STELLAR RESOURCES LIMITED — Capital/Financing Update 2019

Sep 30, 2019

1 October 2019

Heemskirk Tin Scoping Study Confirms Attractive Economics

Stellar Resources Limited (ASX: SRZ, "Stellar" or the "Company) is pleased to report the results of its recently completed Scoping Study on the Heemskirk Tin Project.

The Heemskirk Tin Project is based on development of an underground mine, processing plant, tailings storage facility and surface infrastructure to mine ~ 350ktpa ore from the Queen Hill and Severn tin deposits (2 of the 4 Heemskirk deposits) over a 10 year mine-life, producing tin concentrate to be trucked to the port of Burnie for export. The Project also includes open-pit mining of the St Dizier satellite deposit and trucking to the processing plant at Heemskirk during the final year (year 11) of the project.

The Heemskirk Tin Project Scoping Study valuation resulted in a base case pre-tax NPV10% of approximately A$83m (post-tax NPV10% of approximately A$71m), at a tin price of US$20,000, determined to an accuracy of ±35%. The pre-tax IRR of the project is approximately 45% and a payback period is approximately 3.0 years. Capital cost required for the project is approximately A$57m. First ore to the processing plant is expected to occur approximately 6 months from the start of decline development and concentrate sales should commence approximately 3 months later.

Cautionary Statements

The Scoping Study referred to in this announcement has been undertaken for the purpose of ascertaining whether a business case can be made to proceed to more definitive studies on the viability of the Heemskirk Tin Project. It is a preliminary technical and economic study of the potential viability of project and is based on low level technical and economic assessments that are not sufficient to support the estimation of ore reserves. Further exploration and evaluation work and appropriate studies are required before Stellar will be in a position to estimate any ore reserves or to provide any assurance of an economic development case.

Stellar believes it has reasonable grounds under ASIC information Sheet 214 to report the results of the Scoping Study Update. (continued next page)

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.

Capital Structure

Shares:	380,328,733
Share Price (SRZ):	A$0.015
Listed Options:	59,142,857
Option Price (SRZO):	A$0.002
Unlisted Options:	15,000,000

Commodity Tin Price: US$16,270/t Exchange Rate US$ 0.68

Main Shareholders

European Investors 19.5% Capetown SA 16.4%

Board & Management Phillip G Harman Non-Executive Chairman Peter G Blight Managing Director Gary L Fietz 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 9692 7222 Facsimile +61 3 9649 7200

Cautionary Statements (Continued)

The mine plan on which the updated valuation is based contains 58% Indicated Mineral Resources and 42% Inferred Mineral Resources over the life of the project. The first 4 years of mining are based on 100% Indicated Mineral Resources and the 5th Year of mining is based on 89% Indicated Mineral Resources. Thereafter, the later part of the mine plan (years 6 to 10) is based on increasing amounts of Inferred Mineral Resources, reaching 100% Inferred Mineral Resource in years 9 and 10 of the project. In year 11 of the mine plan, mining is entirely from the St Dizier satellite deposit which is a 100% Indicated Mineral Resource. The Inferred Mineral Resource is not a determining factor in the viability of the Heemskirk Project. The Heemskirk project is viable based purely on the Indicated Mineral Resource and the payback period of the project of approximately 3.0 years is based purely on the Indicated Mineral Resource.

There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the Production Target itself will be realised.

The Scoping Study is based on the material assumptions outlined in Appendix 1 of this announcement. These include assumptions about the availability of funding. While Stellar considers all of the material assumptions to be based on reasonable grounds, there is no certainty that they will prove to be correct or that the range of outcomes indicated by the Scoping Study will be achieved.

To achieve the range of outcomes indicated in the Scoping Study, funding of in the order of A$57m will likely be required for project development in addition to pre-development funding of approximately $8m for exploration to convert the mineral resource to an ore reserve and to complete a Bankable Feasibility Study. Investors should note that there is no certainty that Stellar will be able to raise that amount of funding when needed. It is also possible that such funding may only be available on terms that may be dilutive to or otherwise affect the value of Stellar's existing shares. It is also possible that Stellar could pursue other 'value realisation' strategies such as a sale, partial sale or joint venture of the project. If it does, this could materially reduce Stellar's proportionate ownership of the project.

Given the uncertainties involved, investors should not make any investment decisions based solely on the results of the Scoping Study.

EXECUTIVE SUMMARY

Heemskirk is one of the best undeveloped tin projects in the world and ranks top three in the global development queue. Stellar has advanced Heemskirk well along the development path by identifying a high-grade total mineral resource of 6.6mt @ 1.1% Sn, establishing environmental guidelines for a Development Proposal and Environmental Management Plan and gaining support from the Tasmanian Government by securing Mining Leases.

The Heemskirk Tin Project Scoping Study key findings are summarized in Table 1 and mark a major step forward in advancing the project. The project has a total life of mine ore production of 3.7mt, mined and processed at a rate of ~350ktpa over an 11-year mine life. The first 10 years of mining is from the Queen Hill and Severn deposits with another year added through low cost development of the St Dizier deposit in the final year of the project.

Life of mine tin in concentrate production is estimated to be ~24,000t at a competitive all-in sustaining cash cost (AISC) of ~US$13,100/t of contained tin. The AISC compares favorably with a Scoping Study tin price assumption of US$20,000/t and bottom of the cycle prices of ~US$16,000/t.

On a low pre-production capital base of A$57m, the Heemskirk Tin Project generates a pre-tax NPV10% of approximately A$83m (post-tax NPV10%) of approximately A$71m), at a tin price of US$20,000/t, to an accuracy of ±35%. The pre-tax internal rate of return of the project is

approximately 45%. The ratio of pre-tax NPV10% to pre-production capital of approximately 1.5 and the 3-year payback of capital are also attractive metrics for the Heemskirk Tin Project.

	Unit	Total LOM
Ore Production	(Mt)	3,695,386
Sn Grade (LOM Ave)	(%)	0.94
Tin Recovery (LOM Ave)	(%)	69.4
Tin Producted	(Tonnes)	24,000
Mine Life	(Yrs)	11
Tin Price	(US$/t)	20,000
Exhange rate	USD:AUD	0.70
Tin Price	(A$/t)	28,571
Gross Revenue	(A$M)	691
Total Operating Costs (AISC)	(A$M)	454
Total Operating Costs (AISC)	(US$/t Tin)	13,100
Operating Cash Flow	(A$M)	237
Operating Margin	(%)	34%
Capital Cost	(A$M)	57
Net Cash Flow (Pre-Tax)	(A$M)	180
Pre-Tax NPV10%	(A$M)	83
Post-Tax NPV10%	(A$M)	71
IRR (Pre-Tax)	(%)	45
Payback Period	(Yrs)	3.0
Pre-Tax NPV / Capex		1.5

Table 1: Heemskirk Scoping Study - Key Outcomes

Commentary

Managing Director Peter Blight said "The Scoping Study shows that Heemskirk is a very robust project with a low pre-production capital cost of $57m and an all-in-cash operating cost of US$13,100/t tin. The project is expected to be profitable through-out the tin price cycle and has a cost structure that is comparable to neighboring Renison Tin, Australia's largest and longest-lived tin mine. Low initial capital cost is a function of sequential development of the underground Queen Hill and Severn deposits and adherence to just in time capital development. Prefabrication of processing plant modules offsite and rapid assembly onsite also contributes to low up-front cost. Development of the near-surface Queen Hill deposit first means that ore can be delivered to the mill within six months of commencing the decline and initial sales can occur within another three months. Having a processing plant at Heemskirk also provides an opportunity to develop the St Dizier tin deposit.

The scoping study has shown that the Heemskirk Tin Project has attractive economics and remains robust within the majority of tin price and exchange rate scenarios considered in our sensitivity analysis. The next step for Heemskirk, subject to funding, is to convert the remaining inferred mineral resource to and ore reserve and complete a Pre-Feasibility Study".

LOCATION AND MINING LEASES

The Heemskirk Tin Project Scoping Study is based primarily on mining the Queen Hill and Severn tin deposits which lie within ML2023P/M immediately northwest of Zeehan, on the West Coast of Tasmania. The Montana tin deposit, also within ML2023P/M, and the Oonah tin deposit in EL13/2018 are not included in this study. Figure 1 shows the proposed processing plant site within ML2023P/M (yellow dot) and its connection to the proposed tailings disposal site within ML2M/2014 via a pipeline route (blue line) secured by ML2040P/M. All of the Heemskirk ML's provide exclusive access to tin and other metals for an initial period of 12 years and are due for renewal in January 2029.

Ore from the satellite St Dizier tin deposit, located 20km to the northwest of Zeehan (see Figure 1), is included in the last year of the project. The St Dizier deposit is positioned within 1km of the allweather, sealed Heemskirk Road which connects the project to Zeehan. St Dizier is secured by ML 10M/2017, a 2km2 lease with sufficient space for development of an open pit mine and waste stockpiles. ML 10M/2017 provides exclusive access to mine tin and other metallic minerals for an initial period of 6 years and is due for renewal in August 2024.

Figure 1: Location of Heemskirk Tin Project and St Dizier Mining Leases

PROJECT OUTLINE

The Heemskirk Tin Project is based on development of an underground mine, processing plant, tailings storage facility and surface infrastructure to mine ~ 350ktpa ore from the Queen Hill and Severn tin deposits (2 of the 4 Heemskirk deposits) over a 10 year mine-life, producing tin concentrate to be trucked to the port of Burnie for export. The project also includes open-pit mining of the St Dizier satellite tin deposit and trucking to the Heemskirk processing plant during the final year (year 11) of the project.

The following Base Case has been selected for the Heemskirk Scoping Study:

• The first 10 years of the project are based on mining the Queen Hill and Severn deposits (2 of the 4 Heemskirk deposits).
• Development of an underground mine commencing at Upper Queen Hill with access from the surface via a single decline. Access to Severn is later developed via an underground connection from the Queen Hill decline and an internal decline at Severn. A second connection from Queen Hill to Severn is also required for recovery of upper Severn later in the mine life.
• Mining is via the long hole stoping underground mining method and at a nominal production rate of 350ktpa ore mined from the Queen Hill and Severn deposits.
• Ore is treated at a processing plant to be constructed adjacent to the decline portal on the northwest side of Queen Hill.
• Tin concentrate from the processing plant will be trucked to the Port of Burnie, located 150km to the north via a sealed road and exported to smelters in Asia.
• Tailings will be thickened and pumped to the proposed tailings disposal site using a 6.7km long slurry pipeline.
• Open-pit mining from the St Dizier satellite deposit commences in the last year of the project (Year 11) at a nominal production rate of 409ktpa ore mined with a limited 1-year mine life. St Dizier ore will be trucked 20km to the Heemskirk processing plant via an existing sealed road.

GEOLOGY AND EXPLORATION

The Heemskirk Tin deposits are granite related cassiterite and basemetal stockwork and replacement style mineralisation hosted in older sediments and volcaniclastics of the Zeehan Sub Basin, Western Tasmania. Mineralisation is generally stratabound.

Figure 2: Schematic Geology Cross-Section 3700N, Showing Queen Hill and Severn Tin Deposits

A schematic geological W-E cross section through the Queen Hill and Severn deposits included in this scoping study is shown in Figure 2.

A total of 58 diamond drillholes (18,709m) have been completed by Stellar over the Heemskirk deposits since 2010. A further 133 historic diamond drillholes (31,485m) have been completed prior to 2010 by other companies over the Heemskirk deposits.

Mineralisation in all of the Heemskirk Tin deposits remains open down dip and down plunge.

Renison Tin, Australia's oldest and largest tin mine is located 18km to the NE of Heemskirk and shares the same ore genesis and geology. The Heemskirk deposits have been drilled to a maximum depth of 500m and are open at depth to granite source rocks assumed from geophysics to be 1km from surface. Renison started with a 4.0mt reserve or 5-year mine life in 1968 and successful underground exploration has increased mine life to 50 years with at least another 15 years to go. The Heemskirk deposits total 71kt of contained tin or just 20% of the tin found at Renison to date.

RESOURCES

Heemskirk Mineral Resources (Queen Hill and Severn Deposits)

An updated total mineral resource for the Heemskirk tin deposits of 6.6mt @ 1.1% Sn (70,930t of contained Sn) at a cut-off grade of 0.6% Sn was defined in accordance with the JORC Code 2012 by technical consultant, Resource and Exploration Geology, in May 20191 (see Table 2).

