STELLAR RESOURCES LIMITED — Investor Presentation 2019

Nov 10, 2019

HEEMSKIRK TIN PROJECT

Investor Presentation 11 November 2019 ASX: SRZ

www.stellarresources.com.au

HEEMSKIRK TIN PROJECT - OVERVIEW

• Enviable project location
• Secure tenure over Australia's best portfolio of tin assets
• Updated Mineral Resource Estimate (May 2019)
• Heemskirk Scoping Study Completed (October 2019)
• 2020 Work Plan
• Mt Razorback satellite deposit offers early production option
• Substantial Exploration Upside
• Tin expected to recover in 2020
• Investment proposition

ENVIABLE PROJECT LOCATION

WEST COAST TASMANIA – AUSTRALIA'S LARGEST AND MOST PRODUCTIVE TIN FIELD

• Stellar owned (100%) tin properties:
  • Heemskirk Project (Queen Hill, Severn, Montana and Oonah deposits)
  • Razorback and St Dizier Satellite deposits
  • Large Exploration Licence package
• 5 underground metal mines, 3 currently operating, within 30km – significant sunk capital in associated infrastructure
• Port of Burnie, 150km to the north, services all west coast mines and will provide access to world markets
• Renewable power and water nearby
• Competitive market for services, mining & processing inputs and labour

BEST PORTFOLIO OF TIN ASSETS IN AUSTRALIA

HEEMSKIRK UPDATED MINERAL RESOURCE (MAY '19)

Classification	Deposit	Tonnage	Total Sn	Contained	Cassiterite	Cu	Pb	Zn
		mt	%	Sn t	% of total Sn	%	%	%
Indicated	Upper Queen Hill	0.32	1.0	3,230	87	0.2	2.1	1.0
	Lower Queen Hill	0.65	1.4	9,230	97	0.0	0.1	0.1
	Severn	1.15	1.0	11,500	99	0.1	0.0	0.1
Total Indicated		2.12	1.1	23,960	97	0.1	0.4	0.2
Inferred	Upper Queen Hill	0.11	1.6	1,760	94	0.2	1.9	0.7
	Lower Queen Hill	0.36	1.4	5,040	97	0.0	0.2	0.0
	Severn	2.74	0.9	24,660	99	0.0	0.0	0.0
	Montana	0.68	1.5	10,200	96	0.1	0.7	1.4
	Oonah	0.59	0.9	5,310	36	0.8	0.1	0.1
Total Inferred		4.48	1.0	46,970	90	0.1	0.2	0.3
Total Indicated + Inferred		6.60	1.1	70,930	92	0.1	0.3	0.3

• 6.6Mt @ 1.1% Sn total resource reported to JORC 2012 at 0.6% Sn cut-off grade
• Highest grade undeveloped tin resource in Australia & 2nd Highest Globally
• 1.15Mt Maiden Indicated Resource at Severn and 64% increase in Total Indicated Resource vs 2016 estimate – Increased Resource Confidence Underpins Scoping Study
• All deposits have higher grade zones & amenable to mining at higher cut-off grades
• All deposits open at depth

