agreement with the head entity. The tax sharing agreement entered into between members of the tax-consolidated group provides for the determination of the allocation of income tax liabilities between the entities should the head entity default on its tax payment obligations. No amounts have been recognised in the financial statements in respect of this agreement as payment of any amounts under the tax sharing agreement is considered remote.

Accounting policy for income tax

The income tax expense or benefit for the period is the tax payable on that period's taxable income based on the applicable income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary differences, unused tax losses and the adjustment recognised for prior periods, where applicable.

Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when the assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for:

When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor taxable profits; or
When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and the timing of the reversal can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date. Deferred tax assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for the carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is probable that there are future taxable profits available to recover the asset.

Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on either the same taxable entity or different taxable entities which intend to settle simultaneously.

Note 6. Current assets - cash and cash equivalents

Cash on hand Cash at bank Cash on deposit	Consolidated 30 June 2018 30 June 2017 $ $ - 350 182,238 341,594 1,040,000 2,560,000 1,222,238 2,901,944
	1,222,238

Accounting policy for cash and cash equivalents

Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

Stellar Resources Limited Notes to the consolidated financial statements 30 June 2018

==> picture [59 x 35] intentionally omitted <==

Note 7. Current assets - trade and other receivables

Interest receivable GST receivable Other receivables	Consolidated 30 June 2018 30 June 2017 $ $ 2,729 19,537 2,929 17,740 549 - 6,207 37,277
	6,207

Accounting policy for trade and other receivables

Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any provision for impairment. Trade receivables are generally due for settlement within 30 days.

Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectable are written off by reducing the carrying amount directly. A provision for impairment of trade receivables is raised when there is objective evidence that the consolidated entity will not be able to collect all amounts due according to the original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation and default or delinquency in payments (more than 60 days overdue) are considered indicators that the trade receivable may be impaired. The amount of the impairment allowance is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. Cash flows relating to short-term receivables are not discounted if the effect of discounting is immaterial.

Other receivables are recognised at amortised cost, less any provision for impairment.

Goods and Services Tax ('GST') and other similar taxes

Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of financial position.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the tax authority, are presented as operating cash flows.

Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority.

Stellar Resources Limited Notes to the consolidated financial statements 30 June 2018

==> picture [59 x 35] intentionally omitted <==

Note 8. Current assets - Other financial assets

Investment in Twenty Seven Co. Limited (formerly UraniumSA Limited) Investment in Renascor Resources Limited Investment in Samphire Uranium Limited Reconciliation Reconciliation of the fair values at the beginning and end of the current and previous financial half-year are set out below: Opening fair value Revaluation increments/(decrements) Impairment of available-for-sale investments Closing fair value	Consolidated 30 June 2018 30 June 2017 $ $ 31,106 27,217 36,000 24,000 21,774 21,774 88,880 72,991 72,991 110,486 15,889 (10,277) - (27,218) 88,880 72,991
	88,880
	72,991 15,889 -
	88,880

Shares in Twenty Seven Co. Limited (formerly UraniumSA Limited) (3,888,238 fully paid ordinary shares held) and Renascor Resources Limited (1,500,000 fully paid ordinary shares held) are measured at fair value valued in accordance AASB 13 - Level 1 of the fair value hierarchy - quoted prices (unadjusted) in active markets for identical assets or liabilities. A revaluation increment of $15,889 was recognised in other comprehensive income.

The valuation remains unchanged from 30 June 2017 in relation to the available-for-sale shares in Samphire Uranium Limited (3,888,238 fully paid ordinary shares held).

Investments are recognised and derecognised on trade date where the purchase or sale of an investment is under a contract whose term require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fair value, net of transaction costs except for those financial assets classified as at fair value through profit or loss which are initially measured at fair value.

Other financial assets are classified into the following specified categories: financial assets “at fair value through profit or loss”, “held-to-maturity investments”, “available-for-sale” financial assets, and “loans and receivables”. The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. At balance date, the entity held the following available-for-sale financial assets:

Available-for-sale financial assets

Available-for-sale financial assets are non-derivative financial assets, principally equity securities, that are either designated as available-for-sale or not classified as any other category. After initial recognition, fair value movements are recognised in other comprehensive income through the available-for-sale reserve in equity. Cumulative gain or loss previously reported in the available-for-sale reserve is recognised in profit or loss when the asset is derecognised or impaired.

Impairment of financial assets

The consolidated entity assesses at the end of each reporting period whether there is any objective evidence that a financial asset or group of financial assets is impaired. Objective evidence includes significant financial difficulty of the issuer or obligor; a breach of contract such as default or delinquency in payments; the lender granting to a borrower concessions due to economic or legal reasons that the lender would not otherwise do; it becomes probable that the borrower will enter bankruptcy or other financial reorganisation; the disappearance of an active market for the financial asset; or observable data indicating that there is a measurable decrease in estimated future cash flows.

The amount of the impairment allowance for loans and receivables carried at amortised cost is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. If there is a reversal of impairment, the reversal cannot exceed the amortised cost that would have been recognised had the impairment not been made and is reversed to profit or loss.

Stellar Resources Limited Notes to the consolidated financial statements 30 June 2018

==> picture [59 x 35] intentionally omitted <==

Note 9. Non-current assets - Trade and other receivables

Tenement security deposit	Consolidated 30 June 2018 30 June 2017 $ $ 157,470 148,440

Accounting policy for financial assets

The amount of the impairment allowance for financial assets carried at cost is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the current market rate of return for similar financial assets.

