Slide 1: Heemskirk Tin Project - The Tin Story and Beyond
For personal use only Heemskirk Tin Project - Tasmania CEO Peter Blight The Tin Story and Beyond Noosa Mining Conference July 19 - 20, 2012
Slide 2: Today's Presentation
For personal use only Today’s Presentation Introduction The Tin Story Market Overview The Heemskirk Project Investment Case
Slide 3: 5 Things About Stellar (SRZ)
For personal use only 5 Things About Stellar (SRZ) 1. Key focus on developing Heemskirk Tin Project 2. Has one of highest grade resources globally 3. Significant exploration potential in known tin field 4. Excellent existing infrastructure 5. Has potential to be one of Australia’s largest tin produc
Slide 4: Corporate Snapshot
For personal use only Corporate Snapshot ASX Code SRZ (listed April 2005) Shares on Issue 223.4M Share Price 7c (12 month range: 4-24c) Market Capitalisation $17M Cash $6.0M (March 12) Investment $0.5M (USA shareholding) Ownership Structure Board & Management Top 20 65.0% Phil Harman Non-Executive C
Slide 5: Five Things to Know About Tin
For personal use only Five Things to Know About Tin 1. Low melting point – soft alloy and solder applications 2. Non-toxic – replaces lead and other toxic metals 3. Does not oxidize easily – corrosion preventative in cans 4. Highest value LME metal – reflects steep cost curve 5. 51st most abundant e
Slide 6: Tin is Hot!
Tin is Hot! Based on CRU research tin has an excellent price outlook. For personal use only Palladium, Tin, Molybdenum, Alumina, Met Coke, Copper, Potash, Sulphuric Acid, Nickel, Vanadium, Zinc, Aluminium, Platinum, Gold, Iron Ore, Uranium, Silver Lead, Manganese, Cobalt, Sulphur, Urea, Phosphate Ro
Slide 7: For personal use only
The. mStar J COP reGH Ee ry GT PERLELA COMPAS ee PA, Pe Se bhi fae ae ¥ = = O o) ) S ) - O OD = Ors ‘ont — i Oo "
Slide 8: The Tin Story So Far…
For personal use only The Tin Story So Far… One of earliest known metals – Tin is an ancient domestic metal with many utensils using tin modern uses. recorded from 3,500 BC. Traded on world’s largest Current world industrial metals demand of marketplace - 365,000t per London Metal annum. Exchange (L
Slide 9: For personal use only
For personal use only Source: ITRI
Slide 10: Growth dominated by solder
For personal use only Growth dominated by solder Source: ITRI Tin recycling is becoming more important, particularly in China & now represents 22% of global demand. 10
Slide 11: Why is Tin replacing lead in solder?
For personal use only Why is Tin replacing lead in solder? 1. Tin solder preferred by electronics industry as replacement for lead 2. Allows more efficient use & smaller circuit boards 3. Better performance than other low melting point alloys 4. Non-toxic & excellent fusion abilities in making of al
Slide 12: Potential New Markets
Potential New Markets Lithium Batteries Soldering Stainless Steel For personal use only Fuel Catalysts Animal Health Solar Panels Source: ITRI
Slide 13: Where tin is mined
For personal use only 13 Where tin is mined
Slide 14: Low Stocks - Higher Tin Price
For personal use only Low Stocks - Higher Tin Price Source: UBS Tin demand expected to rise to 365,000 tonnes in 2012 Supply shortfall for 5 out of last 6 years LME stocks have declined to minimal levels Lack of new tin mines 14
Slide 15: Great location - multiple deposits
For personal use only Great location - multiple deposits 100% owned Heemskirk tin project 100% owned St Dizier tin deposit Significant mining district Easy access to water & power Sealed road between both deposits Rail & road connects to Burnie Port 18km from Australia’s largest tin mi
Slide 16: High Grade Resource
For personal use only High Grade Resource Great project progress – JORC resource released March 2011 – Scoping Study completed July 2011 – 100% Ownership in January 2012 – 10,000m drilling program in March 2012 Heemskirk Mineral Resource 4.4mt grading 1.1% tin 48kt of contained tin in 3 nearby d
Slide 17: Scoping Study Greenlight
For personal use only Scoping Study Greenlight Attractive rate of return & payback to advance Heemskirk to pre- feasibility stage US$12,780/t cash cost positions Heemskirk competitively on industry cost curve Life of mine revenue of $673m net of smelter charges 600,000 tpa throughput over 7.
Slide 18: Competitive cost structure
For personal use only Competitive cost structure Cash cost estimates are provisional and used with permission from the ITRI 18
Slide 19: 10,000m Diamond Drilling Program
For personal use only 10,000m Diamond Drilling Program 2,000m to infill and upgrade Severn resource 3,000m to expand Severn resource 1,000m to test newly identified aeromagnetic targets 3,000m on infill & extension drilling at Queen Hill & Montana 1,000m at St Dizier to upgrade historical
Slide 20: High Grade Results from Severn
For personal use only High Grade Results from Severn
Slide 21: Heemskirk: The Next Renison
For personal use only Heemskirk: The Next Renison
Slide 22: Unlocking the Value
For personal use only Unlocking the Value 2012 2013 2014/15 Ownership Ownership and and Completion Completion of of Construction Construction Funding Funding PFS PFS Starts Starts 2014 2014 February February 2012 2012 Infill Infill and and Expansion Expansion Completion Completion of of Production P
Slide 23: Why invest in Stellar?
For personal use only Why invest in Stellar? High grade tin project in mining friendly jurisdiction Control destiny with 100% ownership Supportive cornerstone investor in RCF Advancing project to PFS by mid 2013 Well funded drilling program Significant opportunity to add to resource base
Slide 24: Low Cost Investment Opportunity
For personal use only Low Cost Investment Opportunity Enterprise Value per Tonne Tin in Resources ($/T) Source: Broker research 24
Slide 25: Disclaimer
For personal use only Disclaimer Forward Looking Statement This presentation contains only a brief overview of Stellar Resources Limited (“Stellar") and its activities and operations. The contents of this presentation, including matters relating to the geology of Stellar’s projects, may rely on vari
Slide 26: Stellar Resources Limited
Stellar Resources Limited Level 17, 530 Collins Street Melbourne VIC 3000 Phone +61 3 9618 2540 Fax +61 3 9649 7200 For personal use only www.stellarresources.com.au
Slide 27: Appendices
For personal use only Appendices
Slide 28: JORC Resource Statement
For personal use only JORC Resource Statement
Slide 29: Excellent exploration potential
For personal use only Excellent exploration potential 29
Slide 30: Conservative Project Assumptions
Conservative Project Assumptions For personal use only Parameter Units Assumption Comment Mine life years 7.6 Minimum life Mining dilution % 15 Typical for underground mines ROM grade % 0.93 Average resource grade is 1.1% Treatment rate tpa 600,000 Drawing from all three deposits Recovery % 70 Targe
Slide 31: Lack of New Mines
For personal use only Lack of New Mines Compa ny Proje ct Country Ca pa city Mins ur San Rafael tailings Peru 7,500 Syrymbet Syrymbet Kazakhs tan 6,500 Kasbah Resources Achmmach Morocco 5,600 Amerilangui Ujin Narsiin Khundlen Mongolia 5,200 TMR Ltd Offs hore dredges Indonesia 5,000 Metals X Rentails