COMPETITIVE GRADE/TONNAGE POSITION

Project Benchmarking Assumptions

Project	Company	Country	Project	Total	Total	Total	Measured	Indicated	Inferred	Source / Company Annouoncemnt Date
			Stage	Resource	Resource	Resource	Resource	Resource	Resource
				Tonnes	Grade	Contained	in Total	in Total	in Total
				(Mt)	(%)	Tin
						(kt)
Bisie	Alphamin	DRC	Production	5.1	4.50	231	9%	81%	10%	23 August 2016 (TSXV)
Syrymbet	JSC Tin One	Kazakhstan	PFS	123.3	0.40	489	48%	0%	52%	JSC Tin One & ITI websites (2018)
Rentails	MetalsX	Australia	DFS	23.9	0.44	105	100%	0%	0%	24 May 2019 (ASX)
Renison	MetalsX	Australia	Production	17.5	1.50	263	10%	78%	13%	25 May 2019 (ASX)200µ
San Raphael	Minsur	Peru	Production	11.2	1.99	222	0%	100%	0%	May 2018 Minsur presentation (unclassified)
San Raphael B2 Tails	Minsur	Peru	PFS	7.6	1.05	80	100%	0%	0%	May 2018 Minsur presentation (unclassified)
Heemskirk	Stellar	Australia	Scoping	6.6	1.07	71	0%	34%	66%	16 May 2019 (ASX)
South Crofty	Strongbow	UK	PFS	2.4	1.84	44	0%	68%	32%	SBW website - 2016 Lower Mine Resource
Achmmach	Kasbah	Morocco	DFS	14.9	0.85	127	13%	87%	0%	16 July 2018 DFS (ASX)
Mt Lindsay	Venture	Australia	DFS	45.1	0.20	81	22%	40%	40%	VMS website (excludes Tungsten credits)
Cleveland	Elementos	Australia	Scoping	7.5	0.75	56	0%	83%	17%	31 July 2019, June 2019 Qrly Report (ASX)
Mt Garnet	Consolidated	Australia	PFS	12.1	0.39	48	22%	60%	19%	CSD website (excludes Fe and Fl credits)
Oropresa	Elementos	Spain	PFS	12.5	0.54	68	5%	70%	24%	31 July 2019, June 2019 Qrly Report (ASX)
East Kemptville	Avalon	Canada	PFS	37.2	0.15	55	2%	62%	36%	AVL website (excludes Indium credits)
Gottesberg	Anglo Saxony	Germany	Exploration	42.1	0.27	113	0%	25%	75%	Tin Intn. website - 8 October 2012 resource
Tellehauser	Anglo Saxony	Germany	Exploration	22.0	0.46	102	0%	29%	71%	Anglo Saxony Mining presentation 2015
Taronga	AusTin	Australia	PFS	36.3	0.16	58	0%	79%	21%	ANW presentation - May 2019

HEEMSKIRK TIN SCOPING STUDY (October '19)*

• ~350,000tpa underground mine, processing plant, tailings storage and surface infrastructure
• Mining of Queen Hill and then Severn (2 of the 4 Heemskirk deposits) for first 10 years
• Open pit mining of St Dizier satellite deposit and trucking to Heemskirk processing plant included in year 11 of the project
• Tin concentrate trucked to Port of Burnie (150km via sealed road) for export to Asian smelters
• Tailings pumped to tailings storage

facility via 6.7km slurry pipeline Heemskirk Scoping Study - Preliminary Production Schedule

* SRZ Announcement, 27 October 2019, 'Heemskirk Tin Scoping Study Confirms Attractive Economics' – Please refer to the Cautionary and Disclosure Statements contained within the announcement

ATTRACTIVE SCOPING STUDY ECONOMICS

• Low All-In Sustaining Cost of ~US$13,100/t of tin generating ~34% operating margin based on US$20,000/t tin price assumed
• Pre-tax NPV10% of ~A$83m
• Post-tax NPV10% of ~A$71m from A$24m of tax shielding
• IRR of ~ 45%
• Payback of ~A$57m pre-production capital within 3 years
• Ratio of pre-tax NPV to Pre-production capital of 1.5
• Cost estimates and valuations have an accuracy of ±35%

Heemskirk Scoping Study Base Case - Key Outcomes

	Unit	Total LOM
Ore Production	(Mt)	3,695,386
Sn Grade (LOM Ave)	(%)	0.94
Tin Recovery (LOM Ave)	(%)	69.4
Tin Producted	(Tonnes)	24,000
Mine Life	(Yrs)	11
Tin Price	(US$/t)	20,000
Exhange rate	USD:AUD	0.70
Tin Price	(A$/t)	200µ28,571
Gross Revenue	(A$M)	691
Total Operating Costs (AISC)	(A$M)	454
Total Operating Costs (AISC)	(US$/t Tin)	13,100
Operating Cash Flow	(A$M)	237
Operating Margin	(%)	34%
Capital Cost	(A$M)	57
Net Cash Flow (Pre-Tax)	(A$M)	180
Pre-Tax NPV10%	(A$M)	83
Post-Tax NPV10%	(A$M)	71
IRR (Pre-Tax)	(%)	45
Payback Period	(Yrs)	3.0
Pre-Tax NPV / Capex		1.5

SENSITIVITY ANALYSIS DEMONSTRATES ROBUSTNESS

• Sensitivity analysis demonstrates the project economics remain robust within most of the range of tin price (±20%) and exchange rate (±9%) scenarios considered
• Project only becomes uneconomic at the combination of the highest exchange rate and lowest commodity price assumptions. This combination is considered relatively unlikely and would also make most operating tin producers uneconomic.

