STELLAR RESOURCES LIMITED — Regulatory Filings 2021

Sep 6, 2021

FIRST 2 DRILLHOLES AT HEEMSKIRK INTERSECT SIGNIFICANT ZONES OF ALTERATION AND MINERALISATION

Stellar Resources Limited (ASX:SRZ, "Stellar" or the "Company) is pleased to announce that the first two holes of the nine hole Phase 1 diamond drilling (DD) program at the Company's flagship Heemskirk Tin Project have been completed. Both holes have intersected zones of alteration and mineralisation near, and in the case of the Severn hole, well beyond their planned target depths with assays pending.

Highlights

Severn Drillhole ZS140 Intersects Wide Zones of Alteration and Mineralisation at Depth

• First DD hole ZS140 completed to a depth of 889m intersected wide zones of alteration and mineralisation commencing from approximately 50m below the Severn Tin Resource at a vertical depth from surface of approximately 600m (see Figures 1-4). The primarily pyrite (iron sulphide) mineralisation and alteration observed is typically associated with tin (cassiterite) mineralisation.
• The presence of Tin (Sn) has been confirmed by anomalous Sn results from a handheld XRF instrument used to guide drill hole logging.
• The hole was extended from the planned depth of 750m to 889m due to the continuation of significant alteration and mineralisation well beyond the depth expected.
• Severn is the largest of the 4 deposits comprising the Heemskirk Tin Project, the highest grade undeveloped tin resource in Australia1 and remains open at depth.

Montana Drillhole ZM141A Intersects Silver-Lead-Zinc Fissure Lodes

• Second DD hole ZM141A completed to a depth of 534m intersected zones of alteration and mineralisation in several fissure vein lodes commencing from approximately 75m below the historically significant Montana No. 1 silver-lead-zinc mine which was mined from surface to ~250m on 6 lodes (see Figure 6-7).
• Galena (lead) and sphalerite (zinc) within the fissure vein lodes have been visually observed in logging including the fissure vein lode from 421.6m to 424.2m (2.6m down-hole width) as shown in Figure 6.
• The presence of lead, zinc, silver, copper and tin have been confirmed by anomalous results from a handheld XRF instrument.
• The hole was extended from the planned depth of 500m to 534m due to additional siderite-sulphide veining observed proximal to planned end of hole depth.
• Both the Severn and Montana holes are currently being logged, cut and sampled for analysis with results expected by late-October.

Executive Director Gary Fietz commented; "We are excited to announce that the first two holes targeting depth extensions of the Severn tin deposit and the historic Montana silver-lead-zinc mine have been completed with both holes successfully intersecting zones of visual alteration and mineralisation. The drilling program has been designed to extend mineralisation at our Heemskirk Project and we are pleased that both systems appear to show continuity at depth. Drilling is well underway on the 3rd hole at Oonah and the 4th hole at Severn will be commenced shortly. We look forward to updating the market on our progress as the assay results become available"

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

Figure 1 – Severn Drillhole ZS140, Typical example (697.3m to 706.6m) of zone of mineralisation and alteration containing tin

Figure 2- Severn Drillhole ZS140, Typical example (732.1m to 732.5m) of sulphide mineralisation containing tin

Figure 3 - Severn Drillhole ZS140, Typical example (775.7m – 780.4m) of sulphide mineralisation containing tin

Figure 4 - Severn West-East Cross Section (looking north) showing DD hole ZS140 (red), historical drilling, Severn Resource (red) and Queen Hill Resource (blue).

Figure 5 – Montana No. 1 Drillhole ZM141A, 411.2m – 411.3m – Spectacular galena and sphalerite mineralisation containing, lead, zinc, silver, copper and tin

Figure 6 - Montana No. 1 Drillhole ZM141A, Fissure Vein from 421.6m to 424.2m with visual sulphide galena and sphalerite mineralisation containing, lead, zinc, silver, copper and tin

Figure 7 - Montana No. 1 West-East Cross Section (looking North) showing ZM141A and Historic Mining

Discussion - Phase 1 Drilling Program 2 3

The Phase 1 drilling program underway includes a total of 9 holes (for 4,900m) targeting new areas of highgrade tin mineralisation, both below the Severn tin resource and below historically significant silver-lead-zinc mines. A plan showing the locations of completed, in progress and planned Phase 1 holes is shown in Figure 8 and collar locations are provided in Appendix 1.

