STELLAR RESOURCES LIMITED — Capital/Financing Update 2018

Aug 20, 2018

21 August 2018

Stellar Acquires New Tin EL13/2018

The Directors of Stellar Resources Limited (ASX: SRZ, "Stellar" or the "Company") are pleased to advise that the Tasmanian Minister for Resources has granted EL13/2018 to the Company. The 24km2 tenement was won in a competitive tender process that considered Stellar's exploration concept and program, the Company's capabilities and its proven track record in Tasmania over the last 12 years. EL13/2018 is strategically important to Stellar. It contains a known pre-JORC tin resource and can be easily integrated into the Heemskirk Tin Project (ML2023P/M, Figure 1) which lies immediately to the south.

Share Price (SRZ):	A$0.015
Listed Options:	59,142,857
Option Price (SRZO):	A$0.005
Unlisted Options:	15,000,000

Commodity Tin Price: US$18,677/t

Exchange Rate US$ 0.73

Main Shareholders

European Investors 19.5% Capetown SA 16.4%

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 Melanie J Leydin Company Secretary

ASX Code: SRZ

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

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

www.stellarresources.com.au

Figure 1: Location of Heemskirk Tin Mining Leases and Exploration Licences

Managing Director Peter Blight said "Granting of EL13/2018 is an important win for Stellar. It adds the Oonah tin deposit, the fourth of the known tin deposits in the Zeehan area (the others are Queen Hill, Severn and Montana), to Stellar's portfolio. More importantly, it adds the northwest trending structural corridor along which all tin deposits and major historical silver mines lie and greatly enhancing the exploration potential of the Heemskirk Tin Project."

About Stellar:

Stellar Resources (SRZ) is an exploration and development company with assets in Tasmania. 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.

EL13/2018 Montana Flats

Montana Flats is a highly mineralised tenement that hosts similar geology and mineralisation to Stellar's flagship Heemskirk Tin Project (ML2023P/M, Figure 2). Importantly, the Queen Hill, Severn and Montana tin deposits of Heemskirk lie within dilation zones associated with major northwest trending structures identified as the Oonah and Montana Faults. As Figure 2 shows, these and associated faults extend well into EL13/2018 where they host a number of historical silver/lead mines. Zeehan Western, the second largest silver/lead producer in the Zeehan field is associated with the Montana Fault and the Oonah silver mine, the fourth largest producer, lies on the Oonah Fault. The Oonah pre-JORC tin resource parallels the silver/lead lode on the Oonah Fault.

Figure 2: Interpretative Geology EL13/2018

Exploration Strategy

Historical exploration has focused on the Oonah tin deposit and along the Despatch Fault on the eastern edge of the tenement where replacement tin mineralisation in Ordovician carbonates was targeted.

Stellar's priority will be to explore to the west of the Despatch Fault, targeting repetitions of known mineralisation within the structural corridor (see Exploration Target Area in Figure 2). There is a pre-JORC Code resource estimate for the Oonah tin deposit but little exploration for repetitions of this mineralisation to the north and south along the Oonah Fault. Also, little exploration has occurred for tin around the Zeehan Western mine or along the Montana Fault to the north.

The initial phase of exploration will involve a review of geological mapping within the structural corridor and ground checking of historical reports of iron sulphides and cassiterite mineralisation.

Stellar's Tasmanian Tin Assets

Heemskirk Tin Project

Stellar Resources Limited is a tin exploration and development company that is focused on developing its flagship Heemskirk Tin Project in western Tasmania.

The project has two significant competitive advantages. First, Heemskirk has a JORC 2012 compliant Mineral Resource of 6.4mt @ 1.13% Sn which makes it the highest grade undeveloped tin project of significance listed on the ASX. Second it has an excellent location within the historic west coast mining district of Tasmania (see Figure 3).

Access to existing infrastructure including power, sealed roads and water is a significant advantage over more remote tin projects. In addition, the project is located next to the mining town of Zeehan which provides a supportive community, access to skilled miners and accommodation. The service industry, established to support existing long-term mines in the district, also provides an opportunity for access to competitive suppliers.

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

Competent Persons Statement

The Information in this report that relates to Mineral Resources 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, who is a Member of the Australasian Institute of Mining and Metallurgy ("AusIMM"), has a minimum of five years' experience in the estimation, assessment and evaluation of Mineral Resources of this style and is a Competent Person as defined in the JORC Code. This announcement accurately summarises and fairly reports his estimations and he has consented to the resource report in the form and context in which it appears.

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.

