STELLAR RESOURCES LIMITED — Regulatory Filings 2021

Nov 10, 2021

LARGE MAGNETIC AND CONDUCTIVE TARGET MODELLED AT SOUTH SEVERN

Stellar Resources Limited (ASX:SRZ, "Stellar" or the "Company") is pleased to announce that a large magnetic and conductive target has been modelled at Severn South within the Company's flagship Heemskirk Tin Project in Tasmania.

Highlights

• Magnetic and downhole electromagnetic (EM) inversion studies recently completed by Stellar's geophysical consultants have modelled a large magnetic and approximately coincident conductive target, below the depth of historic drilling at the southern extent of the Severn Mineral Resource ("South Severn Magnetic and Conductive Target").
• 3D magnetic inversion modelling of 2012 heliborne magnetic data has shown that the magnetic high at Severn can be explained by modelling a large magnetic cupola (dome)-shaped body at a depth from surface of ~1,000m at the edges and ~600m at the centre of the dome.
• Reprocessing of historical downhole EM data has modelled a large shallowly-dipping moderate conductor below historic drillhole ZS92.The location of this off-hole conductor target is poorly defined but has been modelled sitting just above, and close to the centre of the South Severn Magnetic Target.
• Stellar interprets that the dome may represent a granite intrusion with an overlying magnetic cupola composed of massive or disseminated pyrrhotite (which is magnetic and conductive) that may host tin mineralisation.
• The interpretation is supported by: (a) continuation of mineralisation 240m down dip of the current Severn resource in the recently completed drillhole ZS1401,2 , (b) the increased pyrrhotite, high magnetic susceptibility readings and visible cassiterite (tin) mineralisation observed in drillhole ZS143 currently in progress1 , and (c) generally higher magnetic susceptibility readings recorded in historic drillholes over the southern part of the Severn resource. This provides encouraging support that pyrrhotite and cassiterite mineralisation may continue to the south towards the centre of the South Severn Magnetic and Conductive Target.
• Stellar plans to drill this target towards the end of the current Phase 1 drilling program.

Executive Director Gary Fietz commented; "Severn is already the largest of the 4 tin deposits comprising the Heemskirk Tin Project, the second highest grade undeveloped tin resource in the world3 . The South Severn Magnetic and Conductive Target recently modelled by Stellar's geophysical consultants, Mira Geoscience and consulting geophysicist, Jovan Silic, along with observations from the Phase 1 drilling program currently in progress highlights the significant upside potential of the Severn tin deposit, which remains open at depth and along strike. Stellar plans to drill the South Severn Magnetic and Conductive target towards the end of the drilling program currently underway."

Stellar Resources Limited ABN: 96 108 758 961 Level 4, 96 – 100 Albert Road, South Melbourne Victoria 3205, Australia T: +61 3 9692 7222 F: +61 3 9077 9233 E: srzinfo@stellarresources.com.au Web: www.stellar.com.au Twitter: @SRZ_Tin

South Severn Magnetic & Conductive Target

A high resolution heliborne magnetic survey (referred to as heli-mag) over the Heemskirk Tin Project and surrounding areas was flown by Stellar in 2012. This survey identified a large magnetic high that is centred to the south of the largest of the Heemskirk Tin Project deposits, Severn (see Figure 1).

Figure 1 –South Severn Magnetic Target - Plan showing 2012 Heli-mag Residual Total Magnetic Intensity, Reduced to Pole image after removal of modelled magnetic signature from Severn and Queen Hill tin deposits and removal of cultural artifacts, outline of centre of magnetic inversion (100 mGal isosurface) (purple), outline of magnetic cupola model (lilac), outline of Severn and Queen Hill 2019 resource (red), drillholes ZS92, ZS140 & ZS143 (GDA94 MGA55)

Mira Geoscience have recently completed 3D magnetic modelling of the heliborne magnetic survey flown by Stellar in 2012. Mira Geoscience's unconstrained magnetic inversion modelled a large magnetic target, directly below the depth of historic drilling, and centred at the southern extent of the currently defined Severn tin resource.

Further magnetic modelling by Mira Geoscience has shown that the South Severn Magnetic Target can be explained by a large magnetic cupola (dome)-shaped body, ~2.4 km long, ~1.9 km wide, and >50 m thick at a depth from surface of ~1,000 m at the edges and ~600 m at the centre of the dome.