Classification	Deposit	Tonnage	Total Sn	Contained	Cassiterite	Cu	Pb	Zn
		mt	%	Sn t	% of total Sn	%	%	%
Indicated	Upper Queen Hill	0.32	1.0	3,230	87	0.2	2.1	1.0
	Lower Queen Hill	0.65	1.4	9,230	97	0.0	0.1	0.1
	Severn	1.15	1.0	11,500	99	0.1	0.0	0.1
Total Indicated		2.12	1.1	23,960	97	0.1	0.4	0.2
Inferred	Upper Queen Hill	0.11	1.6	1,760	94	0.2	1.9	0.7
	Lower Queen Hill	0.36	1.4	5,040	97	0.0	0.2	0.0
	Severn	2.74	0.9	24,660	99	0.0	0.0	0.0
	Montana	0.68	1.5	10,200	96	0.1	0.7	1.4
	Oonah	0.59	0.9	5,310	36	0.8	0.1	0.1
Total Inferred		4.48	1.0	46,970	90	0.1	0.2	0.3
Total Indicated + Inferred		6.60	1.1	70,930	92	0.1	0.3	0.3

Table 2: Heemskirk Tin Project Mineral Resource Statement (JORC 2012), May 2019

1.cassiterite = (total Sn% - soluble Sn%)/total Sn%

1. block cut-off grade of 0.6% tin

2. tonnes rounded to reflect uncertainty of estimate

3. estimates prepared by Resource and Exploration Geology under JORC 2012

The May 2019 Heemskirk resource update showed a 64% increase in Indicated Mineral Resource to 2.1mt @ 1.1% Sn (23,960t of contained Sn) compared with the previous 2016 estimate. The increase in Indicated Mineral Resource arose from a reclassification of Severn mineralisation (1.15mt @1.0% Sn) following a program of closer spaced diamond drilling in 2017.

This scoping study is based on mining the Indicated Mineral Resources and part of the Inferred Mineral Resources from only 2 of the Heemskirk deposits; Queen Hill (Upper and Lower) and Severn. The other 2 Heemskirk tin deposits included in Table 2 below, Montana and Oonah, have not been

1 SRZ Announcement, 16 May 2019 - Updated Heemskirk Resource Increases Indicated Category and Confidence in the Project

included in this scoping study as they have had less drilling undertaken and remain at a purely Inferred Mineral Resource level.

An isometric view of the Heemskirk tin deposits highlighting the Indicated Mineral Resource components within the Queen Hill and Severn deposits is shown in Figure 3. It should be noted that only part of the Inferred Mineral Resource component for the Severn deposit shown Figure 3 has been included in this scoping study.

There has been no material change to assumptions since the resource estimate was completed in May 2019.

Figure 3: Heemskirk May 2019 Mineral Resource Model @ 0.6% Sn Cut-off Grade

St Dizier Mineral Resource

This scoping study includes mining from the St Dizier satellite tin deposit which will be mined as an open pit mine and processed in the Heemskirk plant during the last year of the project.

A total Indicated and Inferred Mineral Resource for St Dizier of 2.3mt @ 0.61% Sn (13,786t of contained tin) at a cut-off grade of 0.3% Sn was defined in accordance with the JORC Code 2012 by technical consultant, Resource and Exploration Geology, in March 20142 (see Table 3).

Classification	Tonnage		Total Sn Contained Soluble		Cassiterite1	WO3	Fe	S
	mt	%	Sn t	Sn %	% of total Sn	%	%	%
Indicated	1.20	0.69	8,280	0.09	87	0.04	23.70	2.64
Inferred	1.06	0.52	5,512	0.22	58	0.05	22.22	1.81
Total Resource	2.26	0.61	13,786	0.15	75	0.04	23.00	2.25

Table 3: St Dizier Mineral Resource Statement (JORC 2012), March 20143

1.cassiterite = (total Sn% - soluble Sn%)/total Sn%

1. block cut-off grade of 0.3% tin

2. tonnes rounded to reflect uncertainty of estimate

3. estimates prepared by Resource and Exploration Geology under JORC 2012

2 SRZ Announcement, 6 March 2014 – Heemskirk Tin Project: New Open Pitable Resource at St Dizier

3 SRZ Announcement, 22 January 2019 - St Dizier Tin Mining Lease Granted and Scoping Study Results

This scoping study is based on open-pit mining of only part of the St Dizier Indicated Mineral Resource and none of the Inferred Mineral Resource has been included in this scoping study.

There has been no material change to assumptions since the 2014 resource estimate was completed.

MINING

Heemskirk

A mining study on mining the Queen Hill and Severn deposits based on the updated May 2019 Heemskirk mineral resource was recently completed by technical consultants, Mining One. Mining One have previously undertaken mining studies on the Heemskirk deposits in 2014 and 2016 and a number of inputs developed from these previous studies were used in the 2019 mining study.

The 2019 mining study on the Queen Hill and Severn deposits included;

• Selection of an underground mining method,
• Review and verification of the 2019 Block model for mining process interrogation work,
• Update mining cut off grades,
• Running Mining Stope Optimiser (MSO) on the updated 2019 resource model with previously established stoping parameters and updated cut off grades,
• Modifying mine development designs from previous studies to suit revised stoping areas,
• Running Life of Mine ("LOM") schedules with priority on Indicated material and on grade with Inferred material to follow,
• Calculating mining physicals based on the revised stopes and schedule, and
• Running a mining cost model and determination of mining operating cost and capital cost estimates.

Mining Method

A long hole stoping underground mining method with either Cemented Aggregate Fill or Cemented Rockfill in most areas was selected for this scoping study.

Mining Cut-Off Grade Determination

The breakeven cut-off grades shown in Table 4 (middle column) were estimated using mill recovery and tin price information provided by Stellar. Higher mining cut-off grades shown in Table 4 (RHS column) were then selected for use in the mining study in order to give some grade elevation above breakeven cut-off grades, following a number of test MSO runs at various cut-off grades. A lower, 0.25% Sn cut-off grade was applied to development material.

AreaBreak Even Cut-off Grade		Cut-off grade used in MSO process
Severn	0.50 %Sn	0.70 %Sn
Upper Queen Hill	0.75 %Sn	0.80 %Sn
Lower Queen Hill	0.60 % Sn	0.70 % Sn

Table 4: Heemskerk Tin Project – Cut-Off Grades

Mining Stope Optimisation

Mining stopes were optimized using the Datamine Mining Shape Optimiser (MSO) using the following parameters:

• Minimum stope width 2 m
• Maximum stope width 100 m
• Stope height 20 m
• Strike length 15 m
• Pillar width 5 m
• Cut-off grades As per Table 4

10% mining dilution, at a 0% Sn dilution grade, and 90% mining recovery factors were then applied to the mining stope tonnages and grades calculated by MSO.

Mine Development

Mine development designs from previous mining studies were modified and optimized to suit revised stoping areas as shown in Figure 4. This included;

• New location of decline portal selected, which will enable the quick start of mining Indicated material at Upper Queen Hill,
• Mine access via a single decline to Upper Queen Hill, with an initial underground connection access to Severn, followed by an internal decline at Severn and a second connection from Queen Hill to Severn for recovery of upper Severn later in mine life,
• Mine ventilation provided by using two exhaust shafts connected to surface respectively for Queen Hill and Severn and an emergency escape way system designed as a second egress and fresh air intake.
• Decline dimensions of 5.5mW x 5.5mH
• Ore drives dimensions of 4.5mW x 4.5mH

Figure 4: Conceptual Heemskirk Mine Design Showing Stopes based on Indicated Mineral Resource (Grey) and Inferred Mineral Resource (Brown)

Preliminary Mining Schedule

Mine production was scheduled for the Queen Hill and Severn deposits based on the following parameters:

• Annual ore production and processing rate of approximately 350ktpa
• Processing Plant start up 6 months from commencement of mine development
• Indicated Mineral Resource classification areas mined before Inferred Mineral Resource classification areas
• A significant amount of lower grade, higher cost Inferred Mineral Resource ore from the lower part of Severn was physically excluded from the preliminary mining schedule
• Priority of production by higher value i.e. grade and soonest access
• Jumbo development capacity: 275m/Jumbo/month
• Single heading maximum advance: 120m/month
• Stope resources (drilling, blasting and bogging) capacity: 1,800t/d
• Single stope capacity: 300t/d

The preliminary mining schedule for Queen Hill and Severn includes total mineral resources of 3.29Mt @0.95% Sn after application of the mining dilution and mining recovery factors and mining cut-off grades described above. The preliminary mining schedule for Queen Hill and Severn extends for a 10-year mine life at a nominal 350ktpa annual production rate as shown in Figure 5.

Mining from the St Dizier satellite deposit has also been included in the final year (year 11) of the preliminary mining schedule as shown in Figure 5.

The preliminary mining schedule is based on Indicated and Inferred Mineral Resources. Over the 11 year life of the project:

• 58% of total ore mined is from Indicated Mineral Resources
• 42% of total ore mined is from Inferred Mineral Resources

The first 4 years of mining are based on 100% Indicated Mineral Resources and the 5th Year of mining is based on 89% Indicated Mineral Resources. Thereafter, the later part of the mine plan (years 6 to 10) is based on increasing amounts of Inferred Mineral Resources, reaching 100% Inferred Mineral Resources in years 9 and 10 of the project. In year 11 of the mine plan, mining is all from the St Dizier satellite deposit which is a 100% Indicated Mineral Resource. The Inferred Mineral Resource is not a determining factor in the viability of the Heemskirk Project. The Heemskirk project is viable based purely on the Indicated Mineral Resource and the payback period of the project of approximately 3.0 years is based purely on the Indicated Mineral Resource.

During the first 4 years of mine-life, there is a small quantity (23,674 tonnes) of Inferred Mineral Resource that is required to be mined as part of the mine development roadways needed to access Indicated Mineral Resource ore stopes. This small quantity of Inferred Mineral Resource development ore is treated as follows in the scoping study:

• The costs of mining this ore over the first 4 years are included in the study
• This ore has been entirely removed from the first 4 years of the preliminary mining schedule
• No revenue has been included in the study from this ore during the first 4 years
• This ore will be stockpiled over the first 4 years and then fed to the processing plant evenly over years 5, 6 and 7 when the ore is then shown in the preliminary mining schedule and revenue from this ore is then included

Cautionary Note: There is a low level of geological confidence associated with inferred mineral resources and there is no certainty that further exploration work will result in the determination of Indicated Resources or that the production target itself will be realised.

Mining Cost Model

Outputs from the Queen Hill and Severn (Heemskirk) mining schedule were loaded into a detailed cost model developed for owner-operated underground mines of similar scale based on Mining One's experience. The cost model is based on an owner-operated underground mine at Heemskirk with key results including:

• Heemskirk Mining Capital Cost of A$8.1m (cost of decline from surface to first Upper Queen Hill ore)
• Costs of A$13.7m for; (a) underground mobile mining equipment purchase (A$11.9m), (b) hire costs for a Jumbo during the period that a second Jumbo is required (A$0.5m), (c) rebuilding costs for trucks and loaders over the life of the mine (A$0.6m), and (d) contingency added by Stellar (A$0.6m), have been excluded from mining capital costs and instead included in Heemskirk mining operating costs as a finance lease cost based on a 10 year lease at a 10% p.a interest rate
• Heemskirk Mining Operating Cost of A$62/t (inclusive of equipment finance lease cost as above. Excludes St Dizier)

St Dizier

A scoping study for the St Dizier Tin Project was announced in January 20193 which forms the basis of the mining and other assumptions used for inclusion of St Dizier in the final year (Year 11) of this scoping study. There have been no material changes in the St Dizier Scoping Study technical and production assumptions or parameters since the January 2019 study.

A mining study on the St Dizier Deposit completed by Polberro Consulting in July 2015 formed the basis of the mining assumptions in the January 2019 St Dizier Scoping Study. This included; pit optimisation, open pit mine design, consideration of geotechnical factors, bench geometry, mine production rate and mining operating and capital costs.

The Polberro St Dizier mining study focused purely on part of the Central Lode Indicated Resource (see Figure 6). An open pit mining method is well suited to Central Lode mineralisation which crops out at the surface, has its highest grades within 50m of the surface, occurs as multiple lenses over widths of 3m to 40m and is surrounded by relatively competent wall rocks. It is also the lowest cost mining method available for the style of mineralisation.

Key results from the Polberro St Dizier mining study, as included in the January 2019 St Dizier Scoping Study, are as follows:

• An in-pit diluted indicated mineral resource of 409,179t @ 0.90% Sn with an average strip ratio of 4.7:1 after application of 10% mining dilution and 95% mining recovery factors
• All material from St Dizier included in this scoping study is 100% Indicated Mineral Resource
• Mining capital costs of A$3.3m for drainage diversion, pit development and construction of a waste stockpile immediately to the east of the St Dizier pit which can be completed within 3 months
• Mine closure capital cost of A$0.5m
• Contractor operated mining costs estimated at A$26/t ore mined inclusive of waste removal,
• Trucking cost of A$5/t for trucking St Dizier ore a distance of 20km to the processing plant at Heemskirk

• The accuracy of the mining operating cost and capital cost estimates was ±35%

Figure 6: Long Projection St Dizier Tin Deposit

METALLURGY

Heemskirk

The Heemskirk Tin Project's Queen Hill and Severn tin deposits are broadly similar with cassiterite being the principle tin mineral (97% of total tin) in association with coarser grained sulphides (pyrite and pyrrhotite), silicates and carbonates (siderite) and accessory fluorite and rutile. Minor amounts of lead and zinc sulphide occur in the Upper Queen Hill deposit but become less common below 1100RL.

