STELLAR RESOURCES LIMITED — Capital/Financing Update 2019

Jan 22, 2019

23 January 2019

St Dizier Tin Mining Lease Granted and Scoping Study Results

The Directors of Stellar Resources Limited (ASX: SRZ, "Stellar" or the "Company) are pleased to advise that the Tasmanian Minister for Resources has granted Mining Lease ML 10M/2017 over the St Dizier tin deposit. The mining lease provides Stellar with unencumbered title to extract tin and other metals from St Dizier for an initial period of 6 years. St Dizier increases the range of development options for the Heemskirk Tin Project.

An internal Scoping Study undertaken in 2015 to support the St Dizier Mining Lease application has recently been updated to reflect the current tin price and current exchange rates. All other assumptions remain the same as the 2015 study.

The updated St Dizier Scoping Study valuation has resulted in a base case NPV 10%, at current tin prices (US$20,000/t), determined to an accuracy of ±35%, of approximately A$10.4m, an IRR of approximately 166% and a payback period of approximately 8 months. The project has a low capital investment estimated at A$ 3.8m and can be bought into production within 3 months of receiving approvals providing flexibility to ensure that it is developed in a supportive tin price environment.

Cautionary Statements

Australia's second largest producer of tin.

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 St Dizier open pit mine 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 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

ASX Code: SRZ About Stellar:

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

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

www.stellarresources.com.au

Unlisted Options: 15,000,000 Commodity

Tin Price: US$20,785/t Exchange Rate US$ 0.72

Main Shareholders

Capital Structure Shares: 379,713,489 Share Price (SRZ): A$0.012 Listed Options: 59,142,857 Option Price (SRZO): A$0.002

European Investors 19.5% Capetown SA 16.4%

Board & Management Phillip G Harman Non-Executive Chairman Peter G Blight Managing Director Miguel Lopez de Letona Non-Executive Director Thomas H Whiting Non-Executive Director Melanie J Leydin Company Secretary

Cautionary Statements

Stellar believes it has reasonable grounds under ASIC information Sheet 214 to report the results of the Scoping Study Update. The mine plan on which the updated valuation is based contains 100% Indicated Mineral Resource.

The Scoping Study is based on the material assumptions outlined in 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$4.3m will likely be required. 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

Tasmanian Government approval of the St Dizier Mining Lease, ML 10M/2017, was based on Stellar's Stage 1 environmental assessment, ore processing at Zeehan and the open pit mine development plan summarized by the base case scoping study outcomes in Table 1. The study assumes that ore is mined at the maximum rate feasible, given the physical constraint of mining in a narrow pit, and that processing capacity is available to treat all ore produced. This assumption may change once the processing alternatives are better developed.

Technical & Financial	Units	Base Case
Parameters
Tin Price	US$/t	20,000
Realisation Cost	US$/t	2,500
Exchange Rate	US$/A$	0.72
Mine Life	months	30
Strip Ratio (dil)	X	4.7
Ore Mined (dil)	tonnes	409,179
Tin Grade (dil)	%	0.90
Tin Recovery	%	50
Tin in Concentrate	tonnes	1,841
Unit Cash Cost	US$/t tin	10,539
Capital Expenditure	A$m	3.8
NPV10% pre-tax	A$m	10.4
IRR	%	166
Payback	months	8

Table 1: St Dizier Project; Key Scoping Study Outcomes

Figure 1: Looking Southwest across St Dizier in the wooded foreground valley, Heemskirk Granite in the background hills

Commentary

Managing Director Peter Blight said "Granting of ML 10M/2017 shows strong support from the Tasmanian Government for Stellar's tin development strategy. The Company is now well positioned with all of its JORC compliant tin mineral resources under long-term tenure. St Dizier provides the potential for development of a low-cost open pit with ore processed through the Company's proposed processing facility at Zeehan or through a third-party facility. The scoping study shows attractive returns on investment from the St Dizier open pit mine and development of St Dizier may be an important part of a 'fast start' option which the Company is continuing to review."

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.