Consulting geophysicist Jovan Silic has recently completed an inversion of a downhole electromagnetic (DHEM) survey of drillhole ZS92 in the south of Severn. Hole ZS92 was drilled and surveyed by Aberfoyle Resources in 1989. The DHEM inversion model consists of a large off-hole, shallow-dipping moderate conductor below the bottom of drillhole ZS92 (595 m EOH). The location of this off-hole conductor target modelled is poorly defined but has been modelled sitting just above, and close to the centre of the South Severn Magnetic Target and magnetic cupola model modelled by Mira Geoscience as shown in Figure 2.

Figure 2 – Severn South Magnetic and Conductive Target – View looking West. Magnetic Inversion centroid (purple), Large Cupola magnetic model (lilac), ZS92 DHEM Off-Hole Conductor (green), Severn 2019 Resource (red), Historic Drillholes (white traces), ZS92, ZS140 & ZS143 (dark blue traces)

The interpretation is supported by; (a) continuation of mineralisation 240 m down dip of the current Severn resource in the recently completed drillhole ZS1402 , (b) the increased pyrrhotite, high magnetic susceptibility readings and visible cassiterite (tin) mineralisation observed in drillhole ZS143 currently in progress1 , and (c) generally higher magnetic susceptibility readings recorded in historic drillholes over the southern part of the Severn resource. This provides encouraging support that pyrrhotite and cassiterite mineralisation may continue to the south towards the centre of the South Severn Magnetic and Conductive Target.

Proposed Deep Hole to Test South Severn Target

Stellar is currently investigating the possibility of re-entering historic drillhole ZS92, setting a wedge at approximately 500 m depth, and drilling a ~500 m daughter hole angled directly into the centre of the South Severn Magnetic and Conductive Target below ZS92. Re-entry of ZS92 could save Stellar the cost and time of drilling ~500 m to test the South Severn Magnetic and Conductive Target.

If re-entry of ZS92 is not possible, Stellar intends to drill a new ~900 m to 1,000 m deep hole from a nearby location to test the South Severn Magnetic and Conductive Target, towards the end of the Phase 1 program currently underway.

Footnotes / Live Links

1 SRZ Announcement, 5 November 2021. "ZS140 Results and Heemskirk Tin Drilling Update"

2 SRZ Announcement, 7 September 2021. "First 2 Drillholes at Heemskirk Intersect Significant Zones of Alteration and Mineralisation"

3 SRZ Announcement, 12 April 2021, "Investor Presentation" – See page 11 Benchmarking Assumptions

Competent Persons Statement

The information in this announcement that relates to exploration results has been compiled by Mr. Tim Callaghan, an independent mining consultant working for Resource and Exploration Geology. Mr. Callaghan is a Member of the Australian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Mr. Callaghan has reviewed the contents of this news release and consents to the inclusion in this announcement of exploration results in the form and context in which they appear.

Forward Looking Statements

This report 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 in this report, the words such as "could", "plan", "estimate", "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 announcement 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.

This announcement is authorised for release to the market by the Board of Directors of Stellar Resources Limited.

For further details please contact:

Gary Fietz Executive Director Stellar Resources Limited Tel: 0408 489 957 Email: gary@widerange.net.au

JORC Code, 2012 Edition – Table 1

Section 1: Sampling Techniques and Data (criteria in this section apply to all succeeding sections)

