Stellar Biotechnologies Presents Phase IIB Proposal to The U.S. National Science Foundation (NSF)

PORT HUENEME, CA--(Marketwire - Jul 6, 2011) - Stellar Biotechnologies, Inc. "Stellar" (TSX-V: KLH) (PINKSHEETS: SBOTF) is pleased to announce that its President, Frank Oakes and Executive VP, Corporate Development & Finance, Darrell Brookstein responded to an NSF invitation and presented Stellar's Phase IIB proposal (http://www.nsf.gov/eng/iip/sbir/phase_iib.jsp) for full implementation of commercial scale aquaculture systems for KLH (Keyhole Limpet Hemocyanin) production and development and deployment of a validated KLH-based immunogenicity assay to a committee of Program Directors of the National Science Foundation (NSF) at their Arlington, VA headquarters on June 30th.

The Phase IIB is a follow-up to Stellar's NSF grant under the prestigious TECP Program which was detailed in a December 14, 2010 press release -- http://stellarbiotechnologies.com/investors/news_releases/index.php?&content_id=56

Stellar is proposing a $500,000 grant and notice of an award, should one be granted, is expected later in 2011.

About The U.S. NSF (adapted from the NSF website; see http://www.nsf.gov/index.jsp)
-- The National Science Foundation is an independent federal agency created by Congress in 1950 "to promote the progress of science; to advance the national health, prosperity, and welfare; to secure the national defense..." With an annual budget of about $6.9 billion (FY 2010), they are the funding source for approximately 20 percent of all federally supported basic research conducted by America's colleges and universities. The NSF fulfills its mission chiefly by issuing limited-term grants - to fund specific research proposals that have been judged the most promising by a rigorous and objective merit-review system. Many of the discoveries and technological advances have been truly revolutionary. In the past few decades, NSF-funded researchers have won more than 180 Nobel Prizes as well as other honors too numerous to list.

About Stellar Biotechnologies, Inc. Stellar Biotechnologies, Inc. (TSX-V: KLH) (PINKSHEETS: SBOTF) (www.StellarBiotechnologies.com) is a world leader in sustainable manufacturing of pharmaceutical grade immune carrier proteins (ICP), particularly with regard to the present most important pharmaceutical protein in this class, KLH (Keyhole LimpetHemocyanin). This evolutionary protein has a highly complex structure that makes it ideal for use in human and animal vaccines and diagnostic products. With partners and customers, its flagship Stellar KLH products are in the clinic, and on the way to being established as the only sustainable, long-term pharmaceutical source. Stellar Biotechnologies was founded to address the urgent need for sustained, commercial-scale supplies of high quality, GMP-grade KLH. Stellar has developed leading practices, facilities and proprietary capabilities to address this need.

There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on such statements. Except in accordance with applicable securities laws, the Company expressly disclaims any obligation to update any forward-looking statements or forward-looking statements that are incorporated by reference herein. This news release does not constitute an offer to sell, or a solicitation of an offer to buy any of the Company's securities set out herein in the United States, or to, or for the benefit or account of, a U.S. Person or person in the United States. Neither TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of these releases.