Stellar Resources : High-Grade Tin Intersected in Severn Hole ZS143W

ASX ANOUNCEMENT l ASX: SRZ

23 March 2022

For personal use only

HIGH-GRADE TIN INTERSECTED IN SEVERN HOLE ZS143W

Stellar Resources Limited (ASX: SRZ, "Stellar" or the "Company") is pleased to report assay results from the Severn wedge hole (ZS143W), along with results from holes ZO144 and ZW145 completed as part of the Phase 1 Drilling Program at the Company's flagship Heemskirk Tin Project in Tasmania.

Highlights

• Assay results from Severn wedge hole ZS143W completed in late-January confirm wide zones of high- grade tin (Sn) mineralisation with 20m of cumulative tin mineralisation intersected approximately 600m below surface, including the following key intercepts:
• • 3.8m @ 1.10% Sn from 585.0m
  • 3.0m @ 1.31% Sn from 635.0m
  • 8.4m @ 0.73% Sn from 650.7m
• The ZS143W results demonstrate continuity of tin mineralisation between the bottom of the Severn Inferred Resource1 (~70m above) and the comparable tin intercepts in parent hole ZS143 (~30m below)7.
• Results from all three Phase 1 holes at Severn (ZS143W, ZS143 and ZS140) successfully demonstrate continuation of the tin system at depth confirming potential to significantly expand the Severn resource which remains open at depth and along strike.
• Assay results from the second Phase 1 drillhole at Oonah (ZO144) confirm multiple zones of lower grade tin mineralisation ~40m below the Oonah Inferred Resource1, in line with the previous hole at Oonah (ZO142)5.
• Assay results from Phase 1 drillhole (ZW145) targeting depth extensions of the Zeehan Western historic mine confirm narrow high-gradesilver-lead-zinc fissure veins.
• Drillhole ZQ146 completed in February, targeting depth extensions of the Zeehan Queen No. 4 historic mine, intersected sulphide mineralisation with anomalous tin observed from portable XRF readings. Assay results expected in mid-May 2022.
• Eight of the Phase 1 Drilling Program holes now completed with the last Phase 1 hole (ZS148) at 261m (18 March 2022) targeting extension of the Severn Indicated Mineral Resource with sulphide veining observed from ~235m.
• First hole in the Phase 2 Drilling Program (ZS149) at Severn commenced last Friday.
• Hole designs for the Phase 2 drilling program currently being finalised with details to be announced shortly. This program will focus on:
• • Infill drilling within the Severn Inferred Resource targeting extension of the Severn Indicated Resource.
  • Drill testing the South Severn magnetic and conductivity target at depth.6

Stellar Resources Limited ABN: 96 108 758 961

Level 4, 96 - 100 Albert Road, South Melbourne Victoria 3205, Australia

1. [phone] F: [phone] E: [e-mail] Web: www.stellar.com.au Twitter: @SRZ_Tin

High Grade Tin Intersected in Severn Wedge Hole ZS143W

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Executive Director Gary Fietz commented; "The ZS143W daughter hole assay results are very encouraging and importantly demonstrate continuity of tin mineralisation between drillhole ZS120 above and the ZS143 parent hole below. The ZS143W results, along with the ZS143 parent hole and ZS140 Phase 1 drilling results, highlight the potential for the Severn resource to be expanded significantly at depth. Severn is already by far the largest of the four deposits comprising the Heemskirk Tin Project and remains open at depth and along strike.

The last of our Phase 1 holes (ZS148) targeting extension to the Indicated Mineral Resource at Severn is well underway and is expected to be completed in a few weeks' time.

The second rig on site has recently commenced drilling the first hole in the Phase 2 Drilling Program at Severn. The initial Phase 2 Program in 2022 will focus on extending the Severn Indicated Resource along with a deeper hole planned at South Severn to test the compelling magnetic and conductivity target identified last year. We are currently finalising the hole designs for the Phase 2 program and will update the market shortly."

Assay Results for Severn Wedge Drillhole ZS143W

Assay results from Severn wedge hole ZS143W completed in late-January confirm wide zones of high-grade tin (Sn) mineralisation with 20m of cumulative tin mineralisation intersected approximately 600m below surface, including the following significant intercepts:

Table 1 - ZS143W Summary of Key Significant Intercepts

From	To	Length	Sn
(m)	(m)	(m)	(%)
585.0	588.8	3.8	1.10
635.0	638.0	3.0	1.31
642.0	645.0	3.0	0.66
650.7	659.0	8.4	0.73
662.0	664.2	2.2	0.75

The ZS143W results demonstrate continuity of tin mineralisation between the bottom of the Severn Inferred Resource1 (approximately 70m above) and similar tin intercepts in parent hole ZS1437 (approximately 30m below). The dip of the Severn deposit appears to flatten around the position of drillhole ZS143W, which also occurs further to the South.

