STELLAR RESOURCES LIMITED — Interim / Quarterly Report 2005

Apr 27, 2005

Appendix 5B

Rule 5.3

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

Name of entity

STELLAR RESOURCES LIMITED

ABN

96 108 758 961

Quarter ended ("current quarter")

Year to date

$(6$ months)

31 MARCH 2005

Current quarter

$A'000

Consolidated statement of cash flows

Cash flows related to operating activities

			$A'000
1.1	Receipts from product sales and related debtors
1.2	Payments for(a)exploration & evaluation(b) development(c) production	(315)	(375)
	(d) administration	(147)	(265)
1.3	Dividends received
1.4	Interest and other items of a similar naturereceived	47	89
1.5	Interest and other costs of finance paid
1.6	Income taxes paid
1.7	Other (provide details if material)
	Net Operating Cash Flows	(415)	(551)
1.81.9	Cash flows related to investing activitiesPayment for purchases of: (a) prospects(b)equity investments(c) other fixed assetsProceeds from sale of:(a)prospects(b) equity investments(c)other fixed assets	(5)	(10)
1.101.111.12	Loans to other entitiesLoans repaid by other entitiesOther (provide details if material)		(3, 442)
	Net investing cash flows	(5)	(3, 452)
1.13	Total operating and investing cash flows(carried forward)	(420)	(4,003)

$\div$ See chapter 19 for defined terms.

1.13	Total operating and investing cash flows(brought forward)	(420)	(4,003)
	Cash flows related to financing activities
1.14	Proceeds from issues of shares, options, etc.		7,935
1.15	Proceeds from sale of forfeited shares
1.16	Proceeds from borrowings
1.17	Repayment of borrowings
1.18	Dividends paid
1.19	Other (cost of issue)	(176)	(207)
	Net financing cash flows	(176)	7,728
	Net increase (decrease) in cash held	(596)	3,725
1.201.21	Cash at beginning of quarter/year to dateExchange rate adjustments to item 1.20	4,168	(153)
1.22	Cash at end of quarter	3,572	3,572

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

		Current quarter$A'000
1.23	Aggregate amount of payments to the parties included in item 1.2	112
1.24	Aggregate amount of loans to the parties included in item 1.10

1.25 Explanation necessary for an understanding of the transactions

Non-cash financing and investing activities

• $2.1$ Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows
• Details of outlays made by other entities to establish or increase their share in projects in which the $2.2$ reporting entity has an interest

Financing facilities available

Add notes as necessary for an understanding of the position.

$3.1$ Loan facilities

Amount available	Amount used
SA'000	$A'000

+ See chapter 19 for defined terms.

3.2	Credit standby arrangements

Estimated cash outflows for next quarter

4.14.2	Exploration and evaluationDevelopment	390
	Total	390

Reconciliation of cash

Reconciliation of cash at the end of the quarter (asshown in the consolidated statement of cash flows) tothe related items in the accounts is as follows.		Current quarter$A'000	Previous quarter$A'000
5.1	Cash on hand and at bank	124	145
5.2	Deposits at call	3.448	4.023
5.3	Bank overdraft
5.4	Other (provide details)
Total: cash at end of quarter (item 1.22)		3,572	4,168

Changes in interests in mining tenements

		Tenementreference	Nature of interest(note (2))	Interest atbeginningof quarter	Interest atend ofquarter
6.1	Interests in miningtenements relinquished,reduced or lapsed
6.2	Interests in miningtenements acquired orincreased

+ See chapter 19 for defined terms.

Issued and quoted securities at end of current quarterDescription includes rate of interest and any redemption or conversion rights together with prices and dates.

		Total number	Number quoted	Issue price persecurity (see note	Amount paid up persecurity (see note 3)
7.1	Preference			$3)$ (cents)	(cents)
	+ securities
$7.2^{\circ}$	(description)Changes during
	quarter
	(a) Increases
	through issues
	(b) Decreasesthrough returns
	of capital, buy-
	backs,
	redemptions
7.3	+ Ordinarysecurities	38,238,168	NIL	20.76c	20.76c
7.4	Changes during
	quarter
	(a) Increasesthrough issues
	(b) Decreases
	through returns
	of capital, buy-
	backs+ Convertible
7.5	debt securities
	(description)
7.6	Changes during
	quarter
	(a) Increasesthrough issues
	(b) Decreases
	through
	securities
	matured,converted
7.7	Options
	(description and	3,500,000	NIL	Exercise price	Expiry date
	conversion			30 cents	30 cents
	factor)
7.8	Issued duringquarter
7.9	Exercised during
	quarter
7.10	Expired during
	quarter
7.11	Debentures(totals only)
7.12	Unsecured
	notes (totals
	only)

$\div$ See chapter 19 for defined terms.

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).
• $\overline{2}$ This statement does /does not* (delete one) give a true and fair view of the matters disclosed.

Sign here:

...................................... (Company secretary)

Print name:

Bill Michaelidis

Notes

• The quarterly report provides a basis for informing the market how the entity's $\mathbf{1}$ activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
• $\overline{2}$ The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.
• $\overline{3}$ Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.
• $\overline{4}$ The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.
• 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

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+ See chapter 19 for defined terms.