Criteria	JORC Code Explanation	Commentary
Samplingtechniques	•Nature and Quality of sampling (e.g. cut channels,random chips or specific specialized industrystandard measurement tools appropriate to theminerals under investigation, such as downholegamma sondes, or hand held XRF instruments	•The Zeehan Tin deposit has been delineated entirelyby diamond drilling. Numerous drilling campaignswere completed between 1960 and 1992 by Placer,Gippsland, Minops, CRAE and Aberfoyle. Post 2010,diamond drilling was completed by Stellar withdiamond core of nominally NQ or HQ diameter.
etc.).•used.••	Include reference to measures taken to ensuresample representivity and the appropriatecalibration of any measurement tools or systemsAspects of the determination of mineralisationthat are Material to the Public Report.In cases where 'industry standard' work has beendone this would be relatively simple (e.g. 'reversecirculation drilling was used to obtain 1m samplesfrom which 3kg was pulverized to produce 30gcharge for fire assay'). In other cases, moreexplanation may be required, such as wherethere is coarse gold that has inherent samplingproblems. Unusual commodities or samplingtypes (e.g. submarine nodules) may warrantdisclosure of detailed information.	•Data from a previous (2012) rotary wing magneticgeophysical survey, (heli-mag survey), was acquiredby Thomson Aviation. The airborne magnetic sensorwas a Geometrics G822A. Geometrics G-856magnetometers with analog and digital recordingwere used as diurnal monitors and ran continuouslyduring the survey periods.•The downhole EM data were acquired by AberfoyleResources using a Geonics EM37 system in 1992.•Downhole EM surveys were completed in drillholesZS91 and ZS92. A four-loop layout covering the areasurrounding the 2 drillholes included 3 200 x 200 mloops and 1 500 * 500 m loop.•Data for the 3 200 m loops was collected at 25 Hz.Data for the 500 m loop utilized a 6.25 Hz waveform.•Seismic data from surveys acquired in 2007 werereprocessed and interpreted by Internode Seismic.•Seismic data were acquired by Terrex Seismic onbehalf of Great Southland Minerals. 5 lines wereacquired for a total of 67.5 line kilometres.
		•Seismic acquisition parameters:
		•Receivers: Sercel 388
		•Source: 3 x 42000lb Pelton vibes
		•Source spacing: 20 m•
		Receiver spacing: 20 m•Source configuration: 12 second sweep, 6-140Hz
		•Record length: 6 seconds
DrillingTechniques	•Drill type (e.g. core, reverse circulation, open holehammer, rotary air blast, auger, bangka, sonicetc.) and details (e.g. core diameter, triple orstandard tube, depth of diamond tails, facesampling bit or other type, where core is orientedand if so by what method, etc.)	•Not applicable. No drilling results are contained inthis announcement.
Drill samplerecovery	•Method of recording and assessing core and chipsample recoveries and results assessed.	•Not applicable. No drilling results are contained inthis announcement.
	•Measures taken to maximize sample recovery andensure representative nature of the samples.
	•Whether a relationship exists between samplerecovery and grade and whether sample bias mayhave occurred due to preferential loss/gain offine/coarse material

Criteria	JORC Code Explanation	Commentary
Logging	•Whether core and chip samples have beengeologically and geotechnically logged to a levelof detail to support appropriate Mineral Resourceestimation, mining studies and metallurgicalstudies.•Whether logging is qualitative or quantitative innature. Core (or costean, channel etc.)photography.•The total length and percentage of the relevantintersections logged.	•Not applicable. No drilling results are contained inthis announcement.
SubSamplingtechniquesand samplepreparation	•If core, whether cut or sawn and whetherquarter, half or all core taken.•If non-core, whether riffled, tube sampled, rotarysplit, etc. and whether sampled wet or dry•For all sample types, the nature, quality andappropriateness of the sample preparationtechnique.•Quality control procedures adopted for all subsampling stages to maximize representivity ofsamples.•Measures taken to ensure that the sampling isrepresentative of the insitu material collected,including for instance results of fieldduplicate/second half sampling.•Whether sample sizes are appropriate to thegrain size of the material being sampled	•Not applicable. The reported results do not relate tophysical sampling.
Quality ofassay dataandlaboratorytests	•The nature, quality and appropriateness of theassaying and laboratory procedures used andwhether the technique is considered partial ortotal.•For geophysical tools, spectrometers, handheldXRF instruments, etc., the parameters used indetermining the analysis including instrumentmake and model, reading times, calibrationfactors applied and their derivation etc.•Nature of quality control procedures adopted(e.g. standards, blanks, duplicates, externallaboratory checks) and whether acceptable levelsof accuracy (i.e. lack of bias) and precision havebeen established.	•Geophysical survey equipment used for therespective surveys is specified in this table.•All heli-mag digital data was inspected on a dailybasis to ensure data quality.•Parallax and heading tests of the heli-mag surveywere performed as per standard industry practice.•A preliminary flight path for the heli-mag survey wasmapped and checked against survey specifications.•Quality control procedures for historic DHEM andseismic surveys are not documented.

