STELLAR RESOURCES LIMITED — Capital/Financing Update 2022

Aug 2, 2022

Stellar Awarded 3 Tasmanian Government Grants ($133,750) for South Severn and Scamander Exploration Drilling

Stellar Resources Limited (ASX:SRZ, "Stellar" or the "Company") is pleased to announce that under the Seventh Round of the Exploration Drilling Grant Initiative (EDGI) program, the Tasmanian Government has awarded the Company three Exploration Drilling Co-Funding grants totalling $133,750 for exploration drilling of the South Severn geophysical target and the North Scamander and Pinnacles tin-base metals projects.

The grants awarded to Stellar are for the following exploration projects:

• South Severn Hole ZS152 which is underway (ML2023P/M) testing a large magnetic and approximately coincident conductive target to the south of the Severn tin deposit identified in geophysical modelling ($50,000 grant).
• North Scamander tin-base metals project (EL19/2020) 2 diamond drill holes planned in 2023 to test strong stream sediment and soil tin geochemistry anomalies and surface rock chip results up to 1.07% Sn generated by an outcropping mineralised gossan over the North Scamander prospect coincident with a significant magnetic anomaly. Historic drilling intersected intervals of pyrrhotite-cemented hydrothermal breccia associated with intense magnetite alteration of the wall rocks and strongly anomalous Sn, Cu and Zn values ($50,000 grant).
• Pinnacles tin-base metals project (EL19/2020) 1 diamond drill hole planned in 2023 to test strong stream sediment and soil tin geochemistry anomalies generated by widespread outcropping sheeted quartz-cassiterite veins which correspond to a low intensity magnetic anomaly. Historic drilling above the target depth intersected up to 0.4% Sn in sheeted quartz-cassiterite veins ($33,750 grant).

EDGI is an important initiative of the Tasmanian Government designed to encourage exploration in the state. It represents an acknowledgement by the Tasmanian Government that mining is an important sector and underpins the mining friendly credentials of Tasmania.

Stellar is pleased to have been awarded 3 out of a total of 17 EDGI Round 7 grants recently awarded by the Tasmanian Government, the equal highest number of Round 7 grants awarded to any company.

Executive Director Gary Fietz commented: "We are very pleased that the Tasmanian Government has shown its support for co-funding of drilling costs of our Severn south geophysical target hole ZS152 underway at Stellar's flagship Heemskirk Tin Project and for our planned drilling next year of advanced tin and base metals targets on our other projects within EL19/2020 in north east Tasmania"

Stellar Resources Limited ABN: 96 108 758 961 Level 4, 96 – 100 Albert Road, South Melbourne Victoria 3205, Australia T: +61 3 9692 7222 F: +61 3 9077 9233 E: srzinfo@stellarresources.com.au Web: www.stellarresouorces.com.au Twitter: @SRZ_Tin

South Severn Magnetic and Conductivity Target Hole ZS152 Underway

Phase 2A drillhole ZS152, currently underway (~900m planned length) is testing a large magnetic and approximately coincident conductive target to the south of the Severn deposit that was identified in geophysical modelling completed last November by Stellar's consultants, Mira Geoscience1 . This hole also passes through the projected position of the Severn deposit ~100m south of the defined Mineral Resource2 . ZS152 has been drilled to a depth of 649m to 28 June 2022 and is yet to reach target depth.

Figure 1 shows an updated isosurface from a revised magnetic inversion interpretation completed in March 2022 by Mira Geoscience. The impact of the Severn and Queen Hill deposits was reduced by removing the magnetic signature of the mineralisation prior to inversion.

Figure 1 - Image of Drillhole ZS152 underway to test the Severn South magnetic and conductive target; view looking west (GDA94)

North Scamander and Pinnacles Tin-Base Metals Exploration Projects

The Scamander district contains a large number of metallic mineral occurrences hosted within folded and faulted Ordovician Mathinna Group sedimentary rocks and is underlain by a strongly fractionated alkali granite. The metalliferous nature of the district, well defined metal zonation and location above the inferred alkali granite suggest that known mineralisation in this area is spatially and genetically associated with the emplacement of the fertile granite.

