STELLAR RESOURCES LIMITED — Capital/Financing Update 2006

May 1, 2006

2 May 2006

SHARE PLACEMENT

The Board of Stellar Resources Limited is pleased to advise that the Company has completed a placement of 7.5 million ordinary fully paid shares at a price of $0.45 per share to raise $3.375m, before costs, to sophisticated and professional clients of Bell Potter Securities Limited, pursuant to section 708 of the Corporations Act. All of the shares to be issued under this placement will rank pari passu with existing ordinary shares.

Stellar Resources Limited is delighted by the high level of demand for the placement and welcomes the new investors who have committed to subscribe to the placement.

The raising will enable Stellar Resources Limited to fund the Company's ongoing exploration activities and provide working capital for group activities.

Bill Michaelidis COMPANY SECRETARY

For further information please contact:

Tom Burrowes	Tel: 03 9909 7618
E-mail	tom.burrowes@stellarresources.com.au

Bill Michaelidis Tel: 03 9909 7622 E-mail bill.michaelidis@stellarresources.com.au

STELLAR RESOURCES LIMITED

ABN 96-108-758-961

Level 7 Exchange Tower 530 Little Collins Street Melbourne Victoria 3000 Tel + 61 3 9909 7618