Note 10. Non-current assets - property, plant and equipment

Freehold land and buildings Plant and equipment under lease	Consolidated 30 June 2018 30 June 2017 $ $ 120,293 121,542 14,612 32,144 134,905 153,686
	14,612
	134,905

Reconciliations

Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below:

Consolidated Balance at 1 July 2016 Additions Depreciation expense Balance at 30 June 2017 Additions Depreciation expense Balance at 30 June 2018	Freehold land and buildings $ 122,792 - (1,250)	Plant and equipment under lease $ - 35,066 (2,922)	Office Furniture $ - - -	Total $ 122,792 35,066 (4,172) 153,686 373 (19,154) 134,905
	121,542 - (1,249)	32,144 - (17,532)	- 373 (373)
	120,293	14,612	-

Stellar Resources Limited Notes to the consolidated financial statements 30 June 2018

==> picture [59 x 35] intentionally omitted <==

Note 10. Non-current assets - property, plant and equipment (continued)

Accounting policy for property, plant and equipment

Land and buildings are shown at fair value, based on periodic, valuations by external independent valuers, less subsequent depreciation and impairment for buildings. The valuations are undertaken more frequently if there is a material change in the fair value relative to the carrying amount. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. Increases in the carrying amounts arising on revaluation of land and buildings are credited in other comprehensive income through to the revaluation surplus reserve in equity. Any revaluation decrements are initially taken in other comprehensive income through to the revaluation surplus reserve to the extent of any previous revaluation surplus of the same asset. Thereafter the decrements are taken to profit or loss.

Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment (excluding land) over their expected useful lives as follows:

Land and buildings	40 years
Plant and equipment under lease	2 years

The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date.

Leasehold improvements and plant and equipment under lease are depreciated over the unexpired period of the lease or the estimated useful life of the assets, whichever is shorter.

An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the consolidated entity. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss. Any revaluation surplus reserve relating to the item disposed of is transferred directly to retained profits.

Note 11. Non-current assets - exploration and evaluation assets

Exploration expenditure	Consolidated 30 June 2018 30 June 2017 $ $ 17,188,699 16,334,301

Reconciliations

Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below:

Consolidated Balance at 1 July 2016 Expenditure during the year Expenditure and other costs written off during the year Expenditure recoupment during the period Balance at 30 June 2017 Expenditure during the year Expenditure and other costs written off during the year Balance at 30 June 2018	$ 15,619,807 754,024 (38,654) (876) 16,334,301 1,007,101 (152,703) 17,188,699

Ultimate recovery of capitalised exploration expenditure is dependent upon success in exploration and development or sale or farm-in\farm-out of the exploration interests.

Stellar Resources Limited Notes to the consolidated financial statements 30 June 2018

==> picture [59 x 35] intentionally omitted <==

Note 11. Non-current assets - exploration and evaluation assets (continued)

Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of interest. These costs are only carried forward on the statement of financial position where rights to tenure are current and to the extent that costs are expected to be recouped through either the successful development of the area or where activities in the area have not yet reached a stage that permits reasonable assessment of the existence of economically recoverable reserves and active and significant exploration activity in, or in relation to, the area is continuing. A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area of interest and are assessed for impairment if:

sufficient data exists to determine technical feasibility and commercial viability; or
other facts and circumstances suggest that the carrying amount exceeds the recoverable amount.

For the purposes of impairment testing, exploration and evaluation assets are allocated to cash-generating units to which the exploration activity relates. The application of this policy requires judgement to determine whether future economic benefits are likely, from either future exploitation or sale, or whether activities have not reached a stage that permits a reasonable assessment of the existence of reserves.

Accumulated costs in relation to an abandoned area are written down in full in profit or loss during the period in which the decision to abandon the area is made.

Proceeds on sale or farm-out of an area within an exploration area of interest are offset against the carrying value of the particular area involved. Where the total carrying value of an area has been recouped in this manner, the balance of the proceeds is brought to account in profit or loss.

Accounting policy for exploration and evaluation assets

Exploration and evaluation expenditure in relation to separate areas of interest for which rights of tenure are current is carried forward as an asset in the statement of financial position where it is expected that the expenditure will be recovered through the successful development and exploitation of an area of interest, or by its sale; or exploration activities are continuing in an area and activities have not reached a stage which permits a reasonable estimate of the existence or otherwise of economically recoverable reserves. Where a project or an area of interest has been abandoned, the expenditure incurred thereon is written off in the year in which the decision is made.

Note 12. Current liabilities - trade and other payables

Trade payables Other payables Refer to note 20 for further information on financial instruments.	Consolidated 30 June 2018 30 June 2017 $ $ 52,221 210,564 8,317 7,461 60,538 218,025
	60,538

Accounting policy for trade and other payables

These amounts represent liabilities for goods and services provided to the consolidated entity prior to the end of the financial year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition.

Stellar Resources Limited Notes to the consolidated financial statements 30 June 2018

==> picture [59 x 35] intentionally omitted <==

Note 13. Current liabilities - Provisions

Annual leave Long service leave	Consolidated 30 June 2018 30 June 2017 $ $ 23,213 8,469 21,778 - 44,991 8,469
	44,991

Accounting policy for employee benefits

Short-term employee benefits

Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled.

Note 14. Current liabilities - other liabilities

Other current liabilities	Consolidated 30 June 2018 30 June 2017 $ $ 8,964 17,209

The consolidated entity leased geological equipment under finance lease. The lease term is 2 years. It has an option to purchase the equipment for a nominal amount at the end of the lease term. The Consolidated entity's obligation under finance lease is secured by the lessor's title to the leased asset.

Interest rate underlying finance lease is fixed at 5.50% per annum.

Note 15. Non-current liabilities - Provisions

Long service leave	Consolidated 30 June 2018 30 June 2017 $ $ 3,574 38,937

Accounting policy for other long-term employee benefits

The liability for long service leave not expected to be settled within 12 months of the reporting date are measured at the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.