Between 2010 and 2013, Stage 1 metallurgical test work was conducted on drill core under a number of programs at ALS Metallurgical Laboratory in Burnie, Tasmania. These programs identified three ore types that largely varied on the basis of cassiterite grain size and liberation characteristics. Upper Queen Hill is the finest ore type with >50% cassiterite liberation not seen until a grind size of <53µm compared to Severn at the coarser end of the range at >50% liberation <75µm. Subsequent test work on Lower Queen Hill showed cassiterite grain size between these end members.

In 2013, GR Engineering reviewed the initial programs conducted on all ore types. Following that review, Worley Parsons supervised an optimisation testing program covering 8 diamond drill holes across the Severn deposit that led to a material upgrade in expected recovery from 74% to 80% for Severn ore. In 2015, Worley supervised a test program on diamond drill core from the Lower Queen Hill deposit and reviewed test results from Upper Queen Hill resulting in expected recoveries of 66% for Lower Queen Hill and 53% for Upper Queen Hill.

Table 5 summarises the recovery and concentrate grade estimates from test work completed and the Life of Mine average head grades for each ore type.

Parameter	Unit	Upper	Lower	Severn	St Dizier	LOM
		Queen Hill	Queen Hill			Schedule
Head Grade	% Sn	0.98%	1.15%	0.83%	0.90%	0.94%
Recovery	%	53%	66%	80%	50%	69%
Conc Grade	% Sn	48%	48%	49%	50%	49%

Table 5: Average Head Grade, Recovery and Concentrate Grade by Deposit

In 2017 and 2018, preliminary test work on ore sorting technology was conducted on split and broken core samples from Lower Queen Hill and Severn by Tomra and Steinert Australia using their respective technologies. The results for both technologies were encouraging and support further testing once more sample is available. Ore sorting technology is not included in the current processing flowsheet or the Scoping Study results.

Stage 2 metallurgical testing involving pilot scale equipment and large samples for each of the three Heemskirk ore types will be required to support a bankable feasibility study. This test work will require additional sample from new drill holes.

St Dizier

St Dizier ore is similar in complexity to that at Upper Queen Hill. Stage 1 test work on diamond drill core from St Dizier was conducted by ALS Metallurgical Laboratory in Burnie and supervised by Worley. The test work showed the following outcomes:

• Mineralisation in the sample is quite variable and provides a wide range of responses
• High tin losses to magnetite, slime and tin float tails resulted in overall recovery of 43%
• Gravity concentrate tin grade of 55% is possible through pre-gravity sulphur removal

• Tin float grade could be significantly upgraded by optimising deslime, talc management and acid leaching of concentrate
• Stage 2 optimisation has the potential to increase tin recovery up to 50% into a 50% tin in concentrate product

Further discussion of St Dizier metallurgical results was provided in the January 2019 St Dizier Scoping Study announcment3 .

PROCESSING PLANT

Process Plant Flowsheet

Due to similarities between ore types, metallurgical test work at Heemskirk and St Dizier has used a modified version of the Renison Tin processing flowsheet. The Renison plant has operated for more than 50 years and under-gone several adaptions over its history to deal with changing ore-types. Such demonstrated flexibility will be a significant advantage for the Heemskirk processing plant.

The flowsheet for the Heemskirk processing plant was designed by GR Engineering and later reviewed by Mincore in July 2016 as shown in Figure 7.

Figure 7: Heemskirk Tin Project – Process Flow Diagram (Mincore)

The main elements of the Heemskirk processing plant flowsheet include:

• 2 stage crushing followed by grinding (open-circuit rod mill feeding a closed-circuit ball mill)
• Primary sulphide flotation, regrind of sulphide concentrate and flotation of fine sulphide
• Coarse and fine gravity separation using spirals and wet tables to produce a concentrate
• Gravity middling regrind and recycle
• Flotation of deslimed fine cassiterite

• Sulphuric acid leach of concentrate to remove carbonate
• Concentrate dressing using sulphide flotation and magnetic separation

Processing Plant and Surface Infrastructure Capital Cost Estimate

In July 2016, engineering consultants, Mincore, completed plant layout, typical equipment drawings and a +/-35% capital cost estimate for a 200ktpa Heemskirk Processing Plant and Surface Infrastructure based on the Mincore processing plant flowsheet shown in Figure 7. An illustrative view of the processing plant and surface infrastructure designed by Mincore is shown in Figure 8.

Mincore were re-engaged by Stellar in August 2019 to scale their June 2016 estimate up to a 350ktpa Heemskirk Processing Plant and Surface Infrastructure capital cost estimate which has been used as the basis for this scoping study.

The Mincore (August 2019) 350ktpa Processing Plant and Surface Infrastructure capital cost estimate as shown in Table 6, includes; the processing plant, site infrastructure and buildings, concentrate handling, tailings handling and the 6.7km tailings pipeline.

Figure 8 : Proposed Heemskirk Tin Processing Plant (Mincore)

The Mincore (August 2019) 350ktpa Processing Plant and Surface Infrastructure capital cost estimate excluded the following items which have been estimated separately and included in the Processing Plant and Surface Infrastructure capital costs in the Project Economics section:

• HV power supply to the site - Connection to the grid via an existing transformer station is available through TasNetworks at indicative costing of A$0.5m

• Workshops and Stores The Mincore 2019 estimate was increased by A$0.28m (to A$0.35m), plus 10% contingency, for owner operated mining equipment maintenance
• Site laboratory an internal estimate of A$0.40m plus 10% contingency was included for an on-site laboratory

Table 6: 350ktpa Heemskirk Processing Plant & Surface Infrastructure Capital Cost Estimate (Mincore, August 2019)

Description	Cost (A$)
Bulk Earthworks	264,544
Crushing and Grinding	4,082,336
Sulphide Flotation	2,579,335
Gravity Separation	4,444,552
Ton Floatation	2,037,613
Concentrate Dressing , Filtration & Handling	2,660,907
Reagent Systems	1,440,061
Power & Reticulation	4,551,508
Water Supply	439,452
Tailings Treatment and Pipeline	3,104,836
Fuel Farm	77,729
Compressed Air	219,482
Site Buildings	421,583
Mobile Plant Equipment	193,198
Plant Piping	1,198,252
Construction Equipment	1,246,493
Contingency	1,578,637
Subtotal Direct Cost	30,540,517
Engineering	3,540,594
Commissioning	1,173,951
Preliminaries & General	1,179,205
Owners Costs	1,147,589
Subtotal Indirect Cost	7,041,339
Total Base Case	37,581,856

Processing Plant Operating Cost Estimate

Mincore (August 2019) also completed an operating cost estimate for a 350ktpa Heemskirk Processing Plant based on scaling of a previous 200ktpa Heemskirk Processing Plant operating cost estimate completed by Worley Parsons in 2015. The Mincore (August 2019) operating cost estimate for a 350ktpa Heemskirk Processing Plant is shown in Table 7.

Table 7: 350ktpa Heemskirk Processing Plant Operating Cost Estimate (Mincore, August 2019)

Input	A$/t ore	%
Labour	8.1	23%
Power	7.1	20%
Reagents & Grinding Media	12.4	35%
Maintenance	3.3	9%
Linings	2.2	6%
Other	2.5	7%
Total	35.5	100%

TAILINGS

Tailings Pipeline

Tailings will be thickened to recover process water and pumped via a 6.7km slurry pipeline to the planned tailings storage facility located within ML 2M/2014. Tailings water is to be reclaimed from the tailings storage facility and pumped back via return water pipeline for use in the process. Capital and Operating cost estimates for the tailings pipeline are included in the Mincore 2019 Processing Plant and Surface Infrastructure sections above.

Waste rock is to be crushed on site for use as mine fill.

Tailings Storage Facility

An area has been selected for a tailings storage facility located in a concealed valley on crown land with no competing land use and no observed endangered flora or fauna. The site is secured by ML2M/2014 and has no observed geological structures that might make the site unsuitable. The valley is naturally shaped to contain tailings with only a relatively small embankment required to be constructed at the northern limit, minimizing the cost of construction, as shown in Figure 9.

A route selection, design and capital cost estimate for the tailings pipeline and tailings storage facility construction was completed by GHD Engineering for John Miedecke and Partners in July 2015.

Initially the embankment at the northern end of the tailings storage facility would only need to be constructed to a height of 5-10m. This would need to be increased up to 20m high over the life of the mine. Volume estimates show that the proposed tailings storage facility should have in excess of 25 years storage capacity at a process plant production rate of 0.6mtpa (almost twice the 0.35mtp rate that this scoping study is based on).

GDH Engineering (July 2015) estimated the capital cost for the Tailings Facility as A$1.4m for the initial embankment construction. Stellar has added a 10% contingency to this.

GDH Engineering (July 2015) also estimated a further cost to increase the Tailings Facility embankment height about half-way through the mine life of A$2.8m. This cost, plus a 10% contingency added by Stellar, has been included in year 4 of the project. This has been included as a sustaining capital and allocated to operating costs (see Project Economics section).

Figure 9: Proposed Heemskirk Tailings Storage Facility Plan (Initial Stage) and Site Photograph

MINE SURFACE INFRASTRUCTURE

Zeehan is serviced with good all-weather roads, communication services and town water.

Adequate power is available for the project through the nearby 22kV state grid. Connection to the grid has been included in the Processing Plant & Surface Infrastructure capital cost estimate.

Process water reticulation and recycling, potable water supply and reticulation and fire water supply and reticulation has been included the Mincore Processing Plant and Surface Infrastructure capital cost estimate.

The following site infrastructure and building are included the Mincore Processing Plant and Surface Infrastructure capital cost estimate; site earth works, site roads, surface water catchment, administration building, workshop and stores, site ablutions, crib room, mill control room, furniture and equipment and an oil separator.

Costs for a site-laboratory and increased workshop and stores were estimated internally and added to the Mincore Processing Plant and Surface Infrastructure capital cost estimate as described in that section above.

Employee accommodation is not included in the capital cost estimate for the Heemskirk Tin Project as it is assumed that Zeehan has sufficient surplus housing (30% of homes are unoccupied) to accommodate the work force. The West Coast Council is supportive of using the existing housing stock in Zeehan.

St Dizier will be operated as a contract mining site. All infrastructure to support mining including a workshop, fuel storage and transportable office will be provided by the contractor. The contractor will also be responsible for accommodating employees which is likely to be in Zeehan.

CONCENTRATE TRANSPORT

The combined concentrate from the Heemkirk processing plant is filtered to remove moisture and packed in bulk bins for road transport to Burnie. In Burnie, the concentrate is transferred to shipping containers for export to smelters in SE Asia or China.

Zeehan has over 100 years of mining history and three operating mines within 30km. The port of Burnie is 150km to the north of Zeehan and has adequate services to handle containerised shipments of Heemskirk concentrate. The two towns are connected by a recently upgraded all-weather road and several trucking contractors operate on this route to service the concentrate transport requirements of the existing mines.

MARKETING

A tin price of US$20,000/t has been used as the Base Case for this scoping study.

As shown in Figure 10, the US$20,000/t Base Case tin price selected for this study is well supported by price history with the average LME spot tin price having been; (a) US$20,409/t for the last 10 years, (b) US$20,046/t for the last 3 years, (c) US$19,928/t for the last 2 years, and (d) US$19,409/t over the last 1 year to 6 September 2019.

Figure 10 : LME Tin Price and Exchange Stocks

Concentrate transport costs of A$125/tonne for; (a) trucking of concentrate from Zeehan to the port of Burnie based on indicative rates from Tasmanian transport company DeBruyn, and (b) shipping costs to smelters in Asia based on indicative rates for container shipping to an Asian tin smelter from transport company, Toll Group.

Smelter treatment charges of 6.0% of the gross revenue have been included in the economic evaluation. This is based on indicative treatment and refining terms provided by an Asian tin smelter.

ENVIRONMENT

In the 1890s, the Heemskirk project area was the site of numerous silver-lead workings with five significant underground mines. At the same time, hydraulic alluvial mining was undertaken near St Dizier. In the time since, both sites have undergone extensive rehabilitation including the removal of all surface structures, the capping of several mine shafts and natural revegetation.

Stellar Resources commissioned John Miedecke and Partners Pty Ltd to undertake a Stage 1 environmental review of the Heemskirk and St Dizier project areas. The Miedecke reports reviewed a number of existing studies and called for additional surveys on flora, fauna, water quality, tailing storage site suitability and acid mine drainage as outlined below:

• Flora and Fauna baseline studies were undertaken at the Heemskirk mine site, tailings storage site and at St Dizier by Phil Milner Landscape Consultant Pty Ltd. No significant occurrence of endangered species was noted during the surveys and on-going monitoring is planned.
• Water quality (acidity and metal content) and biodiversity was surveyed at Heemskirk and St Dizier and a baseline established at both sites by Acquatic Science Pty Ltd and Todd Walsh Kununnah Pty Ltd. Further monitoring is planned

• An Archaeological survey of historical mining sites was conducted in 1999 over much of the Heemskirk project site by Tasmania Department of Infrastructure, Energy and Resources. The 1999 archeological survey focused on areas of an acid mine drainage remediation works program being undertaken by the department as a means of treating contaminated subterranean mine water from historic workings which discharges into local water catchments. The survey included the majority of the Queen Hill and Oonah deposit areas and the proposed processing plant location were included in the 1999 survey. The survey did not include the Severn deposit area. The 1999 archeological survey recommended protection of a number of historical mining sites. It is not expected that the sites recommended for protection would have a material impact on the proposed development of the Queen Hill and Severn mines, processing plant and surface infrastructure as outlined in this scoping study. A more detailed archeological survey of the full project area will need to be undertaken and plans for protection of historically significant mining sites agreed with Tasmania Department of Infrastructure, Energy and Resources. This is planned to be undertaken as part of the PFS for the project.
• No significant sites requiring preservation were identified
• No significant aboriginal heritage sites are registered with Aboriginal Heritage Tasmania at Heemskirk or St Dizier. A survey to substantiate this finding is planned
• An environmental geochemical assessment of mine rock types and tailings was undertaken by Geo-Environmental Management Pty Ltd at Heemskirk and St Dizier to determine acid the generating capability of all potential waste material and how that material should be handled at surface
• Baynes Geologic Pty Ltd surveyed the proposed Heemskirk tailings storage site for suitability and concluded that it was an excellent site topographically. Subsequent flora and fauna surveys added to the merits of the site

Stage 1 surveying concluded that there are no environmental issues that would prevent development of the Heemskirk or St Dizier projects.

