Stellar Resources : Montana No.1 Hole Silver-Lead Grades

ASX ANOUNCEMENT l ASX: SRZ

22nd November 2021

For personal use only

EXCEPTIONAL SILVER-LEAD GRADES IN FIRST MONTANA NO. 1

HOLE

Stellar Resources Limited (ASX:SRZ, "Stellar" or the "Company) is pleased to report assay results from holes ZM141A and ZO142, completed as part of the Phase 1 Drilling Program underway on its tenements near Zeehan, Tasmania.

Highlights

• Assay results from hole ZM141A, the first ever hole drilled beneath Zeehan's largest historic silver-lead mine, Montana No. 1, confirm very high-grade silver-lead-zincfissure vein intercepts approximately
  90m below the deepest historic mine workings. Significant down hole intercepts include:
• • 1.2 m @ 31.8 Oz/t Ag, 23.9% Pb, 0.4% Zn and 0.1% Cu from 423.0 m
  • 0.4 m @ 15.4 Oz/t Ag, 12.2% Pb and 4.6% Zn from 411.0 m
  • 0.6 m @ 3.8 Oz/t Ag, 3.6% Pb and 0.4% Zn from 239.0 m
• Assay results received from hole ZO142, the first hole drilled by Stellar beneath the significant historic Oonah silver-lead mine and the Oonah Inferred Resource confirm the continuation of multiple zones of lower grade tin mineralisation approximately 70m below the Oonah Inferred Resource.
• 4 holes completed to date and 2 holes in progress (3,291m drilled to 17 November) as part of the Phase
  1 Drilling Program.
• Second Severn drillhole ZS143 is currently at 805m depth, with zones of mineralisation logged over 3 intervals with a cumulative length of 27m between 550m and 595m, approximately 120m down dip of the Severn Mineral Resource. Mineralisation observed in ZS143 contains more visible cassiterite (tin oxide) and pyrrhotite (commonly associated with cassiterite at Severn) than previous Severn hole ZS140, as reported on 5 November1.
• Second Oonah drillhole ZO144 completed to a depth of 398 m with mineralisation observed and presence of tin confirmed by anomalous handheld XRF results.
• First Zeehan Western drillhole ZW145 is currently in progress at a depth of 170m and is yet to reach target depth.
• ZS143 and ZO144 assays expected during December.

Executive Director Gary Fietz commented; "The very-high grade silver-lead-zinc results from ZM141A, the first ever hole drilled beneath Montana No. 1, Zeehan's largest historic silver-lead mine, highlights the potential for high-gradesilver-lead-zinc mineralisation on Stellar's tenements in the Zeehan Mineral Field to complement its flagship Heemskirk Tin Project, the highest-grade undeveloped tin resource in Australia and second highest globally3. We are also encouraged by the intersection of tin mineralisation in ZO142, well below the historically significant Oonah Mine which highlights the potential to further extend the Oonah tin resource."

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

Exceptional Silver-Lead Grades in First Montana No. 1 Hole

Assay Results for Montana No. 1 Drillhole ZM141A

For personal use only

Assay results received for ZM141A, the first ever hole drilled beneath Montana No. 1, Zeehan's largest historic silver-lead mine, have confirmed the presence of very high-gradesilver-lead-zinc fissure veins with the following significant intercepts:

Table 1 - ZM141A Summary of Significant Intercepts

From	To	Length	Ag	Pb	Zn	Cu	Sn
(m)	(m)	(m)	(oz/t)	(%)	(%)	(%)	(%)
239.0	239.6	0.6	3.8	3.6	0.4	0.0	<0.01
271.1	271.9	0.8	0.0	0.1	0.1	0.0	0.52
411.0	411.4	0.4	15.4	12.2	4.6	0.0	0.03
423.0	424.2	1.2	31.8	23.9	0.4	0.1	0.02

The best intercept was a fissure vein with a downhole interval of 1.2m from 423.0m to 424.2m returning

31.8 oz/t Ag, 23.9% Pb, 0.4% Zn and 0.1% Cu. This very-high grade fissure vein intercept is approximately

90m below the deepest historic Montana No. 1 mine workings as shown in Figure 1.

Previously released core photographs of the fissure vein intercept from 423.0m to 424.2m are shown in Figure 2.

Minor tin mineralisation (0.52% Sn) was also recorded over a narrow 0.8m interval from 271.1m to 271.9m.

As most of the mineralisation intersected in this hole is present as silver-lead-zinc fissure veins, it is interpreted that the transition into zones of tin mineralisation may still occur at greater depths below those intersected in hole ZM141A.

A more detailed table of the significant intercepts in hole ZM141A is provided in Appendix 2.

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Exceptional Silver-Lead Grades in First Montana No. 1 Hole

For personal use only

0.6 m @ 3.8 Oz/t Ag, 3.6% Pb and 0.4% Zn from 239.0 m

0.8m @ 0.52%Sn from 271.1m

1.2 m @ 31.8 Oz/t Ag, 23.9% Pb and 0.4% Zn from 423.0 m

0.4 m @ 15.4 Oz/t Ag, 12.2% Pb

and 4.6% Zn from 411.0 m

Figure 1 - Montana No. 1, West-East Cross Section - 4470m North (ZMG) showing Hole ZM141A (aqua), historical

workings (stopes in red and development in grey)

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Exceptional Silver-Lead Grades in First Montana No. 1 Hole

For personal use only

Figure 2 - ZM141A: Silver-Lead-Zinc mineralisation from 423m to 424.2m with visible galena and sphalerite

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Exceptional Silver-Lead Grades in First Montana No. 1 Hole

Assay Results for Oonah Hill Drillhole Z0142

Assay results received for ZO142, the first hole drilled by Stellar beneath the significant historic Oonah silver- lead mine confirmed multiple zones of tin mineralisation with the following down hole intercepts recorded:

For personal use only

Table 2 - Z0142 Summary of Significant Intercepts

From	To	Length	Sn
(m)	(m)	(m)	(%)
288.0	289.0	1.0	0.54
299.4	300.0	0.6	0.80
320.0	321.0	1.0	0.40
336.0	347.0	10.9	0.22
352.0	355.1	3.1	0.39
378.0	380.0	2.0	0.32

Whilst the above tin intercepts have lower tin grades than the Oonah Inferred Resource (0.59Mt @ 0.9% Sn, 0.8% Cu, 0.1% Pb & 0.1% Zn)2, the hole successfully confirmed continuation of tin mineralisation approximately 70m below the Oonah Inferred Resource as shown in Figure 3.

100% of the tin in all the above intercepts is present as cassiterite (tin oxide), suggesting that the stannite (tin-copper sulphide) mineralisation within the Oonah resource has transitioned fully into cassiterite in these intercepts.

A more detailed table of the Z0142 significant intercepts, including the results for other elements, is provided in Appendix 2.

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