AUD:USD	Tin Price (US$/t)
Exchange Rate	16,000	18,000	20,000	22,000	24,000
0.76	-9	23	55	88	120
0.73	2	35	69	102	136
0.70	13	48	83	118	153
0.67	26	62	99	135	172
0.64	39	78	116	154	192

Pre-Tax NPV (A$M) Sensitivity to Tin Price and USD:AUD Exchange Rate

LOW PRE-PRODUCTION CAPITAL EXPENDITURE

• Low Total pre-production capital cost of ~A$57m to an accuracy of ±35%
• A$8m Mining capital cost for production decline at Queen Hill estimated by Mining One
• A$34m Processing Plant (350ktpa) and Surface Infrastructure capital cost estimated by Mincore. Access to existing water, road and power infrastructure minimises connection cost
• A$5m Tailings capital cost for stage 1 tailings containment and 6.7km tailings pipeline estimated by J Miedecke & Partners & Mincore
• A$9m Working Capital cost covers operating costs up until the first concentrate sales commence (month 10)
• 4.5% contingency included other than for mining as conservative decline advance rates used

	(A$M)	(US$M)
Mining	8	6
Processing & Surface Infrastructure	34	200µ24
Tailings	5	4
Working Capital	9	6
Contingency	1.7	1
Total Development Capital Cost	57	40

Pre-production Capital Expenditure

COMPETITIVE OPERATING COST STRUCTURE

• Unit All In Sustaining Cash Costs (AISC) of ~US$13,100/t to an accuracy of ±35% comparable to Renison Tin and comfortably in lower half of global cost curve
• Cash margin of US$6,800/t tin or 34% of US$20,000/t tin price assumed in base case
• A$58/t ore average mining operating cost based on;
  • o A$62/t underground mining cost estimated by Mining One for Queen Hill and Severn inclusive of leasing costs for A$13M owner operated mining fleet cost
  • o A$26/ open pit mining cost estimated by Polberro for St Dizier in last year of project
• A$35/t ore processing operating cost estimated by Mincore
• Concentrate transport and treatment based of third party estimates
• Royalties include state and vendor royalties and total 6.5% of net revenues

	Total LOM	Annual Ave	A$/t Ore	US$/t Sn
	(A$M)	(A$M)
Mining	213	19.4	58	6,179
Ore Transport	2	0.2	1	59
Processing	128	11.7	35	3,711
Administration	8	0.8	2	243
Concentrate transport & treatment	48	4.3	13	1,380
Royalties	41	3.8	11	1,196
Sustaining Capital	13	1.3	4	375
Total All In Sustaining Cash Costs (AISC)	454	41	123	13,143

LOM Operating Costs

SCOPING STUDY MINE PLAN - HEEMSKIRK

• Mine life of 10 years at Heemskirk (Queen Hill and Severn) with St Dizier adding an 11th year
• ~350ktpa average ore production rate @ 0.94% tin
• Long hole stoping underground mining method
• Sequential development; commencing at shallow Queen Hill deposit then later to larger Severn deposit
• Fast access to ore (6 months from commencing portal) using a single decline into Queen Hill
• Low initial capital development cost of A$8m for the mine

Conceptual Heemskirk Mine Design Showing Stopes based on Indicated Mineral Resource (Grey) and Inferred Mineral Resource (Brown)

SCOPING STUDY MINE PLAN – ST DIZIER

• Low cost open pit mining from St Dizier included in the final year of project
• 409,179t @ 0.90% Sn In-pit diluted Indicated Mineral Resource
• 4.7:1 average strip ratio of after application of 10% mining dilution and 95% mining recovery factors
• A$3.3m mining capital costs for drainage diversion, pit development and construction of a waste stockpile. A$0.5m mine closure capital cost
• A$26/t ore contractor operated mining operating cost inclusive of waste removal estimated by Polberro
• A$5/t trucking cost to the processing plant at Heemskirk (20km)
• The accuracy of the mining operating cost and capital cost estimates was ±35%

Long Projection St Dizier Tin Deposit

METALLURGY & PROCESSING

• Renison Tin flow-sheet tested at bench scale using drill core from Severn, Queen Hill & St Dizier
• Test-work undertaken by ALS Burnie and supervised by Worley
• Circuit optimised using Severn sample – potential for further optimisation at Queen Hill & St Dizier
• Over-all recovery including St Dizier of 69% tin into a 49% tin concentrate
• Processing plant to be located on the northwest side of Queen Hill to minimize impact on Zeehan and the Trial Harbour road
• 350ktpa processing plant and surface infrastructure capital and operating costs estimates, to an accuracy of ±35%,by Mincore used in Scoping Study

Proposed Tin Processing Plant

Average Head Grade, Recovery and Concentrate Grade by Deposit

Parameter	Unit	Upper	Lower	Severn	St Dizier	LOM
		Queen Hill	Queen Hill			Schedule
Head Grade	% Sn	0.98%	1.15%	0.83%	0.90%	0.94%
Recovery	%	53%	66%	80%	50%	69%
Conc Grade	% Sn	48%	48%	49%	50%	49%

