Heemskirk Tin Project

Highest grade undeveloped ASX-listed tin project

ITRI China International Tin Forum, Shanghai May 2015

ASX: SRZ

www.stellarresources.com.au

Corporate overview

100% owner of the highest grade undeveloped ASX-listed tin project

Company overview

100% owner of Heemskirk Tin Project, 150km south of Burnie, Tasmania
Stand-out high grade resource (1.1% Sn) with vision to be Australia's 2nd largest tin producer
Metallurgical optimisation announced in March 2015 increased PFS valuation to A$82.3m
Currently refining and optimising the PFS, mine plan and further exploration programs

Financial information

Share price (16-Apr-15)	A$0.035
Number of shares	300.2m
Market capitalisation	A$10.5m
Cash(31-Dec-14)	A$3.0m
Debt (31-Dec-14)	Nodebt
Enterprise value	A$7.5m

42.5m unlisted options (exercise prices A$0.06 to A$0.12, expiring 26-Feb-17 to 20-Nov-19)

Strong institutional ownership

CapetownS.A.	20.8%
BunnenbergFamily	14.9%
Resource Capital Funds	12.0%
Directors & Management	4.2%
Top20 Shareholders	70.2%

Investment case

Premier position in Australia's most productive tin field

100% owned Heemskirk Tin Project is the highest grade undeveloped tin resource on the ASX

Heemskirk is an unencumbered project with no offtake agreements yet in place; thus allowing for the development of new strategic relationships

Metallurgical optimisation work shows Heemskirk has several parallels to the early production from Metals X's Renison Bell

Premium projects with high grades will continue to attract investment, despite the challenging market conditions

ASX junior tin developers

Heemskirk is the premier pre-production tin opportunity on the ASX

Source: Company filings

Favourable project location

North-west Tasmania is a world-class tin jurisdiction

Significant mining district
- Many historical and current operating mines across various commodities
Supportive local community and skilled workforce
- Experienced workforce available with other mines in the region winding down
Established road and rail to port at Burnie, water readily available and power infrastructure in place
Low political risk
- Tasmanian government supportive of Heemskirk
Low environmental risk
- Issues faced by others in the region unlikely to be encountered

Flagship Heemskirk tin project

Australia's highest grade undeveloped tin deposit with excellent expansion potential

Renison-style deposit located along the tin-bearing Heemskirk Granite trend
Renison Bell (Metals X / Yunnan Tin) located 18km to northeast
Comprised of three 100% owned tin deposits
The most recent resource estimate of 6.3Mt at 1.14% tin makes Heemskirk one of the largest and highest grade tin deposits in Australia
Proposed surface development and underground portal on west side of Queen Hill

Heemskirk 2013 PFS

Positive results from the 2013 PFS confirmed project economics – optimisation is well underway

Pre-feasibility study completed in July 2013 for an underground mine producing 600ktpa at 1.06% Sn

PFS overview

Pre-production capital cost: A$127m

Minimum life: 6.75 years (excluding St Dizier)

Mine gate cash costs: A$15,988/t (US$14,389/t) tin concentrate

Comparable to Renison Bell

NPV (base case @ 8%): A$61m

Average concentrate grade: 48%

Exchange rate: US$0.90/A$

Tin price: US$25,500/t

PFS optimisation

Capital cost to be finalised following DFS

Project open at depth which lends itself to mine life extensions

Mining costs continue to decrease – buyer's market

Metallurgical study increased NPV to A$82.3M
Metallurgical optimisation determined final concentrate grade of 45%
Valuation increases to A$136M using US$0.78/A$

Consensus estimates predict tin price increase from current levels

Recent updates

Operational and corporate achievements in 2014 have set the perfect platform for Stellar to move towards DFS in 2015

January2014		CapetownS.A. subscribes to A$2.6M placement
February 2014		A$1.2M underwritten entitlement offer announced
March 2014		Indicated 1.2Mt @ 0.70% Sn partly open pittableresource at St Dizierannounced
		4 hole drill program commenced at Queen Hill
June 2014		Ongoing drill program confirmed high grade near surface mineralisation at St Dizier@ 0.9% Sn
August 2014		Queen Hill tin mineralisation extended by 150m down plunge
February 2015		Environmental Protection Authority guidelines received
		Exploration licence granted to the south of Heemskirk
March2015		Metallurgy optimisation upgrades PFS metrics
		Severn tin recovery increased by 7.4% and average tin recovery increased by 4.5%
		Annual tin in concentrate production increased by 4.5%
		PFS NPV increased by 34.2% to A$82.3M
April2015		Geological review flags new northwest dipping structures presenting un-tapped upside to theHeemskirkresource

Deposits open at depth

All deposits open at depth, poorly explored below 300 metres from surface and unexplored below 500 metres

Rock competency contrast provides channel-way for mineralising fluids
Major lithological boundaries provide northeast orientation to mineralisation
However, at drill-hole scale, mineralisation occurs in a range of rock types with many hanging-wall positions
This implies that structure and paragenesis also provide important vectors for mineralisation

