STELLAR RESOURCES LIMITED — Investor Presentation 2007

Apr 25, 2007

HIGHLIGHTS

Exploration

• Alpine Copper Drilling continues to confirm an extensive copper mineralised zone. Assays return some gold credits;
• Warrior Uranium, SA JV partner, Toro Energy, commenced aircore drilling on Stellar's Warrior Uranium project;
• Goldfinger $-2$ diamond drill holes testing the MIMDAS chargeability and conductivity zones confirm a zone of relatively strong pyrrhotite;
• Devises $-1$ drill hole completed to a depth of 220m on a magnetic target encountered over 100m of alteration and sulphide mineralisation. Assays due in May:
• St Dizier $-2$ holes intersect zones of magnetite tin skarn from shallow depths, with inferred true widths of up to 20m;
• Cowell 5 reconnaissance drill holes were completed to test additional gravity and magnetic targets in the "Glensea" project area. 3 of the 5 holes intersected narrow (1-5cm) quartz-pyrite-chalcopyrite veins, with common magnetite and pyrite alteration:
• Pernatty situated 30-40 km west of Carrapateena interpretation of gravity targets finalised. IOCGU drill targets selected.

Corporate

Cash $3.6 million as at 31 March 2007.

Activities Schedule for June Quarter 2007

A high level of activity is programmed, including:

• Warrior Uranium, SA Toro Energy JV; drilling continuing; $\bullet$
• Alpine, TAS completion of remaining 2 holes in 6 hole program; $\bullet$
• Pernatty, SA land access clearances in preparation for drilling;
• North Bendigo, VIC aircore program testing basement gold targets;
• Gourlays Creek, TAS drill tin/copper targets;
• Kingoonya Palaeochannel, SA UraniumSA JV, extensive airborne EM survey;
• Panama, NSW RC scout drilling of gravity targets; and
• Dundas, TAS scout drilling magnetic target.

26 April 2007

ASX Code: SRZ

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

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

www.stellarresources.com.au srzinfo@stellarresources.com.au

DETAIL

CORPORATE

Stellar holds 10.26 million fully paid shares and 5.13 million options in UraniumSA Limited (in escrow until 18 October 2008).

The Company also holds 6.667 million options in Gippsland Offshore Petroleum Limited (GOP). Further information on GOP's expanding exploration activities in Jamaica, Kenya and France are available on the company's website: http://www.gop.com.au

On completion of the Toro Energy JV agreement, the company received the agreed payment of $150,000. The Company had $3.6 million in cash and near-term securities as at 31 March 2007.

Pursuant to our Joint Ventures, Stellar is potentially free carried for over $10 million of exploration/development expenditure, whilst retaining significant exposure $-$ (30% and 40% respectively) - to the upside.

EXPLORATION

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. 120 holes are planned in two target areas where historical drilling results have indicated higher grade uranium values.

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 $70%$ )

UraniumSA has advised that the extensive airborne EM survey covering the Tarcoola JV area has been delayed by contractor equipment failures and is scheduled to start in late April.

TASMANIA (Stellar 100%)

Heemskirk EL

A detailed aeromagnetic survey was flown at 50m line spacing over a large portion of the Heemskirk licence. This licence had previously been covered by a much lower resolution survey flown at 200m line spacing. The results of the survey have better defined the lithological and structural patterns on the tenement area. Stellar is confident that other prospective targets will be generated from this survey.

Alpine Copper

Drilling continues to encounter copper mineralisation over a significant zone. Diamond drilling resumed on a program of six holes designed to "step out" from the known mineralisation and to further test the Alpine magnetic anomaly and surrounds.

By the end of the March quarter, a further two holes (AP015 & AP016) had been completed and two drill rigs are currently completing the remainder of the planned 6 hole program. Holes are collared on approximately 100m by 100m "step-outs". Preliminary gold assays were received for hole AP011 and AP012A and indicate that low level anomalous gold is present within the copper mineralised zone, but not generally correlating with copper grade. The best assay intercept for gold to date comes from hole AP012A – 10.3m at 0.28g/t Au, 0.17% Cu, from 137.7m to 148m downhole – true width of this intercept is currently not known.

