STELLAR RESOURCES LIMITED — Interim / Quarterly Report 2007

Jul 30, 2007

HIGHLIGHTS

Exploration

• Alpine Copper diamond drilling returns significant copper in four holes which substantially extends area of copper mineralisation. Elevated cobalt also present in copper mineralised zones.
• Warrior Uranium, SA initial assays from Toro Energy's aircore drilling confirms uranium at shallow depth within Area "A", in the northern portion of Stellar's EL3372. Further assay results due in September quarter.
• Goldfinger interpretation of in-hole electromagnetic surveys conducted in holes drilled in March indicates major conductive zone in close proximity to hole GFDDH07. RAB drilling traverses outline zone of elevated Pb/Zn immediately south of hole GFDDH08
• St Dizier three diamond holes drilled with excellent tin values.
• Cowell assays and petrology reports indicate anomalous uranium values within favourable sodic granite to pegmatite host rocks over significant widths.
• Panama RAB drilling program of 59 holes for 1,171m completed.
• Dundas and Gourlays Creek initial scout holes drilled.

Corporate

• 8.4 million new shares placed @ $0.35, raising $2.9 million pre-costs.
• Cash $5.2 million as at 30 June 2007.

Activities Diary for September Quarter 2007

A continuing high level of activity is programmed, including:

• Warrior Uranium, SA Toro Energy JV project assessment prior to resumption of drilling;
• Goldfinger, NSW three hole diamond drilling program;
• Pernatty, SA Deep drilling of two IOCGU targets;
• Kingoonya Palaeochannel, SA UraniumSA JV aircore drilling;
• Gourlays Creek, TAS compiling results prior to drill resumption;
• Alpine, TAS compiling results prior to drill resumption;
• Dundas, TAS assaying two drill holes and conducting a soils program;
• St Dizier, TAS project assessment.

srzinfo@stellarresources.com.au ASX ReleaseQuarterly Report

31 July 2007

ASX Code: SRZ

ABN 96 108 758 961 Suite 713 Exchange Tower9 530 Little Collins Street Melbourne Victoria 3000 Australia

Telephone +61 3 9909 7618 Facsimile +61 3 9909 7621

www.stellarresources.com.au

DETAIL

CORPORATE

In April, Stellar placed 8.4 million new fully paid ordinary shares at $0.35 per share to raise $2.94 million, before costs, to clients of Taylor Collison Limited. These funds will provide additional resources to allow the Company's aggressive exploration and discovery program to continue at a high rate.

As at 30 June 2007, the Company held a strong net cash position of $5.2 million. Stellar also holds financial assets of 10.26 million shares in UraniumSA Limited (ASX: USA) and 6.667 million options in Gippsland Offshore Petroleum Limited (ASX: GOP) exercisable at 20 cents.

Proposed Tin IPO

Stellar is planning to create a new tin exploration and development company to manage its Tasmanian tin projects, with listing to be sought on the ASX.

Stellar itself would retain a substantial equity stake with shareholders invited to participate in the IPO. A prospectus for the offer would be made available when the securities are offered. Persons wanting to acquire the securities would need to complete the application form that would be in or would accompany the prospectus. Directors will target the raising at a level sufficient to ensure that the new company would be well resourced to implement an aggressive tin exploration and development strategy.

EXPLORATION

TASMANIA (Stellar 100%)

Heemskirk EL

Alpine Copper

The 6 hole diamond drilling program which commenced in February was completed during the quarter. Drilling continued to encounter copper mineralisation over a significant area. Of the six holes, four holes were sampled and sent for assay which returned significant copper values over wide widths. The results significantly expand the areal extent of the copper mineralisation (see Figure 1). Results included 55m @ 0.35% Cu; 30m @ 0.5% Cu and 24.7m @ 0.53% Cu.

Hole AP013 was some 100m ESE of AP012A; AP014 was some 150m SSW of AP008; AP016 was over 100m west of AP014, and AP017 was a further 100m west again.

This drill program mainly tested the Alpine magnetic anomaly and the drill logs indicate that the copper is broadly coincident with elevated magnetite content. Higher copper assays are apparent in two stratigraphic horizons – an upper and a lower horizon. In addition, elevated cobalt values – 200ppm to 300ppm – were recorded in the zones of higher copper.

Detailed logging of the core indicated some local faulting. Cross sections are being prepared for a detailed project review, prior to planning further drilling.

Drilling to date has intercepted mineralisation predominantly assaying below 1% Cu, but the areal extent and the thickness of the mineralisation continues to improve the potential to host a substantial tonnage.

