STELLAR RESOURCES LIMITED — Capital/Financing Update 2017

Mar 9, 2017

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10 March 2017

ASX ANNOUNCEMENT

Information Disclosed under ASX Listing Rule 3.10.5A and 7.1A.4(b)

Further to the ASX announcement on 1 March 2017 and Appendix 3B lodged by Stellar Resources Limited (ASX: SRZ) on 10 March 2017 regarding completion of the issue of 74,285,714 fully paid ordinary shares ( Shares ) to nominees of Hunter Capital Pty Ltd ( Placement ), Stellar Resources Limited provides the following information under Listing Rule 3.10.5A:

• (a) A total of 74,285,714 Shares were issued under the Placement. Details of the dilution to existing shareholders of the Company as a result of the Placement are as follows:

  • (i) under ASX Listing Rule 7.1 the number of Shares issued was 45,034,166, which results in dilution to existing shareholders of 12.03%; and

  • (ii) under ASX Listing Rule 7.1A the number of Shares issued was 29,251,548 , which results in dilution to existing shareholders of 7.81%.

The total dilution to existing shareholders as a result of the Placement is 19.84%.

The percentage of the post-Placement capital held (in aggregate) is as follows:

• (iii) pre-Placement security holders who did not participate in the Placement – 80.16%;

• (iv) pre-Placement security holders who did participate in the Placement – 0%; and

• (v) participants in the Placement who were not previously security holders – 19.84%.

• (b) Stellar Resources Limited considered the Placement as the most efficient and expedient method for raising the required funds to achieve its stated objectives given the funding certainty. Stellar Resources Limited also considered the significant benefits in introducing new cornerstone investors to promote a more diverse shareholder base. Stellar Resources Limited completed a pro-rata issue in April 2014.

• (c) The Placement was not underwritten.

• (d) Commission is payable at a rate of 7% of the $2.6 million of funds received, payable to Hunter Capital Advisors Pty Ltd (ACN 603 930 418) (or its nominee) ( Hunter ) through the issue of 5,200,000 Shares (having a deemed issue price of $0.035 being the same issue price as Shares issued under the Placement). Additionally, as consideration for the corporate advisory and capital raising services provided by Hunter in relation to the Placement, Hunter will be issued 22,000,000 listed options over unissued Shares on the same terms as the attaching options that are to be issued pursuant to the Placement (exercise price of $0.05 each, expiring on the date that is three (3) years from the date of issue).

For further details please contact:

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

Christina Kemp Company Secretary Tel: 03 9618 2540 Email: chris.kemp@stellarresources.com.au

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