18 August 2016

Clarification and Replacement of Investor Presentation

Stellar Resources Limited (ASX: SRZ, "Stellar" or the "Company") refers to ASX announcement "Investor Presentation" dated 11 August 2016. The Presentation also references "Pre-feasibility Study Advances Heemskirk Tin" dated 24 July 2013 and "Substantial Increase in Heemskirk Tin NPV" dated 24 September 2015.

The purpose of the studies referred to in the Investor Presentation is to assess at an early stage the potential viability of the Heemskirk Tin Project and the case for continuing to progress the project to a definitive feasibility study.

Investors are advised that subsequent to the release of the "Investor Presentation" on 11 August 2016, the ASX expressed concerns with some statements in the presentation and some of the assumptions in the previous announcements identified above. In particular, the high level of inferred resource upon which the studies are based means that the Company did not have reasonable grounds to state production targets and economic assumptions.

Following discussions with ASX, the Company retracts all statements regarding production targets and financial forecasts as the Company does not have a basis to make these statements. This includes announcements made on 24 July 2013, 24 September 2015 and 27 July 2016.

The Company does not currently have any financing in place for development of Heemskirk Tin. However, once a higher degree of geologic and economic certainty is established, the Company will be in a position to explore options and announce a preferred financing structure to the market.

The Company believes that the work completed to date on Heemskirk Tin justifies further drilling and assessment with the aim of significantly increasing the proportion of measured and indicated resources. On completion, the Company will be able to make better estimates of production targets and financial viability in support of a definitive feasibility study.

A replacement Investor Presentation for the one announced on 11 August 2016 is attached to this announcement.

Issued Capital

Shares: 300,227,775 Share Price: A$0.049 Market Cap: A$14.7million

Commodity

Tin Price: US$18,393/t Exchange Rate US$ 0.77

Main Shareholders

European Investors 24.8% 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 Christina R Kemp Company Secretary

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

www.stellarresources.com.au

For further details please contact:

Peter Blight Managing Director Stellar Resources Limited Tel: 03 9618 2540 Email: [email protected]

or visit our Website at: http://www.stellarresources.com.au

Heemskirk Tin Project

Highest grade undeveloped ASX-listed tin project

August 2016 Update

www.stellarresources.com.au ASX: SRZ

Agenda

Corporate overview

Share price recovery yet to reflect solid achievements at Heemskirk Tin

Company overview

100% owner of Heemskirk Tin Project, 150km south of Burnie, Tasmania
Stand-out high grade resource (1.14% Sn) with vision to be a major Australian tin producer
Metallurgical optimisation added to the project
Fast start lowered capex and reduced time to first production

Financial information

Share price (10-Aug-16)	A$0.049
Number of shares	300.2m
Market capitalisation	A$14.3m
Cash(30-Jun-16)	A$1.6m
Debt (30-Jun-16)	Nodebt
Enterprise value	A$12.7m

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

Ownership reflects strong tin investor support

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

Tin price has bottomed

LME tin price is up 38% from its mid-January 2016 low

Supply rationalisation underpinning price

China announced 17% reduction in tin smelter production in January 2016
Indonesian tin exports down for the 4th consecutive year due to tighter licence conditions
Myanmar exports down by 37% in June 2016 compared with June 2015 and 62% month on month
No significant investment in new mine production

New uses to drive demand growth

Lead acid moped batteries a significant new use in China
Chemical uses of tin growing above trend
Solder thrifting has now diminished in largest end-use
New energy capture and storage technologies the game changer for tin?

Tin is an energy metal

ITRI have identified numerous potential new uses for tin in the energy sector O to 4th O to 4 largest end largest end-use in 5 years use in 5 years

	research project






	research project

Best location for a new mine

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 several mines in the region
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
- Project located outside of environmentally sensitive areas

Solid record of achievement

Operational achievements in 2015 continuing in 2016

February 2015		Environmental Protection Authority guidelines received
		Exploration licence granted to the south of Heemskirk
March2015
		Metallurgy optimisation upgrades HeemskirkTin
		Severn tin recovery increased by 7.4% and average tin recovery increased by 4.5%
July 2015		Geological review flags new northwest trending structures and high grade tin infill zones presentingun-tapped upside to the Heemskirkresource
		St Dizierscoping study completed -potential for development as a source of blending ore
		Tailings storage site secured –low capital cost, life of mine facility
September2015		Optimisation of HeemskirkTin
July 2016		Application to convert Retention Licence into a Mining Lease –will increase tenure and addcertainty to project
July 2016		Fast start study -shows path to quicker ore access at lower capital cost

Simplified plant design

Metallurgical optimisation led to smaller primary grind and elimination of heavy media separation and silica float circuits saving capex

Removed heavy media separation
Coarser grind size
- Increased to 250µ from 160µ
- Improved recovery from gravity circuit
Optimised flotation circuits
- Reduced tin loss in sulphide float
- Removed silica float
- Increased slimes cut-off
- Tin float conditions improved
- Finishing circuit enhanced
Process flow sheet developed by ALS and WorleyParsons
Plant layout and imaging developed by GR Engineering and Mincore

Quality tailings dam site secured

Tailings dam site in plan and oblique view

Capacity 3x initial mine life
Low cost containment
- No observed geological flaws
Concealed valley
- Crown land
- No competing land use
- No observed flora or fauna values
Site secured by a mining lease

Why consider a faster start?

Need to reduce the pre-production capital hurdle equity finance is difficult to secure and still too expensive
Faster access to ore required to meet the tin price upswing price recovery has already commenced
Modularisation allows for expansion once operation is generating positive cash flow
Opportunity to drill-up deposits from underground more efficient and accurate approach for Severn and Montana deposits
Significant reduction in risk less capital, best known deposit, reduced development time and lower execution risk

Significant exploration potential

Underground development would provide an opportunity to better understand deposit geology and define deeper exploration targets below the known deposits

ML application over tin deposits

RL5/1997 to be replaced by a Mining Lease

Exclusive right to extract economic minerals
Increased duration of tenure over tin deposits
More secure form of title
Board commitment to the project

Indicative Timeline

Stellar is poised to embark on a DFS for the Heemskirk project based on a fast start approach

DFS to cost A$5m over 12mths
Environmental and metallurgy work programs in the planning stage
Drilling LQH to upgrade resource to an ore reserve determines timing

DFS timeline from commencement

Five reasons to own Stellar

Tin price and share price have bottomed price recovery from an over-sold position
Strong record of achievement project momentum maintained despite difficult market conditions
Technical improvements demonstrated by metallurgical results – increased recovery and reduced capital cost
Fast Start offers quicker, lower risk development at higher grade and lower capital cost
ML application a key milestone in development timeline

Disclaimer

Forward Looking Statement

This presentation may include forward-looking statements. Forward-looking statements include, but are not limited to statements concerning Stellar Resources Limited's planned activities and other statements that are not historical facts. When used is this report, words such as "could", "plan", "estimate", "expert", "expect", "intend", "may", "potential", "should", and similar expressions are forward-looking statements. In addition, summaries of Exploration Results and estimates of Mineral Resources and Ore Reserves could also be forward-looking statements. Although Stellar Resources Limited believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward–looking statements. The entity confirms that it is not aware of any new information or data that materially affects the information included in this report and that all material assumptions and technical parameters underpinning this announcement continue to apply and have not materially changed. Nothing in this report should be construed as either an offer to sell or a solicitation to buy or sell Stellar Resources Limited securities.

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.

Appendix

Heemskirk PFS mine plan Board of Directors

Heemskirk mine plan

Board of Directors

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

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

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

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