Stellar has registered the projects with the Tasmanian Environmental Protection Authority by lodging a notice of intent. The EPA has responded by issuing guidelines for the preparation of a Development Proposal and Environmental Management Plan for each of Heemskirk and St Dizier.

Stage 2 environmental surveying will be conducted in accordance with EPA guidelines and compiled into a DPEMP submission to the EPA and the West Coast Council in support of final mining approvals.

COMMUNITY

The Heemskirk tin deposits surround Queen Hill a prominent topographical feature (70m elevation above town) that marks the northwest extremity of Zeehan. Housing is sparse on the town side of Queen Hill and non-existent on the northwest side of the hill.

All surface infrastructure including the mine portal, processing plant, surface stockpiles, workshops and offices are sited on the northwest side of Queen Hill above the Trial Harbour Road. The location prevents the transmission of noise and dust emissions into the town precinct. Mine access routes are also designed to prevent any interaction between mine vehicles and private vehicles operated within the town.

Underground mine development, particularly of the Severn tin deposit, will extend below the sparsely populated town side of Queen Hill. Much of this activity will occur below 200m from the surface and should have no impact on surface dwellings. Stellar expects to confirm this assessment with vibration and seismic modelling as part of a DPEMP.

Zeehan has a population of 728 people many of whom are involved in the mining industry and would support an increase in mining activity in the area. Stellar has conducted a number of diamond drilling programs on the town side of Queen Hill with the cooperation and support of local residents. The Company also has a good relationship with the West Coast Council who would like to see a Heemskirk workforce making use of the many unoccupied dwellings in the town.

St Dizier is located in open heathland within the Mount Heemskirk Regional Reserve. The nearest residential settlements are Granville Harbour 10km to the west and Zeehan, 20km to the southeast. Access to Heemskirk Road from the St Dizier mine site will be designed to manage any interaction between mine vehicles and private vehicles.

PROJECT ECONOMICS

Summary

An economic evaluation of the Heemskirk Tin Project has been undertaken by Stellar based on the scoping study input assumptions described in this announcement. The base case valuation results, as at the date of the construction decision point, are shown in Table 8. The valuation results have an accuracy of ±35%.

	Unit	Total LOM
Ore Production	(Mt)	3,695,386
Sn Grade (LOM Ave)	(%)	0.94
Tin Recovery (LOM Ave)	(%)	69.4
Tin Producted	(Tonnes)	24,000
Mine Life	(Yrs)	11
Tin Price	(US$/t)	20,000
Exhange rate	USD:AUD	0.70
Tin Price	(A$/t)	28,571
Gross Revenue	(A$M)	691
Total Operating Costs (AISC)	(A$M)	454
Total Operating Costs (AISC)	(US$/t Tin)	13,100
Operating Cash Flow	(A$M)	237
Operating Margin	(%)	34%
Capital Cost	(A$M)	57
Net Cash Flow (Pre-Tax)	(A$M)	180
Pre-Tax NPV10%	(A$M)	83
Post-Tax NPV10%	(A$M)	71
IRR (Pre-Tax)	(%)	45
Payback Period	(Yrs)	3.0
Pre-Tax NPV / Capex		1.5

Table 8 : Heemskirk Tin Project – Summary of Technical and Financial Parameters

At an All-In Sustaining Cost (AISC) of approximately US$13,100/tonne of tin produced over the Life of Mine, the Heemskirk Tin Project Base Case generates an attractive expected operating margin of approximately 34% based on the US$20,000/t tin price assumed.

The Heemskirk Tin Project Scoping Study has demonstrated attractive economics with a Base Case pretax NPV10% of approximately A$83m, at a tin price of US$20,000, determined to an accuracy of ±35%. The pre-tax IRR of the project is approximately 45% and the payback period is approximately 3.0 years. The project has a Base Case post-tax NPV10% of approximately A$71m as a result of tax shielding from A$24.2m Stellar group accumulated losses and capital depreciation on the project. A 30% tax rate and depreciation over the life of the project have been assumed.

Capital costs required for the project have been significantly reduced to A$57m and ore production accelerated with mine and process plant production commencing 6 months from the start of construction and concentrate sales commencing 9 months from the start of construction.

Capital Costs

A breakdown of the Capital Cost estimate is shown in Table 9. (note: Capital Costs are also stated in US$ for comparison purposes). The accuracy of the capital cost estimate is up to ±35%.

	(A$M)	(US$M)
Mining	8	6
Processing & Surface Infrastructure	34	24
Tailings	5	4
Working Capital	9	6
Contingency	1.7	1
Total Development Capital Cost	57	40

Table 9 : Heemskirk Tin Project – Capital Cost Summary

Capital costs estimates for the project have been estimated using a combination of first principals, quotes and industry benchmarks as follows:

• Mining capital cost estimated by Mining One (see Mining section). The A$8M Mining capital cost is the full mining cost for the first 6 months of the operation (decline construction) which has been capitalized.
• Processing Plant and Surface Infrastructure capital cost primarily estimated by Mincore (see Processing Plant and Surface Infrastructure Capital Cost Estimate section).
• Tailings capital cost Includes tailings pipeline cost estimated by GHD Engineering and scaled by Mincore (see Processing Plant and Surface Infrastructure Capital Costs section) and tailings storage facility costs estimated by GHD Engineering with contingency added by Stellar (see Tailings section).
• Working Capital cost working capital comprises A$6m mining costs and A$3m of processing costs during months 7 to 9 of the project while the processing plant is commissioned, and a sufficient stockpile is built to commence concentrate sales in month 10 of the project.
• Contingency Contingency totaling A$1.7m (4.5%) has been included in the Processing Plant & Surface Infrastructure and Tailings Capital Cost estimates. Mining One have assumed conservative mine capital development rates of 120m/month for a single heading so no additional contingency has been applied in the Mining Capital or Working Capital estimates.

Operating Costs

A breakdown of the Operating Cost estimate is shown in Table 10. The accuracy of the operating cost estimate is up to ±35%.

	Total LOM(A$M)	Annual Ave(A$M)	A$/t Ore	US$/t Sn
Mining	213	19.4	58	6,179
Ore Transport	2	0.2	1	59
Processing	128	11.7	35	3,711
Administration	8	0.8	2	243
Concentrate transport & treatment	48	4.3	13	1,380
Royalties	41	3.8	11	1,196
Sustaining Capital	13	1.3	4	375
Total All In Sustaining Cash Costs (AISC)	454	41	123	13,143

Table 10: Heemskirk Tin Project – Operating Costs Summary

Operating costs estimates for the project have been estimated using a combination of first principals an industry benchmarks as follows:

• Mining operating cost estimated by Mining One for Heemkirk and by Polberro Consulting for St Dizier (see Mining section)
• Ore Transport cost is only applicable to trucking of St Dizier Ore in final year of project and was estimated by Polberro Consulting (see Mining Section)
• Processing Plant and Tailings pipeline operating cost estimated by Mincore (see Processing Plant Operating Cost section)
• Administration cost estimated internally
• Concentrate transport and treatment costs (see Marketing section)
• Royalties including:
  • o Mineral Resources Tasmania published mineral royalty rates of 5.35% on revenues net of realization costs
  • o Vendor royalty of 1.23% on revenues net of realization costs and state royalties
• Sustaining Capital cost estimated internally based on industry rule of thumb (1.5% pa of the total development capital cost). In addition, the following deferred capital expenditure has been included as sustaining capital and included in the Total All-In Sustaining Cost (AISC); A$2.8m in year 4 for increasing tailings storage embankment height (see Tailings section), A$3.3m in year 10 for St Dizier mine construction (see Mining Section), and A$0.5m for St Dizier mine remediation and closure (see Mining Section).

Sensitivity Analysis

The two most sensitive factors in the Heemskirk Tin Project Scoping Study valuation are the London Metal Exchange tin price and the USD:AUD exchange rate. Table 11 shows the likely range of pre-tax NPV10% outcomes for variations of up to +/- 20% around the Base Case tin price (US$,20,000/t) and up to +/- 14% around the Base Case USD:AUD exchange rate (0.70).

AUD:USD	Tin Price (US$/t)
Exchange Rate	16,000	18,000	20,000	22,000	24,000
0.76	-9	23	55	88	120
0.73	2	35	69	102	136
0.70	13	48	83	118	153
0.67	26	62	99	135	172
0.64	39	78	116	154	192

Table 11 : Pre-Tax NPV10%	(A$m) Sensitivity to Tin Price and USD:AUD Exchange Rate
---------------------------	-----------------------------------------------------------	--

The sensitivity analysis demonstrates that the project economics remain robust within the tin price and exchange rate scenarios considered, other than at the combination of the highest exchange rate and lowest commodity prices. This combination is considered relatively unlikely and would also make most operating tin producers uneconomic.

Option Analysis

Stellar have previously studied a larger scale 0.6mtpa Heemskirk development option. Stellar does not currently have sufficient Indicated Mineral Resources to make economic statements relating to a 0.6mtpa Heemskirk development option due to the larger mineral resource required.

Mining One studied 3 cases in the recently completed 2019 Heemskirk mining study. These included:

• Case 1 225ktpa Contractor Operated Case 16 Year Mine Life with higher Total Unit Mining Cash Costs of A$82/t due to impact of fixed costs being incurred over an additional 6 years of operation compared with Cases 2 and 3
• Case 2 350ktpa Contractor Operated Case 10 Year Mine Life with Total Unit Mining Cash Costs reduced to A$72/t due to impact of 6 years of fixed costs being removed compared with Case 1
• Case 3 (Base Case) 350ktpa Owner Operated Case 10 Year Mine Life as per Case 2, with Total Unit Mining Cash Costs further reduced to A$63/t4 as a result of lower estimated cost structure with owner operated operations than with contractor operations, which include a contractor margin, as in Case 2. This case has been selected as the Base Case for this scoping study

4 A$63/t Total Unit Mining Cost calculation includes; (a) A$8M capitalised mining cost, (b) A$6M mining cost included in working capital, and (c) A$13.1M of mobile equipment.

PROJECT FUNDING

To achieve the range of outcomes indicated in the Scoping Study, funding of in the order of A$57m will likely be required for project development in addition to pre-development funding of approximately A$8m for exploration to convert the mineral resource to an ore reserve and to complete a Bankable Feasibility Study. Whilst there is no certainty that project development funding will be obtained on satisfactory terms, at the time required, or at all, the Stellar Directors believe that it is reasonable to assume the availability of funding for the development of the Heemskirk Tin Project for the purposes of the Scoping Study.

Stellar Directors believe that it is most likely that the abovementioned pre-development and development funding required for the Heemskirk Project may be achieved via;

• 1. A significant investment in the Company by a strategic investor to acquire up to 50% of the Company, with initial funds invested being used to cover the majority of pre-development costs for the project. The Directors wish to note that the Company has been in discussions with a major potential strategic investor for some time and these discussions are ongoing.
• 1. Debt financing is expected to fund the majority of the project development costs.
• 1. The remaining equity financing component of the project development costs is expected to be funded by;
  • a. The strategic investor funding its share of equity financing (up to 50%).
  • b. The Company's share of equity financing being raised by share placements, which the Directors believe is reasonable to assume based on the successful track record of the Company and its Directors of raising equity finance in the past.

Factors which support this assumption, without stating that funding will be necessarily obtained, include:

• The high internal rate of return, short payback period and relatively low capital requirement of the project that make it attractive for investors looking for tin exposure
• The track record of the Company and its Directors in raising funding through share placements - $12.1 has been raised by the Company in 5 placements over the past 8 years.
• The current level of engagement of the Stellar board and management with potential strategic partners who may wish to invest
• The chance of attracting off-take agreement financing (a common form of financing in the tin industry) as the project moves to final feasibility

As referred to above, there is no certainty that Stellar will be able to obtain funding when needed. It is possible that funding may dilute or otherwise affect the value of Stellar's existing shares. It is also possible that Stellar could pursue other 'value realisation' strategies such as a sale, partial sale or joint venture of the project. If it does, this could materially reduce Stellar's proportionate ownership of the project.

