STELLAR RESOURCES LIMITED — Investor Presentation 2008

Dec 8, 2008

Mining South Australia 2008 Stellar Resources Limited

I would like to thank the organisers of the Mining South Australia conference for the opportunity to talk about Stellar Resources. I also commend them for their initiative in conducting the regional conference series.

Today I would like to talk about two of Stellar Resources' key projects – one in iron ore in South Australia and one tin in Tasmania. However, before I do it is a requirement that I present our forward looking statement.

Forward Looking Statements

This presentation contains only a brief overview of Stellar Resources Limited ("Stellar") and its activities and operations. The contents of this presentation, including matters relating to the geology of Stellar's projects, may rely on various assumptions and subjective interpretations which it is not possible to detail in this presentation and which may not have been subject to any independent verification.

This presentation may contain a number of forward-looking statements. Known and unknown risks and uncertainties, and factors outside of Stellar's control, may cause the actual results, performance and achievements of Stellar to differ materially from those expressed or implied in this presentation. To the maximum extent permitted by law and stock exchange listing rules, Stellar does not warrant the accuracy, currency or completeness of the information in this presentation, nor the future performance of Stellar, and will not be responsible for any loss or damage arising from the use of the information.

STELLAR RESOURCES LIMITED

In the March quarter 2008, Stellar shifted its strategy from greenfield exploration to a focus on projects with the potential to deliver a resource that could support mine development. The main reason for the change in direction was the improved ability to attract capital that comes with brownfield projects and the reduction in exploration risk.

The Tarcoola Iron Ore project clearly fits the new strategy. Drilling has shown that it is a potentially large magnetite deposit that under favourable economics could support a long-term mine and concentrator. Importantly, it lies close to an existing railway line that connects it to a port. In addition, interest in the project from foreign investors has been high.

The Heemskirk Tin project, acquired in the March quarter 2008, prior to the peak in the tin price is another quality brownfield project. Most importantly, it already has a high grade resource and significant expansion potential. In addition, it is located close to infrastructure and like Tarcoola has had significant interest from tin investors.

The Tarcoola Iron Ore Project is located close to the junction of the Trans-Australian and Ghan railways near the township of Tarcoola and 480km by rail from Port Bonython.

It is also located outside the Woomera Prohibited Zone avoiding the need to negotiate with the Department of Defence over land access – a process that has cost some companies up to 12 months in lost time.

The Tarcoola Project is the closest of the Mid-South Australian iron projects to the rail and port. Other iron projects in the area, Cairn Hill and Peculiar Knob lie to the southeast of Coober Pedy.

The South Australian government has selected a consortium led by Flinders Ports to develop a multi-user bulk commodity loading facility at Port Bonython. The consortium is now progressing a feasibility study and expects to build the port in three years once a commitment to proceed is made.

The main advantages of the Port Bonython proposal are that it will be open access and will allow cape-size vessels to be loaded from a wharf at potentially lower cost than the trans-shipping operation that currently occurs at Whyalla.

On a regional geological map of the Tarcoola area, the Coolybring magnetite deposit occurs within Lower Proterozoic basement rocks on the western edge of the Middle Proterozoic Tarcoola Basin. The deposit is covered by flat lying Tarcoola sediments – shown in Grey – and Tertiary sands and clays shown in yellow.

Wilgena Hill is a similar iron formation that crops out on the eastern edge of the basin. In this case, the iron formation has a faulted relationship with the Tarcoola Formation due to post-depositional uplift of the basement (Wilgena Hill is a registered site with access for exploration drilling excluded).

What is of greatest interest on a regional scale is the connection of these two deposits by a major gravity high – shown by the line contours. At this stage we don't have an explanation for the gravity high. One suggestion that could be investigated by stratigraphic drilling is that it represents a deep-seated non-magnetic iron formation.

If that is the case, we may be looking at a major iron province. However, until we know more about the depth of the Tarcoola Formation it has to be assumed that any iron within the center of this anomaly is probably too deep to be economic.

The colored magnetic image shows the near to surface location of magnetite mineralisation contained within a north–south ridge at Coolybring. Holes 1 to 16 confirmed that the magnetite mineralisation dips steeply to the west and forms a paleo ridge where the anomaly is most intense.

Along the western edge of the magnetic image lies a local gravity high indicating a change in basement geology from jaspilitic magnetite to a more dense non-magnetic rock.

The drilling program that began in mid October and continued through to mid-November, targeted the gravity highs with the aim of defining the basement sequence from east to west.

The results of the drilling program are preliminary at this stage. However, they do provide additional information on the geology and provide an explanation of the local gravity high. Assay and Davis Tube Recovery results, which are critical in understanding iron grade and recovery, are unlikely to be available for another 6 weeks.