MaterialAssumption	Outcome
Study Status	The Production Target and financial information in this release are based on a scopingstudy. The scoping study referred to in this announcement is based on low-level technicaland economic assessments and is insufficient to support the estimation of Ore Reservesor to provide assurance of an economic development case at this stage or to providecertainty that the conclusions of the scoping study will be realised.
Mineral Resource estimate usedforassessmentofpotentialproduction Target(Page 7)	The Mineral Resource estimate (refer ASX Announcement dated 6 March 2014) wasprepared for Stellar Resources by Mr Tim Callaghan (Principal of Resource and ExplorationGeology Pty Ltd) who is a Competent Person as defined by the JORC Code. The estimatewas prepared using 46 historical and recent diamond drill holes for 4,626m of HQ, NQ andBQ core. The reported Mineral Resource is 2.26mt @ 0.61% tin. The scoping study wasentirely based on the Indicated portion of the estimate which is 1.20mt @ 0.69% tin.
Mining factors used in thedeterminationoftheProduction Target (Page 9)	An open cut mining method was selected as the lower cost alternative to an undergroundstope and fill method. Polberro Consulting selected the mining method and determinedthe mining factors. An open pit measuring 710m long x 170m wide x 90m deep wasgenerated from a digital block model of the Indicated Resource in the Central Lode of theSt Dizier deposit. Mining recovery of 95% and 10% dilution was assumed in theoptimization model. Mining scenarios were also developed assuming tin recovery of 40%,50% and 60%. Mining cost estimates were based on industry best practice and validatedagainst Polberro Consulting's database for West Coast Tasmania.
Processing factors used inthe determination of theProduction Target (Pages 10)	Stage 1 metallurgical test-work was completed at ALS Burnie and supervised by WorleyParsons using a modified Renison Tin flow sheet developed for the proposed Heemskirkprocessing plant at Zeehan. The test-work, conducted on core sample from the CentralLode of the St Dizier deposit, showed variability in response with overall tin recovery of43%. In view of this result, the scoping study considered scenarios for 40%, 50% and 60%tin recovery. Tin losses to magnetite, slime, and tin float tails were identified by the testwork as target areas for further optimization of the process in Stage 2 metallurgical testing.The study does not include capital costs of a processing plant and that processing capacitywill become available via either; (a) the construction of Stellar's proposed processing plantat Zeehan, or (b) a third-party processing plant in the region becoming available.
	Capital cost estimates were developed using consultant databases and benchmark WestCoast Tasmania costs.
	Capital costs include:
	•Mobilisation/demobilization of contractors
Capital Cost Estimates	•Surface infrastructure – drainage diversion, roads, fencing, stockpile area,drains and settling ponds
(Page 12)	•Mine development - overburden stripping and pit haul road construction
	•Rehabilitation on closure of the mine
	•15% contingency
	The costs presented are real costs and are exclusive of escalation.The capital cost has been completed based on estimates of up to ±35% level of accuracy.

	Operating costs are estimated to production of a London Metal Exchange (LME) deliverabletin product.
	Operating costs include:
	▪Open pit mining and transport of ore 20km to a processing plant
Operating Cost Estimates	▪Processing in Stellar's proposed tin concentrator at Zeehan
(Pages 10 &11)	▪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.
	Valuations are calculated using discounted cash flow and internal rate of return methods.Payback period is also considered.
	The critical assumptions are:
Economic Evaluation	▪Discount rate of 10%
(Page 11)	▪Cash flows are pre-corporate tax, real, Australian dollars
	▪State Government royalty of 5% on revenues net of realization costs
	▪Exchange rate of 0.72US dollars to the Australian dollar
Marketing	Concentrate produced at Zeehan is to be transported to Burnie by road,containerized and shipped to tin smelters in Southeast Asia and China. The mainmarketing assumptions are:▪LME sale price of US$20,000/t of tin
	▪Treatment, refining and shipping charges of US$1,500/t of tin
	Site infrastructure requirements for open pit operations is minimal and will becontrolled by a contract miner. St Dizier will not have a processing plant.
Infrastructure	The St Dizier site is within 1km of a sealed road that connects it to Zeehan 20kmto the southeast. Power and water are also available at site.
Environmental(Page 10 & 11)	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)
Legal	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.
Government	ML 10M/2017 permits Stellar to carry out exploration and sampling of the St Dizierdeposit in order to complete all studies required for a definitive feasibility study.
	Stellar can apply for a Mining Permit on acceptance of a DPEMP by the TasmaniaEPA and the West Coast Council.