Two rigs have been contracted to complete the program. The first rig is now installing PVC casing in completed hole ZS140. The rig will then set up on the second Severn hole ZS143 to be collared ~150m south of ZS140 which targets depth extensions ~100m below the Severn tin resource limit at a depth of >600m from surface.

Wedging and a daughter hole (3rd Severn hole) is planned on completion of the ZS143 parent hole targeting a further intersection of the Severn tin deposit. It was not possible to wedge from ZS140 due to poor ground conditions in the hole at the depth the wedge was required to be set.

ZS140 is however being lined with PVC casing to enable a downhole EM survey to be undertaken from the hole in future to investigate the extent of Severn and Montana sulphide alteration and associated tin mineralization in the vicinity of the hole.

The second rig commenced drilling Oonah hole ZO142 on 13th August and is currently at a depth of 237m with a planned EOH depth of ~400m. This hole targets depth extensions of the silver-lead-zinc fissure lodes mined in the historically significant Oonah mine to a depth of ~120m from surface, and depth extensions of the Oonah Inferred Resource (0.59 Mt at 0.9% Sn, 0,8% Cu, 0.1% Pb, 0.1% Zn. Ag not included) 4 which has been defined by previous drilling below the historic workings.

Core cutting and sampling of the first 2 completed holes is progressing well with the first batch of samples from Severn hole ZS140 having been dispatched to the ALS laboratory in Burnie for analysis on 3 September 2021. Final assay results for the first 2 completed holes are expected by late October.

Figure 8 – Zeehan Mineral Field Simplified Surface Geology, Tin Deposits, Historic Ag-Pb-Zn Mines and 2021 Drillholes

Footnotes / Live Links

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

2 SRZ Announcement, 18 February 2021, "Restart of Tin Exploration Drilling"

3 SRZ Announcement, 26 March 2021, "Expanded Tin Exploration Drilling Program at Heemskirk Tin"

4 SRZ Announcement, 16 May 2019, "Updated Heemskirk Resource Increases Indicated Category and Confidence in the Project"

Competent Persons Statement

The information in this release relating to Exploration Results has been verified and authorised 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 (Principle, Resource and Exploration Geology Pty Ltd).

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 (Principle, Resource and Exploration Geology Pty Ltd).

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 a Competent Person as defined in the JORC Code. This announcement accurately summarises and fairly reports his estimations and he has consented to the resource report in the form and context in which it appears.

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 offerto 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

APPENDIX 1 – NEW DRILLHOLE LOCATIONS

Hole ID	Prospect	Status	Easting(GDA m)	Northing(GDA m)	RL(m)	AzimuthPlanned(GDADegrees)	DipPlanned(Degrees)	Length(m)
ZS140	Severn	Completed	361,519	5,361,948	1,185	317	-77	889
ZM141A	Montana	Completed	361,205	5,362,719	1,230	268	-53	534
ZO142	Oonah	Underway	36,0545	5,362,815	1,214	243	-62	400
ZS143	Severn	Underway	361,470	5,361,800	1,178	309	-77	750
Oonah Planned# 2	Oonah	Planned	36,0600	5,362,720	1,210	243	-61	400
Montana No 1Planned # 2	Montana	Planned	361,260	5,362,910	1,190	243	-52	640
Western ZeehanPlanned # 1	ZeehanWestern	Planned	360,810	5,363,080	1,220	280	-50	400
Western ZeehanPlanned # 2	ZeehanWestern	Planned	360,755	5,362,945	1,220	293	-50	400
Queen No 4Planned # 1	Queen Hill	Planned	360,815	5,361,730	1,235	288	-48	300

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 instrumentsetc.).•Include reference to measures taken to ensuresample representivity and the appropriatecalibration of any measurement tools or systems	•Exploration Diamond Drill holes, NQ diamond core.•Logged sulphide and siderite altered zones wereselected for geochemical analysis•Approximately 1m samples of 2-3kg were taken fromdiamond saw cut drill core whilst respectinggeological boundaries
	used.•Aspects 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.
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.)	•All drill sampling by standard wireline diamonddrilling. Drilling oriented using Coretell Gen 4 device.•Samples: NQ/HQ triple tube
Drill samplerecovery	•Method of recording and assessing core and chipsample recoveries and results assessed.•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	•Core reconstituted, marked up and recoverymeasured•Recoveries generally excellent (95-100%)•No relationship between recovery and grade wasobserved.
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.	•Geological logging has been carried out on all holesby experienced geologists and technical staff.•Holes logged for lithology, weathering, alteration,structural orientations, RQD and mineralisation.•All holes photographed before cutting.•Logs loaded into excel spreadsheets and uploadedinto access database.•Standard lithology codes used for all drillholes.