KEY RISKS

Key project risks are recognised as part of the Scoping Study. These include but are not limited to the following:

Tin Market and Exchange Rate

The study assumes a tin price of US$20,000/t and an exchange rate of 0.70 US dollars to the Australian dollar will prevail for the life of the project. Stellar believes that these assumptions are reasonable. However, there is a risk that prices or exchange rates could move to adversely affect project economics. The Sensitivity Analysis section shows that the project remains robust over a range of tin prices and exchange rates.

Metallurgical Recovery

The metallurgical recoveries included in the scoping study for Upper Queen Hill, Lower Queen Hill, Severn and St Dizier are based on initial Stage 1 metallurgical test-work undertaken at a reputable laboratory which Stellar believes are reasonable assumptions. However, more test-work is required to test for variability and to optimise the process flow-sheet. Until drill samples are obtained and this stage 2 metallurgical test-work is completed there is a risk to the tin recovery assumption.

Resource Risk

There is a risk that geological and grade continuity of the Queen Hill, Severn and St Dizier resources may vary from current estimates as further infill drilling is completed. This risk will be addressed in the next stages of exploration and studies which establish mineral reserves.

Environment

Stage 1 environmental surveying has been undertaken and concluded that there are no environmental issues that would prevent development of the Heemskirk or St Dizier projects. Stage 2 environmental surveying, including more testing of the acid generating capacity of the various mine waste rock types, will be conducted in accordance with EPA guidelines and compiled into a DPEMP submission to the EPA and the West Coast Council in support of final mining approvals. Until the Stage 2 environmental surveys are completed there remains a risk to the cost of waste storage or other potential environmental issues arising from the Stage 2 surveys resulting in potential delays in obtaining regulatory approvals.

Funding

The Scoping Study assumes that Stellar obtains funding to; (a) progress the project to a development decision and (b) construct the project. There is no certainty that this funding will be available to Stellar in a timely manner for the project.

NEXT STEPS

An indicative budget, subject to funding, for the completion of pre-development exploration, studies and permitting is outlined in Table 12.

The next step, subject to funding, is completion of drilling to define a ~3.3Mt resource at Queen Hill and Severn targeting a 100% Indicated Mineral Resource / 100% Probable Reserve, and a Pre-Feasibility Study (PFS) for the Heemskirk Tin Project. The indicative budget for drilling and PFS completion is ~A$4.1M and this would take approximately 18 months to complete.

Following the completion of a successful PFS, further drilling to define ~1Mt of Proven Reserve at Queen Hill and Severn covering the first 2-3 years of mine production, and a Bankable Feasibility Study (BFS) should be completed for the Heemskirk Project. The indicative budget for drilling and BFS completion is ~A$4.1M and this would take approximately a further 12 months to complete.

The total indicative budget for completion of all pre-development exploration and studies (including PFS and BFS) and permitting is A$8.2m and this would take approximately 2.5 years to complete.

Project construction is expected to take 6 months to complete so the total time to commencement of production from the Heemskirk Tin Project is approximately 3 years subject to availability of funding.

Pre Feasibility Study (18 months)	(A$)
Drilling (17 holes, 6,800m) 3.3Mt Heemskirk Probable Reserve	1,700,000
Site Overhead and Geology Costs	450,000
Metallurgical Testwork	300,000
Geotechnical, Hydrological holes and testing	200,000
Environmental baseline surveys	150,000
PFS Costs	450,000
Corporate Overhead Costs	900,000
Total PFS Cost	4,150,000
Bankable Feasibility Study (12 months)	(A$)
Drilling (20 holes, 5600m) Heemskirk 1Mt Proven Reserve	1,400,000
Site Overhead and Geology Costs	300,000
Metallurgical Testwork	100,000
Geotechnical, Hydrological holes and testing	400,000
Environmental baseline surveys	150,000
Permiting	350,000
BFS Costs	800,000
Corporate Overhead Costs	600,000
Total BFS Cost	4,100,000
Total Pre-Development Cost	8,250,000

Table 12 : Heemskirk Tin Project - Indicative Pre-Development Budget

A further ~A$0.5M for St Dizier exploration and studies, as outlined in the 22 January 2019 St Dizier Scoping Study announcement3 , would be required to be funded from the project cashflows a few years prior to commencing St Dizier mine production planned in year 11 of the project.

Stellar Resources Tenement Map, Western Tasmania

Heemskirk Tin Project

Stellar Resources Limited is a tin exploration and development company focused on developing its flagship Heemskirk Tin Project and satellite tin deposits at Razorback and St Dizier in western Tasmania. Heemskirk has two significant competitive advantages. First, is a JORC 2012 compliant Mineral Resource of 6.6mt @ 1.1% Sn which makes it the highest grade undeveloped tin project of significance listed on the ASX. Second is its excellent location within the historic west coast mining district of Tasmania and access to significant infrastructure and services.

For further details please contact:

Peter Blight Managing Director Stellar Resources Limited Tel: 03 9692 7222 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 (Principal, Resource and Exploration Geology Pty Ltd), 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 estimated mineral resources underpinning the production target have been prepared by Tim Callaghan (Principal, Resource and Exploration Geology Pty Ltd), in accordance with the requirements or the JORC Code 2012.

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.

For more information of specific risks associated with forward looking statements refer to the Key Risks section of this report and to the Key Risks section in the 2015 St Dizier tin mine Scoping Study refer to the Key Risk section in the 22 January 2019 SRZ announcement "St Dizier Tin Mining Lease Granted and Scoping Study Results".

APPENDIX 1: MATERIAL ASSUMPTIONS

In accordance with ASX Listing Rules 5.16 and 5.17 and in addition to information in JORC Code, 2012 Edition, Table 1 appended to this report, the following table of Material Assumptions is provided.

Criteria	Assumptions
Study Status	The Production Target and financial information in this announcement is basedon a scoping study. The scoping study referred to in this announcement is basedon low-level technical and economic assessments and is insufficient to supportthe estimation of Ore Reserves or to provide assurance of an economicdevelopment case at this stage or to provide certainty that the conclusions of thescoping study will be realised.
Mineral Resource estimateusedforassessmentofpotential production Target	The preliminary mining used in this study is based on Indicated and InferredMineral Resources. Over the 11-year life of the project:•58% of total ore mined is from Indicated Mineral Resources•42% of total ore mined is from Inferred Mineral ResourcesThe first 4 years of mining are based on 100% Indicated Mineral Resources andthe 5th Year of mining is based on 89% Indicated Mineral Resources. Thereafter,the later part of the mine plan (years 6 to 10) is based on increasing amounts ofInferred Mineral Resources, reaching 100% Inferred Mineral Resources in years 9and 10 of the project. In year 11 of the mine plan, mining is all from the St Diziersatellite deposit which is a 100% Indicated Mineral Resource. The Inferred MineralResource is not a determining factor in the viability of the Heemskirk Project. TheHeemskirk project is viable based purely on the Indicated Mineral Resource andthe payback period of the project of approximately 3.0 years is based purely onthe Indicated Mineral ResourceSee pages 10 and 11 for further details.
	Heemskirk (Queen Hill and Severn) Underground Mining Factors assumed arebased on 2019 Mining Study by Mining One (see pages 8-11 for further details):
	•Mining Cut-Off Grades	Severn (0.70% Sn)Upper Queen Hill (0.80%)Lower Queen Hill (0.70%)
	•Mining recovery	90%
	•Mining dilution	10% (at 0% Sn dilution grade)
	•Minimum stope width	2 m
Mining factors used in the	•Maximum stope width	100 m
determinationofthe	•Stope height	20 m
Production Target	•Strike length	15 m
	•Pillar width	5 m
	•Decline dimensions	5.5mW x 5.5mH
	•Ore drives dimensions	4.5mW x 4.5mH
	•Jumbo development capacity	275m/Jumbo/month
	•Single heading max advance	120m/month
	•Stoping capacity	1,800t/d
	•Single stope capacity	300t/d
	•Mining costs	Based on owner operated cost model

	St Dizier Open Pit Mining Factors assumed are based on 2015 Mining Study byPolberro Consulting (see pages 11-12 for further details):
Mining factors used in the	•Open cut mining method.
determinationoftheProduction Target	•Optimised pit design with 4.7:1 waste: ore ratio (710m long x 170m wide x90m deep pit).
	•Mining recovery of 95% and 10% dilution.
(Continued)	•	Mining cost estimates were based on industry best practice and validated
		against Polberro Consulting's database for West Coast Tasmania.
	•	Trucking costs of A$5/t ore 20km to Heemskirk processing plant.
Processing plant recoveries have been estimated based on Stage 1 test work withkey results as follows:
	•Upper Queen Hill	53% Recovery and 48% Sn Concentrate Grade
	•Lower Queen Hill	66% Recovery and 48% Sn Concentrate Grade
Processing factors used in	•Severn	80% Recovery and 49% Sn Concentrate Grade
the determination of the	•St Dizier	50% Recovery and 50% Sn Concentrate Grade
Production Target		350ktpa processing plant capacity based on the metallurgical flowsheet designedfrom Stage 1 test work by GR Engineering and later modified by Mincore.
	Stage 2 metallurgical testing is required to more accurately determine processing
	plant recoveries.
	See pages 13 to 16 for further details.
	Capital cost estimates were developed using a combination of first principals,quotes and industry benchmarks. See page 23 for further details.
	Capital costs include:
	•Mine development (Heemskirk decline and St Dizier pit development,drainage diversion and waste stockpile construction).
	•Processing Plant and Surface Infrastructure construction.
	•Tailings pipeline and storage facility construction.
	•Rehabilitation and closure costs for St Dizier Open Pit mine.
	•Working Capital (mining and processing costs for months 7-9 of theproject).
	•Contingency:
Capital Cost Estimates	oConstruction.	4.5% on Process Plant and Surface Infrastructure and Tailings
	oMiningOne	No specific contingency included on mine development costs ashaveassumedconservativeminecapitaldevelopment rates of 120m/month for a single heading.
	•Indirect costs (Engineering, Commissioning, Preliminaries and Generaland Owners Costs) of an additional 23% of Direct Costs included forProcessing Plant, Surface Infrastructure and Tailings pipeline.
	Ongoing sustaining capital cost are included in operating costs based onindustry rule of thumb of 1.5% pa of the total development capital cost.
		The costs presented are real costs and are exclusive of escalation.
	Capital cost has been completed based on estimates of up to ±35% level ofaccuracy.
	Capital costs exclude; head office costs and social responsibility costs.

	Operating costs are estimated to production of a London Metal Exchange (LME)tin product delivered to tin smelters in Asia.
	Operating costs include:
	•Mining Costs (Underground mining costs for Heemskirk deposits andOpen pit mining and transport of ore 20km to a processing plant for StDizier deposit).
Operating Cost Estimates	•Processing costs including tailings handling and disposal.
	•Transport and shipping of a tin concentrate for smelting in Asia.
	•Smelting and refining charges.
	•Royalties.
	The costs presented are real costs and are exclusive of escalation.
	The operating cost has been completed based on estimates of up to ±35% level of
	accuracy.
	See page 24 for further details.
	Valuations are calculated using discounted cash flow (NPV) and internal rate ofreturn methods. Payback period is also considered.
	Valuation assumptions include:
	•Discount rate of 10%
Economic Evaluation	•Cash flows are pre-corporate tax, real, Australian dollars
	•Valuation date as at construction decision point
	•Exchange rate of 0.70 US dollars to the Australian dollar
	•State Government royalty of 5.35% on revenues net of realization costs
	•Vendor royalty of 1.23% on revenues net of realization costs and stateroyalties
	See pages 22-25 for further details.
	Concentrate produced in the Heemskirk Processing Plant is to be transported toBurnie by road, containerized and shipped to tin smelters in Southeast Asia andChina. The main marketing assumptions are:
Marketing	•LME tin sale price of US$20,000/t of tin
	•Concentrate transport costs of A$125/tonne concentrate
	•Smelting Charges (treatment and refining) of 6% of the LME tin sale price
	See pages 18-19 for further details.
	Heemskirk Infrastructure includes; power connection to grid, process water,potable water and fire water systems, site earth works, site roads, surface watercatchment, administration building, workshop and stores, site ablutions, cribroom, mill control room, furniture and equipment, oil separator, and sitelaboratory.
Infrastructure	St Dizier will be operated as a contract mining site. All infrastructure to supportmining including a workshop, fuel storage and transportable office will beprovided by the contractor.
	Employee accommodation is not included as it is assumed that Zeehan hassufficient surplus housing.
	See page 18 for further detail

Environmental	Stage 1 environmental surveying has not identified any significant hurdles for theproject. Stage 2 environmental surveying will address the requirements for thepreparation of a Development Proposal and Environmental Management Plan(DPEMP).
See page 19-21 for further detail
Legal	The Heemskirk (Queen Hill and Severn) tin deposits lie within mining leaseML2023P/M.The proposed tailings disposal site lies withinmining leaseML2M/2014 and the proposedpipeline routelies within mining leaseML2040P/M. All the Heemskirk ML's provide exclusive access to tin and othermetals for an initial period of 12 years and are due for renewal in January 2029.The proposed St Dizier mine and associated surface structures lie within ML10M/2017. The Mining Lease was granted for an initial period of 6 years and isdue to expire on 31 August 2024.See page 4 for further detail.
Government	Stellar's Mining Leases permit the Company to carry out exploration and samplingin order to complete all studies required for a bankable feasibility study.Stellar can apply for Mining Permits on acceptance of a DPEMP by the TasmaniaEPA and the West Coast Council.

