October 11, 2008

Stellar Resources to acquire 60% of Zeehan tin project

Stellar Resources announced that it has signed an agreement to acquire a 60% interest in the Zeehan Tin Project from Western Metals Limited, Retention Licence RL 5, located near the mining town of Zeehan in northwest Tasmania. The remaining 40% interest is held by ASX and LSE AIM listed Gippsland Ltd.

The purchase consideration for the acquisition is AUD 1.178 million to be satisfied by cash and shares.

Currently these deposits represent the largest known undeveloped tin resources in Australia. Stellar Resources has been active on the northwest coast of Tasmania since its inception. Exploration has confirmed a number of tin prospects, including the St Dizier deposit, around the northern edge of the Heemskirk granite.

The Zeehan Tin Project includes the Queen Hill, Montana and Severn deposits, which were identified by Gippsland and Aberfoyle over 25 years ago.

Under the joint venture terms, Stellar has the right to increase its interest from 60% to 70% by completing a feasibility study to a banking stage.