Encouraging structural corridors

Northwest trending structural corridors prepared geology for mineralising events

Previously viewed northeast trend of lithology as most important structural direction
Northwest structures now equally important – divide geology into blocks that also parallel granite orientation
Faults active before, during, and after mineralising events
Very encouraged by potential for more "blind" deposits like Severn within these corridors

Structural corridors

High grade tin intersections

Geological review has uncovered a number of additional high grade tin areas within structures and dilation zones

Dilation zones

(includes 2m @ 1.4% Sn)

Metallurgical optimisation results

Materially enhanced Heemskirk economics through gains in tin recovery, reduced losses in the sulphide float and increased gravity recovery

	1

Source: WorleyParsons

Severn is comparable with Renison

Severn recovery of 79.5% compares well with neighbour Renison Bell which achieved average recovery of 73.6% at similar head grade in the 1980s

Recovery (%) Grade (%)

Next steps for metallurgy

Complete test work for St Dizier
Operating and capital cost implications from Severn results
Application of lessons from Severn to Queen Hill and Montana
Pilot scale testing program
Variability testing

Source: Annual reports

Heemskirk is 100% unencumbered

Heemskirk is a premier tin investment opportunity with high grades, 100% ownership and located in a supportive mining jurisdiction

Heemskirk is a 100% owned, unencumbered project
There are no off-take arrangements in place
- ‒ PFS production rate of 600ktpa @ 1.06% Sn
Safe, mining-friendly jurisdiction
Falling A$ greatly improves project economics
Mine closures and limited drilling activity in Tasmania has decreased operational costs
Very limited opportunities for investors to secure tin off-take
Heemskirk production will be highly sought after
- Example investments by traders
- Traxys invested A$1m into Kasbah in 2010
- Glencore invested A$161m into Aurelia Metals through a placement at project facility in 2013
- Taimetco International advanced a A$1.5m secured loan to MGT Resources in 2015

Heemskirk DFS

Stellar is poised to embark on a DFS for the Heemskirk project in 2015 with PFS optimisation currently well underway

DFS to build upon the previously completed PFS and optimisation studies
Mining expense deflation expected to reduce the expenditure required for the DFS

DFS timeline from commencement

	T	T + 3months	T + 6months	T + 9months	T + 12months	T + 15months
Drilling
Metallurgicaltesting
Geologicalstudies
Miningengineering
Environmental permitting

Appendix

Heemskirk PFS mine plan Board of Directors

Heemskirk 2013 PFS mine plan

Board of Directors

Experienced and multi-disciplinary Board with strong global connections

Phil Harman Non-Executive Chairman

Geophysicist

Over 30 years experience in BHP Billiton minerals exploration
Past and present Director of several ASX listed companies

Peter Blight Managing Director

Geologist

30 years experience in exploration, mining and finance sectors
Previously worked for UBS, UC Rusal and Rio Tinto

Dr Markus Elsasser Non-Executive Director

Based in Germany, provides advice to a number of European based investors
Has extensive experience as a Managing Director in the chemical and food industries

Miguel Lopez de Letona Non-Executive Director

Management Consultant

Experience as a management consultant and banker with leading financial institutions
Based in Belgium and advises on investment in the mining and oil and gas sectors

Christina Kemp Company Secretary

Accountant

Over 30 years experience as an accountant and senior financial manager
Has experience in the resources, manufacturing, retail and utility industries

Thomas Whiting Non-Executive Director

Geophysicist

Former manager of BHP Billiton exploration
Chairman of Deep Exploration Technologies Cooperative Research Centre

Disclaimer

Forward Looking Statement

This presentation was prepared by Stellar Resources Limited ( the "company"). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the company or as an offer or invitation with respect to those securities. It 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.

Competent Persons Statement – Heemskirk and St Dizier Mineral Resources

The information in this report that relates to Heemskirk Tin Mineral Resources was last reported on 24th July 2013 in an ASX release titled "Pre-feasibility Study Advances Heemskirk Tin". The information was prepared in accordance with the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' by Tim Callaghan of Resource and Exploration Geology. The information in this report that relates to the St Dizier Mineral Resource was announced on 12 March 2014 in an ASX release titled "Heemskirk Tin Project: New Open Pittable Resource at St Dizier". The information was prepared in accordance with the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (JORC Code) by Tim Callaghan of Resource and Exploration Geology. Tim Callaghan is a Member of The Australasian Institute of Mining and Metallurgy ("AusIMM"), has a minimum of five years experience in the estimation and assessment and evaluation of Mineral Resources of this style and is the Competent Person as defined in the JORC Code. This report accurately summarises and fairly reports his estimations and he has consented to the resource report in the form and context in which it appears.

Competent Persons Statement – Exploration

The drill and exploration results reported herein, insofar as they relate to mineralisation, are based on information compiled by Mr R.K. Hazeldene who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Hazeldene has sufficient experience relevant to the style of mineralisation and type of deposits being considered 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). Mr Hazeldene consents to the inclusion in the presentation of the matters based on his information in the form and context in which it appears.

Stellar Resources Limited

Level 17, 530 Collins Street Melbourne VIC 3000 Phone +61 3 9618 2540 Fax +61 3 9649 7200 www.stellarresources.com.au