STELLAR RESOURCES LIMITED — Investor Presentation 2015

Feb 25, 2015

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26 February 2015

Company Update - Replacement

Issued capital Shares: 300,227,775 Share Price: A$0.03 Market Cap: A$9.0 million

Commodity Tin Price: US$18,093/t Exchange Rate US$ 0.79

2015 will be a year of continued progress for Stellar Resources (“Stellar”, or the “Company”, ASX: SRZ) and its advanced 100% owned Heemskirk tin project. The Company’s strategy is to accelerate pre-development work at the Heemskirk project, targeting DFS drilling and commencing detailed studies. In light of these expected developments, the strong tin market outlook and the falling A$, Stellar has released the attached company update presentation, which highlights the significant leverage of the Heemskirk project to the A$ tin price.

Stellar Resources highlights:

Main shareholders European Investors 26.0% Capetown SA 20.8% Resource Capital Fund 12.1%

Board & management Phillip G Harman Non-Executive Chairman

Peter G Blight Managing Director

Miguel Lopez de Letona Non-Executive Director

Thomas H Whiting Non-Executive Director

Markus Elsasser

Non-Executive Director Christina R Kemp Company Secretary

• 100% owned Heemskirk project is the highest grade undeveloped ASX-listed tin resource

• Optimisation to add value progressing rapidly with metallurgical results expected in 1Q 2015

• A premier position in Australia’s most productive tin field, the Renison Bell district of Tasmania

• Mining friendly jurisdiction with established infrastructure and low environmental and political risks

• Significant leverage to the falling A$ and strong outlook for global tin prices

• Clean capital structure with A$3m cash, no debt and strong institutional backing

• An additional exploration portfolio of copper-gold, uranium and magnetite projects in South Australia

ASX Code: SRZ

ABN 96 108 758 961 Level 17, 530 Collins Street Melbourne Victoria 3000 Australia

Telephone +61 3 9618 2540 Facsimile +61 3 9649 7200

Managing Director, Peter Blight said: “ The attached presentation outlines our compelling investment case and strategy to unlock shareholder value at Heemskirk. Stellar Resources has a premier position in Australia’s most productive tin field and significant leverage to compelling tin market fundamentals. Our 100% owned Heemskirk tin project is the highest grade undeveloped tin resource on the ASX, which ultimately provides shareholders with lower unit costs and better project economics .”

About Stellar:

Stellar Resources (SRZ) is an exploration and development company with assets in Tasmania and South Australia. The company is rapidly advancing its high-grade Heemskirk Tin Project, located near Zeehan in Tasmania, and plans to become Australia’s second largest producer of tin.

www.stellarresources.com.au

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Heemskirk Tin Project Highest grade undeveloped ASX-listed tin project

The Investment Case February 2015

ASX: SRZ

www.stellarresources.com.au

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Investment case
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•   Premier position in Australia’s most productive tin field

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

• Current share price levels present attractive asymmetric payoff profile and free option on tin

•   Compelling tin market fundamentals with traditional sources of tin supply declining

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

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Attractive asymmetric payoff profile
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Given the clear leverage of the Heemskirk Project to the favourable outlook for tin, the project appears significantly undervalued at current share prices

• An investment in Stellar includes both leverage to Heemskirk and a valuable option on the tin price (particularly as Stellar trades closer to cash backing)

• At current share prices and cash levels, there is limited downside and substantial potential upside in an investment in Stellar

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A$m
Copper/gold
8
Uranium
6.9
Other tin
6 Iron ore
3.9
4
(3.0)
2.2
2
(1.7)
-
Market value Existing cash Enterprise value Other exploration assets 1 Implied Heemskirk valuation
(@ A$0.023) (31 Dec 2014)
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Source: Company filings, IRESS Notes:

1 Based on the Mining One valuation within the Independent Expert’s Report released by Stellar in December 2011

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Substantial leverage to tin price
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Significant upside for the Heemskirk NPV as the spot tin price increases over the next 3 years (production expected late 2017)

A$m Heemskirk PFS NPV sensitivity to US$/t tin price[1,2 ]

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280
consensus
240
200
Spot tin price Spot tin price Spot tin price
February 2015 6 months ago May 2011
160 (July 2014)
120
80
40
-
18,000 19,000 20,000 21,000 22,000 23,000 24,000 25,000 26,000 27,000 28,000 29,000 30,000
US$/t tin price
NPV @ 0.75 AUDUSD NPV @ 0.90 AUDUSD Spot tin prices Analyst 2016 forecasts
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Source: Heemskirk PFS model, analyst reports Notes:

• 1 Based on base case disclosed PFS assumptions 2 2016 nominal forecast prices shown

