STELLAR RESOURCES LIMITED — Capital/Financing Update 2020

Sep 9, 2020

10 September 2020

Capital Structure

Shares: 442,714,441 Share Price (SRZ): 1.9 c Unlisted Options: 37,000,000 Share Rights 5,161,190

Commodity

Tin Price: US$18,314/t Gold Price: US$1,937/Oz Exchange Rate US$ 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

www.stellarresources.com.au

NE Tasmania Gold Exploration Licence Applications

Stellar Resources Limited (ASX:SRZ, "Stellar" or the "Company) is pleased to announce that it has lodged 10 Exploration Licence Applications (ELA's) covering a large area in North East Tasmania which is highly prospective for Victorianstyle Orogenic Gold and for Intrusive Related Gold Systems (IRGS).

Highlights:

• 10 first-in-time ELA's made by Stellar's wholly owned subsidiary, Tarcoola Iron Pty Ltd, were registered yesterday by Mineral Resources Tasmania (MRT).
• The 10 ELA's cover a combined area of 2,295 km2 in NE Tasmania which is highly prospective for Victorian-style Orogenic Gold and IRSG deposits and contains ~76 recorded historic gold occurrences.
• NE Tasmania is a continuation of the Victorian Western Lachlan Fold Belt, which hosts the >3 MOz Fosterville Mine, other Tier 1 goldfields including Bendigo, Ballarat, Stawell, Walhalla and Woods Point and has produced >80 MOz gold. The ELA areas in NE Tasmania best align with the rich Walhalla-Woods Point belt in the eastern part of the Melbourne structural zone.
• NE Tasmania hosts the Beaconsfield Mine (2.3 MOz), New Golden Gate Mine (0.3 MOz) and the Lefroy Goldfield (0.2MOz), along with hundreds of smaller historic gold mines and occurrences.
• While Victoria is currently experiencing intense gold exploration activity, NE Tasmania has had very little modern gold exploration undertaken.
• Numerous gold exploration targets identified within the ELA areas based on:
  • ✓ Similar geology to the Western Lachlan Fold Belt in Victoria (similar timing of deposition, deformation, metamorphism and granite intrusions)
  • ✓ Regional scale structural trends/lineaments identified in aeromagnetic and gravity surveys and corresponding mapped faults which are targets for gold mineralisation.
  • ✓ Location of recorded gold occurrences
• Granting of the Exploration Licences is expected to take 3 to 6 months, subject to MRT's approval

Commentary

Chairman, Simon O'Loughlin commented, "Stellar is excited to be in a position where it soon expects to be able to explore for Victorian-style gold exploration targets in relatively underexplored NE Tasmania within the continuation of the Victorian Western Lachlan Fold Belt. Stellar's established base in Tasmania has enabled us to identify these targets and to lodge and have the ELA's registered by Mineral Resources Tasmania. Our geological team and network of technical consultants in Tasmania will also be a great asset in implementing the proposed gold exploration program going forward".

"Whilst embarking on the NE Tasmania gold initiative, Stellar will continue to hold all of its licences and leases in good standing over the Heemskirk Tin Project and other satellite tin projects on the West Coast of Tasmania. We note that tin prices have recovered significantly from lows of ~US$16,000/t early in 2020 with the onset of Coronavirus to currently over US$18,300/t. We remain optimistic that tin prices will continue to strengthen, supporting the advancement of the Heemskirk Tin Project in the future."

NE TASMANIA – A CONTINIATION OF THE VICTORIAN WESTERN LACHLAN FOLD BELT

Gold deposits in North East Tasmania lie within a continuation of the Western Lachlan Fold Belt in Victoria – one of the world's largest orogenic gold provinces.