Section 6609770 was extended to the west by 300 metres with two angle holes 17 and 18 and a vertical hole, 20 drilled to the west of the iron formation.

The first angle hole intersected iron formation at an approximate vertical depth of 130m confirming that depth from surface increases to the west. The mineralisation appears to be more massive when compared to iron formation drilled further to the east. Also while there is some hematite the dominant iron mineral is magnetite.

The second angle hole, RC18 intersected the iron formation at 200m from the surface indicating that the steeply dipping western edge of the body lies between holes 17 and 18 with a breccia zone along the contact.

While any conclusion of the drilling is preliminary at this stage, it appears that the width of the iron formation has increased from 260 metres to at least 300 metres and in the north potentially 350m. Given that the strike length of the mineralisation is 1500 metres the tonnage potential is 500 million tonnes.

The only conclusive remark that can be made about the western edge of the iron formation is that it is not a conformable contact with Lower Proterozoic hanging wall rocks. Whether it is a faulted contact with shallowly dipping Tarcoola Formation and steeply dipping iron formation or whether it is an angular unconformity defined by a regolithic sequence remains to be answered.

Hole 18 drilled through 20 metres of contact breccia with intercalated sandstones and siltstones. This 30cm sample of core shows an unusual variant of the breccia with angular clasts of jasper and magnetite within a matrix of pyrrhotite over a 6 metre intersection. Curiously, 400m further south in hole 22, a similar breccia sequence was intersected with pyrite flooding of the matrix material.

The significant volume of sulphides at the base of the Tarcoola formation increases the prospectivity of this unit – particularly to the west where a significant gravity anomaly indicates a large high density body at depth.

The rectangular area shown on the interpretative gravity cross-section outlines the profile drilled to date. The larger brown area at depth and to the west represents the distribution of high density material needed to explain the regional gravity anomaly.

If it is assumed that the magnetite mineralisation drilled to date has a tonnage potential of 500 million tonnes. Then there is a significant exploration target to the west that could materially add to this tonnage if the dense material proves to be magnetite.

Focusing back on the magnetite mineralisation drilled to date, these core samples taken from DD004 on section 6609770N and DD005 drilled 700m north of DD004 provide good examples of the style of higher grade mineralisation.

In all cases, magnetite is fine grained within bands 0.3mm to 10mm thick alternating with bands of white and red chert. DD005 contains some carbonate and less silica than DD004.

The more massive mineralisation drilled in holes 17 and 22, in our recent campaign is similar in texture to the DD005 sample in the bottom right.

The Coolybring mineralisation is assumed to be the geological equivalent of the Middleback Ranges magnetite deposits. If the analogy is correct, DD004 could be equivalent to the magnetite quartz units at the Magnet Mine and DD005 is similar in nature to the magnetite carbonate units.

Owner	Deposits	Ore gradeFe%	GrindSizemicrons	MassRecovery%	Fe%	Concentrate GradesSiO2%	P%	Al2O3%	RecoveryFe%
A		36	25	43	68	4	0.01	?	81
Stellar	Coolybring	36	38	43	66	8	0.01	0.20	79
B		38	75	40	68	5	?	?	72
C		40	75	40	69	4	?	?	69
E		37	35	35	69	5	?	?	65
D		37	45	35	69	4	?	?	65
	Ore and concentrate grades taken from company presentationsCoolybring potentially has high ore grade, high mass recovery, high ironrecovery but also elevated silica and requires fine grinding – Coolybringnumbers based on limited sampling

This table summarises the results of the metallurgical testing completed on three diamond drill holes and compares the results with those published by other Australian magnetite projects.

While any conclusions on absolute levels given the limited sample from Coolybring must be viewed with caution, it can be said that the head grade is comparable to other magnetite deposits and importantly mass recovery is relatively high.

Mass recovery is a key factor in overall iron recovery which in Coolybring's case is also relatively high. The challenge will be to reduce silica in the concentrate to acceptable levels. We believe that this can be achieved using reverse flotation.

Development Stage	Description	Completion
Definition Drilling	Determine limits and types of ore	Dec-08
Scoping Study	Mining, processing, water, energy,transport and marketing	Sep-09
Optimisation Study	Optimise processing route and inputs	Mar-10
Feasibility Study	Definitive costing and valuation	Sep-10
Financing	Debt and equity mix	Mar-11
Construction	Managing critical path	Mar-14
Full Production	Commissioning	Jun-15

Further definition drilling is required to determine the extent and grade distribution of the magnetite.

The next step is to attract funding to complete definition drilling, commence resource drilling and move into a scoping study.

Stellar Resources' 100% owned subsidiary Columbus Metals, the owner of a 60% interest in the Heemskirk Tin project, was prepared for IPO during the year. The IPO prospectus was completed in September 2008 and subsequently shelved due to poor equity market conditions at the end of that month.