HEEMSKIRK – ENVIRONMENT & COMMUNITY

• Notice of Intent submitted to Tasmanian EPA and environmental assessment program agreed (DPEMP)
• No environmental impediments identified by Stage 1 surveying of mine, tailings transport and storage sites
• Mining Leases granted for 12 year initial period over mine site, tailings pipeline route and tailings dam site
• West Coast Council has inspected the project and provided positive feed back (WCC responsible for final mining approval)
• Zeehan is a mining community that is very keen to see a new mine developed – strong support for the Heemskirk Tin Project Secure Long-Term Tailings Dam Site

2020/21 WORK PLAN AND BUDGET

PFS

• Drilling ~17 holes (6,800m) to increase Queen Hill and Severn Indicated Resource to ~3.3Mt and to support a Probable Reserve)
• Metallurgical testwork to focus on improving Queen Hill recovery
• Geotechnical drilling and determination of underground water flows and quality
• Stage 2 environmental and mining impact studies for DPEMP
• Mining and Processing cost studies and PFS report
• Time frame is 12 to 18 months for PFS

BFS

Bankable Feasibility Study to be completed in the following 12 months at a cost of ~A$4.0m

Pre Feasibility Study (18 months)	(A$)
Drilling - Heemskirk Probable Reserve	1,700,000
Site Overhead and Geology Costs	450,000
Metallurgical Testwork	300,000
Geotechnical, Hydrological holes and testing	200,000
Environmental baseline surveys	150,000
PFS Costs	450,000
Corporate Overhead Costs	900,000
Total PFS Cost	4,150,000

EXPLORATION UPSIDE

Exploration drilling supported by EDGI funding – still to be budgeted

HEEMSKIRK COULD BECOME THE NEXT RENISON

• Renison, Australia's oldest, largest & highest-grade tin mine is located 18km to the NE of Heemskirk
• Heemskirk and Renison share the same ore genesis and geology
• Heemskirk deposits drilled to a depth of 500m – all deposits open at depth to granite source rocks 1km from surface (see long projection)
• Successful underground exploration increased Renison mine life to 50 years with at least another 15 years to go – highlights significant opportunity for underground drilling to expand Heemskirk resources
• The Heemskirk deposits total 71kt of contained tin or just 20% of the tin found at Renison to date

Renison long projection with overlay of Heemskirk deposits

19 EARLY TIN PRODUCTION POTENTIAL AT RAZORBACK SATELITE DEPOSIT

• Open pit operated from 1975-1978 producing 158 tonnes tin
• 57 historic holes drilled between 1958 and 1982
• Encouraging results from 2018 trench and face samples
• Exploration target of 180,000t to 220,000t @ 0.8% to 1.0% Sn*1 to a depth of 100m below the pit floor estimated by Resource and Exploration Geology in July'19*2
• Metallurgical testing of tailings demonstrates potential for 15% increase in historical recovery
• Validation of historical data with the aim of defining an Inferred Resource for Razorback Mine is planned
• Highly prospective exploration potential along Razorback & Grand Prize faults within EL11/2017. >6km strike length along strike from Renison

Razorback Open Pit and Tailings Dam Sampling

*1 It should be noted that this Exploration Target estimate is conceptual in nature. There has been insufficient exploration to define a Mineral Resource in this volume and it is uncertain if further exploration will result in the determination of a Mineral Resource

*2 SRZ Announcement 16 July 2019

MONTANA FLATS EXPLORATION UPSIDE

• EL13/2018 adds 3 km of strike length along the northwest trending, tin-mineralising Oonah and Montana Faults
• All tin deposits and major silver mines lie along or between the Oonah and Montana Faults
• Silver miners of the 1900s largely ignored tin mineralisation
• Exploration potential under Zeehan Western and other silver mines is untested
• Stellar awarded $95,000 Exploration Drilling Grant Initiative Program from Tasmanian Government in May 2019 – to be applied to drilling 3 holes:
  • 1 hole planned to target tin mineralisation underneath the historically mined Zeehan Western base metal mine
  • 2 holes planned to target extension of tin mineralisation underneath Oonah tin resource

TIN PRICE EXPECTED TO RECOVER IN 2020

• Tin supply tightening as the largest producers, China and Indonesia, cut production in response to low prices
• Mine development queue is limited – only one new mine developed (Bisie in DRC) in the last 20 years and no significant exploration occurring
• Demand for tin weaker in 2019 due to declining semi-conductor shipments and lower auto production – price expected to rebound in 2020
• Longer-term outlook is strong with new uses in the electronic and energy storage sectors to drive above trend demand growth post 2022