Victorian Gold Deposits

The Western Lachlan Fold Belt in Victoria hosts the >3 MOz Fosterville Mine, other Tier 1 goldfields including Bendigo, Ballarat, Stawell, Walhalla and Woods Point and has produced >80 MOz gold. Victoria has 13 goldfields that have each produced over 1 MOz gold with Bendigo (22 MOz) being the largest of these. The Western Lachlan Fold Belt in Victoria is divided into the Stawell, Bendigo and Melbourne structural zones. The eastern most Melbourne Zone extends southwards across Bass Straight into NE Tasmania. More specifically, the gold rich Walhalla-Woods Point belt in the eastern part of the Melbourne Zone, aligns well with NE Tasmania and Stellar's ELA areas.

The majority of gold deposits in Victoria are orogenic gold deposits formed in Ordovician to Devonian turbiditic sediments which were deformed and metamorphosed during the Lachlan Orogen. Gold mineralization is associated with late stage regional deformation and is commonly also associated with proximal granitoid intrusions. Most gold in Victoria is formed within quartz veins which occupy dilational zones along large scale faults related to folding and deformation occurring during the Lachlan Orogen. Gold can also occur in veins and in stockworks in faults as is the case at Fosterville.

NE Tasmania Gold Deposits

NE Tasmania hosts the Beaconsfield Mine (2.3 MOz), New Golden Gate Mine (0.3 MOz) and the Lefroy Goldfield (0.2MOz), along with hundreds of smaller historic gold mines and occurrences.

Just like their equivalent Victorian gold deposits within the Western Lachlan Fold Belt, the gold deposits in NE Tasmania are orogenic gold deposits formed in Ordovician to Devonian turbiditic sediments, known as the Mathinna Super-Group in NE Tasmania. The Mathinna Super-Group sediments in NE Tasmania were also deformed and metamorphosed during the Lachlan Orogen with gold mineralization being associated with late stage regional deformation and being commonly associated with proximal granitoid intrusions. Most gold in NE Tasmania is formed within quartz veins which occupy dilational zones along large scale faults related to folding and deformation

occurring during the Lachlan Orogen. The location and geometry of gold lodes in North East Tasmania, as is the case in Victoria, is influenced by the presence of regional structures and by rheological contrasts between sedimentary rock units.

NE Tasmania also contains deposits where gold occurs as veins and in stockworks in faults and Intrusive Related Gold Style (IRGS) deposits.

Figure 1 shows the continuation of the Melbourne Zone of the Victorian Western Lachlan Fold Belt into NE Tasmania.

Figure 1: Continuation of Western Lachlan Fold Belt from Victoria into NE Tasmania (after Geological Survey of Victoria (2000), The Tasman Fold Belt System in Victoria. Estimates of Gold production for Victorian Gold Fields may include district production)

Figure 2 highlights the similar timing of sedimentation, deformation, granitoid intrusions and gold mineralization between NE Tasmania and Victoria.

Figure 2: Timing of Geological Events in NE Tasmania vs Melbourne and Bendigo Zone of Western Lachlan Fold Belt in Victoria

(after Bierlein et al (2005), Timing of Orogenic gold mineralisation in north-eastern Tasmania: implications for the tectonic and metallogenic evolution of Palaeozoic SE Australia)

While Victoria is currently experiencing intense gold exploration activity, NE Tasmania has had very little modern gold exploration undertaken.

EXLPORATION LICENCE APPLICATIONS

10 first-in-time Exploration Licence Applications (ELA's) in North East Tasmania by Stellar's wholly owned subsidiary, Tarcoola Iron Pty Ltd were registered by Mineral Resources Tasmania (MRT) yesterday. The location and names of the ELA's are shown in Figure 3.

Figure 3: Stellar ELA's, Occurrences and Existing Licences

The 10 ELA's cover a large combined area (2,295 km2) in NE Tasmania which is highly prospective for Victorian-style Orogenic Gold and for Intrusive Related Gold Systems (IRGS) with ~76 historic gold occurrences recorded within the ELA areas.