Criteria	JORC Code Explanation	Commentary
Verificationof samplingand assaying	•The verification of significant intersections byeither independent or alternative companypersonnel•The use of twinned holes.•Documentation of primary data, data entryprocedures, data verification, data storage(physical and electronic) protocols.•Discuss any adjustment to assay data.	•Not applicable. No drilling results are contained inthis announcement.
Location ofdata points	•Accuracy and quality of surveys used to locatedrill holes (collar and downhole surveys) trenches,mine workings and other locations used inmineral resource estimation•Specification of grid system used•Quality and accuracy of topographic control.	•Heli-mag survey was planned and delivered inGDA94 MGA Zone 55. VPmg modelling was alsoundertaken in GDA94 MGA55.•The Heli-mag survey was DGPS-positioned, using aNovatel OEMV-1 VBS receiver. Terrain clearanceinformation was obtained using King KR 495 radaraltimeter.•Heli-mag survey utilized a fixed groundmagnetometer for calibration.•Seismic data were acquired in AGD66, AMG Zone 55.Elevations were relative to the Australian HeightDatum.•A single tie point occurred between lines ZC and ZFlocated at 361586.59, 5361775.11 at 175.53 AHD.
Data Spacinganddistribution	•Data spacing for reporting Exploration Results•Whether data spacing and distribution issufficient to establish the degree of geologicaland grade continuity appropriate for the MineralResource and Ore Reserve estimationprocedure(s) and classifications applied.•Whether sample compositing has been applied	•The Heli-mag survey was flown with a line spacing of25 metres for a total of 273 km. The principal flightline orientation was 97-277 degrees. Tie lines wereflown at a spacing of 250 m oriented at 7-187degrees•Seismic survey data spacing was 20 m for receiversand sources.
Orientationof data inrelation togeologicalstructure	•Whether the orientation of sampling achievesunbiased sampling of possible structures and theextent to which this is known, considering thedeposit type.•If the relationship between the drillingorientation and the orientation of key mineralisedstructures is considered to have introduced asampling bias, this should be assessed andreported if material.	•The Heli-mag survey was flown in two orthogonaldirections and is deemed not to be biased.•Seismic data was acquired along publicly-accessibleroads for ease of access; no consideration was givenfor geological orientation or favorability.
SampleSecurity	•The measures taken to ensure sample security.	•All data transmitted in digital format.
Audits orReviews	•The results of any audits or reviews of samplingtechniques and data.	•No audits or reviews of sampling data andtechniques have been completed.

Criteria	JORC Code Explanation	Commentary
Mineraltenement andland tenurestatus	•Type, reference name/number, location andownership including agreements or materialissues with third parties such as joint ventures,partnerships, overriding royalties, native titleinterests, historical sites, wilderness or nationalpark and environmental settings.•The security of tenure held at the time ofreporting along with known impediments toobtaining a license to operate the area	•ML2023P/M, RL5/1997 and EL13/2018 hosting theHeemskirk Tin Project in Western Tasmania are 100%owned by Stellar Resources Ltd.
Explorationdone by otherparties	•Acknowledgement and appraisal of explorationby other parties.	•Early mining activity commenced in the 1880's withthe production of Ag-Pb sulphides and Cu-Snsulphides from fissure lodes.•Modern exploration commenced by Placer in the mid1960's with the Queen Hill deposit discovered byGippsland in 1971.•The Aberfoyle-Gippsland JV explored the tenementsuntil 1992 with the delineation of the Queen Hill,Severn and Montana deposits.
Geology	•Deposit type, geological setting and style ofmineralization.	•The Heemskirk Tin Deposits are granite related tinsulphide-siderite vein and replacement style depositshosted in the Oonah Formation and Crimson CreekFormation sediments and volcanics. Numerous PbZn-Ag fissure lodes are associated with the peripheryof the mineralising system. Mineralisation isessentially stratabound controlled by northeastplunging fold structures associated with northwesttrending faults. Tin is believed to be sourced from agranite intrusion located over 1 km from surfacebelow the deposit.

Section 2: Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section)

Criteria	JORC Code Explanation	Commentary
Drill holeinformation	•A summary of all information material to theunderstanding of the exploration resultsincluding a tabulation of the followinginformation for all Material drill holes:-easting and northing of the drill holecollar-elevation or RL (Reduced Level - elevationabove sea level in metres) of the drill holecollar-dip and azimuth of the hole-downhole length and interception depth-hole length•If the exclusion of this information is justifiedon the basis that the information is notMaterial and this exclusion does not detractfrom the understanding of the report, theCompetent Person should clearly explain whythis is the case	•No drilling results are contained in thisannouncement.
Dataaggregationmethods	•In reporting of Exploration Results, weightingaveraging techniques, maximum and/orminimum grade truncations (e.g. cutting of highgrades) and cutoff grades are usually materialand should be stated.•Where aggregate intercepts include shortlengths of high grade results and longer lengthsof low grade results, the procedure used foraggregation should be stated and someexamples of such aggregations should beshown in detail•The assumptions used for any reporting ofmetal equivalent values should be clearlystated.	•No drilling results are contained in thisannouncement.
Relationshipbetweenmineralisationwidths andinterceptlengths	•These relationships are particularly importantin the reporting of Exploration Results.•If the geometry of the mineralization withrespect to the drill hole angle is known, itsnature should be reported.•If it is not known and only the downholelengths are reported, there should be a clearstatement to this effect (e.g. down hole length,true width not known)	•No drilling undertaken. Not relevant for geophysicalstudies.
Diagrams	•Appropriate maps and sections (with scales)and tabulated intercepts should be included forany significant discovery being reported. Theseshould include, but not be limited to a planview of drill collar locations and appropriatesectional views.	•See body of the announcement for relevant plan andsectional views.
Balancedreporting	•Where comprehensive reporting of allExploration Results is not practicable,representative reporting of both low and highgrades and/ or widths should be practiced toavoid misleading reporting of ExplorationResults	•The information considered material to the readersunderstanding of the exploration in this documenthave been reported in a balanced manner.