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Proven tin price leverage
In mid 2010, demand for electronics and packaging surged after the GFC,
resulting in spot tin gains of 49% and a corresponding 236% increase in SRZ
Stellar share price (A$)
0.25 +236% SRZ
0.20
0.15
0.10
0.05 +49% spot tin
-
Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11
SRZ close price Spot tin (rebased to SRZ) 1
Source: IRESS
Notes:
1 Rebased to 1 June 2010
5
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ASX junior tin developers
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Heemskirk is the premier pre-production tin opportunity on the ASX

Resource grade (% Sn)

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Very high Sn grade
1.1%  Lower per unit costs
0.9%  Superior shareholder returns
0.7%
0.4%
0.2%
0.2%
Heemskirk Achmmach Cleveland Tin Mt Garnet Mt Lindsay Taronga
(Stellar Resources) (Kasbah Resources) (Elementos) (Consolidated Tin) (Venture Minerals) (AusTinMining)
Contained tin resource (kt)
118 Sizeable resource
 Increased project life
81 
72 Improved project NPV
57
48 48
Achmmach Mt Lindsay Heemskirk Taronga Cleveland Tin Mt Garnet
(Kasbah Resources) (Venture Minerals) (Stellar Resources) (AusTinMining) (Elementos) (Consolidated Tin)
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Source: Company filings

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Why invest in tin?
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Multi-purpose malleable metal vital across several manufacturing industries

• One of the most adaptable metals with a variety of applications and a history of new uses

• New frontier for tin is its importance to the clean-tech revolution

• Lithium ion batteries and lead free electronics

• Solar panels and other renewable energy products

• Sources of tin are forecast to reduce

Production of refined tin (t)

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360,000
340,000
320,000
300,000
280,000
2006 2008 2010 2012 2014F 2016F 2018F 2020F
Historic production BGR probable future production
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• Systematic underinvestment in tin exploration in Australia and globally

• Tin is vital in several of its current applications including:

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Global (especially Indonesia) reserve depletion

• Solder uses in electronics

• Tinplates used in consumables

• Car alloys and industrial catalysts

Source: ITRI, BGR Institute

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Favourable project location
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North-west Tasmania is a world-class tin jurisdiction

• Tin assets 100% owned

• Supportive local community and skilled workforce

• Renison-style deposits – well known mine-type

• Significant mining district

• Established road to port at Burnie and power infrastructure

• Low political risk

• Low environmental risk

• Exciting exploration potential

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Flagship Heemskirk tin project
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Australia’s highest grade undeveloped tin deposit with excellent expansion potential

• Located on the west coast of Tasmania 18km southwest of Australia’s largest tin mine, Renison Bell (Metals X / Yunnan Tin)

• 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

 Demonstrated recovery of 70% through bench scale met testing

Heemskirk location and layout

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Heemskirk pre-feasibility results
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Positive results from pre-feasibility study confirm project viability

PFS overview

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

• Pre-production capital cost: A$127m

Heemskirk mine plan

Queen Hill

Long Hole Stoping

Montana Long Hole Stoping

• Minimum life: 6.75 years ( excluding St Dizier )

• Mine gate cash costs: US$14,389/t tin concentrate

• NPV (base case @ 8%): A$61m

Severn Drift & Fill

• Tin recovery: 70%

• Average concentrate grade: 48%

Severn Long Hole Stoping

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Optimisation will add value
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Substantial value to be unlocked through current PFS optimisation exercise

 PFS defines baseline for project but the focus is now on enhancing returns

• A$m Heemskirk PFS sensitivities[1]

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+88
160
120 +35
+24 +26
80 61
40
(15)
-
Base case PFS Base case Base case Base case Base case Base case
(8% discount rate) (10% discount rate) (+5% head grade) (+2 years mine life) (+5% recoveries) (US$30,000/t tin in
2017)
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• Increase head grade: Newer prospect leads are of higher grade

• Extend mine life: Deeper drilling at Queen Hill and Severn are current initiatives

• Increase recoveries: Significant potential to increase current forecast recoveries of 70%

Source: Heemskirk PFS model Notes:

• 1 Based on base case disclosed PFS assumptions

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Option value in non-core assets
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Stellar’s non-core assets represent a series of valuable, long dated options on multiple commodities

• Cash commitments expected to be met with a combination of JVs and tenement carve outs

Tarcoola Iron (100% SRZ)

• Magnetite discovery ~400km NW of Port Augusta

• Exploration target of up to 700Mt

• Exploration drilling confirmed 20% of 1.7km strike and the 300m width

• Rail infrastructure 10km away

Other joint ventures

• U3O8 exploration with Uranium SA

• Adjoins UraniumSA’s 21.8Mt, 292ppm Plumbush deposit

• Copper/gold exploration in Gawler Craton area

• Two tenements prospective for IOCGU

Project locations

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2014 performance and the future
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Despite the broader market challenges, Stellar is focused on delivery in 2015 and beyond