Criteria	JORC Code Explanation	Commentary
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	•Half core split by diamond saw over 0.5 – 1.5msample intervals while respecting geologicalcontacts. Most sample intervals are 1.0m.•Assay sample weights between 1 and 4kg areconsidered appropriate with respect to any coarsetin that may be present.
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.	•No assay results have been received for this program•Half core samples sent to ALS laboratories for fusiondisc XRF analysis of Sn and W.•Half core samples sent to ALS laboratories forSoluble Sn, Cu, Pb, Zn, Ag and multi element analysisby acid leach followed by ICP-MS•Routine insertion of certified reference material,blanks and duplicates
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.	•No analyses have been received yet for this drillingprogram
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.	•Drill collars will be surveyed by licensed surveyorusing differential GPS.•Collars currently located by hand held GPS to 5maccuracy.•All coordinates in Zeehan Mine Grid (ZMG) andGDA94. RL's as MSL +1000m•Down hole surveys by downhole digital camera•The Digital Terrain Model has been generated fromlands department 10m contours and adjusted withsurveyed drill collar and control points.
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	•Exploration drilling below Severn is designed to test100m spacing or greater below defined resource.•Drilling below Montana is nominally 100m spaced.

Criteria	JORC Code Explanation	Commentary
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 Severn hole ZS140 has been drilled at a shallowangle to the deposit due to the constraints of thedeposit and drill site.•Drill holes sampling the Montana deposit have beendrilled southwest-northeast sub perpendicular to thestrike of the steeply dipping historic mine workings.•Drill hole orientation for ZS140 may introduced somesampling bias. Montana Drillhole ZM141A is unlikelyto introduce any bias from drill hole orientation.
SampleSecurity	•The measures taken to ensure sample security.	•Chain of custody is managed by Stellar from the drillsite to ALS laboratories in Burnie.•All samples ticketed, bagged in calico bags anddelivered in labelled poly-weave bags.
Audits orReviews	•The results of any audits or reviews of samplingtechniques and data.	•No audits or reviews of sampling data andtechniques have been completed.

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

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 is 100%owned by Stellar Resources Ltd.•A previous JV partner holds a variable rate royaltyover production from ML2023P/M commencing at1% of NSR (net smelter revenue) above A$25,000/tof Sn and rising to a cap of 2% at an NSR ofA$30,000/t.
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 loads.•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 mineralizing system. Mineralisation isessentially stratabound controlled by northeastplunging fold structures associated with northwesttrending faults. Tin is believed to be sourced from agranite intrusion located over 1km from surfacebelow the deposit.

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	•Refer to the body of this announcement for Drill Holeinformation
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 exploration analytical results are included in thisannouncement. Analytical results will be released ina later report when received from commerciallaboratories.
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)	•Observed mineralisation in Severn Drill hole ZS140are oblique to the true width of the mineralisation.•No mineralisation widths are included in thisannouncement.
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	•No analytical results are included in this report.Analytical results will be released in a later reportwhen received from commercial laboratories.

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.	•Metallurgical test work completed by ALS/BRLlaboratories and supervised by Worley-Parsons overa number of different campaigns on drill coresamples.•Deposits zoned mineralogically and metallurgically•Cassiterite is the dominant tin-bearing mineraloccurring as free grains and in complex mineralcomposites.•High concentrations of stannite are located in theupper levels of the Oonah deposit.•Grain sizes vary according to ore type, with Severnhaving the coarsest and Upper Queen Hill having thefinest.•Cassiterite liberation generally commences at a grindof 130 microns and is largely complete at 20 microns.•Based on the work undertaken by ALS metallurgy,Stellar anticipates that concentrates gradingapproximately 48% tin at an overall tin recovery of73% will be obtained from the Zeehan Tin ores.
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.	•The mineral deposits remains open down dip anddown plunge and will be explored with furtherplanned drill holes.