Stellar Biotechnologies Awarded $498,560 Phase IIB National Science Foundation (NSF) Grant

PORT HUENEME, CA--(Marketwire - Aug 29, 2011) - Stellar Biotechnologies, Inc. "Stellar" (TSX-V: KLH) (PINKSHEETS: SBOTF) is pleased to announce that the National Science Foundation (NSF) has awarded Stellar's Phase IIB proposal (http://www.nsf.gov/eng/iip/sbir/phase_iib.jsp) a $498,560 grant 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.

The project under Stellar's direction is titled: "Megathura Crenulata Post Larval Culture -- Bottleneck for a Valuable Medical Resource". Megathura crenulata is the Latin name for the California Giant Keyhole Limpet, the mollusk which is the sole source for KLH -- Keyhole Limpet Hemocyanin.

The Phase IIB grant 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

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.

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