The Alpine system remains open in a number of directions and an area of highly anomalous soil geochemistry, overlying the non-magnetic or demagnetised zone to the northeast, remains untested.

Figure 1 – Drill collars on RTP aeromagnetic image, Alpine Prospect showing possible orientation and extent of known mineralisation

Drillhole	AMG	AMG	From	To	Interval		Grade
	Easting	Northing	(m)	(m)	(m)	Cu	Co
						(%)	(ppm)
AP02*^			44.50	56.20	11.70	0.63
			58.60	66.65	8.05	0.72
	341200	5376661	69.65	71.40	1.75	0.44
AP04*			57.70	152.80(EOH)	95.10	0.46
	341200	5376646	(incl.) 64.65	86.90	22.25	1.23
AP06*	341333	5376692	42.00	91.00	49.00	0.39
AP07*			62.00	148.00	86.00	0.50
	341273	5376509	(incl) 129.00	135.00	6.00	1.05
AP08*	341110	5376575	29.80	70.80	41.00	0.48
AP11*	341180	5376725	27.00	76.00	49.00	0.36
			(incl.) 37.00	42.00	5.00	0.54
AP12A*			58.60	241.00	182.40	0.17
			(incl) 77.00	112.22	35.22	0.39
			(and) 121.70	126.70	5.00	0.30
	341348	5376768	(and) 213.00	215.00	2.00	0.70
AP13	341449	5376736	250.00	305.00	55.00	0.35	225
AP14	341028	5376442	152.00	182.00	30.00	0.50	262
AP16	341152	5376453	72.00	88.00	16.00	0.62	253
and			164.00	205.00	41.00	0.33	146
AP17	341306	5376423	222.00	246.70	24.70	0.53	216

*reported prior quarters

^Drilled by CRAE

Table 1 – Alpine Copper table of significant intercepts

Tin Exploration and Development

During the quarter, the price of tin on the LME remained buoyant confirming the improved fundamentals in the global tin market. In July, the price of tin strengthened further and it is currently trading at ten year highs. Reflecting the renewed confidence in its tin assets, the Company completed an initial drilling program at the St Dizier tin project.

St Dizier Tin Deposit

St Dizier is located within Heemskirk EL 46/2003 in open, button grass country, just 18km from the town of Zeehan. A three hole diamond drilling program was completed in April 2007 with all holes reporting excellent tin assays over wide intercepts. Results were reported to the ASX on 23 July 2007 and are repeated below:

1Hole No.	Easting	Northing	Depth		Intercept2		Grade
	AGD66	AGD66	From	To	(m)	(% Sn)	(% soluble Sn)
			(m)	(m)
ST01	345034	5367624	44	101	57	0.60	0.14
		including	55	63	8	0.90	0.33
		and	86	101	15	0.95	0.03
ST02	345080	5367600	13	35	22	1.12	0.12
ST03*	344992	5367640	39.2	43.7	4.5	3.82	1.09

*Core recovery in ST03 is estimated at 40% in that zone.

1 Holes were drilled on an azimuth of 190o and at an inclination of between 60 o and 70o . 2

Downhole intercepts – no estimation can be made of true widths at this stage.

Table 2 – St Dizier tin intercepts

Of particular encouragement was the relatively low amount of acid-soluble tin reported in the assay results, suggesting the tin is present as cassiterite, which suggests favourable metallurgical characteristics for the mineralisation. Metallurgical test work is planned to confirm this suggestion. Resource definition drilling, aimed at defining a shallow open-pittable resource, is being scoped.

Figure 2 – St Dizier plan showing the location of drill holes ST01 – ST03

Hard rock tin mineralisation at St Dizier was last assessed over 20 years ago. St Dizier is part of a large tin skarn horizon mapped over a distance of several kilometres – with the better known prospects including St Dizier, Central and Big H.

At East Granville, following the acquisition of detailed aeromagnetic survey data, magnetic targets along strike of a small open pit tin mine are being reviewed for drilling.

At Gourlays Creek, an initial scout program of 7 RC drill holes for 780m was conducted to test a large magnetic and EM anomaly. The holes were mostly drilled some 400m north of an area where Geopeko conducted a limited drill program which returned elevated tin in the early 1980s. Only three holes intersected target and indications of copper are noted.

The Corinna/Hangmans licences cover a substantial area to the north and north-west of Alpine, where regional magnetic images show trends and structures of interest. Geochemical surveys carried out by previous explorers support the copper prospectivity of this area. Data compilation continues.

