STELLAR RESOURCES LIMITED — Capital/Financing Update 2019

Dec 16, 2019

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17 December 2019

$540,000 Placement and Director Changes

$540,000 Placement

Capital Structure

Shares: 380,328,733 Share Price (SRZ): A$0.010 Listed Options: 59,142,857 Option Price (SRZO): A$0.001 Unlisted Options: 15,000,000

Commodity Tin Price: US$17,273/t Exchange Rate US$ 0.69

Main Shareholders European Investors 19.5% Capetown SA 16.4%

Board & Management

Philip Harman Non-Executive Chairman

Peter Blight Managing Director

Thomas Whiting Non-Executive Director

Gary Fietz Non-Executive Director

Melanie Leydin Company Secretary

Stellar Resources Limited (ASX: SRZ, “Stellar” or the “Company) is pleased to announce that firm commitments have been received from clients of lead manager, Taylor Collison, to undertake a private placement to raise $540,000 (the “Placement”). The Placement was fully subscribed.

The Placement is being undertaken via the issue of 60 million new fully paid ordinary shares at an issue price of 0.9 cents per share to raise a total of $540,000 before associated costs. Subscribers to the Placement will also receive 1 unlisted option exercisable at 1.5 cents on or before 24 December 2022 for every 2 placement shares subscribed for. Shares and options will be placed to sophisticated investors pursuant to Chapter 7 of ASX Listing Rules. Issue and allotment of shares and options is due to occur on Tuesday 24 December 2019. In relation to the placement a total of 21,967,127 fully paid ordinary shares and 30,000,000 unlisted options will be issued under ASX Listing Rule 7.1 and 38,032,873 fully paid ordinary shares will be issued under ASX Listing Rule 7.1A.

Taylor Collison will be paid a fee of 6% of the total raised under the placement in cash, along with 5 million unlisted broker options exercisable at 1.5 cents on or before 24 December 2022 to be issued under ASX Listing Rule 7.1.

Director Changes

The Company is also pleased to announce the appointment of Mr Simon O’Loughlin and Mr Simon Taylor as Non-Executive Directors and resignation of its Managing Director, Mr Peter Blight and its Chairman, Mr Phil Harman. The changes to be effective after completion of the Placement expected to occur on 24 December 2019.

ASX Code: SRZ

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

Telephone +61 3 9692 7222 Facsimile +61 3 9077 9233

www.stellarresources.com.au

Both Messrs O’Loughlin and Taylor are participating in the Placement conducted by Taylor Collison and are subscribing to 2,700,000 and 4,000,000 fully paid ordinary shares respectively.

Messrs O’Loughlin and Taylor have a strong track record as directors of successful ASX listed resource companies including; Oklo Resources, Chesser Resources and BOD Australia. Mr O’Loughlin and Mr Taylor’s resume’s are shown on the following page.

Messrs O’Loughlin and Taylor’s appointments will strengthen the Company’s efforts in identifying new opportunities along with continuing to advance the Heemskirk Tin project.

ASX Announcement

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The Company wishes to thank Mr Blight and Mr Harman for their service and dedication over a long period of time.

Newly Appointed Director Resume’s

Simon O’Loughlin (BA(Acc), Law Society Certificate in Law)

Simon O'Loughlin is the founder of O'Loughlins Lawyers, an Adelaide based, specialist commercial law firm. He has extensive experience in the corporate and commercial law fields while practising in Sydney and Adelaide, and also holds accounting qualifications.

Mr O'Loughlin has extensive experience and involvement with companies in the small industrial and resources sectors. He has also been involved in the listing and backdoor listing of numerous companies on the ASX. He is a former Chairman of the Taxation Institute of Australia (SA Division) and Save the Children Fund (SA Division).

He has extensive knowledge of and experience in the equity capital markets and the ASX and ASIC rules and regulations. He has held many non-executive directorships on ASX listed companies over the last 20 years.

Mr O'Loughlin is currently a director of; BOD Australia Ltd, Chesser Resources Ltd and Petratherm Ltd.

Simon Taylor (B.Sc, MAIG, Gcert AppFin)

Mr Taylor is a resource executive with over 25 years’ experience in geology, management at CEO and Board levels and in the finance sector. He has had a diversified career as a resources professional providing services to resource companies and financial corporations at both a technical and corporate level. His experience spans a range of commodities including gold, fertilisers (phosphate and potash), base metals, nickel, uranium and coal. Whilst his experience includes Australia, a majority of his projects have been in international countries including Brazil, Mali, Turkey, Uganda, Tanzania, China, UK and North America. He also advises companies at the corporate level on capital management, acquisitions, promotion and opportunities to add shareholder value.

He is the Managing Director of Oklo Resources and a Non-Executive Director of Chesser Resources.

Simon is a Member of the Australian Institute of Geoscientists and a graduate of Sydney University.

This announcement is authorised for release to the market by the Board of Directors of Stellar Resources Limited.

Gary Fietz

Non-Executive Director

For further information , please contact Mr Fietz on +61 3 9692 7222