STELLAR RESOURCES LIMITED — Investor Presentation 2017

Aug 29, 2017

H E E M S K I R K T I N P R O J E C T

Tin in Tasmania Mining 2017 Resources Convention Brisbane 30th August ASX: SRZ www.stellarresources.com.au

THE AGENDA FOR TODAY H E E M S K I R K I S T I N I N T A S M A N I A

T I N I S A N E N E R G Y M E T A L W I T H A B R I G H T F U T U R E

H I S T O R Y A D D I N G V A L U E T H R O U G H O P T I M I S A T I O N O F T H E D E V E L O P M E N T S T R A T E G Y

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H E E M S K I R K T I N ' S C O M P E T I T I V E A D V A N T A G E S

T I M E L I N E F O C U S E D O N A D R I L L – O U T O F R E S O U R C E S I N S U P P O R T O F A D E F I N I T I V E F E A S I B I L I T Y S T U D Y

M I N I N G L E A S E G R A N T A D D S T O P R O J E C T M O M E N T U M

D A R E T O D R E A M C A N H E E M S K I R K B E C O M E A N O T H E R R E N S I O N ?

LME TIN PRICE IS UP 50% FROM ITS MID-JANUARY 2016 LOW T I N P R I C E R E C O V E R Y U N D E R W A Y

• Suppl y r est r a int fr om l a r gest pr oducer s Ch ina a n d In don esia t h rough 2016 a n d Ch ina 2017
• Gr owt h of n ew suppl y fr om Mya n m a r a ccom m oda t ed by Ch i na cut ba cks
• E xch a nge st ocks a t h i st orica ll y l ow l evel s i n dustry st ocks a r e m oder a t e
• Dem a n d gr owt h r et urning a ft er t wo yea r s of decl i n e

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F O U R C O U N T R I E S C O N T R O L 8 0 % O F M I N E S U P P L Y

• La r gest t i n mi ning coun t r ies a r e Ch i na (30%), In don esia (24%), Mya n m a r (18%) a n d Per u (7%)
• Gl oba l m i n e suppl y pea ked i n 2005 a n d h a s decl i n ed by 12% i n t h e per i od of 2016
• Si n ce 2013, Mya n m a r h a s em er ged a s t h e t h i rd l a r gest suppl i er of t i n or e – a l l t r ucked t o Ch ina .

NEXT GROWTH PHASE? T I N D E M A N D

• Tin demand characterised by long periods of above trend Long-periods of strong growth:

growth driven by new uses

• Emergence of tin in lead acid batteries one example of a new use that could gain more traction

• Current growth pause is mature (10 years)
• Potential for a cyclical recovery in 2018?

PATH FROM DISCOVERY TO DEVELOPMENT

W E S T C O A S T T A S M A N I A – A U S T R A L I A ' S L A R G E S T A N D M O S T P R O D U C T I V E T I N F I E L D

E V O L U T I O N O F A W O R L D C L A S S T I N P R O J E C T

• QH tin deposit discovered early 1960s by Gippsland Ltd
• Aberfoyle jv with Gippsland in 1971 discovered Montana and Severn deposits
• Tin deposits located within Tasmania's most productive mineral field
• Renison, Australia's oldest and largest tin mine is located 18km away to the NE of the Heemskirk project
• Stellar listed on ASX in 2005
• Stellar acquired Aberfoyle's 60% interest for $1.2m in 2008
• Remaining 40% interest acquired from Gippsland Ltd in 2012 for $3.5m
• A$11m spent to date on drilling, geology, metallurgy, environment, mining and processing studies

JORC 2012 CONFIRMS RESOURCE QUALITY M I N E R A L R E S O U R C E E S T I M A T E R E V I E W E D I N 2 0 1 6

• 6.35mt @ 1.13% Sn or 72,000t of contained Sn
• 97% of contained Sn is in the form of cassiterite the most readily recoverable Sn mineral
• 64% of Indicated Resource in Lower Queen Hill first deposit in development queue
• LQH Indicated Resource of 0.82mt @ 1.42% Sn is particularly high grade
• All Sn deposits at Zeehan are open at depth and have significant exploration potential
• Next step is infill drilling

Ca s sit e rite - S nO2

HEEMSKIRK – A WORLD CLASS TIN PROJECT

Sour ce: publ i c r esour ce a n d r eser ve st a t em ent s

Pr oducer s a r e un derground m i n es t h a t a r e com pa r a bl e wi t h Heem ski r k No t on na ge a n d gr a de i n for ma tion a va i l a bl e for un der ground m i nes i n Ch ina a n d Bol i vi a or sur fa ce m i n es i n In don esi a

• Heemskirk is well placed on the grade tonnage curve – potential to increase grade and tonnes