Dundas EL

This area is considered to bear strong similarities to the Zeehan mineral field adjacent to the Avebury deposit. At Avebury, nickel mineralisation is related to hydrothermal fluids interacting with mafic/ultramafic rocks close to Devonian granitoids. These critical factors for Avebury style nickel mineralisation appear to be present within the Dundas EL.

During the quarter, Stellar commenced an initial two hole scout drill program to test a zone of discrete magnetic highs in a mapped serpentinised Cambrian ultra mafic rock unit (which occupy some 30% of the Dundas EL). Hole 1 intersected a 48m thick unit logged as pyritic breccia/quartz vein stockwork alteration. Some core is to be cut for assay and results are expected next quarter.

Ramsay River EL

Preparations for drill testing magnetic targets on the eastern arc continue in anticipation of spring/summer mobilisation

Data compilation of Magnet South project area continued.

URANIUM

Warrior Uranium (Stellar 100%; Toro able to earn 70%)

Toro Energy Limited advised that its drilling program on the Warrior palaeochannel uranium project Joint Venture (JV) commenced in March. Initial drill results were released by Toro on 30 April 2007. A summary of initial assay results for selected high gamma count aircore drilling intervals, from the Area "A" prospect, in the north of EL3372 (Table 3) are as follows:

Prospect	Hole ID	Depth from (m)	Depth to (m)	U3O8 ppm
Warrior	AC07WA003	7	8	141
Warrior	AC07WA027	24	25	136
Warrior	AC07WA067	32	33	200
Warrior	AC07WA128	28	29	171
Warrior	AC07WA144	27	28	159
Warrior	AC07WA144	28	29	147
Warrior	AC07WA151	28	29	283
Warrior	AC07WA151	29	30	144
Warrior	AC07WA151	30	31	162
Warrior	AC07WA151	31	32	283
Warrior	AC07WA152	27	28	191
Warrior	AC07WA152	28	29	914
Warrior	AC07WA152	29	30	318
Warrior	AC07WA157	26	27	271
Warrior	AC07WA157	46	47	124
Warrior	AC07WA158	27	28	342
Warrior	AC07WA158	28	29	195
Warrior	AC07WA174	29	30	401
Warrior	AC07WA174	30	31	141
Warrior	AC07WA175	27	28	124
Warrior	AC07WA176	43	44	130
Warrior	AC07WA180	29	30	171
Warrior	AC07WA180	30	31	554

Table 3 – Initial drill assays for Area "A" prospect, in the north of EL3372 (new drill hole assays highlighted)

The prospect area was defined from prior exploration drilling by Power Nuclear Corporation Ltd (PNC) in the 1970s and was selected by Stellar for initial drill testing in May 2006. This area was chosen as an area of higher grade mineralisation, with limited drill testing.

Figure 3 – Toro Energy plan showing locations for Areas "A" and "B" within Stellar's EL3372.

The new assays confirm past results and show that, in Area "A", the uranium mineralisation lies at a relatively shallow depth of some 30m.

The drilling completed thus far has only tested a small portion of the Warrior palaeochannel system but results presented by Toro confirm the inferred distribution of higher grade mineralisation near the eastern margin of the channel, as interpreted from airborne HoistEM™ data. This zone trends to the SSE from the area of Toro's best results to date, in an area untested by historical drilling. Toro's drilling program is continuing into this area and Stellar believes that there is a high possibility of increasing the extent of this zone.

Figure 4 – Toro Energy plan showing Area "A" Uranium levels – best 1m assay.

Under the terms of the JV, Toro may spend more than $3 million in a staged farm-in over the next four years on parts of the highly prospective Warrior Project.

Kingoonya Palaeochannel (Stellar 100%; UraniumSA able to earn 70%)

In late June, Stellar received preliminary results from UraniumSA's (USA) recently completed airborne EM survey covering substantial areas of Stellar's tenement holding across the Kingoonya palaeochannel. Data mapping has defined large palaeodrainage systems, as indicated in earlier reconnaissance lines flown by Stellar. These are prospective for roll-front uranium deposits sourced from known uraniferous granites in the area.

Figure 5 – Merged image of airborne EM conductivity, showing likely palaeochannel distribution

USA has announced that an aircore drilling program is scheduled to start on the Stellar Kingoonya Palaeochannel JV ground in the September quarter, to investigate the geology of the palaeodrainages and to determine the broad controls on the location of uranium mineralisation.