APPENDIX 2 – HEEMSKIRK (QUEEN HILL AND SEVERN) JORC CODE, 2012 EDITION–TABLE 1

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

CriteriaSamplingtechniques	JORC Code Explanation•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.	Commentary•The Heemskirk Tin deposits have been delineatedentirely by diamond drilling. Numerous drillingcampaigns were completed between 1960 and 1992by Placer, Gippsland, Minops, CRAE and Aberfoyle.Post 2010, drilling was completed by Stellar with thelast drillhole ZS139A completed in 2017.•Pre-2010 drilling 133 diamond drill holes for31,485.5m•Post 2010 drilling 58 holes for 18,709.21m.•Logged sulphide and siderite altered zones wereselected for geochemical analysis•Approximately 1m samples of 2-3kg were taken fromdiamond saw cut drill core whilst respectinggeological boundaries
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.)	•All drill sampling by standard wireline diamonddrilling. All Post-2010 holes oriented by wire linespear. 2017 drilling oriented using Coretell Gen 4device.•Total of 9485 assay records derived from halfdiamond drill core includes core sizes of 4857 NQ,2264 BQ, 1731 HQ, 102 PQ, 20 AX/EX and 238 notrecorded.
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	•Core reconstituted, marked up and recoverymeasured for most drillholes except earliest drillholes, G1, G3, G4, G11W, G15, G15W, G18, G20,G22, G24, G25, G26, G27 and G33•Recoveries generally excellent (95-100%)•No relationship between recovery and grade wasobserved
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.	•Geological logging has been carried out on all holesby experienced geologists and technical staff.•Holes logged for lithology, weathering, alteration,structural orientations, RQD and mineralisation.•All holes photographed wet and dry before cutting.•Logs loaded into excel spreadsheets and uploadedinto access database.•Pre-2010 paper logs entered into access database byexperienced geologists.•Standard lithology codes used for all drillholes.

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•For all sample types, the nature, quality andappropriateness of the sample preparationtechnique.•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	•Half core split by diamond saw over 0.3 – 1.0msample intervals while respecting geologicalcontacts. Most sample intervals are 1.0m.•Assay sample weights between 1 and 4kg areconsidered appropriate with respect to any coarsetin that may be present.•Half core crushed and pulverized over the Pre- andPost-2010 drilling campaigns. Post-2010 samplescrushed to 70% passing 2mm and rifle split to 1kgwhich was then pulverized to 85% passing 75ubefore division of fusion disk XRF sample.
Quality ofassay dataandlaboratorytests	•The nature, quality and appropriateness of theassaying and laboratory procedures used andwhether the technique is considered partial ortotal.•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.	•Post-2010 total Sn analyses were conducted at ALSLaboratories using a fused disc XRF technique, whichis the current industry standard for ore-grade tin.Fused disc XRF is considered a total technique, as itextracts and measures the whole of the elementcontained within the sample.•Pre 2010 total Sn analyses were conducted at variouscommercial and company laboratories by pressedpowder XRF. Care is required for matrix matchedstandards when using this technique. CRAEanalytical techniques at the Oonah deposit are notspecified•Soluble Sn, Cu, Pb, Zn and Ag analysed by acid leachfollowed by AAS.•Pre and Post 2010 drilling campaign assay samplessubmitted to rigorous Independent laboratory checksampling only.•No certified reference material, blanks or duplicatesamples were employed in the drilling campaignsprior to 2017.•Post 2017 drilling involved the insertion of standards,blanks and duplicates. All analyses were withinacceptable limits.

Criteria	JORC Code Explanation	Commentary
Verificationof samplingand assayingLocation ofdata points	•The verification of significant intersections byeither independent or alternative companypersonnel•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.•Accuracy and quality of surveys used to locatedrill holes (collar and downhole surveys) trenches,	•Significant intersections reviewed by companypersonnel.•Metallurgical test work completed on somequartered core.•Eight twinned holes have been included in theHeemskirk drilling program with six holesdemonstrating moderate to high Sn grade variabilitybetween 20 and 50%. Two holes demonstratingextreme grade and or geological variability.•Data is collected by qualified geologists andexperienced field assistants and entered into excelspreadsheets. Data is imported into Microsoft accesstables resource geologists for errors. Data is regularlybacked up and archival copies of the database storedin separate offices.•Negative values in the database have been adjustedto half the detection limit for statistical analysis fromthe excel spreadsheets. Data checked by thedatabase and resource geologists for errors. Data isregularly backed up and archival copies of thedatabase stored in separate offices.•Negative values in the database have been adjustedto half the detection limit for statistical analysis.•All Post 2010 drill collars surveyed by licensedsurveyor using differential GPS.
	mine workings and other locations used inmineral resource estimation•Specification of grid system used•Quality and accuracy of topographic control.	•Pre 2010 drill collars surveyed by licensed surveyorwith the exception of 13 early drill holes located towithin 1m by local grid tape and compass for QueenHill deposit.•All Oonah drillholes located on local grid. Collarlocations digitized from referenced historic plans (+/-10m).•All coordinates in Zeehan Mine Grid (ZMG) andGDA94•RL's as MSL +1000m•Down hole surveys by downhole camera or Tropari.2017 holes by Deviflex.•The Digital Terrain Model has been generated fromlands department 10m contours and adjusted withsurveyed drill collar and control points.
Data Spacinganddistribution	•Data spacing for reporting Exploration Results•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	•Drillhole intersection spacing approximately 20 to50m for the Queen Hill deposit above 930m andsouth of 3770m.•Drillhole intersection spacing approximately 30-60mfor Severn deposit above 870m RL, below 980mRLand south of 3770mN.•Drillhole intersection spacing 20-50m for upperOonah deposit•Drillhole intersection spacing generally 100m forMontana and down plunge of Queen Hill, Severn andOonah.•Drill spacing is considered to be appropriate for theestimation of Indicated Mineral resources for someof Queen Hill and Severn deposits only.•Drill spacing is considered to be appropriate for theestimation of Inferred Mineral Resources for theremainder of Queen Hill and Severn, and all of theMontana and Oonah Deposits.

		•Samples have been composited on 1m intercepts forthe resource estimation.
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.	•The majority of drill holes have been drilled grid eastwest or west east sub-perpendicular to the steeplyeast dipping mineralisation in the Severn and QueenHill Deposits.•Drill holes sampling the Montana deposit have beendrilled southeast-northwest sub perpendicular to thestrike of the steeply dipping deposit.•Three drillholes, ZS132, ZS135 and ZS135A weredrilled at a low angle to the strike of the orebody.•Drill hole orientation is not considered to haveintroduced any material sampling bias with theexception of the two oblique holes which haveresulted in localised data clustering. Drillhole ZS132sampled only part of the hangingwall of domain 202and is possibly not representative of what maypotentially be recovered.
SampleSecurity	•The measures taken to ensure sample security.	•Post 2010 chain of custody is managed by Stellarfrom the drill site to ALS laboratories in Burnie.•All samples ticketed, bagged in calico bags anddelivered in labelled poly-weave bags.•Pre 2010 sample security is not documented.
Audits orReviews	•The results of any audits or reviews of samplingtechniques and data.	•No audits or reviews of sampling data andtechniques have been 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	•ML2023P/M, RL5/1997 and EL13/2018 hosting theHeemskirk Tin Project in Western Tasmania is 100%owned by Stellar Resources Ltd.•A previous JV partner holds a variable rate royaltyover production from ML2023P/M commencing at1% of NSR (net smelter revenue) above A$25,000/tof Sn and rising to a cap of 2% at an NSR ofA$30,000/t.
Explorationdone by otherparties	•Acknowledgement and appraisal of explorationby other parties.	•Early mining activity commenced in the 1880's withthe production of Ag-Pb sulphides and Cu-Snsulphides from fissure loads.•Modern exploration commenced by Placer in themid 1960's with the Queen Hill deposit discoveredby Gippsland in 1971.•The Aberfoyle-Gippsland JV explored the tenementsuntil 1992 with the delineation of the Queen Hill,Severn and Montana deposits.
Geology	•Deposit type, geological setting and style ofmineralization.	•The Heemskirk Tin Deposits are granite related tinsulphide-siderite vein and replacement style depositshosted in the Oonah Formation and Crimson CreekFormation sediments and volcanics. Numerous PbZn-Ag fissure lodes are associated with the peripheryof the mineralizing system. Mineralisation isessentially stratabound controlled by northeastplunging fold structures associated with northwesttrending faults. Tin is believed to be sourced from agranite intrusion located over 1km from surfacebelow the deposit.

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 whythis is the case	•Not applicable. This announcement refers to theResource Estimation of the Zeehan Tin Deposit and isnot a report on Exploration Results. See StellarResources website for ASX reports on explorationresults.•Drillhole collar details and all significant drillholeintercepts that intersect the interpret mineralizedzone solids are located in Appendix 1A-D of thisannouncement.
Dataaggregationmethods	•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.	•Exploration results are not included in this resourceestimation report.•A lower cut-off grade of 0.4% Sn has been applied formineralised domain modelling. Domain modelsinclude internal dilution (i.e. 1m grading <0.4% Sn)provided the average grade of any intercept thatincludes the 1m internal dilution is greater than 0.4%Sn.•No metal equivalents have been used.
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)	•Exploration results are not included in this resourceestimation report.•All drillholes modelled 3 dimensionally for resourceestimation.
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.	•See body of the announcement for relevant plan andsectional views.
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	•Appendix 1A-D provides a table of all drillholeintercepts that intersect the interpreted mineralizedzone solids (i.e. every intercept is included)

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.	•Metallurgical test work completed by ALS/BRLlaboratories and supervised by Worley-Parsons overa number of different campaigns on drill coresamples.•Deposits zoned mineralogically and metallurgically•Cassiterite is the dominant tin-bearing mineraloccurring as free grains and in complex mineralcomposites.•High concentrations of stannite are located in theupper levels of the Oonah deposit.•Grain sizes vary according to ore type, with Severnhaving the coarsest and Upper Queen Hill having thefinest.•Cassiterite liberation generally commences at a grindof 130 microns and is largely complete at 20 microns.•Based on the work undertaken by ALS metallurgy,Stellar anticipates that concentrates gradingapproximately 48% tin at an overall tin recovery of73% will be obtained from the Zeehan Tin ores.
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.	•Resource infill drilling is planned to coincide withfurther technical studies as part of a DefinitiveFeasibility Study.•The mineral deposit remains open down dip anddown plunge and will be explored as access becomesavailable with mine development.

Section 3: Estimation and Reporting of Mineral Resources (Criteria listed in section 1, and where relevant in

section 2, also apply to this section)

Criteria	JORC Code Explanation	Commentary
Databaseintegrity	•Measures taken to ensure that the data has notbeen corrupted by, for example, transcriptionor keying errors, between its initial collectionand its use for Mineral Resource estimationpurposes.•Data validation procedures used.	•Data provided as access database•Historic data validated by checking paper logsand assay sheets•Post 2010 data received electronically andloaded into database•Data integrity validated with Surpac Software forEOH depth and sample overlaps andtranscription errors.•1m composite statistical analysis checked forsignificant variations or anomalous figures. Nomaterial errors identified.
Site visits	•Comment on any site visits undertaken by theCompetent Person and the outcome of thosesite visits.•If no site visits have been undertaken indicatewhy this is the case.	•Numerous site visits made during drilling programssince 2012.•Periodic advice on infill drilling and QAQCprocedures have been provided.