Results from all 3 Phase 1 holes at Severn (ZS143W, ZS143 and ZS140) successfully demonstrate continuation of the tin system at depth confirming potential to significantly expand the Severn resource which remains open at depth and along strike.

A more detailed table of the ZS143 significant intercepts, including all intercepts >0.2% Sn over >1.0m length and analysis for other elements, is provided in Appendix 2.

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High Grade Tin Intersected in Severn Wedge Hole ZS143W

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Figure 1 - Severn West-East Cross Section 3,800m North (ZMG) Highlighting Significant Intercepts in Hole ZS143W

with ZS143 Parent hole, historical drilling and Severn 2019 Resource (red) shown

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High Grade Tin Intersected in Severn Wedge Hole ZS143W

Assay Results for Oonah Drillhole ZO144

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Assay results from the second Phase 1 drillhole at Oonah (ZO144) completed in late-October 2021 confirm multiple zones of lower grade tin mineralisation ~40m below the Oonah Inferred Resource1. Significant intercepts from drillhole ZO144 include:

Table 2 - ZO144 Summary of Key Significant Intercepts

	From			To			Length			Sn
	(m)			(m)					(%)
					(m)
311.1		314.7		2.2			1.02
318.0		320.0		2.0			0.35
321.0		322.0		1.0			0.57
328.0		330.0		2.0			0.41
334.0		338.0		4.0			0.26
346.9		348.0		1.1			0.20
354.6		357.0		2.4			0.40

The ZO144 results are comparable to the previous Oonah hole (ZO142)5, both of which intersected lower grade tin mineralisation below the silver-lead-zinc fissure lodes mined in the historically significant Oonah mine and the Oonah Inferred Resource (0.59 Mt at 0.9% Sn, 0.8% Cu, 0.1% Pb, 0.1% Zn. Ag not included)1 defined by previous drilling below the historic workings.

A more detailed table of the ZO144 significant intercepts, including all intercepts >0.2% Sn over >1.0m length and analysis for other elements, is provided in Appendix 2.

Assay Results for Western Zeehan Drillhole ZW145

Assay results from Phase 1 drillhole (ZW145) targeting depth extensions of the Zeehan Western historic mine completed in December 2021 confirm narrow high-gradesilver-lead-zinc fissure veins with significant intercepts including:

Table 3 - ZW145 Summary of Key Significant Intercepts

	From			To			Length		Ag	Pb	Zn	Cu	Sn
	(m)			(m)			(m)		(g/t)	(%)	(%)	(%)	(%)
55.6		56.0		0.4		24.0	0.05	11.25	0.03	0.01
226.3		226.8		0.4		235.0	6.15	0.33	0.01	<0.01

A more detailed table of the ZW145 significant intercepts, including all intercepts >0.2% Sn over >1.0m length and analysis for other elements, is provided in Appendix 2.

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High Grade Tin Intersected in Severn Wedge Hole ZS143W

Phase 1 Drilling Program Status Update

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A 9-hole Phase 1 diamond drilling program (for ~4,900m) commenced in June 2021, targeting new areas of high-grade tin mineralisation with 2 rigs on site including:

• Severn - 2 holes (with wedges and daughter holes) initially planned targeting depth extensions below the Severn tin resource. The 2 parent holes have been completed and wedge/daughter hole was also completed from the second hole. A further 2 holes at Severn were added to the Phase 1 program in Dec 2021 based on the success of the first 2 Severn holes.
• Depth Extensions of key historic silver-lead-zinc mines - 7 holes initially planned targeting depth extensions below the historic silver-leadmines with typical grades mined ranging from 20 to 100 oz/t Ag. These holes have targeted depths where the interpreted transition of silver-lead-zincmineralisation into cassiterite (tin) mineralisation may occur. Five of these holes have been completed with two of the holes re-allocatedto further drilling at Severn in December 2021.

A total of 8 Phase 1 holes have been completed, and the last Phase 1 hole is currently in progress, with a total of 4,820m drilled to 18 March 2022.

A summary of the Phase 1 drilling program is shown in Figure 2 and Table 4.

Figure 2 - Zeehan Mineral Field Surface Geology, Tin Deposits, Historic Ag-Pb-Zn Mines, Phase 1 Drillholes

and Phase 2 Drillhole ZS149

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