Stellar presently holds a 100% interest in these areas, with its JV partners able to earn up to 70% interest. In addition, Stellar owns a substantial 16 % shareholding in UraniumSA Limited.

NEW SOUTH WALES

Goldfinger (Stellar 51%; option to 60%)

Two diamond drill holes were completed to test the MIMDAS chargeability and conductivity zones over the western half of the Goldfinger gravity trend. Although no visible intersections of significant zinc/lead sulphide mineralisation were recorded, a zone of intense pyrrhotite (iron sulphide) mineralisation was intersected at the target depth in hole GFDDH07. Subsequent downhole EM surveying has confirmed that this zone is contributing to the geophysical responses. Pyrrhotite is commonly observed in the same environment as Broken Hill type mineralisation, and potential exists for economic sulphide mineralisation in close proximity to the drilled section. During June, a small RAB program of 6 holes, totalling 246m, was carried out on Section 545000E to assess the interpreted position of mineralised "lode sequence" rocks immediately above hole GFDDH08. Three of these holes intersected siliceous, blue quartz "lode" style material with visible sulphide mineralisation – assay results are awaited.

Further quantitative interpretation of the structural and geophysical models for this section has been carried out. A program of further diamond drilling at Goldfinger is scheduled for July/August.

Figure 6 – Goldfinger Section 545000E showing proposed holes to test interpreted "lode sequence" and EM conductive target.

Panama (Stellar 100%)

Panama EL 6556 is located immediately to the east of the Goldfinger and Copper Blow areas. A gravity survey completed in 2006 defined a number of significant gravity highs including a major anomaly (4mGals) immediately west of the historic Panama gold workings. Initial Rotary Air Blast (RAB) drilling of four gravity features in the Panama area was completed in late June. The drilling program tested geochemical levels across four large gravity targets identified on the Panama licence (EL6556). The program comprised 59 shallow RAB holes drilled at 50m spacing testing gravity targets GT1 to GT4. This was the first drill program to test these gravity targets for Broken Hill type or IOCG style mineralisation. Assay results are expected in August 2007.

SOUTH AUSTRALIA

Pernatty (Stellar 100%)

The Pernatty EL3583 is located to the west and south of the historic Mt Gunson copper mining area. The Carrapateena IOCG prospect, held by RMG Services Pty Ltd/Teck Cominco Limited, occurs some 30km – 40km to the east.

Clearances have been obtained for two drill sites and exploratory deep diamond drill holes are planned for later in the September quarter.

Figure 7 – Same scale comparison between gravity anomalies at Pernatty (Windabout target) and Carrapateena

Robins Rise JV (Stellar 100%; Red Metal right to earn 60%)

The JV covers some 1,700km2 of EL3336 and EL3436 and is located 100km northwest of the Prominent Hill copper-gold deposit within the Gawler Craton. Red Metal advises that processing of the expanded gravity survey has highlighted several anomalies which are considered prospective for copper-gold mineralisation. Drilling is planned for 2007, dependent upon rig availability.

Coober Pedy Ridge (Stellar 100%)

Title has now been granted over EL3752 and EL3753 over the northern portion of the Coober Pedy Ridge area. These licence areas are contiguous with the Robins Rise JV tenements. Interpretation of aeromagnetic data has outlined a number of target areas for IOCGU style mineralisation and a gravity survey is being scoped.

Figure 8 – Aeromagnetic image for the Robins Rise JV (EL3336 and EL3436) and North Coober Pedy (EL3752 and EL3753) project areas

Cowell Joint Venture (Stellar able to earn 75%)

In the "Glensea" project area, three of five holes drilled in the March quarter intersected a number of narrow (1cm – 5cm) quartz-pyrite-chalcopyrite veins. Holes COD08 and COD10, near the northern and southern ends of the 15km target "zone", both returned intervals of pyrite alteration, with some copper veining and possible mylonitised pegmatite intrusions. Although assays returned only low levels of copper mineralisation, significant intervals of strongly anomalous uranium values were returned from holes COD08 and COD06, in the northern portion of the project area, approximately 1.5km north and 1km west of earlier hole COD02, drilled by Avoca Resources Limited:

Figure 9 – Existing gravity data (on aeromagnetic) for the Glensea project area, with drill collar locations

Hole	Depth		Interval	Grade
	From (m)	To (m)	(m)	(ppm U3o8)
COD02 (Avoca hole)	87.0	115.0	28.0	182
Including	89.0	95.0	6.0	310
	97.0	99.0	2.0	312
	102.0	114.0	12.0	199
COD06 (SRZ – approx 1.5km north)	111.6	171.3(EOH)	59.7	30
COD08 (SRZ – approx 1km west)	169.8	172.8	3.0	130
and	205.5	210.6	5.1	74

Table 4 – Cowell JV – Uranium intercepts for the "Glensea" project area

Petrological descriptions received for the anomalous U intervals describe the host lithology as sodic pegmatoidals in hole COD08 through to fine grained aplitic monzogranite in hole COD06. The pegmatoidal intrusive rocks show some strong textural and chemical affinities with the "alaskite" host intrusives for the Rossing U mine in Namibia.

