Stellar Resources : Third Quarter Activities and Cash Flow Reports

ASX ANOUNCEMENT l ASX: SRZ

26 April 2022

Report for the Quarter ended 31 March 2022

Highlights:

Heemskirk Tin Project

• • 9-hole Phase 1 diamond drilling program (4,733m) commenced in June 2021 completed in mid-April 2022, post quarter end including:

  • ◦ 4 holes including 1 wedge hole (2,198m) targeting depth extensions of the Severn tin resource and increasing the Severn Indicated Resource.

  • ◦ 5 holes (2,535m) targeting depth extensions of key historic silver-lead-zinc mines, at depths where transition into cassiterite mineralisation may occur.

• • Phase 1 results for the quarter included:

  • ◦ Assay results from Severn wedge hole ZS143W confirmed wide zones of high-grade tin (Sn) mineralisation with 20m of cumulative tin mineralisation intersected ~600m below surface, and demonstrating continuity of tin mineralisation between the bottom of the Severn Inferred Resource (~70m above) and comparable tin intercepts in parent hole ZS143 (~30m below)14.

  • ◦ Results from Phase 1 holes ZS143W, ZS143 and ZS140 all successfully demonstrate continuation of the tin system at depth confirming potential to significantly expand the Severn resource which remains open at depth and along strike14.

  • ◦ Severn drillhole ZS148, the final hole in the Phase 1 program, completed in late-March 2022 to a depth of 405m, targeting increasing the Severn Indicated Resource. Logging is underway with sulphide veining intersected and anomalous tin observed from portable XRF readings. Assay results expected in mid-May 202215.

  • ◦ Assay results from Oonah drillhole ZO144 and Western Zeehan drillhole ZW145 confirmed lower grade tin mineralisation and narrow high-grade silver-lead-zinc veins respectively14.

  • ◦ Zeehan Queen No. 4 drillhole ZQ146 completed in February 2022 intersected sulphide mineralisation with anomalous tin observed from portable XRF readings below the historic mine. Assay results expected in late-May 202215.

• • Phase 2A drilling program commenced in late-March 2022 with 6 diamond holes (~3,100m) planned at Severn, the largest of the Heemskirk Tin Project deposits including15:

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

• • The first Phase 2A drillhole, ZS149, completed in mid-April 2022, post quarter end (468m). The hole intersected sulphide veining and logging yet to commence. Assay results expected in late-May 202215.

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.stellarresources.com.auTwitter: @SRZ_Tin

Tin Market

• • Tin prices have continued to rise spectacularly over the reporting period with the LME spot tin price reaching US$44,200/t on 31 March 20227.

• • Tin prices have more than doubled over the past 15 months and now significantly exceed 10-year highs. The International Tin Association is now expecting tin prices to remain "stronger for longer"12.

• • With the highest-grade undeveloped tin resource in Australia & 2nd highest globally8,9, a scoping study completed in 2019 confirming attractive economics10 and Phase 2A drilling to increase the Severn Indicated Mineral Resource underway15, the Heemskirk Tin Project is well positioned to take advantage the booming tin market.

North East Tasmania Exploration Project

• • EL19/2020 (Scamander) and EL2/2021 (Scamander South and Pyengana) granted in March 2022 to

  Stellar's wholly owned subsidiary, Tarcoola Iron Pty Ltd over an area of 434 km2.

• • EL application EL3/2022 lodged in February 2022 at Mt Paris and Scamander North, a total area of 97 km2, which is prospective for lithium, tin and other base metals13.

• • EL applications EL10/2020 (Beaconsfield South) (165 km2) and EL3/2021 (Quakers Ranges) (45km2) are still being processed and are expected to be granted during CY2022 Quarter 2.

• • A total of 10 EL's covering 2,333 km2 now held by Stellar in NE Tasmania with a further 3 EL applications (307 km2) pending. Most of this ground is prospective for Victorian-style Orogenic Gold and Intrusive Related Gold Systems (IRGS)11.

• • Field exploration commenced this quarter on Stellar's prioritised list of gold targets from the review completed during the previous quarter by Dr Josh Phillips. Work completed this Quarter includes:

  • 1. Back Creek - soil sampling program (882 samples) completed, and rock chip sampling program (>40 samples to date) largely completed with assay results pending.

  • 2. Nabowla - stream sediment sampling program to start in early-May 2022 with MRT work program approvals and land access in place.

  • 3. Blessington - soil program planned to be undertaken next quarter following Nabowla program with MRT work program application submitted and land access agreements yet to commence.

• • EL19/2020 (Scamander) is highly prospective for tin and base metals with significant historic exploration and drilling undertaken over the licence area13. Work completed on EL19/2020 (Scamander) this quarter includes:

  • ◦ Capture of historic exploration data into Stellar's database and GIS, with analysis of this data well progressed.

