Stellar Resources Limited · ASX:SRZ

Stellar Resources — Investor Presentation (August 2016)

25 slides from Stellar Resources's investor presentation, Aug 11, 2016

1. Slide 1: Heemskirk Tin Project

   For personal use only Heemskirk Tin Project Highest grade undeveloped ASX-listed tin project August 2016 Update ASX: SRZ www.stellarresources.com.au

2. Slide 2: Agenda

   Agenda For personal use only   Improving tin and small cap resource equity markets   Advantages and achievements at Heemskirk Tin   Technical and financial advances in an Optimised PFS   Why consider a faster start?   Five reasons to own Stellar 2

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 (1.14% Sn) with vision to be a major Australian tin producer  Meta

4. Slide 4: Tin price has bottomed

   Tin price has bottomed For personal use only LME tin price is up 38% from its mid-January 2016 low Supply rationalisation underpinning price  China announced 17% reduction in tin smelter production in January 2016  Indonesian tin exports down for the 4th consecutive year due to tighter licence con

5. Slide 5: 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 5

6. Slide 6: 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

7. Slide 7: Solid record of achievement

   Solid record of achievement For personal use only 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 PFS metrics  Severn tin

8. Slide 8: OPFS adds 62% to NPV

   OPFS adds 62% to NPV For personal use only The 2013 PFS NPV has increased by A$38m to A$99m following an optimisation program that increased recovery and lowered capital cost  Recovery increase to 72.5% added $18m to NPV  Lower mining cost offset by higher processing cost  Paste fill reduced mini

9. Slide 9: OPFS - simplified plant design

   OPFS - simplified plant design For personal use only Metallurgical optimisation led to smaller primary grind and elimination of heavy media separation and silica float circuits saving A$5m from capex  Removed heavy media separation  Coarser grind size  Increased to 250µ from 160µ  Improved recov

10. Slide 10: OPFS quality tailings dam site secured

    OPFS quality tailings dam site secured For personal use only Tailings dam site in plan and oblique view  Capacity 3x initial mine life  Low capital containment  Initial cost A$1.4m wall plus A$3.4m pipeline  No observed geological flaws  Concealed valley  Crown land  No competing land use  N

11. Slide 11: Competitive cost structure

    Competitive cost structure For personal use only At 0.75USD/AUD the Heemskirk project has moved down the international tin industry cost curve towards the 40th percentile position Heemskirk @ 0.75USD/AUD 11

12. Slide 12: Substantial leverage to tin price

    Substantial leverage to tin price For personal use only Significant upside for the Heemskirk NPV as the spot tin price increases over the next 3 years 12

13. Slide 13: Why consider a faster start?

    Why consider a faster start? For personal use only  Need to reduce the pre-production capital hurdle – equity finance is difficult to secure and still too expensive  Faster access to ore required to meet the tin price upswing – price recovery has already commenced  Modularisation allows for ex

14. Slide 14: Lower Queen Hill supports FSS

    Lower Queen Hill supports FSS For personal use only LQH is closest Heemskirk tin deposit to the portal, is high grade, already drilled to Indicated Resource status and lowest cost deposit to develop Classification Deposit Tonnes Grade Contained Tin millions % tin tonnes Indicated Queen Hill 1.41 1.2

15. Slide 15: FSS reduces capex to A$48m

    FSS reduces capex to A$48m For personal use only Preproduction capital reduced from A$110m in OPFS to A$48m in FSS  Downsizing plant to 200ktpa from 600ktpa is the main driver of savings  Focus on LQH reduces pre-production mine development by 64%  Modular process plant reduces initial capital co

16. Slide 16: Fast start is an opportunity to explore

    Fast start is an opportunity to explore For personal use only Going underground provides an opportunity to better understand deposit geology and define deeper exploration targets below the known deposits known deposits unexplored domain source rocks 16

17. Slide 17: ML application over tin deposits

    ML application over tin deposits For personal use only RL5/1997 to be replaced by a Mining Lease following positive outcomes on OPFS and FSS  Exclusive right to extract economic minerals  Increased duration of tenure over tin deposits  More secure form of title  Board commitment to the project 1

18. Slide 18: Timeline

    Timeline For personal use only Stellar is poised to embark on a DFS for the Heemskirk project  DFS on FSS to cost A$5m over 12mths compared with A$10m over 18mths for OPFS  Environmental and metallurgy work programs in the planning stage  Drilling LQH to upgrade resource to an ore reserve determi

19. Slide 19: Five reasons to own Stellar

    Five reasons to own Stellar For personal use only  Tin price and share price have bottomed – price recovery from an over-sold position   Strong record of achievement - project momentum maintained despite difficult market conditions  Technical improvements demonstrated by OPFS – increased recov

20. Slide 20: 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

21. Slide 21: Appendix

    For personal use only Appendix Heemskirk PFS mine plan OPFS and FSS operating costs compared Board of Directors ASX: SRZ www.stellarresources.com.au 16

22. Slide 22: Heemskirk 2013 PFS mine plan

    Heemskirk 2013 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 22

23. Slide 23: Cash operating costs compared

    Cash operating costs compared For personal use only Slight reduction in unit cash cost to A$14,667/t under FSS  Heemskirk is cash positive at recent US$13,125/t bottom-of-the-cycle tin price  FSS unit mining cost is lower than in previous studies  More efficient mining methods – transverse, long-

24. Slide 24: 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

25. Slide 25: 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 25

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