Stellar Resources Limited Notes to the consolidated financial statements 30 June 2018

==> picture [59 x 35] intentionally omitted <==

Note 16. Non-current liabilities - Other liabilities

Lease liabilities	Consolidated 30 June 2018 30 June 2017 $ $ 6,116 15,079

Interest rate underlying finance lease is fixed at 5.50% per annum.

Note 17. Equity - issued capital

Ordinary shares - fully paid	30 June 2018 Shares 379,713,489	Consolidated 30 June 2017 30 June 2018 Shares $ 379,713,489 36,867,490	30 June 2017 $ 36,867,490

Ordinary shares

Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the company does not have a limited amount of authorised capital.

On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote.

Capital risk management

The consolidated entity's objectives when managing capital is to safeguard its ability to continue as a going concern, so that it can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure to reduce the cost of capital.

Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is calculated as total borrowings less cash and cash equivalents.

In order to maintain or adjust the capital structure, the consolidated entity may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

The consolidated entity would look to raise capital when an opportunity to invest in a business or company was seen as value adding relative to the current parent entity's share price at the time of the investment.

The entity does not have a defined share buy-back plan.

There is no current intention to incur debt funding on behalf of the Company as on-going exploration expenditure will be funded via equity or joint ventures with other companies. The consolidated entity is not subject to any externally imposed capital requirements.

The capital risk management policy remains unchanged from the 30 June 2017 Annual Report.

Management reviews management accounts on a monthly basis and reviews actual expenditure against budget on a quarterly basis.

Accounting policy for issued capital Ordinary shares are classified as equity.

Stellar Resources Limited Notes to the consolidated financial statements 30 June 2018

==> picture [59 x 35] intentionally omitted <==

Note 17. Equity - issued capital (continued)

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

Note 18. Equity - reserves

Employee equity-settled benefits reserve Option valuation reserve Listed option reserve Investment revaluation reserve	Consolidated 30 June 2018 30 June 2017 $ $ 1,625,927 1,625,927 - 497,426 88,000 88,000 40,662 24,774 1,754,589 2,236,127
	1,754,589

Investment revaluation reserve

The investments revaluation reserve represents accumulated gains and losses arising on the revaluation of available-forsale financial assets that have been recognised in other comprehensive income, net of amounts reclassified to profit or loss when those assets have been disposed of or are determined to be impaired.

Share-based payments and option reserve

The employee equity-settled benefits reserve arises on the grant of share options to Directors and employees under the Company’s Employee Option Plan. Amounts are transferred out of the reserve and into issued capital when the options are exercised.

The option valuation reserve arises on the grant of share options to Capetown S.A. The share options expired on 26 February 2017. It was reversed and applied against accumulated losses during the year.

The listed option reserve arises on unissued ordinary shares issued to Hunter Capital Advisors Pty Ltd in satisfaction of corporate advisory and capital raising services performed and in accordance with shareholder approval given on 10 April 2017.

Movements in reserves

Movements in each class of reserve during the current and previous financial year are set out below:

Consolidated Balance at 1 July 2016 Gain/(loss) on available-for-sale financial assets Cost of listed options Balance at 30 June 2017 Gain/(loss) on available-for-sale financial assets Options lapsed Balance at 30 June 2018	Employee equity-settled benefits reserve $ 1,625,927 - -	Option valuation reserve $ 497,426 - -	Listed option reserve $ - - 88,000	Investment revaluation reserve $ 35,051 (10,277) -	Total $ 2,158,404 (10,277) 88,000 2,236,127 15,888 (497,426) 1,754,589
	1,625,927 - -	497,426 - (497,426)	88,000 - -	24,774 15,888 -
	1,625,927	-	88,000	40,662

Stellar Resources Limited Notes to the consolidated financial statements 30 June 2018

==> picture [59 x 35] intentionally omitted <==

Note 19. Equity - dividends

There were no dividends paid, recommended or declared during the current or previous financial year.

Note 20. Financial instruments

Financial risk management objectives

The consolidated entities activities expose it to a variety of financial risks: market risk (including price risk and interest rate risk), credit risk and liquidity risk. The consolidated entity's overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the consolidated entity. The consolidated entity uses different methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate and other price risks, ageing analysis for credit risk and beta analysis in respect of investment portfolios to determine market risk.

Risk management is carried out by the finance team ('finance') under policies approved by the Board of Directors ('the Board'). These policies include identification and analysis of the risk exposure of the consolidated entity and appropriate procedures, controls and risk limits. Finance reports to the Board on a monthly basis.

Market risk

Price risk

The consolidated entity is exposed to price risk in relation to the shares that it holds in other listed and unlisted entities.

	Average price increase	Average price increase	Average price increase	Average price decrease	Average price decrease	Average price decrease
		Effect on			Effect on
		profit before	Effect on		profit before	Effect on
Consolidated - 30 June 2018	% change	tax	equity	% change	tax	equity
Shares in listed and unlisted
entities	50%	44,440	44,440	(50%)	(44,440)	(44,440)
	Average price increase			Average price decrease
		Effect on			Effect on
		profit before	Effect on		profit before	Effect on
Consolidated - 30 June 2017	% change	tax	equity	% change	tax	equity
Shares in listed and unlisted
entities	50%	36,496	36,496	(50%)	(36,496)	(36,496)

Interest rate risk

The consolidated entity is not exposed to significant interest rate risk as deposits are held with established banks with interest rates that are in line with the RBA and other bank rates.