Criteria	JORC Code Explanation	Commentary
Othersubstantiveexplorationdata	•Other exploration data, if meaningful andmaterial, should be reported including (but notlimited to): geological observations; geophysicalsurvey result; geochemical survey results; bulksamples – size and method of treatment;metallurgical test results; bulk density,groundwater, geotechnical and rockcharacteristics; potential deleterious orcontaminating substances.	Magnetic Data•The helicopter-borne magnetic survey wasundertaken in March 2012, flown by ThomsonAviation. A total of 302 line kilometres were flownwith a line spacing of 25 m and terrain clearance of35 m.•Flight lines were directed 97-277 degrees with lielines flown 250 m apart, directed 7-187 degrees.Magnetometer: Geometrics G822A with 10 Hzsample interval and 0.001 nT resolution.•Mira Geoscience performed unconstrained 3Dinversions and 3D domain modelling over the surveyarea.•VPmg software was used to perform magneticmodelling,
		Down Hole EM Data
		•Downhole EM modelling was undertaken byconsulting geophysicist Jovan Silic. The downholeEM data were acquired by Aberfoyle Resources usinga Geonics EM37 system.
		•Downhole EM surveys were completed in drillholesZS91 and ZS92. A four-loop layout covering the areasurrounding the 2 drillholes included 3 200 x 200 mloops and 1 500 * 500 m loop.
		•Data for the 3 200 m loops was collected at 25 Hz.Data for the 500 m loop utilized a 6.25 Hz waveform.
		•Consulting geophysicist Jovan Silic performedinversion and modelling of the historic Severn ZS91and ZS92 DHEM data utilizing proprietary softwareand algorithms that provide full solutions ofdeformed plates in conductive media.
		•The output from the DHEM inversion modelling is'plates' representing tabular moderately conductivebodies. These have been incorporated into 3Dvisualization environment for comparison to othermodelling results.
		Seismic Data
		•Seismic data from surveys acquired in 2007 werereprocessed and interpreted by Internode Seismic.
		•Seismic data were acquired by Terrex Seismic onbehalf of Great Southland Minerals. 5 lines wereacquired for a total of 67.5 line kilometres.
		•Seismic acquisition parameters:
		•Receivers: Sercel 388
		•Source: 3 x 42000lb Pelton vibes•Source spacing: 20 m
		•Receiver spacing: 20 m
		•Source configuration: 12 second sweep, 6-140Hz
		•Record length: 6 seconds

Criteria	JORC Code Explanation	Commentary
Othersubstantiveexplorationdata(continued)	•Other exploration data, if meaningful andmaterial, should be reported including (but notlimited to): geological observations; geophysicalsurvey result; geochemical survey results; bulksamples – size and method of treatment;metallurgical test results; bulk density,groundwater, geotechnical and rockcharacteristics; potential deleterious orcontaminating substances.(continued)	•Seismic data lines ZC and ZF were reprocessed andinterpreted by Internode Seismic utilizing a varietyof commercial and proprietary software andalgorithms. A total of 20 line km was reprocessedfor line ZC and 11.44 km for line ZF.•The output from the seismic reprocessing was SEGYfiles of final interval velocities in depth domain,refraction inversion velocities in the depth domainand a PSTM stack in the depth domain, for each line.•The output from the seismic interpretation includeddxf files of horizon, fault and line workinterpretations.
Further work	•The nature and scale of planned further work(e.g. test for lateral extensions or depthextensions or large scale step out drilling).•Diagrams clearly highlighting the areas ofpossible extensions, including the maingeological interpretations and future drillingareas, provided this information is notcommercially sensitive.	•Geophysical models will be tested with diamond drillholes.•Resource infill drilling is planned to coincide withfurther technical studies after this phase ofexploration drilling.•The mineral deposits remain open down dip anddown plunge and will be explored in the future.