St Dizier Mining Lease Granted

St Dizier is located 20km to the northwest of Zeehan (see Figure 2). It is positioned within 1km of the all-weather Heemskirk Road which connects the project to Zeehan. The site is located in relatively flat heathland which 100 years ago was the site of hydraulic alluvial tin mining using water drawn from the nearby Tasman River. St Dizier also has access to a power transmission line that runs from the Reece Dam along the Heemskirk Road to Zeehan.

St Dizier lies within EL46/2003, a 93km2 exploration licence held by Stellar that contains a number of tin occurrences along the northern and southern edge of the Heemskirk Granite (see Figure 1). Stellar has explored all of the known tin occurrences in EL46/2003 over the last 15 years. St Dizier is the only occurrence within EL46/2003 that has yielded a tin resource which is now secured by ML 10M/2017.

ML 10M/2017 covers an area of 2km2 , sufficient to cover all requirements for the development of the St Dizier tin deposit as an open pit mine. It also provides exclusive access to mine tin and other metallic minerals for an initial period of 6 years.

Figure 2: Location of St Dizier Mining Lease

Resource Estimate

St Dizier is a tin skarn, formed by metasomatic alteration of an original dolomite unit by tin bearing fluids emanating from the Heemskirk Granite. Much of the dolomite is altered to serpentinemagnetite-calc-silicate rock flanked by shales to the south and quartzites to the north. The total metasediment package has the form of an east-west trending, vertically dipping roof pendant surrounded by Heemskirk Granite.

The total Indicated and Inferred Mineral Resource estimate for St Dizier is 2.3mt grading 0.61% tin (see Table 2 and refer to ASX announcement dated 6 March 2014). The Indicated component of the resource is 1.2mt grading 0.69% tin, 87% of which is in the form of cassiterite. There has been no material change to assumptions since the resource estimate was completed in 2014.

					Table 2: St Dizier Mineral Resource Estimate
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 2: St Dizier Mineral Resource Estimate

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

The Indicated Resource includes the West and Central Lodes shown in plan view in Figure 3 and in long projection in Figure 5. The bodies crop-out at the surface and strike east-west over a distance of 400m. They also dip vertically to a depth of 200m from the surface (in the case of Central) and vary in width from 3m to 40m. Higher tin grades occur between the surface and a depth of 70m in the Central Lode and grades are higher nearer to the surface making the deposit attractive as a potential low-cost open pit development (see Figure 3 and 5). The smaller Western Lode could also potentially be considered for open pit mining but was not included in the current scoping study.

Figure 3: Plan View of St Dizier Geology

Figure 4: Cross-Section 345,150mE, Central Lode, St Dizier

Figure 5: Long Projection St Dizier Tin Deposit

Scoping Study Parameters

An internal Scoping Study on development of an open pit mine at St Dizier was completed in 2015 which, along with the Stage 1 environmental assessment, formed the basis of the Company's application for a Mining Lease to the Tasmanian Government that resulted in the grant of ML 10M/2017.

There have been no material changes in the St Dizier Scoping Study technical and production assumptions or parameters since the 2015 study. The 2015 scoping study financial analysis has been updated to reflect the current tin price and current exchange rates. All other assumptions remain the same as the 2015 study.

St Dizier is a satellite tin skarn deposit that does not have the potential to support a standalone processing plant but remains a valuable ore source. It is located near to infrastructure (roads, power and water) and lies in easily accessible open heathland terrain. The geometry of the out-cropping deposit makes it amenable to low-cost open pit extraction with its best tin grades close to the surface. In addition, it could be developed relatively quickly for very low pre-production capital.

The 2015 St Dizier Scoping Study was based on the following key parameters:

• Global Indicated Resource of 1.20mt @ 0.69% tin (0.3% tin cut-off grade) includes West and Central Lodes
• Open pit mine focused on the upper section of the Central Lode a mineable resource of 409,179t @ 0.90% tin was defined as the in-situ resource within a design pit shell
• Contractor mining pit dimensions set maximum annual ore mining rate at 163,000t
• Contractor ore haulage up to 20km to a processing plant
• Renison tin style processing flow sheet crush, grind, magnetic separation, sulphide float, gravity separation, tin float and concentrate dressing to >50% tin in concentrate
• Concentrate shipped to Asia for smelting under industry treatment and refining terms

1) Mining

The scoping study is based on an open pit mine design focused purely on the Central Lode Indicated Resource. 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.