As at the reporting date, the consolidated entity had the following variable interest rates:

	30 June	2018	30 June	2017
	Weighted		Weighted
	average		average
	interest rate	Balance	interest rate	Balance
Consolidated	%	$	%	$
Cash and cash equivalents	1.80%	1,222,238	1.60%	2,901,944
Lease liability	5.50%	(15,080)	5.50%	(32,288)
Net exposure to cash flow interest rate risk		1,207,158		2,869,656

Stellar Resources Limited Notes to the consolidated financial statements 30 June 2018

==> picture [59 x 35] intentionally omitted <==

Note 20. Financial instruments (continued)

Below is a sensitivity analysis of interest rates at a rate of 50 basis points on cash at bank for the 2017 and 2018 financial years. The impact would not be material on bank balances held at 30 June 2018. The percentage change is based on expected volatility of interest rates using market data and analysis forecasts.

	Basis points increase	Basis points increase	Basis points increase	Basis points decrease	Basis points decrease	Basis points decrease
		Effect on			Effect on
	Basis points	profit before	Effect on	Basis points	profit before	Effect on
Consolidated - 30 June 2018	change	tax	equity	change	tax	equity
Cash and cash equivalents	50	6,111	6,111	(50)	(6,111)	(6,111)
	Basis points increase			Basis points decrease
		Effect on			Effect on
	Basis points	profit before	Effect on	Basis points	profit before	Effect on
Consolidated - 30 June 2017	change	tax	equity	change	tax	equity
Cash and cash equivalents	50	14,510	14,510	(50)	(14,510)	(14,510)

Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the consolidated entity. The consolidated entity has adopted a policy of only dealing with creditworthy counterparties as a means of mitigating the risk of financial loss from defaults. The consolidated entity's exposure to credit risks are continuously monitored and controlled by counterparty limits that are reviewed and approved by management on a regular basis.

The consolidated entity does not have any significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics. The credit risk on liquid funds and derivative financial instruments is limited as the counterparties are banks with high credit ratings assigned by international credit rating agencies.

The carrying amount of financial assets recorded in the financial statements, net of any allowances for losses, represent the consolidated entity’s maximum exposure to credit risk.

Categories of financial instruments Financial assets and liabilities: Trade and other receivables Cash and cash equivalents Available-for-sale financial assets Financial lease Trade and other payables Net financial instruments	Consolidated 30 June 2018 30 June 2017 $ $ 163,677 185,717 1,222,238 2,901,944 88,880 72,991 (15,080) (32,288) (60,538) (218,025) 1,399,177 2,910,339	Consolidated 30 June 2018 30 June 2017 $ $ 163,677 185,717 1,222,238 2,901,944 88,880 72,991 (15,080) (32,288) (60,538) (218,025) 1,399,177 2,910,339
	1,399,177	2,910,339

Liquidity risk

Vigilant liquidity risk management requires the consolidated entity to maintain sufficient liquid assets (mainly cash and cash equivalents) and available borrowing facilities to be able to pay debts as and when they become due and payable.

The consolidated entity manages liquidity risk by maintaining adequate cash reserves and available borrowing facilities by continuously monitoring actual and forecast cash flows and matching the maturity profiles of financial assets and liabilities.

Fair value of financial instruments

Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.

Stellar Resources Limited Notes to the consolidated financial statements 30 June 2018

==> picture [59 x 35] intentionally omitted <==

Note 21. Key management personnel disclosures

Directors

The following persons were directors of Stellar Resources during the financial year:

Phillip G Harman	Non-Executive Chairman
Peter G Blight	Managing Director
Thomas H Whiting	Non-Executive Director
Miguel Lopez de Letona	Non-Executive Director

Compensation

The aggregate compensation made to directors and other members of key management personnel of the consolidated entity is set out below:

Short-term employee benefits Post-employment benefits	Consolidated 30 June 2018 30 June 2017 $ $ 248,212 242,503 31,031 39,049 279,243 281,552
	279,243

Note 22. Remuneration of auditors

During the financial year the following fees were paid or payable for services provided by Deloitte Touche Tohmatsu, the auditor of the company:

Audit services - Deloitte Touche Tohmatsu Audit or review of the financial statements Other services - Deloitte Touche Tohmatsu Preparation of the tax return	Consolidated 30 June 2018 30 June 2017 $ $ 31,900 32,663 9,590 18,350 41,490 51,013
	9,590
	41,490

Note 23. Contingent Liabilities

The consolidated entity had no contingent liabilities as at 30 June 2018 and 30 June 2017.

Stellar Resources Limited Notes to the consolidated financial statements 30 June 2018

==> picture [59 x 35] intentionally omitted <==

Note 24. Commitments

Exploration Commitments Within one year One to five years	Consolidated 30 June 2018 30 June 2017 $ $ 616,395 608,416 1,489,211 - 2,105,606 608,416
	2,105,606

In order to maintain current rights to tenure to exploration and mining tenements, the consolidated entity has the above exploration expenditure requirements up until expiry of leases. These obligations, which may be varied from time to time and which are subject to renegotiation upon expiry of the lease are not provided for in the financial report and are payable.

Note 25. Related party transactions

Subsidiaries

Interests in subsidiaries are set out in note 27.

Information on Directors and executives shares and option holdings is disclosed in the Directors’ Report.

Other Transactions with Directors, Executives and their Related Entities

During the financial year ended 30 June 2018, technical assistance, office accommodation / facilities and administrative support were provided to the consolidated entity at commercial rates by Mineral Deposits Limited of which Dr Thomas Whiting was both a Director and shareholder. Total charged was $27,825 (2017: $29,306) in relation to these services to 30 June 2018.

Receivable from and payable to related parties

At 30 June 2018 a total of $288 was payable to Mineral Deposits Limited as noted above.