Significant historic exploration for tin and base metals has been undertaken on Stellar's Scamander EL EL19/2020 including extensive soil sampling, stream sediment sampling and drilling defining areas of

2 SRZ Announcement 27 July 2022, More Outstanding Tin Intersections from Severn Infill Holes

1 SRZ Announcement, 11 November 2021, Large Magnetic and Conductive Target Modelled at South Severn

anomalous Sn, Zn, Cu, Ag and Pb mineralisation extending to the NW and SE of the Great Pyramid mine within adjacent RL2/2009 held by Tin One Resources Incorporated. 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 . The remaining Great Pyramid deposit within adjacent RL2/2009 has a JORC resource of 5.2Mt @0.2% Sn at a 0.1% Sn cut-off, with an average drilling depth of 46m4 , demonstrating the potential in the district.

Significant W, Sn, Cu and Zn anomalies are defined by stream sediment geochemistry which define a regional scale NW-SE trending mineralised corridor which includes the Pinnacles and North Scamander tin-base metals projects on EL19/2020, extending to the NW and SE of the Great Pyramid mine.

Figure 2 – Scamander District - Regional Magnetics (greyscale), Surface Stream Sediment Geochemistry, Mineral Occurrences, and Outcropping Fractioned Alkali Granite over EL19/2020 (GDA94 Grid)

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

4 Tin One Resources Incorporated website

North Scamander Tin-Base Metals Project

The North Scamander tin-base metals project is characterised by an outcropping mineralised gossan, that has generated strong surface stream sediment and soil tin geochemistry anomalies over the prospect and corresponds with a significant aeromagnetic anomaly. Rock chip samples from the prospect return grades of up to 1.07% Sn (see Figure 3).

Drilling over the North Scamander target completed in 1981 includes 4 shallow percussion and 4 diamond drillholes to approximately 250m depth which intersected intervals of pyrrhotite-cemented hydrothermal breccia associated with intense magnetite alteration of the wall rocks and strongly anomalous Sn, Cu and Zn values. Previous results include:

• NSD2 138m @ 0.8% Zn (from 31m), including 1m 0.45% Sn, 6.2% Pb, 7.8% Zn, and 62 g/t Ag
• NSD1 13m 0.1% Sn, 0.2% Cu, 0.1% Pb, 0.8% Zn and 25 g/t Ag (from 163m)

Figure 3 - North Scamander Tin-Base Metals Advanced Prospect - Regional Magnetics RTP (greyscale), Surface Soil Geochemistry, and Historic Drillholes, EL19/2020 (GDA94 Grid)

Pinnacles Tin-Base Metals Project

The Pinnacles tin-base metals project is characterised by widespread outcropping sheeted quartz-cassiterite veins which are likely responsible for the strong surface stream sediment and soil tin geochemistry anomalies over the prospect and corresponds with a low intensity aeromagnetic anomaly. Limited rock chip samples are available over the prospect (see Figure 4).

Historic drilling over the Pinnacles target completed in 1983 includes 12 RC holes to a maximum depth of 120m targeting a large Sn soil anomaly, related to the sheeted quartz-cassiterite veins mapped at surface. Sn grades up to 0.4% over a length of 1.0m were reported in drillhole PPH1, with holes either side also returned anomalous Sn (note: drillhole PPH1 was drilled at the same location as drillhole PRC7 which overplots the PPH1 label in Figure 4).

Figure 4 - Pinnacles Tin-Base Metals Advanced Prospect - Regional Magnetics RTP (greyscale), Surface Soil Geochemistry, and Historic Drillholes, EL19/2020 (GDA94 Grid)

Magnetic Inversion Modelling & Drill Targets

Magnetic inversion modelling recently undertaken by Stellar's geophysical consultant has shown that drilling at North Scamander was not deep enough to intersect the core of the magnetic feature which represents a high potential drilling target (see Figure 5). Whilst the Pinnacles prospect is characterised by a more subtle magnetic feature, its strong surface geochemical anomalies, mapped sheeted quartz-cassiterite veins and historic drilling results combine to make the Pinnacles prospect another high potential drilling target. Stellar plans to undertake ground IP surveys to further refine the North Scamander and Pinnacles targets prior to finalising drill hole designs to test these prospects.