Although the grades encountered so far are unlikely to be of an economic tenor, Stellar considers that the discovery of strong uranium mineralisation within a sodic pegmatite to be highly significant. Further drilling of the northern Glensea project area is planned to determine the extent of the anomalous U zone, in addition to evaluating other geophysical targets within the licence area.

Figure 10 – Sodic pegmatoidal intrusive from hole COD08, averaging approximately 70ppm U3O8

Tarcoola Region – Sunshine Gold Project (Stellar 100%)

Detailed calcrete geochemical sampling was completed over a target area of approximately 2.5km2 on a 50m by 50m sample spacing. Results have defined a number of significant anomalous zones, with a prominent NNE trending linear feature of up to 50ppb Au in the central portion of the area, over approximately 400m by 100m. Drill traverses are planned to evaluate this zone and the secondary anomalies during the September quarter. Stellar is very encouraged by the regional geological similarities between this area and Dominion's Challenger gold mine, approximately 140km to the north-west, and a significant drilling program is being planned to assess the area.

Figure 11 – Gold geochemistry for detailed calcrete sampling of the Sunshine Gold Project – read areas greater than 10ppb Au

Tarcoola Region – Coolybring Magnetite Project (Stellar 100%)

A specialist's report on the Coolybring and Wilgena magnetite projects was completed. The study consolidated previous analyses and assessed the results of additional metallurgical work carried out to clarify the beneficiation characteristics of the magnetite bodies. The report concluded that there is potential for commercial quantities of beneficiable magnetite ore, and further drilling is warranted to quantify the extent and detailed nature of the "more favourable ore types". The Company is looking to involve an external, iron-ore focused group, in this further evaluation.

VICTORIA

North Bendigo JV (Stellar 50%)

A short aircore program was carried out to follow up low levels anomalous gold results obtained in 2006.

OUTLOOK

In the September 2007 quarter, exploration activity is scheduled for the following projects:

• Warrior Uranium, SA Toro JV, continuation of aircore drilling.
• Goldfinger, NSW diamond drilling program of 3 holes (for 1,200m) to test EM conductor and geochemical targets.
• Pernatty, SA commencement of deep diamond drilling program. Minimum 2 hole program for approximately 2,000m, likely September.
• Kingoonya Palaeochannel, SA USA JV, commencement of initial aircore drilling to test interpreted channel distributions.
• Alpine, TAS data compilation with drilling likely to resume after winter.
• Dundas, TAS assessing drill hole results, conducting geochemical lines.
• Cowell, SA detailed gravity prior to planning follow-up drilling in the Glensea project area.
• Coober Pedy Ridge, SA gravity survey over selected areas.
• St Dizier, TAS project assessment.
• Sunshine, SA assess preparation for drill testing.

The drill and exploration results reported herein, insofar as they relate to mineralisation, are based on information compiled by Mr. C.G. Anderson (Fellow of the Australasian Institute of Mining and Metallurgy) who is a Director of the Company with more than twenty years experience in the field of activity being reported. Mr. Anderson 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.

For further details please contact:

Tom Burrowes Tel: (03) 9909 7618 Email: tom.burrowes@stellarresources.com.au Chris Anderson Tel: (08) 8363 1589 Email: chris.anderson@stellarresources.com.au or visit our Website at: http://www.stellarresources.com.au

Rule 5.3

Appendix 5B 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 Quarter ended ("current quarter")