LME Tin Price (US$/t, A$/t) Versus Exchange Stocks (t)

TIN PRICE EXPECTED TO RECOVER IN 2020

• "Shanghai Metals Markets (SMM) expect tin prices to rebound above US$20,000/t by the end of 2019 as tight ore availability and maintenance-caused production cuts at China's largest tin producer, Yunnan Tin, will lead to a sharp supply decline" according to SMM's senior tin analyst presenting at the 2019 China Tin Summit on 6 Nov 2019
• "China's refined tin production has reduced by ~6% ytd in 2019" (SMM)
• "Significant reductions in China's imports of tin ore and Chinese mine accidents have also contributed to the current tight tin supply in China" (ITA)
• "China domestic ore production is expected to fall by ~5,000 tonnes (~6% YoY), helping to keep tin prices in the US$ 20,000 - 20,500/tonne range in 2020, while demand is likely to increase as the US and China head towards a partial unwinding of trade tariffs" (SMM)

• ~15% of the worlds tin production is currently operating at a loss according to the International Tin Association (ITA) 2019 cost curve above
• The 90th percentile price of US$17,400/t shown on the ITA 2019 cost curve should form a base against further weakening of the tin price
• If current weak tin prices continue a number of mines are expected to close, further tightening supply

NEW TECHNOLOGY TO DRIVE TIN USE

• Tin ranked as the metal best placed to benefit from new technologies
• Tin use in electrical and energy storage applications is emerging and could be potentially disruptive
• New uses of tin could have a major impact on market size

THE INVESTMENT PROPOSITION

Low cost investment – market capitalization significantly undervalues Stellar's tin assets

Heemskirk Scoping Study completed in October '19 demonstrates the project has attractive and robust economics

Potential for early production from Razorback satellite deposit

Significant exploration potential – both laterally and at depth in all Heemskirk deposits and within large Exploration Licence package

Opportunity to invest in the next Rension Tin

Tin is emerging as an energy metal – second generation battery raw material demand to drive opportunities for tin and higher tin prices

DISCLAIMER

FORWARD LOOKING STATEMENT S

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 - RESOURCES

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.

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

FINANCIAL SUMMARY BOARD OF DIRECTORS GEOLOGY SECTIONS

COMPANY OVERVIEW

• 100% owner of Heemskirk Tin Project, 150km south of Burnie, Tasmania
• Stand- out high grade resource ( 1.1% Sn)
• Focused on Heemskirk Tin Project development with vision to be a major tin producer
• 18km from the world class Renison tin mine – same ore genesis and geology

Financial information

Enterprise value	A$4.2m
Debt (30-September-19)	No Debt
Cash (30-September-19)	A$0.4m
Market Capitalisation	A$4.6m
Number of shares	380.3m
Share price (08-November-19)	A$0.012

15m unlisted options (exercise prices A$0.06 to A$0.12, expiring on 20-Nov-19), 2m unlisted options (exercise price A$0.02, expiring on 10-May 2022) and 59m A$0.05 options expiring on 18 May 2020

O wnership

CapetownS.A.	16.4%
BunnenbergFamily	11.9%
Directors & Management	2.2%
Top 20 Shareholders	52.9%

BOARD OF DIRECTORS EXPERIENCED AND MULTI - DISCIPLINARY 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

GARY FIETZ , NON - EXECUTIVE DIRECTOR TECHNCIAL CONSULTANT

Geologist with 30 years technical and commercial experience in exploration, project development and mining. Experienced Director of ASX and foreign listed companies

THOMAS WHITING, NON - EXECUTIVE DIRECTOR GEOPHYSICIST

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

MELANIE LEYDIN , COMPANY SECRETARY CHARTERED ACCOUNTANT

Over 2 5 years experience as an accountant and 15 years as a company secretary . Leydin Freyer provides accounting and company secretarial services for a number of ASX listed companies.

GEOLOGY – QUEEN HILL AND SEVERN

Schematic W-E Cross-Section 3700N, Showing Queen Hill and Severn Tin Deposits

SEVERN DEPOSIT

QUEEN HILL DEPOSIT – LONG SECTION

STELLAR RESOURCES LIMITED

Level 17, 530 Collins Street Melbourne VIC 3000 Phone +61 3 9692 7222 Fax +61 3 9077 9233 www.stellarresources.com.au