Figure 5 – Regional cross section looking NE showing modelled position of Constables Creek Granite (pink) with magnetic inversion voxels clipped to 0.00475 x10^-5 Si units and historic drilling (GDA94 Grid)

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 Executive Director Stellar Resources Limited T: 0408 489 957 E: gary@widerange.net.au For broker and media enquiries: Zander Beacham White Noise Communications T: 0433 515 723 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 of 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 byMRT, are listed as having originated in the followingreports, 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Soil samples from North Scamander are reported in80-1444, 80-1680,Rock chip samples from the North Scamander areaare listed as having the originated in the followingreports, which can be found on the MRT website,ER8515S0, GSB55, UR2018_04.Information regarding percussion drilling at thePinnacles prospect can be found in reports 65-0395,and 84-2218Details on percussion and diamond drilling at NorthScamander can be found in 82-1680 and 82-1761,Similarly, with respect to drillhole data
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.)	Drillholes PDP1- 1-6 - Open hole percussion usingHalco Stenuick drill rig.Drillholes PPH1 and PRC1-11 are listed at 'ReverseCirculation/PercussionNorth Scamander drill holes NSP1-4 were drilledusing percussion drilling to a depth or 50m, 50m,50m and 26m respectively. Only NSP4 reached thewater table.Drillholes NS1-4 were drilled using conventionaldiamond drilling

Tasmanian Government Grants Awarded for South Severn and Scamander Exploration Drilling

Criteria	JORC Code Explanation	Commentary
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 of	See open file reports listed above
	fine/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.	All drillholes were geologically logged – see open filesreports listed above
	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.	Samples from drillholes PDP1- 1-6 were taken using6ft composites
techniquesand samplepreparation	If non-core, whether riffled, tube sampled, rotarysplit, etc. and whether sampled wet or dry	Samples from PPH1 and PRC1-11 were taken using 2mcomposites
	For all sample types, the nature, quality andappropriateness of the sample preparationtechnique.	Samples from NS1-3 were taken on intervals tocorrespond with geologic logging. On average this was2m. Samples were split half core.
	Quality control procedures adopted for all subsampling stages to maximize representivity ofsamples.	Samples from NS4 were taken more consistently on2m intervals. Samples were cut half core.Check samples not reported.
	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.For geophysical tools, spectrometers, handheldXRF instruments, etc., the parameters used in	The data presented here is historical open file data,with limited metadata related to assay method, labtests or QAQC. Where suitable metadata exists, Snand W values are generally from XRF instrumentswhile base metals are from ICP analysis.Given the historic nature of the data, accuracy andprecision of the instruments are considered to besignificantly reduced compared to modern standards
	determining 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.

Tasmanian Government Grants Awarded for South Severn and Scamander Exploration Drilling

Criteria	JORC Code Explanation	Commentary
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 verification of the assays has been undertaken.Relogging of drillholes NS1-4 confirms the presence ofmineralized breccia at intervals that also reportanomalous geochemistry
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 presented in GDA94/UTM 55S andare taken from MRT openfile database
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	Only historic exploration drilling is reported here.
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.	Drillholes are, as best we understand orientedperpedicular to the mineralized body.
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 Licenses held by Stellar ResourcesLimited's wholly owned subsidiary, Tarcoola Iron PtyLtd.
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 mineralization style of the prospects presentedhere is best categorized as granite-related Sn-W. Asbest can be determined from historic reports, ThePinnacles prospect represents more of a sheeted veinstyle of mineralization, whereas the mineralizationintersected to date at the North Scamander prospect isbetter described as a tabular hydrothermal breccia.
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	Drillhole information is open file – MRT database orlisted reports

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

Tasmanian Government Grants Awarded for South Severn and Scamander Exploration Drilling

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.If the geometry of the mineralization withrespect to the drill hole angle is known, itsnature should be reported.	True widths not available
	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.
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, soil, rock ship and drillhole dataavailable has been included in the figures in thisrelease and the exploration targets are based on thisand geological mapping and technical papers andhave been described 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
Further work	The nature and scale of planned further work(e.g. test for lateral extensions or depthextensions or large scale step out drilling).	Conduct geophysical (IP) surveys over targets toidentify chargeable pyrite domains associated withSn mineralisation
	Diagrams clearly highlighting the areas ofpossible extensions, including the maingeological interpretations and future drillingareas, provided this information is notcommercially sensitive.	Drill targets identified by work outlined above