Stellar Resources : Heemskirk Tin Phase 2A Drilling Program

ASX ANOUNCEMENT l ASX: SRZ

7 April 2022

HEEMSKIRK TIN PHASE 2A DRILLING PROGRAM

Stellar Resources Limited (ASX: SRZ, "Stellar" or the "Company") is pleased to provide details of its Phase 2A drilling program underway at the Company's flagship Heemskirk Tin Project in Tasmania.

Highlights

• • The Phase 2A drilling program to comprise 6 inclined diamond holes for ~3,100m at Severn, the largest of the Heemskirk Tin Project deposits.

• • Five of the planned drillholes are aimed at increasing the Severn Indicated Resource as a precursor to a pre-feasibility study (PFS) on the project. The holes will target depths of ~280m to ~380m from surface (~450m average hole length) in areas where thicker and higher-grade tin mineralisation are expected based on the resource model and existing drilling.

• • The sixth hole (~900m length) is planned to test the large magnetic and approximately coincident conductive target to the south of the Severn deposit that was identified in modelling completed last November1. This hole also passes through the projected position of the Severn deposit ~100m south of the defined resource.

• • The final hole in the Phase 1 Program, ZS148, is currently at a depth of 398m (vs 400m target EOH depth) and is nearing completion. Logging is underway with sulphide veining intersected and anomalous tin observed from portable XRF readings. Assay results expected in mid-May 2022.

• • The first Phase 2A drillhole, ZS149 (ZS_2022_04), is currently at a depth of 465m (vs 440m target EOH depth) and is nearing completion. The hole has intersected sulphide veining and logging is yet to commence. Assay results expected in late-May 2022.

Executive Director Gary Fietz commented; "The Phase 2A program at Severn is aimed at increasing the Severn Indicated Resource in advance of the PFS planned for the Heemskirk Tin Project. With 2 drill rigs currently on site, we should achieve ~2 holes per month and complete the 5 infill holes by ~end-June. Following receipt of all Phase 2A assay results, a resource update for the Severn deposit will be carried out in August/September.

In addition, the Phase 2A program includes a deeper hole planned to test the exciting South Severn geophysical target, which will also pass through the projected southern extension of the Severn resource.

Stellar Resources Limited ABN: 96 108 758 961

Level 4, 96 - 100 Albert Road, South Melbourne Victoria 3205, Australia T: [phone] F: [phone] E:[e-mail]

Web:www.stellar.com.auTwitter: @SRZ_Tin

Phase 2A Drilling Program

Stellar recently commenced its Phase 2A drilling program of 6 inclined diamond holes for ~3,100m planned at Severn, the largest of the Heemskirk Tin Project deposits.

A summary of the planned Phase 2A holes is shown inTable 1 with their locations shown inFigure 1.

Table 1 - Summary of Phase 2A Planned Holes (Zeehan Mine Grid)

Proposed Hole ID	Easting (ZMG)	Northing (ZMG)	RL (ZMG)	Azimuth (ZMG)	Dip	EOH Depth	Target Depth	Planned Order
ZS_2022_04	61,591	3,620	1,180	265	-54	440	397	1
ZS_2022_11	61,412	3,715	1,185	287	-70	400	342	2
ZS_2022_17	61,557	3,726	1,178	277	-57	500	438	3
ZS_2022_14	61,449	3,868	1,180	265	-62	430	380	4
ZS_2022_South Mag Target	61,525	3,551	1,180	230	-74	900	800	5
ZS_2022_15	61,449	3,868	1,180	264	-67	460	398	6
Total	3,130

Figure 1 - Location of Phase 2A Drillholes with target intersections highlighted red, Severn Resource (main ore lens) and existing drillhole pierce points coloured by Sn% * Thickness, historic mines, (GDA 94 grid tick marks and Zeehan Mine Grid lines inset)

Severn Indicated Resource Expansion Holes

Five of the planned Phase 2A drillholes are infill holes to increase the Severn Indicated Resource as a precursor to the PFS on the project.

The 5 infill holes target depths of approximately 380m to 480m from surface and have an average hole length of approximately 450m. These holes are located within the Severn Inferred Resource and target areas where thicker and higher-grade tin mineralisation is expected based on the resource model and existing drilling.

A long section of the Severn deposit showing existing and planned Phase 2A holes is shown inFigure 2.

Figure 2 - Severn Long Section looking west showing Phase 2A drillholes, Severn Resource (main ore lens) and existing drillhole pierce points coloured by Sn% * Thickness and potential Indicated Resource targeted by Phase 2A (Zeehan Mine Grid)

The final hole in the Phase 1 Program, ZS148, is currently at a depth of 398m (vs 400m target EOH depth) and is nearing completion. Logging is underway with sulphide veining intersected and anomalous tin observed from portable XRF readings. Assay results expected in mid-May 2022.

The first Phase 2A drillhole, ZS149 (ZS_2022_04), is currently at a depth of 465m (vs 440m target EOH depth) and is nearing completion. The hole has intersected sulphide veining and logging is yet to commence. Assay results expected in late-May 2022.

South Severn Magnetic and Conductivity Target Hole

The last of the Phase 2A drillhole (~900m length) is planned to test the large magnetic and approximately coincident conductive target to the south of the Severn deposit that was identified in modelling completed last November by Stellar's geophysical consultants, Mira Geoscience1.

This hole also passes through the projected position of the Severn deposit ~100m south of the Severn resource.

The location of the planned hole to test the Severn South Magnetic and Conductivity Target is shown inFigure1and inFigure 3.

Figure 3shows an updated isosurface from a revised magnetic inversion recently completed by Stellar's geophysical consultants, Mira Geoscience. The impact of the Severn and Queen Hill orebodies was reduced by removing the magnetic signature of the mineralisation prior to inversion. This resulted in the isosurface representing the magnetic inversion centroid to decrease slightly in magnitude (from 100 to 92 e-3 SI) and displace slightly deeper and to the SSW compared to the original inversion completed in November1. The magnetic cupola surface is sliced to enable the inversion isosurface to be viewed.

Figure 3 - Image of planned drillhole to test the Severn South magnetic and conductive target; view looking west

(GDA 94 Grid)

Footnotes / Live Links

1SRZ Announcement, 11 November 2021, "Large Magnetic and Conductive Target Modelled at South Severn"

Competent Persons Statement

The information in this announcement that relates to exploration results has been compiled by Mr. Ross Corben who is an independent consultant. Mr. Corben is a Fellow of the Australasian Institute of Mining and Metallurgy 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. Corben 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: [phone]

Email:[e-mail]