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Share price (A$) Future milestones
0.07
Mar 2014 2015
A$1.2m entitlement
offer completed  Complete optimisation of
metallurgy circuit
0.06
 Complete St Dizier
scoping study
 Commence Heemskirk
0.05 DFS drilling and studies
2016
0.04 Mar 2014  FID for Heemskirk
New St Dizier
resource
announcement Late 2017
Aug 2014  Target first production
0.03
Queen Hill
mineralisation
extended by 150m
0.02
Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15
Source: IRESS
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• Complete optimisation of metallurgy circuit

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A endix pp Corporate and tin market overview

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Corporate overview
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Strong balance sheet with supportive shareholders

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

• PFS completed in July 2013 confirming technical and economic viability

• Currently refining and optimising the PFS, mine plan and further exploration programs

Financial information

Share price (24-Feb-15)	A$0.023
Number of shares	300.2m
Market capitalisation	A$6.9m
Cash (31-Dec-14)	A$3.0m
Debt (31-Dec-14)	No debt
Enterprise value	A$3.9m
42.5m unlisted options (exercise prices A$0.06 to A$0.12,
expiring 26-Feb-17 to 20-Nov-19)

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Daily trading
Share price (A$) volume (m)
0.09 1.2
1.0
0.06 0.8
0.6
0.03 0.4
0.2
- -
Feb-13 May-13 Aug-13 Nov-13 Feb-14 May-14 Aug-14 Nov-14 Feb-15
SRZ daily volume traded S&P/ASX Small Resources Index
SRZ share price at close
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Strong institutional ownership

Capetown S.A.	20.8%
Bunnenberg Family	14.9%
Resource Capital Funds	12.1%
Directors & Management	4.2%
Top 20 Shareholders	70.2%

Source: IRESS, company filings

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Board & management
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Experienced and multi-disciplinary team with strong global connections

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Phil Harman

Non-Executive Chairman

Geophysicist

• Over 30 years experience in BHP Billiton minerals exploration

• Past and present Director of several ASX listed companies

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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

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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

Finance

• 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

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Thomas Whiting Non-Executive Director

Geophysicist

• Former manager of BHP Billiton exploration

• Chairman of Deep Exploration Technologies Cooperative Research Centre

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

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Tin market supply overview
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Concentrated supply market in terms of geography and companies

• Highly concentrated supply

Global tin production (kt)

• China and Indonesia account for ~70% of global tin output

• Top four tin producers (Yunnan Tin, MSC Group, PT Timah and Minsur) account for c.50% of global production

• Indonesian resources declining

• Primary ore is cassiterite (SnO2)

• Occurs predominately in deep hard rock mines and near-surface alluvial deposits

• 56% of tin mined underground

• Typically drill and blast techniques

• Concentration via gravity method

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400
300
Other
200 Peru
China
100
Indonesia
-
1990 1995 2000 2005 2010 2015
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World tin production by method
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Open pit 6%
Dredging 5%
Gravel pump
17%
Underground
56%
Suction boats
16%
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Source: ITRI

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Tin market demand overview
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Robust demand for tin underpinned by the growth in electronics

• Demand growth from 1998 to 2006 ( 5.0% CAGR ) driven by computer / electronics revolution

• Growth reversed during GFC as consumer electronic demand fell — subsequently demand has recovered and should benefit from the transition to lead-free solder and new green-tech industries

• ITRI forecasts global use of tin to increase at the trend rate of c.2% p.a in the next five to ten years

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Tin demand (kt)
450
 Boom in electronics
 Rising Chinese consumption
350
250
1998 – 2006 CAGR = 5.0% p.a
150
1990 1994 1998 2002 2006 2010 2014
Source: ITRI
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Tin – current market dynamics
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Indonesia and equity markets restricting short term supply growth

• Indonesia implemented ban on exporting tin ore in 2014

• Aim is to maximise the value-add of the Indonesian refined tin producers by investing in smelters & refineries

• Indonesian production reforms are restraining supply, supporting prices

• BGR[1 ] analysis reports only 7 out of 157 tin projects will be developed by 2020

• Heemskirk is among these 7 projects

• Indonesian tin supplies are declining which will apply price pressure 2017+

• Reserves / 2012 Production = 2.5x[1 ]

Spot tin US$/t

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35,000
30,000
25,000
20,000
15,000
10,000
2010 2011 2012 2013 2014 2015
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ITRI forecasting market deficits

Price forecasts for 2016 of US$26,500/t from BNP and US$25,000/t from ITRI

Source: IRESS Notes: 1 German Federal Institute for Geosciences and Natural Resources

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Disclaimer
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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 24[th] 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.

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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