The Heemskirk Tin Project was acquired from Western Metals in March 2008. It is located in Tasmania's west coast mining district on the outskirts of the township of Zeehan. Logistically, this is a very favourable location with the Renison Bell tin mine and the Avebury nickel mine all within 20 kilometres of Zeehan. Both mines have concentrators that could be used to process Heemskirk tin, greatly enhancing the economics of the project.

Competitively priced power and water supplies are available in the region and a road and railway line (from Melba Flats near Renison Bell) connects the project to the export port of Burnie on Tasmania's north coast 130km from the town of Zeehan.

The magnetic image over the Heemskirk Tin deposits, shown on the left, is a circular high reflecting magnetite and iron sulphide mineralisation related to a granite stock that has intruded a prospective Lower Cambrian sedimentary sequence.

As the schematic geological section to the right shows, the iron rich mineralising fluids emanating from the granite, deposit tin as replacement mineralisation within carbonate rich sediments (Severn for example) or as cross-cutting fracture and fault fillings (as in the case of Queen Hill).

Drilling so far has reached a depth of only 400m. The geophysical model suggest that the depth to the top of the granite is ~1000m – similar to the nearby Renison Bell deposit (Renison yielded a total resource of 24.5Mt @ 1.4%Sn for 345,000t of contained tin) – providing an untested zone of >600m between the deepest drill hole and the granite margin.

LENS	CATEGORY	Mt	% Sn	Tonnes Tin
LENS	CATEGORY	Mt	% Sn	Tonnes Tin
Queen Hill	Indicated	1.8	0.82	14,800
Queen Hill	Indicated	1.8	0.82	14,800
Severn	Inferred	5.1	0.60	30,700
Severn	Inferred	5.1	0.60	30,700
Montana	Inferred	0.4	1.22	4,870
Montana	Inferred	0.4	1.22	4,870
Total		7.3	0.69	50,370
Total		7.3	0.69	50,370
Included High GradeIncluded High Grade
LENS	CATEGORY	Mt	% Sn	Tonnes Tin
LENS	CATEGORY	Mt	% Sn	Tonnes Tin
Queen Hill	Indicated	0.93	1.39	12,900
Queen Hill	Indicated	0.93	1.39	12,900
Severn	Inferred	2.37	1.11	26,300
Severn	Inferred	2.37	1.11	26,300
Montana	Inferred	0.31	1.45	4,500
Montana	Inferred	0.31	1.45	4,500
Total		3.61	1.21	43,700
Total		3.61	1.21	43,700
	(Historical Pre- JORC Resources - Companies Update No. 11/07)(Historical Pre- JORC Resources - Companies Update No. 11/07)

The historic pre-JORC high grade resource identified by Aberfoyle is 3.6 million tonnes grading 1.21% tin for 43,700 tonnes of contained tin. This is the highest grade undeveloped tin resource in Australia and as such should have an operating cost comparable with that of Renison Bell.

Around the high grade resource is a low grade halo that increases the tonnage of contained tin to 50,370.

Importantly, 60% of the high grade resource occurs within the Severn deposit which should have high recovery given that the main ore mineral is cassiterite.

The three deposits of the Heemskirk Tin Project rank fourth in overall tonnes of contained tin against other Australian deposits. However, if the large tonnage low grade deposits are removed from the comparative Heemskirk is second only to Renison Bell.

In this schematic long-section, the red areas represent known ore grade mineralisation while the lighter areas reflect potential depth extensions of the mineralisation.

The untested volume provides the space to double the 43,700 tonne historic resource, provided continuity of mineralisation can be shown.

Stellar has received considerable interest in the project from companies looking for seed capital opportunities. In the event that the equity market remains weak, seed capital may be the best way to advance the project over the next 12 months.

$4million was spent on Stellar projects in 2008, with $2 million of that effort funded by joint venture partners.

Around the Tarcoola area, Toro Energy and Uranium SA have had a busy year exploring for paleochannel uranium with both companies planning further work in the current year.

Further north near Coober Pedy, Red Metal and Phelps Dodge are exploring IOCGU targets on Stellar's Robins Rise EL.

Not shown on this map, but to the south of Broken Hill, Carpentaria Exploration is exploring Stellar's Panama Hat gold property.

Stellar has a valuable land position, with excellent drilling targets in South Australia's copper corridor and continues to seek partners to add value to these properties.

Stellar has reduced costs during 2009 and has reduced its greenfield exploration activities after the March quarter 2008 drilling program. Further prudent management of the company's cash resources will be necessary as the current equity market turmoil is expected to continue into 2009.

The company has narrowed its focus down to two projects that are capable of delivering resources and adding value over the next 12 months.