Stellar Resources Limited · ASX:SRZ

Stellar Resources — Canary Networks (February 2017)

35 slides from Stellar Resources's conference presentation, Feb 22, 2017

1. Slide 1: Heemskirk Tin Project

   For personal use only Heemskirk Tin Project Highest grade undeveloped ASX-listed tin project Canary Networks 22-23rd February 2017 ASX: SRZ www.stellarresources.com.au

2. Slide 2: Five reasons to own Stellar

   Five reasons to own Stellar For personal use only  Tin price has bottomed – multi-year market deficit  High grade and locational advantages provide competitive costs in a low risk environment  Significant improvement in NPV/Capex as development strategy optimised  Strategy and timeline focus

3. Slide 3: Corporate overview

   Corporate overview For personal use only Share price recovery yet to reflect solid achievements at Heemskirk Tin Company overview  100% owner of Heemskirk Tin Project, 150km south of Burnie, Tasmania  Stand-out high grade resource (1.13% Sn) with vision to be a major Australian tin producer  Meta

4. Slide 4: Board of Directors

   Board of Directors For personal use only Experienced and multi-disciplinary Board with strong global connections Phil Harman Non-Executive Chairman Geophysicist  Over 30 years experience in BHP Billiton Thomas Whiting minerals exploration Non-Executive Director  Past and present Director of severa

5. Slide 5: Technical Team

   Technical Team For personal use only Strong technical team highly experienced in Tasmanian underground mining Ray Hazeldene Stewart Cuthbert Project Manager Mining Engineer Geologist Consultant MiningOne  Over 30 years experience as a mine and  25 years experience as a senior engineer exploration

6. Slide 6: Tin price has bottomed

   Tin price has bottomed For personal use only LME tin price is up 49% from its mid-January 2016 low Supply rationalisation underpinning price  Price recovery in 2016 driven by supply restraint from largest producers China and Indonesia  China has reduced domestic production by 10% – now more relian

7. Slide 7: Tin supply and impact of Myanmar

   Tin supply and impact of Myanmar For personal use only Industry has absorbed new production from Myanmar and reduced total supply Four countries control 80% of mine supply  Largest tin mining countries are China (30%), Indonesia (24%) Myanmar (18%) and Peru (7%)  Global mine supply peaked in 2005

8. Slide 8: Has Myanmar production peaked?

   Has Myanmar production peaked ? According to ITRI tonnes and grade are now declining but stocks are For personal use only holding shipments up for now from this in 2014 Easy surface material exhausted   Mining Easy moving near underground surface mineralisation has been mined   Grade is declinin

9. Slide 9: Tin demand – next growth phase?

   Tin demand – next growth phase? For personal use only Tin demand – long-periods of strong growth  Tin demand characterised by long periods of above trend growth driven by new uses  Emergence of tin in lead acid batteries one example of a new use that could gain more traction  Current growth pause

10. Slide 10: Tin is an energy metal

    Tin is an energy metal For personal use only ITRI have identified numerous potential new uses for tin in the energy sector O to 4th largest end-use in 5 years research project research project 10

11. Slide 11: Rising tin market deficit?

    Rising tin market deficit? For personal use only In 2015/2016, supply did the heavy lifting – will 2017 be characterised by an increased market deficit driven by stronger demand growth? 11

12. Slide 12: Best location for a new mine

    Best location for a new mine For personal use only North-west Tasmania is a world-class tin jurisdiction  Significant mining district  Many historical and current operating mines across various commodities  Supportive local community and skilled workforce  Experienced workforce available with se

13. Slide 13: Mining Lease Granted

    Mining Lease Granted For personal use only Mining Lease grant is a significant project milestone that increases tenure and adds security over the right to mine tin  ML 2023P/M granted to wholly owned subsidiary Columbus Metals Limited  Term is 12 years to 1st January 2029  Provides right to carry

14. Slide 14: High grade underpins resource quality

    High grade underpins resource quality For personal use only Heemskirk is the premier pre-production tin opportunity on the ASX Resource grade (% Sn) Very high Sn grade 1.1%  Cassiterite tin 0.9%  Associated silver, lead & zinc 0.7% 0.4% 0.2% 0.2% Heemskirk Achmmach Cleveland Tin Mt Garnet Mt Linds

15. Slide 15: Heemskirk – a world class tin project

    Heemskirk – a world class tin project For personal use only  Heemskirk is well placed on the grade tonnage curve - potential to increase grade and tonnes  Existing underground producers San Rafael and Renison Bell facing declining grade as are other producers  Competitors either lower grade or in

16. Slide 16: Attractive tin industry cost curve

    Attractive tin industry cost curve For personal use only  Industry cost curve provides attractive margin for low cost operations  Heemskirk is likely to be placed at the 45th percentile  No further costs to be removed Current LME tin price from the industry – cost curve at a cyclical low  Equili

17. Slide 17: Development strategy optimised

    Development strategy optimised For personal use only Several studies completed - final feasibility remaining Study PFS (Prelim Feasibility) OPFS (Optimisation) Fast Start (Scoping) Increasing NPV/Capex Completion Jul-13 Nov-15 Sep-16 Development underground mine underground mine underground mine Str

