STELLAR RESOURCES LIMITED — Capital/Financing Update 2017

Feb 28, 2017

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1 March 2017

Heavily over-subscribed Placement raises $2.6M to aggressively advance the Heemskirk Tin Project

Issued Capital Shares: 300,227,775 Share Price: A$0.048 Market Cap: A$14.4million

Commodity Tin Price: US$19,250/t Exchange Rate US$ 0.77

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

The Board of Directors of Stellar Resources Limited (ASX: SRZ, “Stellar” or the “Company”) is pleased to announce the raising of $2.6 million (before costs) through a placement of 74,285,714 fully paid ordinary shares in the capital of the Company at an issue price of $0.035 per share. Each two (2) shares will be accompanied by one (1) free attaching $0.05 option exercisable at any time for three (3) years from the date of issue. The attaching options will be subject to shareholder approval.

Following the receipt of funds, application shall be made to the ASX for listing of 74,285,714 placement shares. Application shall be made to the ASX for listing of the attaching options following shareholder approval.

The funds raised will be applied to a program of diamond drilling, metallurgical testing and approvals to advance the Tasmanian based high-grade “Heemskirk Tin Project” and general working capital purposes.

Managing Director Peter Blight said “Stellar has successfully managed the advancement of Heemskirk on a relatively limited budget thus far. In 2017, we envision an upswing in tin pricing and therefore as a board have decided to rapidly advance the project. The Company will also use its knowledge base to actively pursue opportunities throughout the tin market.”

The placement was arranged and facilitated by Hunter Capital Advisors Pty Ltd.

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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For further details please contact:

Peter Blight Stephen Silver Managing Director Managing Director Stellar Resources Limited Hunter Capital Advisor Tel: 03 9618 2540 Email: ss@huntercap.com.au Email: peter.blight@stellarresources.com.au

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

Competent Persons Statement

The drill and exploration results reported herein, insofar as they relate to mineralisation, are based on information compiled by Mr R K Hazeldene (Member of the Australasian Institute of Mining and Metallurgy and Member of the Australian Institute of Geoscientists) who is an employee 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. It should be noted that the abovementioned exploration results are preliminary.

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.

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