STELLAR RESOURCES LIMITED — Share Issue/Capital Change 2005

Jun 29, 2005

30 June 2005

SALE OF UNMARKETABLE PARCELS OF SHARES ASX ANNOUNCEMENT

The Board of Stellar Resources Limited ("Company" or "Stellar") wishes to announce that it intends to provide shareholders holding less than a marketable parcel of Stellar shares with a non-compulsory share sale facility ("facility").

The offer under the facility is being made available to shareholders of the Company who hold less than a marketable parcel (i.e. \$500 at record date) and provides them with an opportunity to dispose of their shares free of brokerage fees.

Approximately 60% of the Company's shareholders have holding less than a marketable parcel of shares. By making this facility available the Company aims to provide a mutual benefit for shareholders and the Company it provides shareholder with a viable avenue for disposal of shares, and provides savings to the Company in the cost of servicing its shareholder base.

The facility is being established pursuant to clause 9 of the Company's constitution. The Company will notify relevant shareholders in writing of its intention to sell their shares unless, within a period of six weeks after giving such notice, the shareholder notifies the Company of their wish to retain the holding.

The proceeds of sale will be forwarded to the shareholder free of any costs associated with the sale. Costs associated with the sale will be borne by the Company.

Documentation is expected to be forwarded to the relevant shareholders on or about 6^th July 2005.

Bill Michaelidis. Company Secretary

STELLAR RESOURCES LIMITED

ABN 96 108 758 961

Level 7 Exchange Tower 530 Little Collins Street Melbourne Victoria 3000 Tel + 61 3 9909 7618 Fax + 61 3 9909 7621