Loans to/from related parties

There were no loans to or from related parties at the current and previous reporting date.

Terms and conditions

All transactions were made on normal commercial terms and conditions and at market rates.

Note 26. Parent entity information

Set out below is the supplementary information about the parent entity.

Statement of profit or loss and other comprehensive income

Loss after income tax Total comprehensive income	Parent 30 June 2018 30 June 2017 $ $ (1,543,672) (1,367,897) (1,543,672) (1,367,897)
	(1,543,672)

Stellar Resources Limited Notes to the consolidated financial statements 30 June 2018

==> picture [59 x 35] intentionally omitted <==

Note 26. Parent entity information (continued)

Statement of financial position

Total current assets Total assets Total current liabilities Total liabilities Equity Issued capital Employee equity-settled benefits reserve Option valuation reserve Listed option reserve Accumulated losses Total equity	Parent 30 June 2018 30 June 2017 $ $ 1,248,644 2,957,321 1,415,696 3,132,905 114,493 243,702 124,183 297,718 36,867,490 36,867,490 1,625,927 1,625,927 - 497,426 88,000 88,000 (37,289,904) (36,243,656) 1,291,513 2,835,187
	1,415,696
	114,493
	124,183
	36,867,490 1,625,927 - 88,000 (37,289,904)
	1,291,513

Guarantees entered into by the parent entity in relation to the debts of its subsidiaries

The parent entity had no guarantees in relation to the debts of its subsidiaries as at 30 June 2018 and 30 June 2017.

Contingent liabilities

The parent entity had no contingent liabilities as at 30 June 2018 and 30 June 2017.

Capital commitments - Property, plant and equipment

The parent entity had no capital commitments for property, plant and equipment as at 30 June 2018 and 30 June 2017.

Significant accounting policies

The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in note 2, except for the following:

Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.
Investments in associates are accounted for at cost, less any impairment, in the parent entity.
Dividends received from subsidiaries are recognised as other income by the parent entity and its receipt may be an indicator of an impairment of the investment.

Note 27. Interests in subsidiaries

The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with the accounting policy described in note 2:

		Ownership	interest
	Principal place of business /	30 June 2018 30 June 2017
Name	Country of incorporation	%	%
Hiltaba Gold Pty Ltd	Australia	100%	100%
Rubicon Min Tech Ventures Pty Ltd	Australia	100%	100%
Columbus Metals Limited	Australia	100%	100%
Tarcoola Iron Pty Ltd	Australia	100%	100%

Stellar Resources Limited Notes to the consolidated financial statements 30 June 2018

==> picture [59 x 35] intentionally omitted <==

Note 28. Deed of cross guarantee

The following entities are party to a deed of cross guarantee under which each company guarantees the debts of the others:

Stellar Resources Limited Columbus Metals Limited

By entering into the deed, the wholly-owned entities have been relieved from the requirement to prepare financial statements and directors' report under Corporations Instrument 2016/785 issued by the Australian Securities and Investments Commission.

The above companies represent a 'Closed Group' for the purposes of the Corporations Instrument, and as there are no other parties to the deed of cross guarantee that are controlled by Stellar Resources, they also represent the 'Extended Closed Group'.

Set out below is a consolidated statement of profit or loss and other comprehensive income and statement of financial position of the 'Closed Group'.

Statement of profit or loss and other comprehensive income Revenue Depreciation and amortisation expenses Exploration expenditure and other costs written off Finance costs Administration expenditure Impairment of loans to subsidiaries Loss before income tax expense Income tax expense Loss after income tax expense Other comprehensive income for the year, net of tax Total comprehensive income for the year Equity - accumulated losses Accumulated losses at the beginning of the financial year Loss after income tax expense Transfer from options reserve Accumulated losses at the end of the financial year	30 June 2018 $ 37,853 (19,154) (143,791) (1,346) (553,559) (57,303)	30 June 2017 $ 48,431 (5,771) (6,669) (315) (654,661) (68,354) (687,339) - (687,339) - (687,339) 30 June 2017 $ (20,445,122) (687,339) - (21,132,461)
	(737,300) -
	(737,300) -
	(737,300)
	30 June 2018 $ (21,132,461) (737,300) 497,426
	(21,372,335)

Stellar Resources Limited Notes to the consolidated financial statements 30 June 2018

==> picture [59 x 35] intentionally omitted <==

Note 28. Deed of cross guarantee (continued)

Statement of financial position Current assets Cash and cash equivalents Trade and other receivables Prepayments Non-current assets Trade and other receivables Property, plant and equipment Exploration and evaluation assets Total assets Current liabilities Trade and other payables Provisions Other liabilities Non-current liabilities Provisions Other liabilities Total liabilities Net assets Equity Issued capital Reserves Accumulated losses Total equity	30 June 2018 $ 1,222,238 6,206 20,200	30 June 2017 $ 2,901,944 37,277 18,100 2,957,321 148,440 153,686 14,984,654 15,286,780 18,244,101 218,025 47,406 17,209 282,640 - 15,079 15,079 297,719 17,946,382 36,867,490 2,211,353 (21,132,461) 17,946,382
	1,248,644
	157,480 134,905 15,792,236
	16,084,621
	17,333,265
	60,538 44,991 8,964
	114,493
	3,574 6,116
	9,690
	124,183
	17,209,082
	36,867,490 1,713,927 (21,372,335)
	17,209,082

Note 29. Events after the reporting period

Stellar Resources Limited Notes to the consolidated financial statements 30 June 2018

==> picture [59 x 35] intentionally omitted <==

Note 30. Reconciliation of loss after income tax to net cash used in operating activities

