STELLAR RESOURCES LIMITED — Capital/Financing Update 2022

Nov 1, 2022

Exploration Licence Granted Over Prospective Lithium and Tin Ground in NE Tasmania

Stellar Resources Limited (ASX: SRZ, "Stellar" orthe "Company") is pleased to announce that its wholly owned subsidiary, Tarcoola Iron Pty Ltd, has recently been granted Exploration Licence EL3/2022 over a combined area of 97 km2 in the Mt Paris and Scamander North areas of Northeast Tasmania which are prospective for Lithium and Tin.

Highlights:

• EL3/2022 Mt Paris block prospective for lithium and tin mineralisation:
  • o Presence of the Mount Paris Granite, a fractionated granite, equivalent to the nearby Lottah Granite which contains the highest levels of lithium recorded in Tasmania. Exploration for lithium will target pegmatites near the Mt Paris Granite margins where there is the possibility of elevated concentrations of lithium occurring.
  • o 8 recorded historic tin occurrences / mines.
  • o Historic stream sediment samples up to 1,000 ppm Sn within the EL3/2022 Mt Paris block, and up to 9,400 ppm Sn and 1,220 ppm Li from limited historic sampling close to the boundary.
  • EL3/2022 Scamander North block and adjoining Stellar EL19/2020 highly prospective for tin and base metal mineralisation:
    • o Presence of the fractionated Constables Creek Alkali Granite, considered equivalent in composition to the Mt Paris and Lottah Granites.
    • o 7 recorded alluvial tin mining occurrences / mines within EL3/2022 Scamander North block and 29 recorded historic mineral occurrences / mines within adjoining Scamander EL19/2020 also owned by Stellar (combination of tin, tungsten, copper, lead, zinc and silver mineralisation).
    • o Historic stream sediment sampling results of up to 9,300 ppm Sn in alluvial tin fields within EL3/2022 Scamander North block and up to 12,000 ppm Sn within adjoining Scamander EL19/2020.
    • o Anomalous historic tin, tungsten, copper, lead, zinc, arsenic and silver in rock chip sample results including up to 1,000 ppm Sn within EL3/2022 Scamander North block and up to 39,500 ppm Sn within adjoining Scamander EL19/2020, where previous detailed exploration outlined anomalous tin and base metal mineralisation NW and SE along strike of the historic Great Pyramid tin mine currently being drilled by Tin One Resources Corporation.
• An initial work program will be undertaken in Q1 2023 within the EL3/2022 Mt Paris block focused on identifying lithium and tin targets via mapping, rockchip and stream sediment sampling, in particular searching for pegmatites which may occur near the Mt Paris Granite Margins.

Executive Director Gary Fietz commented:

"The grant of EL3/2022 adds to Stellar's large tenement holding in Northeast Tasmania and importantly hosts potential for lithium, tin and base metal mineralisation associated with fractioned granite intrusives. This enhances Stellar's commodity mix in Tasmania on top of its flagship Heemskirk Tin Project, and Victorian style gold exploration targets in Northeast Tasmania."

Stellar Resources Limited ABN: 96 108 758 961

Level 17, 530 Collins Street, Melbourne Victoria 3000, Australia

T: +61 3 9692 7222 F: +61 3 9077 9233 E: srzinfo@stellarresources.com.au

Web: www.stellar.com.au Twitter: @SRZ_Tin

EL3/2022 Granted over Mt Paris and North Scamander Areas

EL3/2022 covering a combined area of 97 km2 in the Mt Paris and Scamander North areas of Northeast Tasmania was recently granted to Stellar's wholly owned subsidiary, Tarcoola Iron Pty Ltd.

Stellar now holds a total of 12 EL's in NE Tasmania covering a total area of 2,212 km2 which are prospective for gold, tin and lithium mineralisation (see Figure 1).

Figure 1 NE Tasmania – Stellar's tenement holdings overlain on geology and mineral occurrences (Recently Granted EL3/2022 Mt Paris Block and Scamander North Block highlighted in Blue)

EL3/2022 Mt Paris Block – Prospective for Lithium and Tin

The recently granted EL3/2022 Mt Paris block (38 km2 )is prospective for lithium and tin mineralisation, based on review of open file data sourced from the MRT geochemistry database.

The Mt Paris block covers the fractionated Mount Paris S-type granite, equivalent to the Lottah Granite, which contains the highest levels of lithium recorded (0.02% Li2O to 0.1% Li2O) anywhere in Tasmania1 and hosts the historic Anchor Tin Mine (see Figure 2). Exploration for lithium will target pegmatites near the Mt Paris Granite margins where there is the possibility of elevated concentrations of lithium occurring.