APPENDIX 1: JORC Code, 2012 Edition – Table 1

Section 1: Sampling Techniques and Data (criteria in this section apply to all succeeding sections)

Criteria	JORC Code Explanation	Commentary
Samplingtechniques	•Nature and Quality of sampling (e.g. cut channels,random chips or specific specialized industrystandard measurement tools appropriate to theminerals under investigation, such as downholegamma sondes, or hand held XRF instrumentsetc.).•Include reference to measures taken to ensuresample representivity and the appropriatecalibration of any measurement tools or systemsused.•Aspects of the determination of mineralisationthat are Material to the Public Report.•In cases where 'industry standard' work has beendone this would be relatively simple (e.g. 'reversecirculation drilling was used to obtain 1m samplesfrom which 3kg was pulverized to produce 30gcharge for fire assay'). In other cases, moreexplanation may be required, such as wherethere is coarse gold that has inherent samplingproblems. Unusual commodities or samplingtypes (e.g. submarine nodules) may warrantdisclosure of detailed information.	•EL13/2018 contains numerous historical silver/leadmines, most of which were relatively small. The largestmine was Zeehan Western which produced 4.8moz ofsilver between 1891 and 1928. Oonah, the nextlargest produced 2.0moz of silver between 1890 and1924 according to a compilation of production reportsby Aberfoyle Limited.•Stannite (tin sulphide) was discovered in a separatelode at the Oonah mine in 1897. Approximately20,000t of stannite ore was produced between 1905and 1910 for processing in the Zeehan smelter.•Historical exploration has enlarged the size of thestannite lode and showed the relationship betweenfissure lodes and the main northwest trending faults –the target of exploration planned by Stellar.•No sampling by Stellar is included in this report.
DrillingTechniques	•Drill type (e.g. core, reverse circulation, open holehammer, rotary air blast, auger, bangka, sonicetc.) and details (e.g. core diameter, triple orstandard tube, depth of diamond tails, facesampling bit or other type, where core is orientedand if so by what method, etc)	•No drilling completed
Drill samplerecovery	•Method of recording and assessing core and chipsample recoveries and results assessed.•Measures taken to maximize sample recovery andensure representative nature of the samples.•Whether a relationship exists between samplerecovery and grade and whether sample bias mayhave occurred due to preferential loss/gain offine/coarse material	•Not applicable
Logging	•Whether core and chip samples have beengeologically and geotechnically logged to a levelof detail to support appropriate Mineral Resourceestimation, mining studies and metallurgicalstudies.•Whether logging is qualitative or quantitative innature. Core (or costean, channel etc.)photography.•The total length and percentage of the relevantintersections logged.	•Not applicable

Criteria	JORC Code Explanation	Commentary
SubSamplingtechniquesand samplepreparation	•If core, whether cut or sawn and whetherquarter, half or all core taken.•If non-core, whether riffled, tube sampled, rotarysplit, etc. and whether sampled wet or dry	•Not applicable
	•For all sample types, the nature, quality andappropriateness of the sample preparationtechnique.	•Not applicable
	•Quality control procedures adopted for all subsampling stages to maximize representivity ofsamples.
	•Measures taken to ensure that the sampling isrepresentative of the insitu material collected,including for instance results of fieldduplicate/second half sampling.
	•Whether sample sizes are appropriate to thegrain size of the material being sampled
Quality ofassay dataandlaboratory	•The nature, quality and appropriateness of theassaying and laboratory procedures used andwhether the technique is considered partial ortotal.	•Not applicable
tests	•For geophysical tools, spectrometers, handheldXRF instruments, etc., the parameters used indetermining the analysis including instrumentmake and model, reading times, calibrationfactors applied and their derivation etc.
	•Nature of quality control procedures adopted(e.g. standards, blanks, duplicates, externallaboratory checks) and whether acceptable levelsof accuracy (i.e. lack of bias) and precision havebeen established.
Verificationof samplingand assaying	•The verification of significant intersections byeither independent or alternative companypersonnel	•Not applicable
	•The use of twinned holes.
	•Documentation of primary data, data entryprocedures, data verification, data storage(physical and electronic) protocols.
	•Discuss any adjustment to assay data.
Location ofdata points	•Accuracy and quality of surveys used to locatedrill holes (collar and downhole surveys) trenches,mine workings and other locations used inmineral resource estimation	•No sampling reported in this release
	•Specification of grid system used
	•Quality and accuracy of topographic control.
Data Spacinganddistribution	•Data spacing for reporting Exploration Results	•No sampling reported in this release
	•Whether data spacing and distribution issufficient to establish the degree of geologicaland grade continuity appropriate for the MineralResource and Ore Reserve estimationprocedure(s) and classifications applied.
	•Whether sample compositing has been applied

Criteria	JORC Code Explanation	Commentary
Orientationof data inrelation togeologicalstructure	•Whether the orientation of sampling achievesunbiased sampling of possible structures and theextent to which this is known, considering thedeposit type.•If the relationship between the drillingorientation and the orientation of key mineralisedstructures is considered to have introduced asampling bias, this should be assessed andreported if material.	•No drilling results included in this release
SampleSecurity	•The measures taken to ensure sample security.	•Not applicable as no sample results included in thisrelease.
Audits orReviews	•The results of any audits or reviews of samplingtechniques and data.	•No audits or reviews completed

