STELLAR RESOURCES LIMITED — Capital/Financing Update 2005

Oct 3, 2005

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B

New issue announcement, application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX's property and may be made public.

Introduced 1/7/96. Origin: Appendix 5. Amended 1/7/98, 1/9/99, 1/7/2000, 30/9/2001, 11/3/2002, 1/1/2003.

Name of entity

STELLAR RESOURCES LIMITED

ABN

96 108 758 961

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

$\mathbbm{I}$ $\pm$ Class of $\pm$ securities issued or to be issued

Ordinary $-$ Fully paid

• $\overline{2}$ Number of ⁺securities issued or to be issued (if known) or maximum number which may be issued
• 3 Principal terms of the ⁺securities (eg, if options, exercise price and date; if partly expiry paid *securities, the amount outstanding and due dates for payment; if *convertible securities, the conversion price and dates for conversion)

1,600,000

Issue price of \$0.32 per share

⁺ See chapter 19 for defined terms.

4	Do the securities rank equally in all respects from the date of allotment with an existing class of quoted *securities? If the additional securities do not rank equally, please state: the date from which they do ٠ the extent to which they participate for the next dividend, the case of (in $\mathbf{a}$ trust. distribution) or interest payment the extent to which they do not rank equally, other than in	Yes
	relation to the next dividend, distribution or interest payment
5	Issue price or consideration	Issue Price \$0.32 per share
6	Purpose of the issue (If issued as consideration for the acquisition of assets, clearly identify those assets)	Part consideration for purchase of Hillment Pty 1.td
7	Dates of entering *securities into uncertificated holdings or despatch of certificates	3 October 2005
8	Number elass of all and securities quoted on ASX. (including the securities in clause 2 if applicable)	Number 50,838,168	+ Class Ordinary - Fully paid

$+$ See chapter 19 for defined terms.

		Number	* Class
-9	all Number + class οf and *securities not quoted on ASX (including the securities in clause) 2 if applicable)	3,500,000	Unlisted director options exercise price \$0.30 each expiring 10 December 2008.
		250,000	Unlisted employee options exercise price \$0.30 each expiring 19 August 2009.

Dividend policy (in the case of a $\sqrt{\phantom{a}}$ No change 10 trust, distribution policy) on the increased capital (interests)

Part 2 - Bonus issue or pro rata issue

$\mathbf{1}$	holder security approval Ís required?
12	Is the issue renounceable or non- renonneeable?
13	Ratio in which the "securities will be offered
14	Class of securities to which the offer relates
15	*Record determine date to entitlements
16	Will holdings on different registers (or subregisters) be aggregated for calculating entitlements?
17	Policy for deciding entitlements in relation to fractions
18	Names of countries in which the entity has *security holders who will not be sent new issne documents Note: Security holders must be told how their entitlements are to be dealt with.
	Cross reference: rule 7.7.
19	Closing date for οf receipt acceptances or renunciations

$\overline{\text{F}}$ See chapter 19 for defined terms.

Appendix 3B New issue announcement

20.	Names of any underwriters
21	Amount of any underwriting fee or commission
22.	Names of any brokers to the issue
23.	Fee or commission payable to the broker to the issue
24.	Amount of any handling fee payable to brokers who lodge acceptances or renunciations on behalf of *security holders
25.	If the issue is contingent on "security holders" approval, the date of the meeting
26.	Date entitlement and acceptance form and prospectus or Product Disclosure Statement will be sent to persons entitled
27.	If the entity has issued options, and the terms entitle option holders to participate on exercise, the date on which notices will be sent to option holders
28.	Date rights trading will begin (if applicable)
29	Date rights trading will end (if applicable)
30	How do *security holders sell their entitlements in full through a broker?
31	How do "security holders sell part of their entitlements through a broker and accept for the balance?

$+$ See chapter 19 for defined terms.

32 How do *security holders dispose of their entitlements (except by sale through a broker)?

33 *Despatch date

Part 3 - Quotation of securities

You need only complete this section if you are applying for quotation of securities

• 34 Type of securities $(iick one)$
• $(a)$

Securities described in Part 1

$(b)$

All other securities

Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

Entities that have ticked box 34(a)

Additional securities forming a new class of securities

Tick to indicate you are providing the information or documents

35

If the "securities are "equity securities, the names of the 20 largest holders of the additional "securities, and the number and percentage of additional "securities held by those holders

36

If the ⁺securities are ⁺equity securities, a distribution schedule of the additional *securities setting out the number of holders in the categories $1 - 1,000$ $1,001 - 5,000$ $5,001 - 10,000$ 10,001 - 100,000 100,001 and over

37

A copy of any trust deed for the additional *securities

⁺ See chapter 19 for defined terms.