1 The Blue Tier Batholith, Groves et al, 1977

EL3/2022 Granted over Prospective Lithium and Tin Ground in NE Tasmania

Figure 2 – EL3/2020 Mt Paris block area showing geology with lithium in rock chip results (values >500pm labelled)2

The recently granted EL3/2022 Mt Paris block contains 8 recorded historic tin occurrences/mines and adjoins EL10/2019 (Tin One Resources Corporation) to the south and EL17/2017 (Yunnan Tin Australia Pty Ltd) to the east. Both of these adjoining EL's contain extensive (44) historical tin mining occurrences including the Anchor Tin Mine, all of which occur within fractioned alkali-feldspar S-type granite (see Figure 3).

The northern part of the Mt Paris Granite has seen little modern exploration, and as such, few samples are available despite the presence of a significant body of alkali granite considered prospective for tin and lithium mineralisation. Limited stream sediment samples from the southern part of the Mt Paris Granite have been recorded within the EL3/2022 Mt Paris block with values up to 1,000 ppm Sn (see Figure 4) highlighting the potential for tin mineralisation2 . Additional anomalous stream sediment samples up to 9,400 ppm Sn and 1,220 ppm Li have been recorded within bordering EL's held by third parties2 (see Figure 4 and Figure 2).

2 Data sourced from open file MRT surface geochemistry database

(https://www.mrt.tas.gov.au/products/database\_searches/samples\_and\_geochemistry)

Figure 4 - EL3/2022 Mt Paris Block and Scamander North block areas showing tin in stream sediment samples2

EL3/2022 Scamander North Block – Highly Prospective for Tin and Base Metals

The recently granted EL3/2022 Scamander North block (58 km2 ) and Stellar's adjoining Scamander EL19/2020 to the south are highly prospective for tin and base metal mineralisation, based on review of open file geochemical data sourced from MRT.

The EL3/2022 Scamander North block covers partly exposed, late stage, Constables Creek fractionated alkali granite occurring at the margins of the extensive Mt Pearson Granite which may be related to the zoned tin and base metal mineralisation of the Scamander Mineral field located further south on Stellar's Scamander EL EL19/2020 (see Figure 3 and Figure 4).

The recently granted EL3/2022 Scamander North block contains 7 recorded alluvial tin mining occurrences / mines, the hard-rock source of which appears not to have been investigated by previous explorers. Stellar's adjoining Scamander EL19/2020 contains 29 recorded historic mineral occurrences / mines with a combination of tin, tungsten, copper, lead, zinc and silver mineralisation occurring within a zoned mineral system (see Figure 3).

Anomalous tin in stream sediment sample results of up to 9,300 ppm Sn are reported around alluvial tin fields in the EL3/2022 Scamander North block and up to 12,000 ppm Sn in adjoining Scamander EL19/2020, highlighting the potential for tin mineralisation within Stellar's EL3/2022 and EL19/2020.

Anomalous tin, tungsten, copper, lead, zinc, arsenic and silver in rock chip sample results of up to 1,000 ppm Sn in the EL3/2022 Scamander North block and up to 39,500 ppm Sn in adjoining Scamander EL19/2020 highlights the potential for tin, tungsten and base metal deposits in the zoned mineral system within EL19/2020 and at the margins of this partially exposed alkali granite within the EL3/2022 Scamander North block (see Figure 5).

Significant historic exploration for tin and base metals has been undertaken on Stellar's EL19/2020 including extensive soil sampling, stream sediment sampling and drilling defining areas of anomalous Sn, Zn, Cu, Ag and Pb mineralisation NW and SE along strike of the Great Pyramid mine within RL 2/2009 held by Tin One Resources Corporation (see Figure 5). The Great Pyramid Tin Mine operated between 1928 and 1936 with 336 tonnes of ore mined at an average recovered grade of 0.88% Sn, implying an average grade of 1.5% Sn3 .

3 The Zoned Mineral Deposits of the Scamander – St Helens District, Groves, 1972

EL3/2022 Granted over Prospective Lithium and Tin Ground in NE Tasmania

Figure 5– EL3/2022 Scamander North block area showing geology with tin in rock chip samples2

Work Program

An initial work program will be undertaken in Q1 2023 within the EL3/2022 Mt Paris block focused on identifying lithium and tin targets via mapping, rockchip and stream sediment sampling, in particular searching for pegmatites which may occur near the Mt Paris Granite Margins.

Exploration within the EL3/2022 North Scamander block will be integrated with exploration being undertaken on Stellar's Scamander EL19/2020, primarily focused on tin and base metals.

Competent Persons Statement

The Exploration Results reported herein, insofar as they relate to mineralisation, are based on and fairly represent historic open file information compiled by MRT and reviewed by Dr Josh Phillips (Member of the Australasian Institute of Mining and Metallurgy) who is a consultant to the Company. Dr Phillips has sufficient experience relevant to the style of mineralisation and type of deposits considered and to the activity being undertaken 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). Dr Phillips consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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.