  • ◦ Magnetic inversion modelling of targets on EL19/2020 (and other Stellar NE Tas EL's).

  • ◦ Planning of follow up geophysical surveys to identify drill targets underway.

• • Dr Josh Phillips's contract recently extended for a further 12 months to March 2023 with Josh to continue to lead Stellar's NE Tasmania Exploration Program as Program Leader.

• • Richard Spencer-Lloyd recently appointed as Exploration Geologist, NE Tasmania, Stellar Resources and will be responsible for execution of field exploration programs.

Corporate

• • Cash balance at 31 March 2022 was $3.318 million.

Heemskirk Tin Project

Overview of Stellar's Tin Project on West Coast of Tasmania

Stellar's 100% owned tin projects have an enviable location within the well-established mining district on the

West Coast of Tasmania with access to established infrastructure including nearby water and renewable power, access to the port of Burnie 150km to the north via sealed highway for export of concentrate, and a competitive local market for services, mining and processing inputs and labour.

Stellar's flagship Heemskirk Tin Project is just 18km to the southwest of the Renison tin mine, the largest and most productive tin mine in Australia. Including Renison, there are 5 major underground metal mines, 3 of which are operating, within 30km of the Heemskirk Tin Project.

Location of Stellar's Tin Projects - West Coast of Tasmania

The Heemskirk Tin Project includes 4 nearby tin deposits: Severn, Queen Hill, Montana and Oonah. Stellar holds secure Mining Leases over the Heemskirk Tin Project including the tailings pipeline route and tailings storage site and also over the St Dizier satellite tin deposit.

In addition to the Heemskirk Tin Project, Stellar owns a portfolio of nearby Exploration Licences including the

Montana Flats and Mount Razorback EL's which contain a number of historic silver-lead-zinc mines with associated tin mineralization, and the St Dizier and Mount Razorback satellite tin deposits.

Heemskirk Tin Project Deposits (blow up), Secure Mining Leases and a Large EL Package

Heemskirk Tin Resources

The Heemskirk Tin Project has a Total Mineral Resource of 6.6 Mt @ 1.1% Sn at a 0.6% Sn cut-off grade, of which 2.12 Mt is in the Indicated Mineral Resource Category and 4.48Mt is in the Inferred Mineral Resource Category. All deposits have higher grade zones and are amenable to mining at higher cut-off grades. All deposits open at depth8.

87 97 99

Indicated

Upper Queen Hill Lower Queen Hill

Severn

0.32 0.65 1.15

1.0 1.4 1.0

3,230 9,230 11,500

0.2 0.0 0.1

• 2.1 1.0

• 0.1 0.1

• 0.0 0.1

Total Indicated Inferred

2.12

1.1

23,960

97

0.1

0.4

0.2

Upper Queen Hill Lower Queen Hill Severn Montana Oonah

0.11

1.6

1,760

94

0.2

• 1.9 0.7

  0.36

  1.4

  5,040

  97

  0.0

• 0.2 0.0

  2.74

  0.9

  24,660

  99

  0.0

• 0.0 0.0

  0.68

  1.5

  10,200

  96

  0.1

• 0.7 1.4

  0.59

  0.9

  5,310

  36

  0.8

• 0.1 0.1

Total Inferred	4.48	1.0	46,970	90	0.1	0.2	0.3
Total Indicated + Inferred	6.60	1.1	70,930	92	0.1	0.3	0.3

In addition, the St Dizier Tin deposit has a Total Mineral Resource of 2.26Mt @ 0.61% Sn of which 1.20 Mt in the Indicated Mineral Resource Category and 1.06 Mt is in the Inferred Mineral Resource Category10.

Heemskirk is the highest grade undeveloped tin resource in Australia and the second highest grade tin resource globally9.

Benchmarking - World Tin Resources

Heemskirk Tin Project Resources Benchmarking (previously announced on 12 April 2021)

Heemskirk Tin Project Scoping Study

In October 2019, Stellar announced the results of its Heemskirk Tin Project Scoping Study10 based on development of an underground mine, processing plant, tailings storage facility and surface infrastructure to mine ~ 350ktpa ore at a LOM head grade of ~ 0.95% tin from the Queen Hill and Severn tin deposits (2 of the 4 Heemskirk deposits) over a 10-year initial mine-life. The project also includes open-pit mining of the St Dizier satellite tin deposit and trucking of ore to the Heemskirk processing plant during year 11 of the mine plan.

The processing plant is expected to produce ~4,500tpa of concentrate containing ~2,200tpa of tin. Concentrate produced will be trucked 150km to the north via sealed road to the Port of Burnie for export to smelters in Asia.

The 2019 Scoping Study confirmed the Heemskirk Tin Project had attractive economics at a US$20,000/t tin price10. The current spot tin price on 12 April 2022 was US$43,650/t, over double the price assumed in the 2019 Scoping Study.