The scoping level mining study was undertaken by Polberro Consulting and included; the open pit mine design, consideration of geotechnical factors, bench geometry, mine production rate and mining operating and capital costs. Threadify Flow PitTM software was used to optimise the pit with the minable resource being that part of the insitu Indicated Resource within the optimum pit shell.

The in-pit diluted mining inventory, determined by the mining study, was 409,179t of ore grading 0.90% tin and with an average strip ratio of 4.7:1 (1,916,999 tonnes waste mined). The study assumed mining dilution of 10% and ore recovery of 95%. The small size of the pit and the 4.7:1 strip ratio restricted annual ore production to 163,000t which is estimated to exhaust the mining inventory within 30 months.

Drainage diversion, pit development and construction of a waste stockpile immediately to the east of the pit are included in the study and could be completed within 3 months at an estimated capital cost

of $3.3m. Surface structures and all mining equipment are excluded as these items are assumed to be managed by a contract miner. Estimated total life-of-mine capital cost of the project including rehabilitation of the mine site is $3.8m.

Base case mine operating cost assumptions are A$2.50/t for excavated waste, A$4.30/t for mined waste and A$13.45/t for ore with A$5.00/t for ore haulage to a processing plant. The weighted average cost was A$31/t of ore delivered to a processing plant in Zeehan.

The accuracy of the mining operating cost and capital cost estimates is ±35%.

The mining inventory above is based on 100% Indicated Resource. No Inferred Resource or Exploration Target is included in the Mining Inventory.

2) Metallurgy

Stage 1 bench-scale metallurgical test-work was carried out on core samples from a single St Dizier drill hole that sampled across the Central Lode. The test-work used a modified version of the Renison tin flow sheet developed for the Heemskirk tin project. The program provided a preliminary test of comminution, magnetic separation, gravity separation of non-magnetics, deslime and tin flotation. The results showed that:

• Mineralisation in the sample is quite variable and provided 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

A Stage 2 metallurgical testing program is a priority to advance the St Dizier project. The program requires 5 diamond drill holes into the Central Lode to determine the extent of variability in ore mineralogy. Test-work on these samples is then required and would target sulphur, talc management, desliming and concentrate dressing.

In view of Stage 1 bench-scale metallurgical test-work results, the scoping study considers technical and financial outcomes based on recoveries of 40%, 50% and 60%.

The scoping study process plant operating cost assumption is A$35/t of ore. This assumption is based on estimates for Stellar's proposed Heemskirk Tin processing facility at Zeehan. It does not include a capital recovery charge and has not been referenced to possible third-party processing charges.

The accuracy of the processing operating cost estimate is ±35%.

3) Environment

Stage 1 environmental surveying in support of the scoping study, showed no potential impediment to open pit mine development. In summary the following survey results were compiled:

• ML 10M/2017 lies in the Mount Heemskirk Regional Reserve and has no competing land use
• Any areas of historical mining significance are outside of the ML
• No aboriginal heritage sites are registered in or near ML 10M/2017

• No threatened flora exist, possibly due to the impact of historical mining and bush fires
• No fauna identified in the Threatened Species Protection Act 1995 observed in the ML
• River health, water quality and flow rates in the St Dizier Creek catchment recorded for future reference. Survey results show river health and water quality to be good
• Ground water is still to be surveyed, however, geology suggests that pit inflows will be low
• Preliminary waste rock characterisation on limited samples shows that 17% is potentially acid forming and 38% is low capacity acid forming

Stage 2 environmental surveying will need to reconsider the Stage 1 survey results in the context of a more detailed mining proposal and rehabilitation plan. The main risk identified in Stage 1 is storage of potentially acid forming waste. Stage 2 will focus on more representative sampling, better characterisation of potentially acid forming material and appropriate design of waste dumps to form a permanent valley fill on mine closure.

4) Scoping Study Technical and Financial Outcomes

Results of the St Dizier Scoping Study valuation are presented in Table 3 as a base case along with high and low scenarios driven by varying assumptions for tin recovery and the waste to ore ratio (strip ratio) in the pit.