NE TASMANIA GOLD EXPLORATION TARGETS WITHIN STELLAR ELA'S

Numerous gold exploration targets have been identified within Stellar's ELA areas based on the following targeting criteria:

• ✓ Ordovician turbiditic meta-sediments (Mathinna Super-Group)
• ✓ Ordovician to Devonian deformation and metamorphism (Western Lachlan Orogen)
• ✓ Devonian granitoid intrusives nearby
• ✓ Predominantly NW Regional scale structural trends/lineaments identified in aeromagnetic and gravity surveys and corresponding mapped faults. Intersecting NE trends/faults also identified in some of the ELA's
• ✓ Intrusive Related Gold Style (IRSG) targets identified within the Blessington and other ELA's from aeromagnetic surveys
• ✓ Location of recorded gold occurrences (and tin/tungsten occurrences for Upper Scamander ELA)
• ✓ Ground open for application

Table 1 summarizes how the above targeting criteria are met within each of the 10 Stellar ELA's.

No.	Application Name	OrdovicianMathinnaGroup	Regional Structures(Magnetic Lineaments& Mapped Faults)	GranitoidIntrusionsnearby	GoldOccurrences	Tin/TungstenOccurrences
1	Beaconsfield South		NW		18
2	Nabowla		NW		3
3	Pipers River		NW		15
4	Lilydale		NW		6
5	Nunamara		NW & NE		3
6	North Scottsdale		NW & N		3
7	Blessington		NW, N & NE &		2	21
			IRGS target
8	Mt Saddleback		NW & NE		13	1
9	Peppermint Hill		NW		6
10	Upper Scamander		N & NE		7	1

Table 1: Summary of Stellar NE Tasmania ELA Targets

Further detail on gold exploration targets within the ELA's can be seen in:

• Figure 4 Geology of NE Tasmania (adapted from Tasmania 1:500K Geological Map Sheet) with Gold, Tin and Tungsten Occurrences and Stellar's ELA's.
• Figure 5 Total Magnetic Intensity of NE Tasmania with Gold, Tin and Tungsten Occurrences, Stellar's ELA's and Existing Licences.

Figure 4: NE Tasmania Geology, Occurrences & Stellar ELA's

Figure 5: NE Tasmania Total Magnetic Intensity, Occurrences, Stellar ELA's and Existing Licences

PROPOSED EXPLORATION PROGRAM

The proposed exploration program for the first two years, covering all 10 of the ELA's combined is shown in Table 2.

Table 2: Proposed Exploration Program - Stellar NE Tasmania ELA's

Year 1 – Proposed Work Program Activities

Detailed historic data capture and analysis including; geophysical surveys, drilling, soil, rock chip and stream sediment results and historic records on gold occurrences

Reprocessing of available magnetic and gravity survey data

Fieldwork - visit gold occurrences, mapping, soil, rock chip and steam sediment sampling and analysis over refined targets

Fly high resolution aeromagnetic survey over licence areas as required

Generation of drill targets for year 2

Year 2 – Proposed Work Program Activities

First phase of drilling on drill targets identified in Yr 1. Drilling will be a combination of aircore or RAB or similar method for initial shallow geochemistry drilling of targets, followed up by deeper reverse circulation and diamond drillholes where initial drilling results are encouraging.

NEXT STEPS

Processing of the ELA's by MRT is expected to take 3 to 6 months before Exploration Licences can be granted, subject to MRT's approval.

Subject to grant of the Exploration Licences, Stellar expects to commence the proposed Exploration Program early in 2021.

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

Competent Persons Statement

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 a consultant to the Company. Mr Hazeldene has sufficient experience relevant to the style of mineralisation and type of deposits being considered to qualify as a Competent Person as defined by the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2012 Edition). Mr Hazeldene consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. It should be noted that the abovementioned exploration results are preliminary.