Entities that have ticked box 34(b)

• 38 Number of securities for which *quotation is sought
• 39 Class of *securities for which quotation is sought
• Do the *securities rank equally in all 40 respects from the date of allotment with an existing *class of quoted *securities?

If the additional securities do not rank equally, please state:

• the date from which they do
• the extent to which they participate for the next dividend. (in the case of a trust, distribution) or interest payment
• the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment
• 41 Reason for request for quotation now

Example: In the case of restricted securities, end of restriction period

(if issued upon conversion of another security, clearly identify that other security)

Number and "class of all "securities 42 quoted on ASX (including the securities in clause 38)

Number	+ Class

⁺ See chapter 19 for defined terms.

Quotation agreement

• $\mathbf{I}$ *Ouotation of our additional *securities is in ASX's absolute discretion. ASX may quote the *securities on any conditions it decides.
• $\overline{2}$ We warrant the following to ASX.
• The issue of the *securities to be quoted complies with the law and is not for an illegal purpose.
• There is no reason why those *securities should not be granted *quotation.
• An offer of the "securities for sale within 12 months after their issue will not require disclosure under section $707(3)$ or section $1012C(6)$ of the Corporations Act.

Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

• Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any *securities to be quoted and that no-one has any right to return any "securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the *securities be quoted.
• We warrant that if confirmation is required under section 1017F of the $\bullet$ Corporations Act in relation to the *securities to be quoted, it has been provided at the time that we request that the *securities be quoted.
• If we are a trust, we warrant that no person has the right to return the *securities to be quoted under section 1019B of the Corporations Act at the time that we request that the "securities be quoted.

⁺ See chapter 19 for defined terms.

• $\overline{3}$ We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.
• $\overline{4}$ We give ASX the information and documents required by this form. If any information or document not available now, will give it to ASX before *quotation of the "securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

Sign here:

...................................... (Company secretary)

Print name:

V Michaelidis

$== == == ==$

⁺ See chapter 19 for defined terms.

Ranges

STELLAR RESOURCES LIMITED

INVESTOR RANGES
MONDAY 3 OCTOBER 2005

Security Group: IC ORD & ESC SHARES
Holding Type: Issuer Sponsored
$1 - 1000$ 1001 - 5000 5001 - 10000 10001 - 100000 100001 and Over Total	108 171 83 202 27 591	42.741 465.742 675.033 6.401.777 8.843.171 16.428.464	.08 .92 1.33 12.59 17.40 32.32

Investors

Securities % Issued Capital

Holding Type: CHESS

$1 - 1000$ 1001 - 5000 5001 - 10000 10001 - 100000	98 331 197. 557	53.309 1.026.851 1.627.631 17.690.188	.11 2.02 3.20 34.80
100001 and Over	61	14.011.725	27.56
Total	1.244	34.409.704	67.69

Totals for Security Group IC

$1 - 1000$	206	96,050	. 19
1001 - 5000	502	1,492,593	2.94
5001 - 10000	280	2.302.664	4.53
10001 - 100000	759	24,091,965	47.39
100001 and Over	88	22.854.896	44.96.
Total	1.835	50.838.168	100.00