Criteria	JORC Code Explanation	Commentary
Geologicalinterpretation	•Confidence in (conversely, the uncertainty of)the geological interpretation of the mineraldeposit.•Nature of the data used and of any assumptionsmade.•The effect, if any, of alternative interpretationson Mineral Resource estimation.•The use of geology in guiding and controllingMineral Resource estimation.•The factors affecting continuity both of gradeand geology.	•High confidence in the global geological model.Potential for geological models to vary significantlyon a local scale. Although models are considered tobe appropriate for definition of Mineral Resourcesfor feasibility studies, re-modelling prior toproduction with input from infill drilling, mapping,face and blast-hole sampling will be required.•No alternative geological interpretations wereattempted for this estimation. Geology model doesnot vary significantly from historic geologyinterpretations.•Geology/grade contour used for mineralised domainmodeling.•Mineralised trends well defined from drilling andfield mapping.
Dimensions	•The extent and variability of the MineralResource expressed as length (along strike orotherwise), plan width, and depth belowsurface to the upper and lower limits of theMineral Resource.	•Severn north trending moderate to steeply eastdipping and north plunging stratabound deposit.Comprised of several lenses of mineralisation in abroader sulphide halo. Strike extending north over400m, width 3-50m and down dip extent over 380m.•Queen Hill north trending moderate to steeply eastdipping and north plunging stratabound deposit.Comprised of multiple lenses of mineralisation in abroader sulphide halo. Strike extending north over400m, width 2-50m and down dip extent over 400m.Fracture and stratabound basemetal veiningincreasing towards the top of the deposit.•Montana northeast trending stratabound to fissurecontrolled deposit extending 100m along strike andextending over 350m steeply south down dip. Widthvarying between 2 and 10m.•Oonah west-northwest trending, steeply northdipping fissure lode. Strike of > 400m and down dipextent of 200m. Width varying between 1 and 5m.
Estimationand modellingtechniques	•The nature and appropriateness of theestimation technique(s) applied and keyassumptions, including treatment of extremegrade values, domaining, interpolationparameters and maximum distance ofextrapolation from data points. If a computerassisted estimation method was chosen includea description of computer software andparameters used.•The availability of check estimates, previousestimates and/or mine production records andwhether the Mineral Resource estimate takesappropriate account of such data.•The assumptions made regarding recovery ofby-products.•Estimation of deleterious elements or othernon-grade variables of economic significance(e.g. Sulphur for acid mine drainagecharacterization).•In the case of block model interpolation, theblock size in relation to the average samplespacing and the search employed.•Any assumptions behind modelling of selectivemining units.	•Block modeled estimation completed with SurpacTMsoftware licensed to Tim Callaghan.•Wire-framed solid models created from drillholes ongenerally 25-50m sectional interpretation.•Solid models snapped to drill holes•Minimum width of 3m downhole @ 0.4% Sn•Internal dilution generally restricted to 3m withallowances for geological continuity•Data composited on 1m intervals including Total SnSoluble Sn, Cu, Pb, Zn, S and SG.•Top cutting based on CV and grade histograms.•Metal association analysis suggests good correlationbetween Sn, Soluble Sn, S and SG. Good correlationbetween Cu and soluble Sn in Queen Hill andMontana Deposits.•The blockmodel extends between 3200 and 4350min the y direction, 59,900and 61550 in the x directionand between 400 to 1280m RL. Block sizes were setat 10m x 10m x 10m with sub-celling to 1.25m in thex direction and 2.5m in the y and z and directions.•Variogram models are well constructed withmoderate to high nugget effect (50-70%) and shortrange of 10 to 15m to sill for major geologicaldomains.•Search ellipse set at 100m spherical range to ensure>95% of blocks populated.

Criteria	•Any assumptions about correlation betweenvariables•Description of how the geologicalinterpretation was used to control the resourceestimates.•Discussion of basis of using or not using gradecutting or capping.•The process of validation, the checking processused, the comparison of model data to drillhole data, and use of reconciliation data if anyavailable.JORC Code Explanation	•Ordinary kriged estimation for Sn constrained bygeology solid model•Inverse distance squared estimation of Sol Sn, Cu,Pb, Zn, S and SG.•Sn % as Stannite derived from interpolated Curelationship for Queen Hill and Montana due to lownumber of soluble Sn analyses.•Sn % as Stannite for Severn derived from sol Sninterpolation.•Block grades validated visually against input data andby comparing global inputs with estimate outputs.•Excellent grade correlation with previous estimation.Commentary
Moisture	•Whether the tonnages estimated on a dry basisor with natural moisture, and the method ofdetermination of the moisture content.	•The estimate based on a dry tonnage basis
Cut-offparameters	•The basis of the adopted cut-off grade(s) orquality parameters applied.	•Cut off grades have been determined from miningrecoveries (90%), metallurgical recoveries (73%),estimated industry costs ($115/t), prevailing mineralprice (US$22,000) and exchange rate estimations($US/$A0.76).•A block cutoff of 0.6% Sn has been applied for thereporting of the mineral resources
Mining factorsorassumptions	•Assumptions made regarding possible miningmethods, minimum mining dimensions andinternal (or, if applicable, external) miningdilution. It is always necessary as part of theprocess of determining reasonable prospectsfor eventual economic extraction to considerpotential mining methods, but the assumptionsmade regarding mining methods andparameters when estimating Mineral Resourcesmay not always be rigorous. When this is thecase, this should be reported with anexplanation of the basis of the miningassumptions made.	•Mining studies completed by Mining One (2013,2016) and Polberro (2015).•Decline accessed underground mine•A combination of Long Hole Stoping and Drift and Fillmining methods with 25m bench stopes and CAFback fill•Mining loss of 10% and dilution of 10%
Metallurgicalfactors orassumptions	•The basis for assumptions or predictionsregarding metallurgical amenability. It is alwaysnecessary as part of the process of determiningreasonable prospects for eventual economicextraction to consider potential metallurgicalmethods, but the assumptions regardingmetallurgical treatment processes andparameters made when reporting MineralResources may not always be rigorous. Wherethis is the case, this should be reported with anexplanation of the basis of the metallurgicalassumptions made.	•Post 2010 Metallurgical test work completed by ALSBurnie and plant design by GRES/Mincore.•Standard crushing grinding circuit followed bysulphide flotation, gravity separation and Sn flotationof gravity tails.•Testwork suggests a 48% Sn concentrate can beachieved with a 73% recovery.•It may be possible to recover stannite richmineralisation in the Oonah deposit by sulphideflotation to produce a Cu-Sn concentrate or by asulphide roaster. No test work has been completedon this mineralisation style.

Criteria	JORC Code Explanation	Commentary
Environmentalfactorsorassumptions	•Assumptions made regarding possible wasteand process residue disposal options. It isalways necessary as part of the process ofdetermining reasonable prospects for eventualeconomic extraction to consider the potentialenvironmental impacts of the mining andprocessing operation. While at this stage thedetermination of potential environmentalimpacts, particularly for a greenfield project,many not always be well advanced, the statusof early consideration of these potentialenvironmental impacts should be reported.Where these aspects have not been consideredthis should be reported with an explanation ofthe environmental assumptions made.	•Historic mining centre.•Baseline environmental studies and conceptualmining plan in support of ML2023P/M completed.•Final Development Plan and EnvironmentalManagement Plan in progress.
Bulk density	•Whether assumed or determined. If assumed,the basis for the assumptions. If determined,the method used, whether wet or dry, thefrequency of the measurements, the nature,size and representativeness of the samples.•The bulk density for bulk material must havebeen measured by methods that adequatelyaccount for void spaces (vugs, porosity, etc.),moisture and differences between rock andalteration zones within the deposit.•Discuss assumptions for bulk density estimatesused in the evaluation process of the differentmaterials.	•Bulk density derived from diamond drill core usingair pycnometer the Archimedes method at variouslaboratories.•Core is un-oxidised and free of cavities•Sg of mineralised intersections determined on assayintervals•SG interpolated into blockmodel using ID2 algorithm.•Waste rock assigned SG of 3.0 from the mean SG ofsamples with <0.1% Sn.
Classification	•The basis of the classification of the MineralResource into varying confidence categories.•Whether appropriate account has been takenof all relevant factors (i.e. relevant confidencein tonnage/grade estimations, reliability ofinput data, confidence in continuity of geologyand metal values, quality, quantity anddistribution of the data)•Whether the result appropriately reflects theCompetent Person's view of the deposit.	•Confidence in the geological model, data quality andinterpolation is considered to be sufficient forMineral Resource located within 50m of sample datato be classified as Indicated Resource.•Resource estimated >50m of drilling data has beenclassified as Inferred Resource.•The resource classification appropriately reflects theviews of the Competent Person
Auditsorreviews	•The results of any audits or reviews of theMineral Resource estimates.	•No audits or reviews have been completed for thisestimation
Discussionofrelativeaccuracy/confidence	•Where appropriate a statement of the relativeaccuracy and confidence level in the MineralResource estimate using an approach orprocedure deemed appropriate by theCompetent Person.•The statement should specify whether it relatesto global or local estimates, and, if local statethe relevant tonnages, which should berelevant to technical and economic evaluation.•These statements of relative accuracy and	•The geological model is robust at a global levelbetween sections and down dip of cross sections.•Broad drill spacing of inferred resources and shortrange variability reduce confidence in the estimatewhich is reflected in the resource classification.•The effects of localized brittle faulting and gradevariability is likely to impact the geology model on alocal level. Infill drilling, face mapping and samplingwill be necessary for grade control duringproduction.•Grade and geological variance is highlighted by
	confidence of the estimate should be comparedwith production data, where available.	twinned holes and variogram models.•No production data is available for reconciliation.

APPENDIX 3 – ST DIZIER - 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.	•The St Dizier Tin Skarn has been sampled over sixdiamond drilling campaigns between 1969 and 2015by five separate companies, Placer, Minops, Cominco,Renison and Stellar.•Stellar completed two campaigns in 2006 and 2015.The second campaign of 6 diamond drill holes postdated the mineral resource estimate and made nomaterial change to that estimate.•Approximately, 1m samples for 2-3kg each were takenfrom the bulk of the program whilst respectinggeological boundaries, derived from diamond saw cutcore, for mineralized zones as per industry standard.
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.)	•46 diamond HQ, NQ and BQ (or equivalent) diamondcore for 7,626m•Renison drill core triple tube HQ and NQ.•Core not oriented
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	•Core reconstituted, marked up and measured in alldrilling campaigns•Generally excellent recovery (95% to 100%) inunweathered skarn but poor to acceptable toacceptable (50% to 80%) in oxidized zones.•No relationship between recovery and grade wasobserved.
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.	•Core was geologically logged by experiencedgeologists over all campaigns.•Standard lithological codes, derived from historicalmine logs, used for interpretation.•RQD and recoveries were logged.•Historical logs recorded on spreadsheets and loadedinto access database.

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•For all sample types, the nature, quality andappropriateness of the sample preparationtechnique.•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	•No record of historical sample preparation.•Half core split by diamond saw on 1m samples whilerespecting geological contacts.•Bagged core delivered to ALS Burnie by Stellar staff.•Whole core crushed and pulverized to 70 micron atALS Burnie
Quality ofassay dataandlaboratorytests	•The nature, quality and appropriateness of theassaying and laboratory procedures used andwhether the technique is considered partial ortotal.•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.	•Post-2006 drill holes – assayed by XRF fusion for multielement analysis by ALS Burnie.•Pre-2006 drill holes – assayed by pressed-power XRFat a range of commercial and company laboratoriesincluding the Renison and Cominco laboratories.•No record of QAQC procedures was available forhistorical drilling. Most of the exploration and drillingwas conducted by Placer, Renison and Cominco. Allreputable mining companies that employed industrystandard methods of the time.
Verificationof samplingand assaying	•The verification of significant intersections byeither independent or alternative companypersonnel•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.	•Duplicate assaying in independent laboratory byRenison. Placer and Cominco holes demonstrate goodcorrelation with Renison but Minops holesunderestimate Sn content. Renison data used in theresource estimate.•Verification drill holes into Central deposit by Stellar in2006.•No twinned holes were completed, however,verification drill holes into the Central deposit byStellar in 2006 provided good correlation.•Primary data was received electronically and stored bythe consultant geologist.•All electronic data uploaded to an Access database.•Historical data loaded into separate spreadsheets anduploaded to Access database.•Data validation using Surpac TM software; basicstatistical analysis and comparison with historicalplans and sections.•Negative results for below detection limit assay datawas entered as detection limit.

Criteria	JORC Code Explanation	Commentary
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•Specification of grid system used•Quality and accuracy of topographic control.	•All drill hole collars surveyed by a licensed surveyorapart from 10 Cominco drill holes.•All coordinates in GDA94.•RL's as MSL +1,000m•Down-hole surveys by down-hole camera and Toparifor Renison and Cominco.•Azimuths corrected for magnetic field in magnetitezones.•Topographic DTM created from Lands Department10m contour maps adjusted for known survey points(e.g. drill collars).
Data Spacinganddistribution	•Data spacing for reporting Exploration Results•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	•Drill spacing approximately 50m x 50m or less in thebetter drilled part of the Central lode.•Drill spacing approximately 100m x 100m in theEastern Lode.•Drill spacing is considered to be appropriate for theestimation of Indicated and Inferred MineralResources, with the exception of the Eastern Lode.•Samples were composited to 1m intervals for theresource estimation.
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.	•The majority of diamond drill holes were drilled northto south or south to north, sub-perpendicular to thestrike of mineralization.•Early Minops hole M1 was the only hole that drilleddown the mineralized structure.•Drill hole orientation is not considered to haveintroduced any material sampling bias.
SampleSecurity	•The measures taken to ensure sample security.	•Details of sample security were not available for thehistorical data.•All data validated, updated, captured and stored in acustomized Access database by REG in 2013.•All historical drill logs were entered into excelspreadsheets prior to downloading into the Accessdatabase. Lithology codes migrated to StellarResources' codes.•Data integrity validated with SurpacTM software forEOH depth and sample overlaps.•Manual check by comparing computer-generatedcross-sections with historical cross-sections and plans.•Basic statistical analysis reveals several databaseerrors including data in the wrong fields or ppmrecorded as percent. All errors rectified.
Audits orReviews	•The results of any audits or reviews of samplingtechniques and data.	•No audits or reviews of sampling data and techniquescompleted, as most of the data is pre-1985.