18. Slide 18: Severn recovery up by 7.1% to 79.5%

    Severn recovery up by 7.1% to 79.5% For personal use only Tin recovery gains across all processes - best gains from reduced losses in the sulphide float and increased recovery in the gravity circuit  Tin losses in sulphide float reduced from 10% to <3% adding 7.5 percentage points to recovery  Coa

19. Slide 19: Quality tailings dam site secured

    Quality tailings dam site secured For personal use only Tailings dam site in plan and oblique view  Capacity 3x initial mine life  Concealed valley  Low cost containment  Crown land  No observed geological flaws  No competing land use  Site secured by a mining lease  No observed flora or fau

20. Slide 20: Why consider a faster start?

    Why consider a faster start? For personal use only  Need to reduce the pre-production capital hurdle  Faster access to ore required to meet the tin price upswing – price recovery has already commenced  Modularisation allows for expansion – once operation is generating positive cash flow  Opp

21. Slide 21: Timeline – fast start feasibility

    Timeline – fast start feasibility For personal use only Stellar is poised to embark on a DFS for the Heemskirk project based on a fast start approach  DFS and permitting timeline is 15 months from the commencement of drilling  Environmental work is underway with DPEMP completion within 12 months 

22. Slide 22: 9,000m drilling program planned

    9,000m drilling program planned For personal use only Cassiterite SnO2 22

23. Slide 23: Strong newsflow - next months

    Strong newsflow - next 12 months For personal use only  9,000m diamond drilling program - to upgrade resources and test the potential for higher grade  Development of the geological model – generate opportunities for further exploration around and below known deposits  Met testing - determine

24. Slide 24: Exceptional exploration potential

    Exceptional exploration potential For personal use only Exploration potential is around and down plunge of the known Sn deposits – historically mined Ag/Pb deposits may also provide exploration vectors  Queen Hill, Severn and Montana Sn deposits shown in Oblique long-section yellow – open down plun

25. Slide 25: Renison provides exploration model

    Renison provides exploration model For personal use only Comparison with Renison shows that known deposits at Heemskirk are just the start – mineralisation at Renison over 1200m vertically from surface  Australia’s oldest and largest Sn mine is located 18km away to the NE of the Heemskirk Sn projec

26. Slide 26: Five reasons to own Stellar

    Five reasons to own Stellar For personal use only  Tin price has bottomed – multi-year market deficit  High grade and locational advantages provide competitive costs in a low risk environment  Significant improvement in NPV/Capex as development strategy optimised  Strategy and timeline focus

27. Slide 27: Disclaimer

    Disclaimer For personal use only Forward Looking Statement This presentation 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. Whe

28. Slide 28: Appendix

    For personal use only Appendix Heemskirk History JORC 2012 Resource Process Plant Simplification Environmental Permitting Timeline Project Achievements PFS Mine Plan ASX: SRZ www.stellarresources.com.au

29. Slide 29: Heemskirk – Discovery to Production

    Heemskirk – Discovery to Production For personal use only NW Tasmania – Australia’s largest and most Evolution of a world class tin project productive tin field  QH tin deposit discovered early 1960s by Gippsland Ltd  Aberfoyle jv with Gippsland in 1971 – discovered Montana and Severn deposits  T

30. Slide 30: JORC 2012 confirms resource quality

    JORC 2012 confirms resource quality For personal use only Mineral Resource estimate more robust following JORC 2012 upgrade  6.35mt @ 1.13% Sn or 72,000t of contained Sn  97% of contained Sn is in the form of cassiterite – the most readily recoverable Sn mineral  64% of Indicated Resource in Lowe

31. Slide 31: Process plant simplified

    Process plant simplified For personal use only Metallurgical optimisation led to smaller primary grind and elimination of heavy media separation and silica float circuits saving capex  Removed heavy media separation  Coarser grind size  Increased to 250µ from 160µ  Improved recovery from gravity

32. Slide 32: Environmental permitting underway

    Environmental permitting underway For personal use only EPA have issued DPEMP guidelines that are consistent with other underground Tasmanian mines – no onerous requirements  Critical path surface sampling is well advanced  Mine waste management a key issue for EPA – no issues anticipated MarQ Jun

33. Slide 33: What has been achieved?

    What has been achieved? For personal use only Significant operational achievements in 2015 continuing in 2016 February 2015  Environmental Protection Authority guidelines received  Exploration licence granted to the south of Heemskirk March 2015  Metallurgy optimisation upgrades Heemskirk Tin  S

34. Slide 34: Heemskirk PFS mine plan

    Heemskirk PFS mine plan For personal use only Surface Queen Hill Long Hole Stoping Montana Long Hole Stoping Severn Drift & Fill Severn Long Hole Stoping Open at depth 500m 34

35. Slide 35: Stellar Resources Limited

    Stellar Resources Limited Level 17, 530 Collins Street For personal use only Melbourne VIC 3000 Phone +61 3 9618 2540 Fax +61 3 9649 7200 www.stellarresources.com.au 35

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