			Recovery Scenarios
Parameters	Units	Low	Base	High
Tin Price	US$/t	20,000	20,000	20,000
Realisation Cost	US$/t	2,500	2,500	2,500
Exchange Rate	US$/A$	0.72	0.72	0.72
Mine Life	months	24	30	36
Strip Ratio (dil)	X	4.1	4.7	5.3
Ore Mined (dil)	tonnes	311,683	409,179	478,619
Tin Grade (dil)	%	0.95	0.90	0.86
Tin Recovery	%	40	50	60
Tin in Concentrate	tonnes	1,184	1,841	2,470
Unit Cash Cost	US$/t	11,730	10,539	9,772
Capital Expenditure	A$m	3.8	3.8	3.8
NPV10% pre-tax	A$m	3.7	10.4	17.3
IRR	%	78	166	241
Payback	months	12	8	3

Table 3: Technical and financial summary

The valuation assumes a tin price of US$20,000/t (current market price), realisation charges of US$2,500/t (including transport, treatment/refining and state royalties) and an exchange rate of 72 US cents to the Australian dollar. The valuation results have an accuracy of ±35%.

In the base case, open pit ore production is assumed to continue for 30 months at an average strip ratio of 4.7:1.0. Total ore production, including 10% dilution, is 409,179t at an average tin grade of 0.90%. Tin in concentrate production, assuming process recovery of 50%, is 1,841t at a total cash operating cost of US$10,539/t of tin. At a 10% discount rate, the pre-corporate income tax base case NPV is $10.4m.

In the event that recovery is 40% (Low case in Table 3), the optimum pit shell is smaller and has a reduced strip ratio of 4.1:1.0, lower total ore production of 311,683t and a reduced mine life of 24 months. The lower strip ratio reduces mining costs. However, total unit cash cost is higher at US$11,730/t of tin as lower recovery reduces tin in concentrate production to 1,184t. Under the low recovery scenario, the NPV declines to A$3.7m.

In the optimistic case of 60% recovery (High case in Table 3), the optimum pit is deeper and the strip ratio higher at 5.3:1.0. Total ore production rises to 478,619t and mine life increases to 36 months. Tin in concentrate production rises to 2,470t at a total unit cash cost of US$9,772/t and the NPV rises to $17.3m.

Investment of the pre-production capital of $3.8m should be viewed in the context of either of the following pre-conditions:

• Stellar proceeds with the construction of a processing plant at Zeehan or
• Access to a third-party processing plant in the area can be secured.

5) Accuracy of Scoping Study estimates and sensitivity to tin price and tin recovery

The Scoping Study estimates are based on industry best practice and at the current stage of evaluation are accurate to ±35%.

The two most sensitive factors in the Scoping Study NPV estimate are tin recovery and the London Metal Exchange tin price. Table 4 shows the likely range of NPV outcomes for variations of 10% and 20% around the base case recovery of 50% at tin prices of US$16,000/t up to US$24,000/t.

Tin Price*			Tin Recovery %
US$/t	A$/t	40	50	60
24,000	33,333	9.2	18.8	28.3
22,000	30,556	6.4	14.6	22.8
20,000	27,778	3.7	10.4	17.3
18,000	25,000	1.0	6.2	11.7
16,000	22,222	-1.8	2.0	6.2

Table 4: NPV ($m) Sensitivity to tin price and tin recovery

* assumes an average exchange rate of 72USc

It should be noted that the nature of St Dizier as a satellite project that could be in production within 3 months of receiving approvals and of a processing facility being available, provides some flexibility to ensure that it is developed in a supportive tin price environment.

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 that the current tin price (US$20,000/t), exchange rate (0.72US dollars to the Australian dollar) and tin realisation charges (US$1,500/t) will prevail for the life of the project. Stellar believes that these assumptions are reasonable. However, there is a risk that prices could move to adversely affect project economics.

Metallurgical Recovery

In the Key Scoping Study Outcomes shown in Table 1 metallurgical recovery of tin is assumed to be 50%. Stellar has completed initial metallurgical test-work at a reputable laboratory and believes that 50% is a reasonable assumption. However, more test-work is required to optimise the process flowsheet and until drill sample is obtained and test-work is completed there is a risk to the tin recovery assumption.

