STELLAR RESOURCES LIMITED — Capital/Financing Update 2012

Feb 5, 2012

==> picture [142 x 70] intentionally omitted <==

6 February 2012

Dear Optionholder

Rights Issue – Notice to Optionholders

We wish to advise you that Stellar Resources Limited ( Company ) today announced a capital raising by way of a non-renounceable pro-rata rights issue ( Rights Issue ).

Details of the Rights	This Rights Issue entitles shareholders to subscribe for 1 fully
Issue	paid ordinary share for every 6 shares held at 7.00pm (AEST
	time) on 14 February 2012 (Record Date) at an issue price of
	$0.08 per share.
	The Rights Issue will be made without disclosure to investors, in
	accordance with section 708AA(2)(f) of the_Corporations Act_
	2001(Cth), as modified by ASIC Class Order 08/35.
Can you participate as	As an optionholder you are not entitled to participate in the
an optionholder?	Rights Issue.
What if you want to	For you to participate in the Rights Issue, you must exercise your
participate in the Rights	options (in accordance with the terms of the options) and be
Issue?	registered as an eligible shareholder before 7.00pm (AEST time)
	on the Record Date.
	You should carefully consider your personal circumstance
	before deciding whether to exercise your options. If you are
	unsure what action you should take or have any questions about
	the Rights Issue, you should contact your stockbroker,
	accountant or other professional adviser.
What will happen is you	If you do not want to exercise your options and participate in the
don’t exercise your	Rights Issue, then you can continue to hold the options in
options?	accordance with their terms.

STELLAR RESOURCES LIMITED

ABN 96 108 758 961 Level 17 530 Collins Street Melbourne Victoria 3000 Australia Tel +61 3 9618 2540 Fax +61 3 9649 7200

120020SRL.doc

-2-

Further details of the Rights Issue are set out in the announcement released on 6 February 2012, which is available at www.asx.com.au or from the Company’s Website, www.stellarresources.com.au.

Yours faithfully

Christina Kemp Company Secretary