Loss after income tax expense for the year Adjustments for: Depreciation and amortisation Interest income received Exploration expenditure and other costs written off Fair value loss on available-for-sale financial assets and impairment Change in operating assets and liabilities: Decrease/(increase) in trade and other receivables (Increase) in other operating assets Decrease/(increase) in other financial assets Increase/(decrease) in trade and other payables Increase in other provisions Net cash used in operating activities Note 31. Earnings per share Loss after income tax attributable to the owners of Stellar Resources Weighted average number of ordinary shares used in calculating basic earnings per share Weighted average number of ordinary shares used in calculating diluted earnings per share Basic earnings per share Diluted earnings per share	Consolidated 30 June 2018 30 June 2017 $ $ (690,492) (681,874) 18,781 5,771 (37,853) (48,431) 152,703 38,654 - 27,218 31,071 (71,001) (2,201) (3,384) (15,888) 37,494 (18,348) 206,156 1,159 8,552 (561,068) (480,845) Consolidated 30 June 2018 30 June 2017 $ $ (690,492) (681,874) Number Number 379,713,489 323,205,466 379,713,489 323,205,466 Cents Cents (0.18) (0.21) (0.18) (0.21)
	Number 379,713,489
	379,713,489
	Cents (0.18) (0.18)

The options held by option holders have not been included in the weighted average number of ordinary shares for the purposes of calculating diluted EPS as they do not meet the requirements for inclusion in AASB 133 “Earnings per Share”. The options are non-dilutive as the consolidated entity has generated a loss for the year

Accounting policy for earnings per share

Basic earnings per share

Basic earnings per share is calculated by dividing the profit attributable to the owners of Stellar Resources, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the financial year.

Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.

Stellar Resources Limited Directors' declaration 30 June 2018

==> picture [59 x 35] intentionally omitted <==

The Directors of the Company declare that:

in the Directors' opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable; and
the attached financial statements and notes comply with International Financial Reporting Standards as issued by the International Accounting Standards Board as described in note 2 to the financial statements;
in the Directors' opinion, the financial statements and notes hereto are in accordance with the Corporations Act 2001, including compliance with accounting standards and giving a true and fair view of the financial position and performance of the Consolidated Entity.
at the date of this declaration, there are reasonable grounds to believe that the members of the Extended Closed Group will be able to meet any obligations or liabilities to which they are, or may become, subject by virtue of the deed of cross guarantee described in note 28 to the financial statements.

The directors have been given the declarations required by section 295A of the Corporations Act 2001.

Signed in accordance with a resolution of the Directors made pursuant to section 303(5)(a) of the Corporations Act 2001.

On behalf of the Directors

==> picture [144 x 43] intentionally omitted <==

----- Start of picture text -----

_________
----- End of picture text -----

_________ Phillip G Harman Non-Executive Chairman

29 August 2018 Melbourne

Deloitte Touche Tohmatsu ABN 74 490 121 060

550 Bourke Street Melbourne VIC 3000 GPO Box 78 Melbourne VIC 3001

==> picture [148 x 28] intentionally omitted <==

Tel: +61 3 9671 7000 Fax: +61 3 9671 7001 www.deloitte.com.au

Independent Auditor’s Report to the members of Stellar Resources Limited

Report on the Audit of the Financial Report

Opinion

We have audited the financial report of Stellar Resources Limited (the “Company”) and its subsidiaries (the “Group”), which comprises the consolidated statement of financial position as at 30 June 2018, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors’ declaration.

In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001 , including:

(i) giving a true and fair view of the Group’s financial position as at 30 June 2018 and of its financial performance for the year then ended; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001 .

Basis for Opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We confirm that the independence declaration required by the Corporations Act 2001 , which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material Uncertainty Related to Going Concern

We draw attention to Note 2 in the financial report, which indicates that the Group incurred a net loss of $690,492, and had a net cash outflow from operating activities of $561,068 during the year ended 30 June 2018. As stated in the Note 2, these events or conditions, along with other matters set forth in Note 2, indicate that a material uncertainty exists that may cast significant doubt about the Group’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

Liability limited by a scheme approved under Professional Standards Legislation.

Member of Deloitte Touche Tohmatsu Limited

==> picture [91 x 17] intentionally omitted <==

Our procedures in relation to going concern included, but were not limited to:

Inquiring of management in relation to events and conditions that may impact the assessment on the Group’s ability to continue as a going concern;
Challenging the assumptions contained in management’s cash flow forecast in relation to the Group’s ability to continue as a going concern;
Evaluating management’s plans for future actions in relation to its going concern assessment, whether the outcome of these plans is likely to improve the situation and whether management’s plans are feasible in the circumstances;
Considering whether any additional information has become available since the date on which management made its assessment;
Assessing the adequacy of the disclosure related to going concern in Note 2.

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report for the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In addition to the matter described in the Material Uncertainty Related to Going Concern section, we have determined the matter described below to be the key audit matter to be communicated in our report.

Key Audit Matter How the scope of our audit responded to the Key Audit Matter

Accounting for exploration and evaluation costs

The Group incurred $1,007,101, in exploration and evaluation (E&E) costs during the period which has been capitalised as disclosed in Note 11. Significant judgement is required in determining whether the criteria for capitalisation are met, in particular whether E&E costs are expected to be recouped through successful development and exploitation of the area of interest or by future sale or that the activities in the area of interest have not reached the point that a reasonable assessment of economically recoverable reserves can be made.

Our audit procedures included, but were not limited to:

Obtaining an understanding of the key processes associated with the allocation of E&E costs between capital and expense,
Confirming the licences for the areas of interest are current and challenging management’s consideration of the ability to recoup the capitalised costs through future development or sale of the area of interest,
Reviewing documents confirming whether exploration activities for the area of interest had reached a stage where a reasonable assessment of economically recoverable reserves existed, and
Testing a sample of E&E expenditure to confirm the nature of the costs incurred, and the appropriateness of the classification between asset and expense. This included an assessment as to whether the capitalised amounts meet the required criteria under the relevant accounting standards .

