STELLAR RESOURCES LIMITED — Capital/Financing Update 2016

Aug 31, 2016

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1 September 2016

Heemskirk Tin – Project Update

Issued Capital Shares: 300,227,775 Share Price: A$0.043 Market Cap: A$12.9million

Commodity Tin Price: US$18,880/t Exchange Rate US$ 0.75

Stellar Resources Limited (ASX: SRZ, “Stellar” or the “Company”) is pleased to update shareholders and investors on its current and planned activities to advance its high-grade Heemskirk tin project. Heemskirk is located in northwest Tasmania within 18 kilometres of Australia’s oldest and largest tin mine Renison Bell.

Mineral Resource update from JORC 2004 to JORC 2012 is planned in September quarter. Since the original resource release on 27 February 2013, the Company has completed mining studies, metallurgical test work and a review of minor metal content. Data from these studies will contribute to an improved understanding of the resource and identify the extent of additional drilling required to define an ore reserve.

Main Shareholders
European Investors Capetown SA Resource Capital Fund	24.8% 20.8% 12.1%

Board & Management Phillip G Harman Non-Executive Chairman

Peter G Blight Managing Director

Miguel Lopez de Letona Non-Executive Director

Thomas H Whiting Non-Executive Director Christina R Kemp Company Secretary

Ore sorting test work by Tomra Sorting Solutions . The Company is planning to test drill core samples from the Severn, Upper and Lower Queen Hill deposits using Tomra x-ray sorting technology at that company’s test facility in Sydney. If successful, Tomra technology can significantly reduce the volume of unmineralised ore treated in the processing plant and lower unit treatment cost. Peru’s largest tin mine, San Rafael has recently installed Tomra ore sorting technology to treat a low grade surface stockpile that may otherwise have been uneconomic.

Development Proposal and Environmental Management Plan (DPEMP). Stellar is continuing to advance a work program to complete a DPEMP, a key milestone in the development timeline for Heemskirk tin. Under the program, work is currently focused on collecting fauna migration data and updating previous fauna and flora surveys.

Mining Lease application over the Heemskirk tin deposits is progressing through the regulatory framework. Mineral Resources Tasmania is coordinating a review of the application with other government departments and external stakeholders.

ASX Code: SRZ

About Stellar:

ABN 96 108 758 961 Level 17, 530 Collins Street Melbourne Victoria 3000 Australia

Stellar Resources (SRZ) is an exploration and development company with assets in Tasmania and South Australia. The company is rapidly advancing its high-grade Heemskirk Tin Project, located near Zeehan in Tasmania, and plans to become Australia’s second largest producer of tin.

Telephone +61 3 9618 2540 Facsimile +61 3 9649 7200

www.stellarresources.com.au

ASX Announcement

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Tin Market Update

The LME tin price is currently trading at US$18,880/t which represents a 42% gain on the mid-January 2016 low of US$13,255/t. The point to point price increase represents a strong recovery off a low base. The price rise to date has been driven by supply side adjustments with the closure of high cost capacity and improved investor sentiment towards a select group of metals following the strong lead from gold. As the chart following shows, tin price recovery is still at an early stage, particularly given the low level of reported stocks.

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News flow in the tin market remains positive for price.

• Shortages of tin concentrate in Indonesia following the implementation of tighter environmental regulation is restricting the ability of smelters to increase production. ITRI expect Indonesian refined tin exports of 60,000 tonnes in 2016, a 14% reduction on the 70,155 tonnes exported in 2015.

• Environmental inspections by Chinese authorities have led to a number of temporary tin smelter closures during August and tightening of the domestic tin market. It is likely that smelters de-stocked in August and will gradually build up production during September.

• Many Chinese smelters are now supplied with tin concentrates from Myanmar. ITRI estimate that imports from Myanmar should reach 50,000 tonnes of contained tin in 2016 which is the same level as 2015. In ITRI’s view, Myanmar’s production and grade of tin concentrate appear to have both peaked towards the end of 2015. Most of the easily mined surface deposits are exhausted and production is now largely coming from a number of underground adits.

For further details please contact:

Peter Blight Managing Director Stellar Resources Limited Tel: 03 9618 2540 Email: peter.blight@stellarresources.com.au

or visit our Website at: http://www.stellarresources.com.au

160060SRL.docx

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Forward Looking Statements

This report may include forward-looking statements. Forward-looking statements include, but are not limited to statements concerning Stellar Resources Limited’s planned activities and other statements that are not historical facts. When used in this report, the words such as “could”, “plan”, “estimate”, “expect”, “intend”, “may”, “potential”, “should” and similar expressions are forward-looking statements. In addition, summaries of Exploration Results and estimates of Mineral Resources and Ore Reserves could also be forward-looking statements. Although Stellar Resources Limited believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements.

The entity confirms that it is not aware of any new information or data that materially affects the information included in this announcement and that all material assumptions and technical parameters underpinning this announcement continue to apply and have not materially changed.

Nothing in this report should be construed as either an offer to sell or a solicitation to buy or sell Stellar Resources Limited securities.

Competent Person Statement

The information in this report that relates to Exploration Results is compiled by Mr R K Hazeldene who is a Member of the Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists and a Consultant of the Company. Mr Hazeldene has sufficient experience relevant to the style of mineralisation and type of deposits being considered to qualify as a Competent Person as defined by the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2012 Edition). Mr Hazeldene consents to the inclusion in the report of the matters based on his information in the form and context in which it appears in this report.

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

Stellar Resources confirms that it is not aware of any new information or data that materially affects the information included in the Mineral Resource estimates reported on 24[th] July 2013 and 12 March 2014, Stellar confirms that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed. In addition, Stellar Resources confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified.

160060SRL.docx