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	•The St Dizier tin deposit is contained withinML10M/2017.•ML10M/2017 provides secure tenure over the StDizier tin deposit and the area required for proposedsurface infrastructure until 2023.•St Dizier is 100% owned by Stellar Resources Limited.
Explorationdone by otherparties	•Acknowledgement and appraisal of explorationby other parties.	•Alluvial mining activity occurred along the TasmanRiver adjacent to the St Dizier tin deposit in the1880s•Placer Prospecting explored St Dizier between 1966and 1970 drilling 12 diamond drill holes.•Minops operated the leases over St Dizier between1970 and 1974 drilling 9 diamond drill holes.•Cominco explored the St Dizier leases from 1974 to1978 and drilled 8 diamond drill holes.•RGC conducted the most comprehensive explorationprogram between 1978 and 1984 drilling 14diamond drill holes and completing petrology,metallurgy and an economic scoping study.
Geology	•Deposit type, geological setting and style ofmineralization.	•The St Dizier tin deposit occurs within an east-westtrending magnetite-serpentinte-sulphide skarn.•The skarn represents a metasomatically altereddolomite unit within a sequence of Late PrecambrianOonah Formation argillite and quartzite.•The Oonah sequence at St Dizier forms an east-westtrending roof pendant along the northern edge ofthe Heemskirk Granite.•There are three distinct zones of tin mineralizationwithin the skarn identified as Western Lode, CentralLode and Eastern Lode. Only the Western andCentral Lodes are included in the resource estimate.
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 whythis is the case	•No drilling results are reported in this release. Thelast drilling was completed in 2014.

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

Criteria	JORC Code Explanation	Commentary
Dataaggregationmethods	•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	•No exploration results are reported in this release.
	•The assumptions used for any reporting ofmetal equivalent values should be clearlystated.
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.•Historical drilling was mostly oriented at right anglesto the east-west strike and vertical dip of the tinmineralization.
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.	•See plan, cross and long sections presented in thebody of the release for collar locations and examplesof intercepts from historical drilling.
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.
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.	•Further diamond drilling around the Central Lode tobetter characterize the acid forming capacity ofwaste rock from the planned open pit.•Drilling for metallurgical sample is also required.•Agreement on a processing plan to produce asaleable tin concentrate.•Definitive feasibility studies are required oncompletion of drilling and testing of core samples.•Completion of a Development Proposal andEnvironmental Management Plan for environmentalapprovals.

Section 3: Estimation and Reporting of Mineral Resources (Criteria listed in section 1, and where relevant in section 2, also apply to this section)

Criteria	JORC Code Explanation	Commentary
Databaseintegrity	•Measures taken to ensure that the data has notbeen corrupted by, for example, transcriptionor keying errors, between its initial collectionand its use for Mineral Resource estimationpurposes.•Data validation procedures used.	•All data captured and stored in a customized Accessdatabase by Red Hill.•Drop down menu validation in Access.•Digital data uploaded from laboratory reports toAccess database.•Data integrity validated using SurpacTM software forEOH depth, sample overlaps and transcription errors.•Data validated against historical plans and sections.•Negative samples changed to detection limit.
Site visits	•Comment on any site visits undertaken by theCompetent Person and the outcome of thosesite visits.•If no site visits have been undertaken indicatewhy this is the case.	•Several site visits were made during 2013 to validatelocation, collars, historical workings, mineralizationstyles and exploration potential
Geologicalinterpretation	•Confidence in (conversely, the uncertainty of)the geological interpretation of the mineraldeposit.•Nature of the data used and of any assumptionsmade.•The effect, if any, of alternative interpretationson Mineral Resource estimation.•The use of geology in guiding and controllingMineral Resource estimation.•The factors affecting continuity both of gradeand geology.	•High confidence in the simple geological model.•Major mineralized domains demonstrate goodsectional continuity.•Mineralised Sn domains are delineated using a 0.2%Sn boundary and a minimum downhole width of 3mwith some allowances for geological continuity.•Internal dilution was restricted to a maximum of 3mwhere possible, again maintaining good geologicalcontinuity.•No alternative geological interpretations wereattempted.•Geological model was used for mineralized domainmodelling.
Dimensions	•The extent and variability of the MineralResource expressed as length (along strike orotherwise), plan width, and depth belowsurface to the upper and lower limits of theMineral Resource.	•The St Dizier skarn consists of 3 tin lodes within avertically dipping tabular sheet of magnetiteserpentine-calcsilicate skarn. The skarn extends overa strike length of 400m has a width ranging from 3mto 40m and a vertical depth extent from the surfaceof 200m.

Criteria	JORC Code Explanation	Commentary
Estimationand modellingtechniques	•The nature and appropriateness of theestimation technique(s) applied and keyassumptions, including treatment of extremegrade values, domaining, interpolationparameters and maximum distance ofextrapolation from data points. If a computerassisted estimation method was chosen includea description of computer software andparameters used.•The availability of check estimates, previousestimates and/or mine production records andwhether the Mineral Resource estimate takesappropriate account of such data.•The assumptions made regarding recovery ofby-products.•Estimation of deleterious elements or othernon-grade variables of economic significance(eg Sulphur for acid mine drainagecharacterization).•In the case of block model interpolation, theblock size in relation to the average samplespacing and the search employed.•Any assumptions behind modelling of selectivemining units.•Any assumptions about correlation betweenvariables•Description of how the geologicalinterpretation was used to control the resourceestimates.•Discussion of basis of using or not using gradecutting or capping.•The process of validation, the checking processused, the comparison of model data to drillhole data, and use of reconciliation data if anyavailable.	•Estimation completed with SurpacTM software.•Wire-framed solid models on east-west sections.•Solid models snapped to drill holes.•Domain intercepts written to database.•Data composited on 1m down hole intersections andincluded assays for Sn, soluble Sn, S, Cu, Fe, Zn, WO3and As.•No check assays were available at the time of theresource estimate. However, subsequent drilling ofthe Central lens by Stellar Resources showed goodcorrelation with historical assays.•No recovery of by-products considered.•S assays were collated and subsequently used withdata from a recent Stellar drilling program todetermine the distribution of potentially acidforming material.•Block dimensions of 20mN x 20mE x 20mRL with subcelling to 2.5m in the x and z direction and 1.25m inthe y direction.•Variogram models for Sn have moderate nuggeteffect (10%) but short range to sill of 15m. Searchellipse of 100m to ensure most blocks interpolated.•Good correlation between Sn, S, Fe and As.Moderate correlation between WO3 and Sn.•Ordinary kriged model constrained by geology solidmodel. 5,367,500N to 5,368,000N; 344,800E to345,800E; and 700mRL to 1240mRL.•Top-cutting of WO3 to 0.5% in the Central South lensand soluble Sn to 0.5% on the Central North lens onthe 97.5th percentile. No other domains cut.•ID2 interpolation of grades.•Block grades validated visually against input data.Global grade compares favorably with basicstatistics.•Good correlation with previous polygonalestimations.
Moisture	•Whether the tonnages estimated on a dry basisor with natural moisture, and the method ofdetermination of the moisture content.	•No moisture determinations completed. Estimatebased on dry tonnage.
Cut-offparameters	•The basis of the adopted cut-off grade(s) orquality parameters applied.	•Domain modelling based on a 0.2% Sn boundarywhich appeared to be a natural cut-off formineralization continuity within the deposit.•The resource is reported at an 0.3% Sn block cut-offgrade.

Criteria	JORC Code Explanation	Commentary
Miningfactorsorassumptions	•Assumptions made regarding possible miningmethods, minimum mining dimensions andinternal (or, if applicable, external) miningdilution. It is always necessary as part of theprocess of determining reasonable prospectsfor eventual economic extraction to considerpotential mining methods, but the assumptionsmade regarding mining methods andparameters when estimating Mineral Resourcesmay not always be rigorous. When this is thecase, this should be reported with anexplanation of the basis of the miningassumptions made.	•Mining scoping study prepared by PolberroConsulting. No material changes to assumptionssince completion of the study in November 2014.Datamine Studio 3TM is used for inventory estimationand actual pit design•Open pit mine 710m long x 170m wide x 90m deepgenerated from a digital block model of the CentralIndicated Resource prepared by Resource andExploration Geology.•Geotechnical assessment and Threedify Flow PitTMsoftware used to optimize pit geometry. Actual pitdesign and haul road are developed from theoptimal pit shell.•Mining recovery of 95% and dilution of 10% assumedin the optimization process. Actual design dilution of17% estimated from 5m sections. Tin recoveryfactors of 40%, 50% and 60% also assumed in miningscenarios.•Industry costs, validated by West Coast Tasmaniamining experience, used to estimate operating andcapital costs.
Metallurgicalfactors orassumptions	•The basis for assumptions or predictionsregarding metallurgical amenability. It is alwaysnecessary as part of the process of determiningreasonable prospects for eventual economicextraction to consider potential metallurgicalmethods, but the assumptions regardingmetallurgical treatment processes andparameters made when reporting MineralResources may not always be rigorous. Wherethis is the case, this should be reported with anexplanation of the basis of the metallurgicalassumptions made.	•Metallurgical test work conducted by ALSMetallurgical on drill core from 3 ore zones in theCentral Indicated Resource.•Worley Parsons supervised ALS testing of primarycomminution, magnetic separation of gangue,gravity separation of coarse Sn followed by deslimingand fine tin flotation.•Worley Parsons concluded that optimization ofsulphur, slimes and talc rejection and concentrateleaching could result in recovery of 45% to 50% Sn ata concentrate grade of 55% Sn.
Environmentalfactorsorassumptions	•Assumptions made regarding possible wasteand process residue disposal options. It isalways necessary as part of the process ofdetermining reasonable prospects for eventualeconomic extraction to consider the potentialenvironmental impacts of the mining andprocessing operation. While at this stage thedetermination of potential environmentalimpacts, particularly for a greenfield project,many not always be well advanced, the statusof early consideration of these potentialenvironmental impacts should be reported.Where these aspects have not been consideredthis should be reported with an explanation ofthe environmental assumptions made.	•JK Miedecke and Associates supervised allenvironmental surveying and provided liaison withand reporting to the Tasmanian EPA.•Studies were undertaken on acid mine drainage,water quality and flow rates, flora and fauna, miningheritage and aboriginal heritage.•Mine planning, with input from JK Miedecke andAssociates, included development of surfaceinfrastructure, surface water diversion and minedump development.•Mine rehabilitation plan assumes storage of acidgenerating material in the final pit.•Acid generating capability of waste needs to bedetermined for a final mine rehabilitation plan.

Criteria	JORC Code Explanation	Commentary
Bulk density	•Whether assumed or determined. If assumed,the basis for the assumptions. If determined,the method used, whether wet or dry, thefrequency of the measurements, the nature,size and representativeness of the samples.•The bulk density for bulk material must havebeen measured by methods that adequatelyaccount for void spaces (vugs, porosity, etc.),moisture and differences between rock andalteration zones within the deposit.•Discuss assumptions for bulk density estimatesused in the evaluation process of the differentmaterials.	•Bulk density determinations from mineralogicalcomposition.•An assumed SG of 3.3 was applied based on thefollowing ore mineralogy:30% magnetite at SG 5.250% serpentinite at SG 2.210% silicates at SG 2.65% siderite at SG 3.95% sulphides at SG 4.8•Magnetite content varies between 30% and 50%making the overall SG estimate conservative.
Classification	•The basis of the classification of the MineralResource into varying confidence categories.•Whether appropriate account has been takenof all relevant factors (i.e. relevant confidencein tonnage/grade estimations, reliability ofinput data, confidence in continuity of geologyand metal values, quality, quantity anddistribution of the data)•Whether the result appropriately reflects theCompetent Person's view of the deposit.	•The resource has been classified based onconfidence in the geological continuity, drill holespacing, location of bulk samples and the ratio ofacid soluble Sn to total Sn (see Long-section).•Higher ratios of Sn to acid soluble Sn are likely tocontribute to increased Sn recovery.•The resource west of 345,220E (West and Central)are classified as Indicated Resource due to closespaced drilling.•Higher grade zones of continuous mineralization eastof 345,220E and west of 345,475E (Eastern) areclassified as Inferred Resource.•Lower grade, deeper and metallurgically difficultmineralization to the east of 345,475E wasunclassified.•The estimated resource and its classificationappropriately reflect the view of the competentperson.
Auditsor reviews	•The results of any audits or reviews of theMineral Resource estimates.	•No audits or reviews have been completed for thisestimation.
Discussionofrelativeaccuracy/confidence	•Where appropriate a statement of the relativeaccuracy and confidence level in the MineralResource estimate using an approach orprocedure deemed appropriate by theCompetent Person.•The statement should specify whether it relatesto global or local estimates, and, if local statethe relevant tonnages, which should berelevant to technical and economic evaluation.•These statements of relative accuracy andconfidence of the estimate should be comparedwith production data, where available.	•Estimation of the global resource grade reconcileswell with historical estimations.•Typical high nugget effect for this style ofmineralisation and the wide drill hole spacing resultin low to moderate confidence in the relativeaccuracy of the estimation, particularly on a locallevel.•There is moderate confidence in the data qualitywith no QAQC data for historical drilling.•The statement relates to the global estimation of theSt Dizier Skarn.•No production data is available for this deposit.