• Existing underground producers San Rafael and Renison facing declining grade as are other producers
• Many competitors either lower grade or in higher risk jurisdictions
• Competitors with remote projects face higher infrastructure and service costs compared with Heemskirk

SIGNIFICANT PROJECT MILESTONE THAT INCREASES TENURE AND SECURITY OVER THE RIGHT TO MINE TIN M I N I N G L E A S E G R A N T E D

• ML 2023P/M granted to wholly owned subsidiary Columbus Metals Limited
• Term is 12 years to 1st January 2029
• Provides right to carry out mining operations in the lease area in accordance with the Mineral Resources Development Act 1995
• Right to mine tin and all other metallic minerals
• All conditions of the ML can be met through the existing schedule of activities planned by Stellar
• No minimum expenditure commitments
• Tailings pipeline ML 2040P/M under application

SEVERAL STUDIES COMPLETED FINAL FEASIBILITY REMAINING P R O G R E S S T H R O U G H E A R L Y H U R D L E S

	Increasing NPV/Capex

M i n i ng : M i n i ngOn e a n d P ol b e r ro Con s u l t ing M e t a llu rg y: ALS M e t a llurgi ca l a n d Wor l e yP a r s on s

P r oc e s s En g i n e eri ng : Wor l e yP a r s on s, GR E n gi n e e rin g a n d M i n cor e En vi r on me n ta l: J oh n M i e d eck e a n d P a r t n ers

ST ELLAR I S P OI SED T O EMB ARK ON A DFS FOR T HE HEEMSKIR K P ROJ ECT B ASED ON A FAST ST ART AP P ROAC H W H A T I S S T I L L T O B E D O N E ?

• April 2017 drilling commenced significant news-flow to follow as drilling progresses
• Mineral Resource update on completion of drilling
• Drilling targeting infill and higher grade historical intersections
• Development Proposal and Environmental Management Plan

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in 2018

D F S T I M E L I N E F R O M M A R C H Q U A R T E R 2 0 1 7

DRILLING PROGRAM UNDERWAY

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F O C U S O N L A R G E S T D E P O S I T S S E V E R N A N D Q U E E N H I L L

INITIAL FOCUS ON LOWER QUEEN HILL

ZQ133 – 6.0m @ 0.8% tin

• ZQ134 2.0m @ 1.3% tin within 6.0m of 0.6% tin
• Confirmation of geological model cassiterite tin associated with pyrite/siderite/quartz alteration in a fault zone between black shales and volcanics
• Base metal zonation above tin mineralisation means high in system
• Infill drill holes also providing sample for further metallurgical testing

GOOD INITIAL RESULTS FROM SEVERN

• ZS132 intersected 14m @ 1.4% tin from 333m to 347m
• Drill direction at right angles to historical drilling to test vein orientation
• High-grade veins parallel and at high angle to the deposit strike
  • Boundary position of deposit confirmed adding confidence to the geological model
  • Cassiterite occurs in veins and as void infill

DARE TO DREAM – THE NEXT RENISON?

C O M P A R I S O N W I T H R E N I S O N S H O W S T H A T K N O W N D E P O S I T S A T H E E M S K I R K A R E J U S T T H E S T A R T M I N E R A L I S A T I O N A T R E N I S O N O V E R 1 2 0 0 m V E R T I C A L L Y F R O M S U R F A C E

• Australia's oldest and largest Sn mine is located 18km away to the NE of the Heemskirk Sn project
• Same geology and structural setting for Heemsksirk and Renison
• Renison started with a 5 year mine life in 1965 producing 5ktpa Sn – i.e. an ore reserve of 25kt
• Renison has now produced over 250kt Sn in the 50 years since it started and has 166kt Sn in resources
• New ore is being discovered at Renison today between the north and south deposits
• The Heemskirk deposits are shown superimposed on the Renison long section and at 72kt Sn represent just 20% of the Sn found at Renison

THE AGENDA FOR TODAY H E E M S K I R K I S T I N I N T A S M A N I A

T I N I S A N E N E R G Y M E T A L W I T H A B R I G H T F U T U R E

H I S T O R Y A D D I N G V A L U E T H R O U G H O P T I M I S A T I O N O F T H E D E V E L O P M E N T S T R A T E G Y

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H E E M S K I R K T I N ' S C O M P E T I T I V E A D V A N T A G E S

T I M E L I N E F O C U S E D O N A D R I L L – O U T O F R E S O U R C E S I N S U P P O R T O F A D E F I N I T I V E F E A S I B I L I T Y S T U D Y

M I N I N G L E A S E G R A N T A D D S T O P R O J E C T M O M E N T U M

D A R E T O D R E A M C A N H E E M S K I R K B E C O M E A N O T H E R R E N S I O N ?

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DISCLAIMER

F O R W A R D L O O K I N G S T A T E M E N T

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.