We also assessed the appropriateness of the disclosures in Note 11 to the financial statements.

==> picture [91 x 17] intentionally omitted <==

Recoverability of exploration and evaluation assets

As at 30 June 2018, the carrying amount of E&E assets is $17,188,699, as disclosed in Note 11.

Management judgement is applied in determining whether facts and circumstances indicate that the exploration and expenditure assets should be tested for impairment.

Our audit procedures included, but were not limited to:

Obtaining an understanding of management’s processes surrounding the evaluation of the facts and circumstances that may suggest the carrying value of E&E assets exceeds the recoverable amount,
Challenging management’s consideration of the facts and circumstances that may suggest E&E assets are not fully recoverable, including, but not limited to: o Testing licenses for the areas of interest to determine whether the license has expired during the period or will expire in the near future with no expectation to be renewed,
o Reviewing budgets to determine whether substantive expenditure in an area of interest is neither budgeted nor planned,
o Obtaining an understanding of management’s assessment as to whether evaluation of mineral resources in a specific area of interest have not led to the discovery of commercially viable quantities of mineral resources and the Company has decided to discontinue further evaluation of the area,
o Challenging management as to whether sufficient data exists that suggests E&E assets related to a specific area of interest will not be recovered in full from successful development or by sale, and
o Challenging management to understand the current status and future intention for each asset given the status of technical feasibility and commercial viability of extraction are not yet demonstrable across any exploration assets.

We have also assessed the appropriateness of the disclosures in Note 11 to the financial statements.

Other Information

The directors are responsible for the other information. The other information comprises the information included in the Group’s annual report for the year ended 30 June 2018, but does not include the financial report and our auditor’s report thereon.

Our opinion on the financial report does not cover the other information and we do not express any form of assurance conclusion thereon.

==> picture [91 x 17] intentionally omitted <==

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Directors for the Financial Report

The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Auditor’s Responsibilities for the Audit of the Financial Report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

==> picture [91 x 17] intentionally omitted <==

Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.

We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the financial report of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on the Remuneration Report

Opinion on the Remuneration Report

We have audited the Remuneration Report included in pages 11 to 15 of the Directors’ Report for the year ended 30 June 2018.

In our opinion, the Remuneration Report of Stellar Resources Limited, for the year ended 30 June 2018, complies with section 300A of the Corporations Act 2001 .

Responsibilities

The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001 . Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.

==> picture [164 x 43] intentionally omitted <==

DELOITTE TOUCHE TOHMATSU

==> picture [115 x 36] intentionally omitted <==

Ryan Hansen Partner Chartered Accountants Melbourne, 29 August 2018

Stellar Resources Limited Shareholder information 30 June 2018

==> picture [59 x 35] intentionally omitted <==

The shareholder information set out below was applicable as at 23 August 2018.

Distribution of equitable securities

Analysis of number of equitable security holders by size of holding:

Size of holding 1 to 1,000 1,001 to 5,000 5,001 to 10,000 10,001 to 100,000 100,001 and over Holding less than a marketable parcel	Number of holders of unlisted options - - - - 4	Number of holders of listed options 2 - - 18 64	Number of holders of ordinary shares 235 374 179 675 399
	4	84	1,862
	-	5	1,143

Equity security holders

Twenty largest quoted equity security holders

The names of the twenty largest security holders of quoted equity securities are listed below:

Name J P Morgan Nominees Australia Limited Capetown S A WGS Pty Ltd Fountain Oaks Pty Ltd (Limbs Family Super Fund A/C) Mr Stephen Cansdell Hirst Jetosea Pty Ltd BNP Paribas Nominees Pty Ltd (IB AU Noms Retailclient Drp) Octifil Pty Ltd HSBC Custody Nominees (Australia) Limited Calama Holdings Pty Ltd (Mambat Super Fund A/C) Mr Michael Andrew Whiting & Mrs Tracey Anne Whiting (Whiting Family S/F A/C) Mr Gregory John Howe Mr Angus William Johnson & Mrs Lindy Johnson (The Dena Super Fund A/C) Maestro Capital Pty Ltd (Maestro Capital Super A/C) Ms Kate Thomson HSBC Custody Nominees (Australia) Limited - A/C 2 Mr Norman Colburn Mayne (N C Mayne Family Fund A/C) Mr Henryk Solanikow & Mr Henry Peter Solanikow (Solanikow Super Fund A/C) Share Investing Nominees Pty Ltd Spinite Pty Ltd	Ordinary shares % of total shares Number held issued 73,278,450 19.30 62,382,221 16.43 6,698,156 1.76 5,245,000 1.38 4,600,000 1.21 4,243,936 1.12 4,214,913 1.11 3,978,855 1.05 3,530,000 0.93 3,500,000 0.92 3,336,050 0.88 3,200,000 0.84 3,129,167 0.82 3,000,000 0.79 2,742,500 0.72 2,600,000 0.68 2,500,000 0.66 2,225,524 0.59 2,000,000 0.53 2,000,000 0.53 198,404,772 52.25	Ordinary shares % of total shares Number held issued 73,278,450 19.30 62,382,221 16.43 6,698,156 1.76 5,245,000 1.38 4,600,000 1.21 4,243,936 1.12 4,214,913 1.11 3,978,855 1.05 3,530,000 0.93 3,500,000 0.92 3,336,050 0.88 3,200,000 0.84 3,129,167 0.82 3,000,000 0.79 2,742,500 0.72 2,600,000 0.68 2,500,000 0.66 2,225,524 0.59 2,000,000 0.53 2,000,000 0.53 198,404,772 52.25
	198,404,772	52.25