Assay results from recent holes are expected to start becoming available from mid-May. Selected core is being cut for petrological studies and preliminary metallurgical testing is being scoped.

Alpine continues to be rated highly. The prospectivity of Alpine is improved by the presence of gold.

Figure 2 – Drill collars on RTP aeromagnetic image, Alpine Prospect

Tin Targets

During the quarter, the price of tin continued to strengthen, reflecting the ever improving fundamentals in the global tin market. Consequently, Stellar is reviewing its very substantial tin portfolio in Tasmania and has embarked on an exploration program to assess a number of tin prospects located on the Heemskirk EL46/2003. In particular, a drilling program was initiated at the St Dizier tin prospect.

St Dizier

A three hole program has been completed at St Dizier, with two holes intersecting wide zones of magnetite skarn with intersections in excess of 20m from shallow depths. Assay results, for all three holes, are expected during the June quarter.

Hard rock tin mineralisation at St Dizier was first assessed over 20 years ago. The prospect lies within a large tin skarn horizon mapped over a distance of several kilometres and includes "Central" and "Big H" prospects, in addition to St Dizier (Figure 3). Historical assessment of other prospects is minimal, and the exploration potential of the skarn horizon is very high.

Prior work showed the presence of tin virtually from surface at St Dizier. Stellar's current drill program is aimed at batter defining a shallow open-pittable resource. The Renison tin concentrator represents a potential source of treatment for any viable material identified, subject to satisfactory commercial arrangements.

Figure 3 – St Dizier tin deposit and skarn

At East Granville, magnetic targets along strike of the Stonehenge Metals open pit tin mine are being reviewed for drilling, which may occur after the acquisition of detailed aeromagnetic coverage. Two of these targets have already been permitted.

The Gourlays Creek project area is now permitted for drilling and access is largely favourable. A large magnetic and EM anomaly was partly tested by Geopeko and returned elevated tin. An initial three hole program is planned.

Devises - Tin/Nickel

This nickel/tin target lies in the south eastern corner of the Heemskirk EL adjacent to the Avebury mine lease. One drill hole was completed on a magnetic target to a depth of 220m downhole and encountered over 100m of altered rocks, containing sulphide mineralisation. Core has been cut and assays are awaited.

Corinna EL

This licence has now been granted. The EL captures a substantial tract of ground north and north-west of Alpine, where regional magnetic images show trends/structures of interest. Geochemical surveys carried out by previous explorers support the copper prospectivity of this area and data compilation work on this, and our other licences, continues.

Dundas EL

During the quarter, site inspections were conducted by our consulting geologist who has reported widespread outcropping serpentinites in the EL. Two conceptual nickel targets have been selected for drill testing prior to winter.

The large magnetic zone within the Dundas EL coincides with a poorly exposed body of serpentinite in an area of where numerous Ag, Pb, Zn vein-style deposits and tin mineralisation are inferred to relate to fluids from an underlying Devonian granite. 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 all appear to be present within the Dundas EL.

Ramsay River EL - Arthur Dam

Field work to assess nickel targets continued. Compilation of historical data was further progressed and a high level zinc anomaly, broadly coincident with an EM anomaly, was identified. A track to access this area will be prepared prior to field work and planned drill testing next summer.

NEW SOUTH WALES

Goldfinger (Stellar 51%; option to $60%$ )

Two diamond drill holes were completed to test the western MIMDAS chargeability and conductivity zones. 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 Subsequent downhole EM surveying has confirmed that this zone is almost certainly GFDDH07. producing the observed 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. The downhole EM data indicated additional conductive positions not intersected by the current drilling. Further quantitative interpretation of the structural and geophysical models will be carried out prior to any further drill planning.

Panama (Stellar 100%)

Panama EL 6556 is located immediately to the east of the Goldfinger and Copper Blow prospect areas. A gravity survey completed in 2006 has defined a number of significant gravity highs including a major anomaly (4mGals) immediately west of the historic Panama gold workings. The proposed RAB drilling of these targets was postponed due to the lack of a suitable drilling rig.