C O M P E T E N T P E R S O N S S T A T E M E N T - R E S O U R C E S

The information in this report that relates to Mineral Resources 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, 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.

C O M P E T E N T P E R S O N S S T A T E M E N T - E X P L O R A T I O N

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

J O R C 2 0 1 2 R E S O U R C E S T A T E M E N T C O R P O R A T E O V E R V I E W B O A R D O F D I R E C T O R S

JORC 2012 CONFIRMS RESOURCE QUALITY M I N E R A L R E S O U R C E E S T I M A T E R E V I E W E D I N 2 0 1 6

Classification	Deposit				Tonnage Total Sn Contained Cassiterite 1	Cu	Pb	Zn	s	SG
		mt	%	Sn t	% of total Sn	%	%	%	%	mg/l
Indicated	Upper Queen Hill	0.47	1.15	5,000	91	0.12	1.3	0.81	13.80	3.72
	Lower Queen Hill	0.82	1.42	12,000	99	0.03	0.22	0.23	17.91	3.45
Total Indicated		1.29	1.32	17,000	96	0.06	0.61	0.44	16.55	3.55
Inferred	Lower Queen Hill	0.35	1.50	5000	98	0.04	0.14	0.09	16.9	3.31
	Severn	4.03	0.97	39000	99	0.06	0.03	0.05	8.34	3.18
	Montana	0.68	1.56	11000	96	0.07	0.72	1.18	17.8	3.68
Total Inferred		5.06	1.09	55000	98	0.06	0.13	0.25	10.23	3.26
Total Indicated + Inferred		6.35	1.13	72,000	97	0.06	0.23	0.29	11.48	3.32

SHARE PRICE YET TO REFLECT SOLID ACHIEVEMENT S AT HEEMSKIRK TIN C O R P O R A T E O V E R V I E W

C O M P A N Y O V E R V I E W

• 100% owner of Heemskirk Tin Project, 150km south of Burnie, Tasmania
• Stand- out high grade resource ( 1.13% 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 (23-Aug-17)	A$0.19
Number of shares	379.7m
Market capitalisation	A$7.2m
Cash (30-Jun-17)	A$2.9m
Debt (30-Jun-17)	No Debt
Enterprise value	A$4.3m

15m unlisted options (exercise prices A$0.06 to A$0.12, expiring on 20-Nov-19) and 59m A$0.05 options expiring on 18 May 2020

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O W N E R S H I P R E F L E C T S S T R O N G T I N I N V E S T O R S U P P O R T

CapetownS.A.	16.7%
BunnenbergFamily	11.9%
Directors & Management	2.1%
Top 20 Shareholders	52.2%

BOARD OF DIRECTORS E X P E R I E N C E D A N D M U L T I - D I S C I P L I N A R Y W I T H S T R O N G G L O B A L C O N N E C T I O N S

P H I L H A R M A N , NON - E X E C U T I V E C H A I R M A I N G E O P H Y S I C I S T

Ove r 3 0 ye a r s e x p e r ien ce i n BHP Bi l l iton mi n e r a ls e x p l or a tion P a s t a n d p r e s e nt Di r e ct or of s e ve r a l AS X l i s te d comp a n i e s

P E T E R B L I G H T , M A N A G I N G D I R E C T O R G E O L O G I S T

3 0 ye a r s e x p e r ien ce i n e x p l or a tion , mi n i n g a n d fi n a n ce s e ct or s P r e vi ou s ly wor k e d for UBS , UC Ru s a l a n d Ri o T i n t o

M I G U E L L O P E Z D E L E T O N A , NON - E X E C U T I V E D I R E C T O R M A N A G E M E N T C O N S U L T A N T

E x p e r ie nce a s a ma n a ge me n t con s u l t a nt a n d b a n k e r wi t h l e a d i ng fi n a n ci al i n s t itu tion s. Ba s e d i n Be l gi u m a n d a d vi s e s on i n ve s t men t i n t h e mi n i n g a n d oi l a n d ga s s e ct or s

T H O M A S W H I T I N G , NON - E X E C U T I V E D I R E C T O R G E O P H Y S I C I S T

F or me r ma n a ge r of BHP Bi l l iton e x p l or a tion Ch a i r man of De e p E x p l or ation T e ch n ol ogi e s Coop e r a t ive Re s e a r ch Ce n t r e

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C H R I S T I N A K E M P , C O M P A N Y S E C R E T A R Y A C C O U N T A N T

Ove r 3 0 ye a r s e x p e r ien ce a s a n a ccou n t a n t a n d s e n i or fi n a n ci a l ma n a ge r . Ha s e x p e r ien ce i n t h e r e s ou r ce s, ma n u fa ct u rin g, r e t a i l a n d u t i l ity i n d u st ries

S T E L L A R R E S O U R C E S L I M I T E D

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