96 108 758 961 30 JUNE 2007

Consolidated statement of cash flows

	Cash flows related to operating activities	Current quarter$A'000	Year to date(12 months)$A'000
1.1	Receipts from product sales and related debtors	–	–
1.2	Payments for(a) exploration and evaluation	(1,075)	(2,771)
	(b) development	–	–
	(c) production	–	–
	(d) administration	(307)	(996)
1.3	Dividends received	–	–
1.4	Interest and other items of a similar nature received	64	267
1.5	Interest and other costs of finance paid	–	–
1.6	Income taxes paid	66	301
1.7	Other –
	Net Operating Cash Flows	(1,252)	(3,199)
	Cash flows related to investing activities
1.8	Payment for purchases of:(a) prospects	–	–
	(b) equity investments	–	–
1.9	(c) other fixed assetsProceeds from sale of:(a) prospects	(1)	(29)
	(b) equity investments	––	––
	(c)other fixed assets	–	–
1.10	Loans to other entities	–	–
1.11	Loans repaid by other entities	–	–
1.12	Other:
	–	(1)	(2)
	Net investing cash flows	(2)	(31)
1.13	Totaloperatingandinvestingcashflows(carried forward)	(1,254)	(3,230)

+ See chapter 19 for defined terms. 070039SRL.doc

1.13	Totaloperatingandinvestingcashflows(brought forward)	(1,254)	(3,230)
	Cash flows related to financing activities
1.14	Proceeds from issues of shares, options, etc.	2,940	2,940
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	(151)	(151)
	Net financing cash flows	2,789	2,789
	Net increase (decrease) in cash held	1,535	(441)
1.20	Cash at beginning of quarter/year to date	3,637	5,613
1.21	Exchange rate adjustments to item 1.20	–	–
1.22	Cash at end of quarter	5,172	5,172

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	118
1.24	Aggregate amount of loans to the parties included in item 1.10	–

1.25 Explanation necessary for an understanding of the transactions

Remuneration and directors fees for the quarter

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

2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

+ See chapter 19 for defined terms. 070039SRL.doc

Financing facilities available

Add notes as necessary for an understanding of the position.

		Amount available$A'000	Amount used$A'000
3.1	Loan facilities	–	–
3.2	Credit standby arrangements	–	–

Estimated cash outflows for next quarter

	Total
		757
4.2	Development	–
4.1	Exploration and evaluation	757
		$A'000

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown inthe consolidated statement of cash flows) to the related itemsin the accounts is as follows.		Current quarter$A'000	Previous quarter$A'000
5.1	Cash on hand and at bank	32	314
5.2	Deposits at call	5,220	3,323
5.3	Bank overdraft	(80)	–
5.4	Other	–	–
	Total: cash at end of quarter (item 1.22)	5,172	3,637

Changes in interests in mining tenements

		Tenementreference	Nature of interest(note (2))	Interest atbeginningof quarter	Interest atend ofquarter
6.1	Interests in mining tenementsrelinquished, reduced or lapsed
6.2	Interests in mining tenementsacquired or increased	EL44/2006	Exploration Licence, Corrina, TAS –granted	Nil	100%
		EL3752	Exploration Licence, CleanskinSwap, SA – granted	Nil	100%
		EL3753	Exploration Licence, Long Creek, SA– granted	Nil	100%
		ELA2007/560	Exploration Licence Application,Carriewerloo, SA	Nil	Applicationfor 100%
		EL3799	Exploration Licence, Cooladding, SA- granted	Nil	100%

+ See chapter 19 for defined terms. 070039SRL.doc

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

		Total number	Number quoted	Issue price persecurity (see note 3)(cents)	Amount paid up persecurity (see note 3)(cents)
7.1	Preference+securities(description)
7.2	Changes duringquarter
	(a) Increasesthrough issues
	(b) Decreasesthrough returns ofcapital, buy-backs,redemptions
7.3	+Ordinarysecurities	67,038,168	67,038,168
7.4	Changes duringquarter
	(a) Increasesthrough issues	8,400,000	8,400,000	35 cents
	(b) Decreasesthrough returns ofcapital, buy-backs
7.5	+Convertible debtsecurities(description)
7.6	Changes duringquarter
	(a) Increasesthrough issues
	(b) Decreasesthrough securitiesmatured, converted
7.7	OptionsDirectorsExecutives	3,500,000625,000	NilNil	Exercise Price30 cents30 cents	Expiry date10 December 200819 August 2009
7.8	Issued duringquarter
7.9	Exercised duringquarter
7.10	Expired duringquarter
7.11	Debentures(totals only)
7.12	Unsecured notes(totals only)

+ See chapter 19 for defined terms. 070039SRL.doc

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Law or other standards acceptable to ASX (see note 4).
• 2 This statement does give a true and fair view of the matters disclosed.

Notes

• 1 The quarterly report provides a basis for informing the market how the entity's 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.
• 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.
• 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*.*
• 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. 070039SRL.doc