Forward Looking Statements

This report may include forward-looking statements. Forward-looking statements include but are not limited to statements concerning Stellar Resources Limited's planned activities and other statements that are not historical facts. When used in this report, the words such as "could", "plan", "estimate", "expect", "intend", "may", "potential", "should" and similar expressions are forward-looking statements. In addition, summaries of Exploration Results and estimates of Mineral Resources and Ore Reserves could also be forward-looking statements. Although Stellar Resources Limited believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. The entity confirms that it is not aware of any new information or data that materially affects the information included in this announcement and that all material assumptions and technical parameters underpinning this announcement continue to apply and have not materially changed. Nothing in this report should be construed as either an offer to sell or a solicitation to buy or sell Stellar Resources Limited securities.

APPENDIX 1 – NORTH EAST TASMANIA - 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 scans, or hand held XRF instruments etc.).	•No exploration results reported in this release.
	•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.
DrillingTechniques	•Drill type (e.g. core, reverse circulation, open holehammer, rotary air blast, auger, bangka, sonicetc.) and details (e.g. core diameter, triple orstandard tube, depth of diamond tails, facesampling bit or other type, where core is orientedand if so by what method, etc.)	•No drill results reported in this release.
Drill samplerecovery	•Method of recording and assessing core and chipsample recoveries and results assessed.	•No drill results reported in this release.
	•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
Logging	•Whether core and chip samples have beengeologically and geotechnically logged to a levelof detail to support appropriate Mineral Resourceestimation, mining studies and metallurgicalstudies.	•No drill results reported in this release.
	•Whether logging is qualitative or quantitative innature. Core (or costean, channel etc.)photography.
	•The total length and percentage of the relevantintersections logged.

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 sampling reported in this release.
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.	•No assay data reported in this release.
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.	•No sampling or assays reported in this release.

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 coordinates in GDA94.
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	•No drilling or sampling reported in this release
Orientationof data inrelation togeologicalstructure	•Whether the orientation of sampling achievesunbiased sampling of possible structures and theextent to which this is known, considering thedeposit type.•If the relationship between the drillingorientation and the orientation of key mineralisedstructures is considered to have introduced asampling bias, this should be assessed andreported if material.	•No drilling or sampling reported in this release
SampleSecurity	•The measures taken to ensure sample security.	•No drill sampling reported in this release.
Audits orReviews	•The results of any audits or reviews of samplingtechniques and data.	•No audits or reviews of sampling data and techniquescompleted, as no sampling reported in this release

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	•All tenements referred to in this release are ELAs(Exploration Licence Applications)
Explorationdone by otherparties	•Acknowledgement and appraisal of explorationby other parties.	•Data and maps presented in the release are fromMRT, Geoscience Victoria or academics sources.•No prior exploration data reported
Geology	•Deposit type, geological setting and style ofmineralization.	•The proposed program is targeting Victorian-styleOrogenic Gold and Intrusive Related Gold Systemshosted by Ordovician turbiditic meta-sediments (theMathinna Super-Group) which are thought to be asouthern extension of the Melbourne Zone of theVictorian Western Lachlan Fold Belt into NE Tasmania.•As is the case in Victoria, most gold in NE Tasmania ishosted within quartz veins which occupy dilationalzones along large scale faults related to folding anddeformation occurring during the Lachlan Orogen.
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.

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.
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 plans presented in the body of the release.•No drilling reported.
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.	•Detailed historic data capture and analysis including;geophysical surveys, drilling, soil, rock chip and streamsediment results and historic records on goldoccurrences•Reprocessing of available magnetic and gravity surveydata•Fieldwork - visit gold occurrences, mapping, soil, rockchip and steam sediment sampling and analysis overrefined targets•Fly high resolution aeromagnetic survey over licenceareas as required

•Drilll targets identified by above work. Drilling will be
a combination of aircore or RAB or similar method
for initial shallow geochemistry drilling of targets,
followed up by deeper reverse circulation and
diamond drillholes where initial drilling results are
encouraging.