Stelar Metals Limited has entered into a binding agreement with Everest Metals Corporation Limited to acquire 90% equity of their New South Wales exploration licences which includes the Trident, Midas and Perseus Projects (NSW Projects or Projects) located in the Broken Hill Block, NSW. These Projects are considered prospective for lithium, cobalt and copper. Everest's NSW Projects include four granted exploration licences covering 719km in the Curnamona Province near Broken Hill.

Summary of Key Agreement Terms: The key terms of the agreement for Stelar to acquire a 90% interest in these three Projects includes: Stelar will pay $250,000 cash to Everest on the signing of the agreement. Stelar will issue1 1,187,085 fully paid shares (Stelar Shares) to Everest that are equal in value to $250,000. An additional milestone payment will be made to Everest within 24 months from the date of the agreement (Milestone Payment), once either; drilling commences at the Midas Project; or drilling approvals are granted by the NSW regulators for drilling at the Trident Lithium Project.

The Milestone Payment will comprise, at Everest's sole election, either; Stelar issuing1 2,374,169 Stelar Shares to the value of $500,000 to Everest; or a cash payment by Stelar to Everest of $500,000. Stelar will become the manager of the Projects and 90% legal title will be transferred to Stelar's subsidiary BR2 Pty Ltd. Everest will retain free-carry for their 10% equity until such time that Stelar presents a Feasibility Study and a Decision to Mine. After the free-carry period Everest will either contribute 10% to all ongoing costs or default to a 1.5% Net Smelter Royalty.

Note the issue of the Stelar Shares will be deferred until the legal transfer of title of the exploration licences to Stelar's subsidiary BR2 Pty Ltd. has been completed. Calculated at a share price of $0.2106 being the volume weighted average price of Stelar's fully paid shares as traded on the ASX over the 10 trading days immediately prior to the date of the agreement. The issue of the first tranche of Stelar Shares equivalent to $250,000 will result in a dilution effect of 2.3% to current shareholders.

If the Milestone Payment of $500,000 is made through the issue of a second tranche of Stelar Shares rather than cash, this will result in a dilution effect of 6.6% to current shareholders for the overall transaction. All Stelar Shares issued under both tranches will be made under the Company's LR 7.1 issue capacity.