end of report

STELLAR RESOURCES LIMITED

FIRST 20 INVESTORS REPORT MONDAY 3 OCTOBER 2005

Rank	Investor	Current Balance	% issued Capital
	Sec. Group: IC - ORD & ESC SHARES
1	PENINSULA EXPLORATION PTY LTD UNIT 6 25 NORMAN STREET ADELAIDE SA 5000	1,600,000	3.15%
$\mathbf{2}$	LJ THOMSON PTY LTD C/- MR L J THOMSON BOX 1565 MILDURA VIC 3502	1,045,852	2.06%
3	PROVIDENCE GOLD AND MINERALS PTY LTD 12 EDINA CLOSE PORT MELBOURNE VIC 3207	1,000,000	1.97%
4	MR KEITH SHAW 5 TRAVERSE ROBESPIERRE OUVEILLAN 11590 FRANCE FRA	1,000,000	1.97%
5	CITICORP NOMINEES PTY LIMITED GPO BOX 764G MELBOURNE VIC 3001	783,863	1.54%
6	SUNRISE PRODUCTIONS INC 22 RUE MISTRAL SAINT BONNET DU GARD 30210 FRANCE FRA	756,522	1.49%
7	MR ARNOLD OLSCHYNA 2 FLOWERDALE ROAD GLEN IRIS VIC 3146	552,672	1.09%
8	CAROJON PTY LTD PO BOX 334 PARADISE POINT QLD 4216	425,000	.84%
9	MISHKAN PTY LTD 2 GRANGE AVENUE CANTERBURY VIC 3126	425,000	.84%
10	EVERGEM PTY LTD ATT: MR PW COLLINSON 19 HUNTINGFIELD ROAD TOORAK VIC 3142	400,000	.79%

STELLAR RESOURCES LIMITED

FIRST 20 INVESTORS REPORT MONDAY 3 OCTOBER 2005

Rank	Investor	Current Balance	% Issued Capital
11	GUNN & TAYLOR (AUST) PTY LIMITED 4 ARISTOC ROAD GLEN WAVERLEY VIC 3150	400,000	.79%
12	UBS PRIVATE CLIENTS AUSTRALIA NOMINEES PTY LTD GPO BOX 1257L MELBOURNE VIC 3001	382,824	.75%
13	MR DAVID BRIAN CLARKE 56 KINGSWAY ROAD NEDLANDS WA 6009	367,213	.72%
14	TEMTOR PTY LTD 10 IRVINE CRESCENT BRUNSWICK WEST VIC 3055	360,000	.71%
15	GILVENTURES PTY LTD 475 WYNDHAM STREET SHEPPARTON VIC 3630	350,000	.69%
16	TATWIN PTY LTD 51 SKENE STREET SHEPPARTON VIC 3630	309,370	.61%
17	NOSCITA DION PTY LTD PO BOX 98 BEACONSFIELD UPPER VIC 3808	300,000	.59%
18	BOKKAR NOMINEES PTY LTD 7 WARWICK FARM ROAD OLINDA VIC 3788	288,968	.57%
19	TATWIN PTY LTD 51 SKENE STREET SHEPPARTON VIC 3630	279,028	.55%

STELLAR RESOURCES LIMITED

FIRST 20 INVESTORS REPORT MONDAY 3 OCTOBER 2005

Rank	Investor	Current Balance		% Issued Capital
20	LIFCHEM PTY LTD C/- P A K NAYLOR LEVEL 28 80 COLLINS STREET MELBOURNE VIC 3000	275,000		.54%
	TOTAL FOR TOP 20:	11,301,312	Investors 20	22.23%
	TOTAL IN THIS REPORT: TOTAL OTHER INVESTORS: GRAND TOTAL:	11,301,312 39,536,856 50,838,168	Investors 20 1,815 1,835	22.23% 77.77% 100.00%
	end of report

Notice under section 708A(5)(e) of the Corporations Act 2001 (Cth)

SSUEF: Stellar Resources Limited ABN 96 108 758 961

Details of the issue or offer of securities

Class of securities	Fully paid ordinary shares (Ordinary Shares)
ASX Code of the securities	-SRZ
Date of the issue or expected issue of the securities	3 October 2005
Total number of securities issued or expected to be issued	1,600,000 Ordinary Shares

Notice

• 1. Stellar Resources Limited gives ASX (as the relevant market operator) notice relating to the issue of the securities identified above.
• $2.$ This notice is given under paragraph 5(e) of section 708A of the Corporations Act 2001 $(Ch).$
• 1. Stellar Resources Limited issued the securities identified above without disclosure to investors under Part 6D.2 of the Corporations Act 2001 (Cth).
• 1. As at the date of this notice, Stellar Resources Limited has complied with:
• $(a)$ the provisions of Chapter 2M of the Corporations Act 2001 (Cth) as they apply to it; and
• section 674 of the Corporations Act 2001 (Cth). (b)
• 1. There is no excluded information (as defined in section 708A(7) of the Corporations Act 2001 (Cth)) as at the date of this notice.

Signed for and on behalf of the Issuer:

Date: 3 October 2005

Name: Vassilios Michaelidis Position held: Company Secretary