Section 2: Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section)

Criteria	JORC Code Explanation	Commentary
Mineraltenement andland tenurestatus	•Type, reference name/number, location andownership including agreements or materialissues with third parties such as joint ventures,partnerships, overriding royalties, native titleinterests, historical sites, wilderness or nationalpark and environmental settings.•The security of tenure held at the time ofreporting along with known impediments toobtaining a license to operate the area	•EL13/2018 was offered to Columbus Metals on 31July 2018 and Columbus Metals has accepted theoffer by paying rent for the first year and arranging aBank Guarantee to cover the security bond.•EL13/2018 will be 100% owned by Stellar Resources'wholly owned subsidiary Columbus Metals Limitedon completion of the title transfer.•EL13/2018 is located 3km to the northwest ofZeehan on Tasmania's west coast. Access tohistorical mine sites within the EL is provided byexisting roads.
Explorationdone by otherparties	•Acknowledgement and appraisal of explorationby other parties.	•Early mining activity occurred in the 1890 to 1928period following the discovery of silver bearing leadveins and the stannite lode at the Oonah mine•Modern exploration of EL13/2018 was conducted byPlacer Prospecting (1963-65), Minops (1971),Aberfoyle (1974-77), CRA exploration (1979-82, BassMetals (2005-2010) and TNT Mines (2010-2017).•Diamond drilling of the Oonah stannite load byseveral explorers increased its size and led to a preJORC Code resource estimate. Exploration for tinreplacement lodes in the Ordovician carbonates eastof the Despatch Fault failed to prove the concept.
Geology	•Deposit type, geological setting and style ofmineralization.	•Silver/lead mineralization and the stannitemineralization at the Oonah mine occur as lodeswithin local faults and fissures in Oonah Formationslates and vesicular volcanics.•The mineralised lodes occur as splays off majornorthwest trending Montana and Oonah Faults.These faults parallel the axial plane of a regionalanticlinorium in Oonah Formation metasediments.

Criteria	JORC Code Explanation	Commentary
Drill holeinformation	•A summary of all information material to theunderstanding of the exploration resultsincluding a tabulation of the followinginformation for all Material drill holes:-easting and northing of the drill holecollar-elevation or RL (Reduced Level - elevationabove sea level in metres) of the drill holecollar-dip and azimuth of the hole-downhole length and interception depth-hole length•If the exclusion of this information is justifiedon the basis that the information is notMaterial and this exclusion does not detractfrom the understanding of the report, theCompetent Person should clearly explain why	•No drilling results are reported in this release.
Dataaggregationmethods	this is the case•In reporting of Exploration Results, weightingaveraging techniques, maximum and/orminimum grade truncations (e.g. cutting of highgrades) and cutoff grades are usually materialand should be stated.•Where aggregate intercepts include shortlengths of high grade results and longer lengthsof low grade results, the procedure used foraggregation should be stated and someexamples of such aggregations should beshown in detail•The assumptions used for any reporting ofmetal equivalent values should be clearlystated.	•No exploration results are reported in this release.
Relationshipbetweenmineralisationwidths andinterceptlengths	•These relationships are particularly importantin the reporting of Exploration Results.•If the geometry of the mineralization withrespect to the drill hole angle is known, itsnature should be reported.•If it is not known and only the downholelengths are reported, there should be a clearstatement to this effect (e.g. down hole length,true width not known)	•No drill results reported in this release.
Diagrams	•Appropriate maps and sections (with scales)and tabulated intercepts should be included forany significant discovery being reported. Theseshould include, but not be limited to a planview of drill collar locations and appropriatesectional views.	•None included
Balancedreporting	•Where comprehensive reporting of allExploration Results is not practicable,representative reporting of both low and highgrades and/ or widths should be practiced toavoid misleading reporting of ExplorationResults	•No exploration results reported in this release.

Criteria	JORC Code Explanation	Commentary
Othersubstantiveexplorationdata	•Other exploration data, if meaningful andmaterial, should be reported including (but notlimited to): geological observations; geophysicalsurvey result; geochemical survey results; bulksamples – size and method of treatment;metallurgical test results; bulk density,groundwater, geotechnical and rockcharacteristics; potential deleterious orcontaminating substances.	•No exploration results reported in this release
Further work	•The nature and scale of planned further work(e.g. test for lateral extensions or depthextensions or large scale step out drilling).•Diagrams clearly highlighting the areas ofpossible extensions, including the maingeological interpretations and future drillingareas, provided this information is notcommercially sensitive.	•All historical drill hole and mine plan data is beingcompiled into a 3D data base for the Oonah andZeehan Western mines.•Ground confirmation of historical geological mappingand rock chip sampling around historical mine sites.•Exploration of the northwest trending target zone(see Figure 2) and sampling along the Oonah andMontana Faults