SOUTH AUSTRALIA

Pernatty (Stellar 100%)

The Pernatty EL 3583 is located to the west and south of the historic Mt Gunson copper mining area some 30km – 40km to the west of the Carrapateena IOCG prospect, held by RMG Services Pty Ltd/Teck Cominco Limited.

Four higher priority gravity features have been selected for drill testing IOCGU mineralisation at depth and access inspection carried out as a precursor to drilling.

Figure 4 – Pernatty, summary of residual gravity IOCGU targets

Robins Rise (Stellar 100%)

Red Metal completed extensive gravity coverage of the "Robins Rise" JV area and internal review of the data has delineated a number of significant new targets. Assay results for the initial drilling program, testing the Robins Rise, Lonesome and Georges project areas under the terms of the JV are still awaited. However, no significant visual mineralisation was reported by Red Metal.

The JV covers some 1,700km2 of ELs 3336 and 3436 and is located 100km northwest of the Prominent Hill copper-gold deposit within the Gawler Craton.

Coober Pedy Ridge

Exploration Licence applications covering the northern portion of the Coober Pedy ridge area have been recommended for granting but as vet not issued. Interpretation of aeromagnetic data has outlined a number of target areas for IOCGU style mineralisation which will be covered with detailed gravity when the licences are finalised.

Cowell Joint Venture (Stellar able to earn 75%)

In the "Glensea" project area five diamond drill holes were completed to test additional gravity and magnetic targets. Significantly, three of the five holes intersected zones of pyritic metasediments and intrusive granites and pegmatites, with a number of narrow (1-5cm) quartz-pyrite-chalcopyrite veins. Holes COD08 and COD010, 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 The latter lithology is inferred to host low level uranium and Rare Earth Element intrusions. mineralisation encountered in the earlier Avoca drill hole COD02.

Figure 5 – Cowell JV, Glensea Prospect drill collars on magnetic image and gravity contours

More detailed gravity coverage of the entire Cowell Basin area, of concealed metasediments, is planned to test for high density IOCGU mineralised zones.

Tarcoola Region – Sunshine Gold Project (Stellar 100%)

Following a consultant review of the large data-base for gold exploration within Stellar's Tarcoola tenements, the "Sunshine" prospect area was selected as a priority area for further evaluation. Archaean hosted gold mineralisation, comparable to the "Challenger" mine some 120km to the north-west, is the primary target type. Previous drilling in the Sunshine area has returned narrow intervals of high-grade gold (SUNRC014 – 2m @ 6.65g/T Au from 64m-66m) which is interpreted to be in a similar lithological and structural setting to the Challenger deposit. An area of approximately 10km2 was selected for infill geochemical sampling and results have delineated an anomalous gold zone of approximately 1.5km by 0.5km. Drill traverses are planned to evaluate the zone, when a suitable rig is available.

Tarcoola Region - Coolybring Magnetite Project (Stellar 100%)

Results were received for further metallurgical test work to evaluate the reduction of silica content with grind size in the magnetic concentrate, on samples from the Coolybring magnetite project. The results are currently being assessed to determine the viability of producing an acceptable magnetite product.

VICTORIA

North Bendigo JV (Stellar 50%)

The exploration program was delayed due to difficulties sourcing a suitable drill rig. A short aircore drill program to test anomalous basement gold assays from 2006 aircore program, in the zone along strike of Bendigo and Sebastian, is scheduled June quarter.

OUTLOOK

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

• Warrior Uranium, SA Toro JV; aircore drilling for uranium; $\bullet$
• Alpine, TAS drilling to continue for copper;
• Pernatty, SA land access survey in preparation for drilling;
• Panama, NSW drilling of base-metals gravity target;
• North Bendigo, VIC small aircore program testing basement gold targets;
• Gourlays Creek, TAS drill tin/copper targets; $\bullet$
• Dundas, TAS scout drilling magnetic target for nickel; and $\bullet$
• Kingoonya Palaeochannel, SA USA JV; extensive airborne EM survey for uranium.

