STELLAR RESOURCES LIMITED — Capital/Financing Update 2005

Dec 13, 2005

Stellar attracts additional PACE Drill funding

The Board of Stellar is pleased to announce receipt of 50 percent funding, from the South Australian Department of Primary Industry and Resources (PIRSA), for two drilling proposals under the current round of submissions for the Program for Accelerated Exploration (PACE). Under the proposals PACE will provide up to $88,500 for drilling expenses on the Robins Rise iron-oxidecopper-gold (IOCG) project and up to $69,500 for drilling expenses on the Tarcoola Basin base metal project. Under the terms of the PACE agreement, the drilling programs are to be completed before December 2006.

Robins Rise Project

The Robins Rise project includes two exploration licenses in the northern Gawler Craton region, approximately 120 kilometres west of the Prominent Hill IOCG deposit. Detailed gravity surveys carried out over selected aeromagnetic and structural targets during 2005 have outlined a number of gravity anomalies consistent with Prominent Hill style mineralisation. Stellar's PACE proposal involves first pass reverse circulation drill tests of four of these gravity features (Figure 1). Drilling is planned to commence in the first quarter 2006.

14 December 2005

Tarcoola Basin Project

The Tarcoola Basin project includes exploration licenses in the Tarcoola region of the central Gawler Craton, where previous work by Stellar has established the presence of widespread low order base metal mineralisation within sediments of the mid-Proterozoic Tarcoola Formation. Detailed analysis by Stellar, in collaboration with PIRSA geologists, has outlined two stratigraphic/structural target positions within the "Cooladding" EL2898 (Figure 2) which are expected to be tested with diamond drilling in the first half of 2006.

ASX Code: SRZ

ABN 96 108 758 961 Suite 713 Exchange Tower 530 Little Collins Street Melbourne Victoria 3000 Australia

Telephone +61 3 9909 7618 Facsimile +61 3 9909 7621

www.stellarresources.com.au srzinfo@stellarresources.com.au

Figure 1 - Location for Robins Rise project - northern Gawler Craton

Figure 2 - Tarcoola Basin project Cooladding EL2898 - interpreted geology and target positions

The drill and exploration results reported herein, insofar as they relate to mineralisation, are based on information compiled by Mr. C.G. Anderson (Fellow of the Australasian Institute of Mining and Metallurgy) who is a Director of the Company with more than twenty years experience in the field of activity being reported. Mr. Anderson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

For further details please contact: Chris Anderson Tel: 08 8363 1589 E-mail: chris.anderson@stellarresources.com.au or visit our Website at: www.stellarresources.com.au