STELLAR RESOURCES LIMITED — Capital/Financing Update 2020

Sep 13, 2020

14 September 2020

Capital Structure

Shares: 442,714,441 Share Price (SRZ): 1.8 c Unlisted Options: 37,000,000 Share Rights 5,161,190

Commodity

Tin Price: US$18,233/t Gold Price: US$1,947/Oz Exchange Rate US$ 0.73

Main Shareholders European Investors 16.5% Capetown SA 14.1%

Board & Management

Simon O'Loughlin Non-Executive Chairman Simon Taylor Non-Executive Director Thomas Whiting Non-Executive Director Gary Fietz Non-Executive Director

Melanie Leydin Company Secretary

ASX Code: SRZ

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

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

Non-Renounceable Entitlement Offer Cleansing Notice under Section 708AA(2)(F) of the Corporations Act 2001 (Cth)

The Directors of Stellar Resources Limited (ASX: SRZ, "Stellar" or the "Company") give notice under section 708AA(2)(f) of the Corporations Act 2001 (Cth) (Corporations Act).

Stellar announced today that it is seeking to raise approximately $1.8 million (before costs) by way of a fully underwritten, Non-Renounceable Entitlement Offer ("Entitlement Offer").

Under the Entitlement Offer, shareholders with a registered address in Australia and New Zealand in which Stellar decided to make offers are invited to subscribe for two (2) fully paid ordinary shares (New Shares) for every five (5) fully paid ordinary shares held as at 7.00pm (AEST) on Thursday, 17 September 2020.

Stellar confirms that:

• 1. The Shares will be offered pursuant to the Entitlement Offer without disclosure under Part 6D.2 of the Corporations Act.
• 1. This notice is being given under section 708AA(2)(f) of the Corporations Act.
• 1. As at the date of this notice, Stellar has complied with:
  • a) the provisions of Chapter 2M of the Corporations Act as they apply to Stellar; and
  • b) section 674 of the Corporations Act.
• 1. As at the date of this notice, there is no excluded information of the type referred to in sections 708AA(8) and 708AA(9) of the Corporations Act that is required to be set out in this notice under section 708AA(7) of the Corporations Act.
• 1. The potential effect that the issue of Shares will have on the control of Stellar, and the consequences of that effect, will depend on a number of factors, including investor demand. To the extent that shareholders fail to take up their entitlements under the Offer, the percentage of holdings of those shareholders in Stellar may be diluted by those other shareholders who take up some or all of their entitlement. At this time, the issue of the Shares under the Offer is not expected to have a material effect or consequence on the control of Stellar given:
  • a) the Offer is structured as an underwritten pro-rata issue;

• b) the current level of holdings of substantial holders (based on substantial holding notices that have been given to Stellar and lodged with ASX on or before the date of this notice); and

• c) no participant in any shortfall will be offered Shares which would result in them holding more than 20% of the Shares on issue.

-Ends-

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

For further details please contact:

Gary Fietz Director Stellar Resources Limited Tel: 0408 489 957 Email: gary@widerange.net.au Or visit our Website at: http://www.stellarresources.com.au