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 vears 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
Bill Michaelidis	Tel:	$(03)$ 9909 7618		Email: bill.michaelidis@stellarresources.com.au
David Sasson	Mob: \	0411 468 966		Email: david.sasson@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

Г

ABN

96 108 758 961

Quarter ended ("current quarter")

31 MARCH 2007

Consolidated statement of cash flows

	Cash flows related to operating activities	Current quarter	Year to date(9 months)
		$A'000	$A'000
1.1	Receipts from product sales and related debtors
1.2	Payments for(a) exploration and evaluation	(170)	(1,696)
	(b) development
	(c) production
	(d) administration	(174)	(689)
1.3	Dividends received
1.4	Interest and other items of a similar nature received	46	203
1.5	Interest and other costs of finance paid
1.6	Income taxes paid	71	235
1.7	Other $-$
	Net Operating Cash Flows	(227)	(1, 947)
	Cash flows related to investing activities
1.8	Payment for purchases of:(a) prospects
	(b) equity investments
	(c) other fixed assets	(7)	(28)
1.9	Proceeds from sale of:(a) prospects
	(b) equity investments
	(c)other fixed assets
1.10	Loans to other entities
1.11	Loans repaid by other entities
1.12	Other:		(1)
	Net investing cash flows	(7)	(29)
1.13	Totaloperatinginvestingflowsandcash(carried forward)	(234)	(1,976)

$+$ See chapter 19 for defined terms.

1.13	investingTotaloperatingflowsandcash(brought forward)	(234)	(1,976)
	Cash flows related to financing activities
1.14	Proceeds from issues of shares, options, etc.
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
	Net financing cash flows
	Net increase (decrease) in cash held	(234)	(1,976)
1.20	Cash at beginning of quarter/year to date	3,871	5,613
1.21	Exchange rate adjustments to item 1.20
1.22	Cash at end of quarter	3,637	3,637

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

• 1.23 Aggregate amount of payments to the parties included in item 1.2
• $1.24$ Aggregate amount of loans to the parties included in item 1.10
• Explanation necessary for an understanding of the transactions $1.25$

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

Current quarter $A'000

118

$\overline{\phantom{0}}$

+ See chapter 19 for defined terms.

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

Exploration and evaluation4.16004.2Development	Total	600
		$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	314	48
52	Deposits at call	3,323	3,823
5.3	Bank overdraft
5.4	Other
Total: cash at end of quarter (item 1.22)		3,637	3,871

Changes in interests in mining tenements

		Tenementreference	Nature of interest(note (2))	Interest atbeginning ofquarter	Interest atend ofquarter
6.1	Interests in miningtenements relinquished,	EL 3204	Option lapsed - Uno	100%	ΝïΙ
	reduced or lapsed	EL 2898	Expired licence - Cooladding	100%	Nil
6.2Interests in miningtenements acquired orincreased		ELA 57/07	Exploration licence application- Cooladding		100%

+ See chapter 19 for defined terms.

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	58,638,168	57,200,944
7.4	Changes duringquarter
	(a) Increasesthrough issues	300,000	300,000
	(b) Decreasesthrough returns of
	capital, buy-backs
7.5	+Convertible debtsecurities(description)
7.6	Changes duringquarter
	(a) Increasesthrough issues
	(b) Decreases
	through securitiesmatured, converted
7.7	Options			Exercise Price	Expiry date
	DirectorsExecutives	3,500,000625,000	NilΝiΙ	30 cents30 cents	10 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.

Compliance statement

• $\begin{array}{c} \hline \end{array}$ 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).
• $\overline{2}$

This statement does give a true and fair view of the matters disclosed.

.................... Date: 26 April 2007 (Company Secretary)

Sign here:

Bill Michaelidis Print name:

Notes

• $\mathbf{I}$ 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.
• $\overline{2}$ 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.
• Issued and quoted securities The issue price and amount paid up is not required in items 3 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.
• $\mathfrak{s}$ 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.