Stellar Resources Limited Shareholder information 30 June 2018

==> picture [59 x 35] intentionally omitted <==

Twenty largest listed option holders

Name
LTL Capital Pty Ltd (LTL Capital A/C)
Jetosea Pty Ltd
A & J Tannous Nominees Pty Ltd (Assad Tannous A/C)
BNP Paribas Nominees Pty Ltd (IB AU Noms Retailclient Drp)
Ms Serene Lim & Mr Nicholas Russell Ward (Serene Lim Superfund A/C)
1215 Capital Pty Ltd
Ms Kate Melinda Gengoult - Smith
Spinite Pty Ltd
Siena Beauty Pty Ltd
Mr Peter Aaron Munro & Mrs Jennifer May Munro (Munro Family A/C)
Mr Maxwell Evan Davies
Mrs Maria Barbara Griep
UBS Nominees Pty Ltd
SACCO Developments Australia Pty Ltd (The Sacco Family A/C)
Mr David Ridley Gray
HSBC Custody Nominees (Australia) Limited
Mr Stephen Charles Pickles
Boston First Capital Pty Ltd
Dr Thomas Holland Whiting
ASB Nominees Limited (800301 - ML A/C)

Unquoted equity securities
Options over ordinary shares issued

Substantial holders
Substantial holders in the company are set out below:

J P Morgan Nominees Australia Limited
Capetown S A

Number of
options held
14,200,000
9,044,999
3,291,429
3,000,000
2,550,000
2,360,714
1,500,000
1,285,714
1,250,000
1,000,000
1,000,000
900,000
714,286
714,286
714,286
642,857
600,000
571,429
500,000
500,000

46,340,000

Unquoted equity securities

Substantial holders

Substantial holders in the company are set out below:

Voting rights

The voting rights attached to ordinary shares are set out below:

Ordinary shares

On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote.

There are no other classes of equity securities.

Stellar Resources Limited Shareholder information 30 June 2018

==> picture [59 x 35] intentionally omitted <==

Tenements

		Interest
Description	Tenement number	owned %
Retention Licence - Zeehan, Tasmania	RL5/1997	100
Mining Lease - Zeehan, Tasmania	2023P/M	100
Mining Lease - Tailing Dam, Zeehan, Tasmania	2M/2014	100
Exploration Licence - Heemskirk, Tasmania	EL46/2003	100
Mining Lease - Zeehan, Tasmania	2040P/M	100
Exploration Licence - Mt Razorback	EL11/2017	100
Exploration Licence - Midgee, South Australia (JV
with Samphire Uranium Limited earning 73% in
uranium interest)	EL5426	100
Exploration Licence - Montana Flats, Zeehan,
Tasmania	EL13/2018	100

AI assistant

STELLAR RESOURCES LIMITED — Annual Report 2018

65860_rns_2018-08-28_29f2d001-1368-4a3d-923c-04058a29091a.pdf

STELLAR RESOURCES LIMITED ABN 96 108 758 961

Key Achievements

Strategy

Positive Tin Market Outlook

Stellar Resources Review of operations 30 June 2018

Operational Overview

1) Mining Leases Secured

2) Positive Drilling Outcomes at Heemskirk

3) Ore Sorting Successfully Tested

4) Mt Razorback EL adds to Tin Portfolio

Directors

Principal activities

Operating Result

Financial Position

Dividends Paid or Recommended

Significant changes in the state of affairs

Subsequent Events

Business Strategies

Future Developments

Environmental Issues

Company secretary

Ms Melanie Leydin

Meetings of directors

Remuneration report

Directors’ and Executives’ Compensation

Remuneration Policy

Relationship between the Remuneration Policy and Company Performance

Remuneration of Directors and Senior Management

Amounts of remuneration

Details Concerning Share-based Remuneration of Directors and Executives

Compensation Options: Granted and Vested during the Year

Number of Shares held by Key Management Personnel

Option holding

Shares Issued on Exercise of Compensation Options

Loans to Key Management Personnel

This concludes the remuneration report, which has been audited.

Share under option

Shares issued on exercise on share options

Options expired

Indemnity and insurance of officers

Dealing in the Company’s Securities

Proceedings on behalf of the company

Non audit services

Auditor's independence declaration

Auditor

Stellar Resources Limited

Stellar Resources Limited Consolidated statement of profit or loss and other comprehensive income For the year ended 30 June 2018

Stellar Resources Limited Consolidated statement of changes in equity For the year ended 30 June 2018

Note 1. General information

Note 2. Significant accounting policies

Amendments to AASBs and the new Interpretation that are mandatorily effective for the current reporting period

Going concern

Note 2. Significant accounting policies (continued)

Basis of preparation

Historical cost convention

Critical accounting estimates

Parent entity information

Principles of consolidation

Revenue recognition

Interest

Other revenue

Note 2. Significant accounting policies (continued)

Current and non-current classification

New Accounting Standards and Interpretations not yet mandatory or early adopted

AASB 9 Financial Instruments

Note 2. Significant accounting policies (continued)

AASB 15 Revenue from Contracts with Customers

AASB 16 Leases

Note 3. Critical accounting judgements, estimates and assumptions

Share-based payment transactions

Note 3. Critical accounting judgements, estimates and assumptions (continued)

Fair value measurement hierarchy

Estimation of useful lives of assets

Recovery of deferred tax assets

Employee benefits provision

Note 4. Segment information

Note 4. Segment information (continued)

STELLAR RESOURCES LIMITED Annual Report 2018