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

For further details please contact:

Gary Fietz	For broker and media enquiries:
Executive Director	Zander Beacham
Stellar Resources Limited	White Noise Communications
T: 0408 489 957	T: 0433 515 723
E: gary@widerange.net.au	E: zander@whitenoisecomms.com

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.).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.	Data reported in this announcement is compiledfrom publicly available sources, principally MineralResources Tasmania's open file geochemicaldatabase This multigenerational dataset has beencollected by many companies over a long period oftime and so has varying degrees of accompanyingmetadata, varying from comprehensive to absent. Asbest as the company can ascertain the originalsampling was conducted using industry best practice,though given its age, this data should be taken withthe requisite caution.Stream sediment samples with sampling techniquesrecorded range in treatments from sieving to -20 to -80 mesh with many not having treatments recorded.In instances on extreme anomalous values, such asthose in the % Sn range in some stream sedimentsamples, it remains possible that these samples mayhave originally had some panning treatment favoringhigher Sn and/or gold grades, though this cannot beverified.Stream sediment samples, compiled by MRT, arelisted as having originated in the following reports,which can be found on the MRT website; 82_1761,84_2218, 90_3150, 92_3337, 83_2059, 79_1407,70_0677, 82_1683, 80_1482, 81_1630, 83_1990,81_1582, 79_1377, 82_1680, 84_2092, 85_2378,70_0690, 84_2203, 70_0623, 70_0687, 71_0826,95_3711, 14_6931Rock chip samples from the Mt Paris area are listedas having the originated in the following reports,which can be found on the MRT website (90 sampleshad no listed report reference); 17_7658,EXTREF_81308, EXTREF_81324, EXTREF_81332,EXTREF_81356, EXTREF_81358, EXTREF_81360,EXTREF_81361, GSB55, GSB61, GSB61; GSB61, GSP4Rock chip samples from the North Scamander areaare listed as having the originated in the followingreports, which can be found on the MRT website(366 samples had no listed report reference);ER8515S0, GSB55, UR2018_04
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.

Criteria	JORC Code Explanation	Commentary
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.
SubSampling	If core, whether cut or sawn and whetherquarter, half or all core taken.	No drill results reported in this release.
techniquesand samplepreparation	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
Quality ofassay dataandlaboratorytests	The nature, quality and appropriateness of theassaying and laboratory procedures used andwhether the technique is considered partial ortotal.	The data presented here is historical open file data,with limited metadata related to assay method, labtests or QAQC. Many of the samples have no assaymethod or laboratory recorded.
	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.

Criteria	JORC Code Explanation	Commentary
Verificationof samplingand assaying	The verification of significant intersections byeither independent or alternative companypersonnel	Significant results are verified in original reports wherepossible.
	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.
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	All coordinates in presented in GDA94/UTM 55S.
	Quality and accuracy of topographic control.
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	Not Applicable.
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.	Not Applicable.
SampleSecurity	The measures taken to ensure sample security.	Unknown.
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 areExploration Licences.
Explorationdone by otherparties	Acknowledgement and appraisal of explorationby other parties.	Data and maps presented in the release are fromMRT.
Geology	Deposit type, geological setting and style ofmineralization.	The ELA discussed in this announcement has beenchosen on the basis of proximity to Sn-Li bearingfractionated S-type granites emplaced during theDevonian period in NE Tasmania. These plutons are alsoassociated with base metal systems at their margins.The wider proposed program in NE Tas is targetingVictorian-style Orogenic Gold and Intrusive RelatedGold Systems hosted by Ordovician turbiditic metasediments (the Mathinna Super-Group) which arethought to be a southern extension of the MelbourneZone of the Victorian Western Lachlan Fold Belt into NETasmania.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.	No data has been aggregated in this release.
	Where aggregate intercepts include shortlengths of high-grade results and longer lengthsof low grade results, the procedure used foraggregation should be stated and someexamples of such aggregations should beshown in detail
	The assumptions used for any reporting ofmetal equivalent values should be clearlystated.
Relationshipbetweenmineralisationwidths andinterceptlengths	These relationships are particularly importantin the reporting of Exploration Results.	No drill results reported in this release.
	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)
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	All stream sediment and rockchip data available hasbeen included in the figures in this release and theexploration targets are based on this and geologicalmapping and technical papers and have beendescribed in a balanced fashion.
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.	None

Criteria	JORC Code Explanation	Commentary
Further work	The nature and scale of planned further work(e.g. test for lateral extensions or depthextensions or large scale step out drilling).	Prioritization of specific prospect areas, for follow upwork, including detailed historic data capture andgeophysical surveys, and drilling results where available.
	Diagrams clearly highlighting the areas ofpossible extensions, including the maingeological interpretations and future drillingareas, provided this information is notcommercially sensitive.	Fieldwork - visit occurrences, geologic mapping, rockchip and soil sampling to refine Sn and Li targetsConduct geophysical (IP) surveys over lager targetsidentified from geologic mapping and soil samplingto identify chargeable pyrite domains associated
		with Sn mineralisationDrilll targets identified by above work. Drilling will bea combination of aircore or RAB or similar methodfor initial shallow geochemistry drilling of targets,followed up by deeper reverse circulation anddiamond drillholes where initial drilling results areencouraging.