Access to a Processing Facility

The Scoping Study assumes that St Dizier ore will be treated at Stellar's proposed processing facility at Zeehan or at a third-party plant within 20km of the mine. Stellar believes that it has reasonable grounds for this assumption as it has undertaken initial internal studies for a processing plant at Zeehan and has had preliminary discussions with the owner of a third-party tin processing facility. Until either of these alternatives are more advanced there remains a risk that the proposed processing facility at Zeehan does not proceed in a timely manner for St Dizier or that Stellar cannot reach a satisfactory agreement for treating St Dizier ore in a third-party processing facility.

Strip Ratio

The open pit design and optimisation was based on a digital block model of the Central Lode Indicated Resource. A life of mine strip ratio of 4.7:1 was estimated from the production schedule after allowing for 95% ore recovery and 10% dilution. Stellar has confidence in this work as it was undertaken by the Company's Competent Person and Polberro Consulting, a reputable mining engineering consultancy. However, there remains a risk that poorer than expected ground conditions could lead to a higher strip ratio which would have an adverse impact on head grade and the unit cost of tin production.

Environment

Stage 1 environmental surveying has identified the need for more testing of the acid generating capacity of the various mine waste rock types. Until enough drill core samples are obtained and tests completed on the acid generating capacity of the core there remains a risk to the cost of waste storage and 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.

Project Funding

To achieve the range of outcomes indicated in the Scoping Study, funding in the order of A$4.3m will likely be required for the Exploration, Development and project Construction Capital Expenditure. 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 St Dizier project for the purposes of the Scoping Study. Factors which support this assumption, without stating that funding will be necessarily obtained, include:

• The high internal rate of return, short payback period and low capital requirement of the project that make it attractive for investors looking for tin exposure
• The track record of the board in attracting new investors through share placements over the last 8 years
• The current level of engagement of the Stellar board and management with potential strategic partners who may wish to invest

• Discussions that management have had with tin process plant operators that are looking for new ore sources to supplement production and may wish to invest in St Dizier
• 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.

Timing and next steps

Project timing will be driven by the availability of suitable processing capacity which is currently difficult to predict. In the meantime, subject to financing, the strategy is to collect enough data to reduce processing risk, prepare a definitive feasibility study and submit a development proposal and environmental management plan to the West Coast Council in support of a mining permit so that the St Dizier mine is 'construction ready'.

Data collection steps, timing and cost of all activities including preparation and submission of a DPEMP are summarised in Table 5.

Activity	Description	Timing	Cost
		months	$
Diamond Drilling	5 holes for 800m	3	240,000
Metallurgical Testing	5 composite samples	2	100,000
AMD Testing	20 samples	2	10,000
DFS	Engineering studies	2	100,000
DPEMP	Environmental studies	3	80,000
Total		6	530,000

Table 5: Activities, timing and cost estimates for a mining permit

St Dizier increases the range of tin development options for Stellar, either as early production in the event of third-party plant availability, early ore for the proposed Heemskirk processing plant at Zeehan or supplemental ore for this plant.

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 6.4mt @ 1.13% 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 (see Figure 6).

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 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 in the 2015 St Dizier tin mine Scoping Study refer to the Key Risk section on page 12 and 13 of this report.

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; basic•statistical 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.

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	•The St Dizier tin deposit is contained withinEL46/2003 and ML 10/2017.•ML10/2017 provides secure tenure over the St Diziertin 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.

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 for	•No exploration results are reported in this release.
	aggregation should be stated and someexamples of such aggregations should beshown in detail•The assumptions used for any reporting ofmetal equivalent values should be clearly
Relationship	stated.
between	•These relationships are particularly importantin the reporting of Exploration Results.	•No drill results reported in this release.•Historical drilling was mostly oriented at right angles
mineralisationwidths andinterceptlengths	•If the geometry of the mineralization withrespect to the drill hole angle is known, itsnature should be reported.	to the east-west strike and vertical dip of the tinmineralization.
	•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)
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).	•Further diamond drilling around the Central Lode tobetter characterize the acid forming capacity ofwaste rock from the planned open pit.
	•Diagrams clearly highlighting the areas of	•Drilling for metallurgical sample is also required.
	possible extensions, including the maingeological interpretations and future drilling	•Agreement on a processing plan to produce asaleable tin concentrate.
	areas, provided this information is notcommercially sensitive.	•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 for•EOH 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.•ID2interpolation 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.