Stellar Resources Finalizes Ten-for-One Share Consolidation After Shareholder Approval on July 14, 2026

Details of Stellar Resources’ Capital Consolidation and Timeline

Listed on the Australian Securities Exchange under the ticker SRZ, Stellar Resources Limited completed a capital consolidation reducing its share count by 90%. The consolidation ratio of ten shares into one was approved at the shareholder meeting on 14 July 2026 and took effect on 24 July 2026, marking a significant restructuring of the company’s equity base.

The consolidation applied to ordinary shares, options, and performance rights. Before consolidation, Stellar Resources had 72,500,000 options and 94,998,218 performance rights outstanding. These were consolidated on the same ten-for-one basis, resulting in 7,250,000 options and 9,499,821 performance rights post-consolidation. Fractional entitlements were rounded down, with no cash compensation provided. Updated holdings statements were dispatched promptly after completion.

Implications of the Consolidation for Shareholders

For shareholders, the ten-for-one consolidation means every ten shares held before 24 July 2026 now represent one share. For example, a shareholder with 1,000 shares pre-consolidation holds 100 shares after. This adjustment preserves each investor’s proportional ownership. However, shareholders holding fractional shares, such as 105 shares, saw their holdings rounded down to 10 shares, losing fractional shares due to rounding. This standard practice results in minor dilution for some shareholders, with no disclosed compensation mechanism.

Comparison of Share Capital Before and After Consolidation

Stellar Resources’ capital restructuring reduced issued shares from 3,391,492,187 to 339,148,591, a decrease of about 3.05 billion shares or 90%. Options outstanding dropped from 72,500,000 to 7,250,000, and performance rights from 94,998,218 to 9,499,821. This ten-for-one consolidation aligns all equity instruments accordingly.

The reduction from over 3.3 billion shares to approximately 339 million shares creates a more conventional capital structure for an Australian resources company. This may enhance trading liquidity, lower transaction costs, and simplify shareholder administration and communications.

Strategic Purpose Behind the Capital Structure Simplification

While Stellar Resources did not explicitly state the rationale, capital consolidations typically aim to reduce administrative expenses, improve share marketability, and enhance valuation metrics on a per-share basis. A lower share count can attract institutional investors with limits on shareholdings.

For a resources company like Stellar Resources, this consolidation may accompany strategic reviews, mergers, acquisitions, or capital raising efforts. The streamlined equity structure facilitates future corporate actions, capital management, and shareholder communications, while improving technical share price metrics and reducing transaction volumes for large investors.

Shareholder Communications and Registry Updates Post-Consolidation

Following the consolidation, Stellar Resources promptly issued updated holdings statements on 24 July 2026, confirming shareholders’ adjusted positions. These statements serve as official ownership evidence and assist shareholders in managing taxation records related to cost base and capital gains.

Shareholders were advised to review their statements carefully and contact Louisa Martino, Company Secretary, for any clarifications or discrepancies.

Effect on Options and Performance Rights

The consolidation also applied to options and performance rights, reducing 72.5 million options to 7.25 million and approximately 95 million performance rights to 9.5 million. Typically, exercise prices and vesting conditions are adjusted proportionally to maintain economic equivalence, preserving the value of these instruments.

Although not explicitly stated, standard practice suggests option exercise prices increased tenfold post-consolidation, ensuring no unintended economic advantage or disadvantage for holders.

Rounding Down of Fractional Entitlements and Its Impact

Fractional shares, options, and performance rights were rounded down to the nearest whole number, a common practice in consolidations. For example, a shareholder with 155 shares pre-consolidation would receive 15 shares post-consolidation, losing the fractional 0.5 share.

The announcement did not disclose the number of affected holders or any compensation arrangements. Shareholders concerned about rounding impacts were encouraged to contact the company’s registry or management for further information.

Overview of Stellar Resources’ Corporate Profile and Market Position

Stellar Resources Limited is an ASX-listed company headquartered at Level 5, 56 Pitt Street, Sydney, NSW 2000, with ABN 96 108 758 961. Prior to consolidation, it maintained a large share base typical of junior resource companies, requiring active capital structure management to maintain liquidity and shareholder engagement.

The completed consolidation marks a strategic evolution in capital management, positioning Stellar Resources for streamlined corporate actions and potentially improved trading conditions. Investors should verify updated holdings with the dispatched statements and contact Company Secretary Louisa Martino for any questions.

Next Steps and Compliance for Shareholders

Post-consolidation, Stellar Resources is ensuring all shareholder records, registry systems, and ASX trading platforms reflect the new capital structure. Shareholders should confirm their brokers and the ASX process trades based on the consolidated share count to avoid settlement issues.

Shareholders are advised to retain their updated holdings statements as proof of ownership. For questions regarding consolidation effects or tax implications, professional advice and direct contact with Stellar Resources via Louisa Martino at [email protected] are recommended. No immediate share price impact was disclosed publicly.