Stellar Biotechnologies and Major Biotech Company Enter Discussions on Joint Research

PORT HUENEME, CA--(Marketwire - Sep 26, 2011) - Stellar Biotechnologies, Inc. "Stellar" (TSX-V: KLH) (PINKSHEETS: SBOTF) announced today that on-going discussions with a major biotechnology company have advanced to the negotiation of a Material Transfer Agreement (MTA) which was received in draft this week by Stellar, for use of the Company's KLH in joint research into the functional characterization of various preparations of KLH.

Stellar's contribution to the proposed joint research will be proprietary formulations of KLH and expertise in its effects on immune function, and will not require any significant capital expenditure by Stellar. Upon approval of the MTA by Stellar, the agreement will proceed to legal review, prior to final execution and implementation in the next few months. The specific terms of the agreement and the identity of the highly regarded industry collaborator will remain confidential until final implementation.

Stellar CEO, Frank Oakes said, "This collaboration is an excellent example of the recognition by major companies that Stellar continues to lead the industry in intellectual capital surrounding KLH and its role in modulating immune function. Our company's growing prestige is driven by the recognition by customers, potential customers and collaborators of our significant and growing intellectual property (IP) portfolio for production, use and function of the KLH molecule."

About Stellar Biotechnologies, Inc. Stellar Biotechnologies, Inc. (TSX-V: KLH) (PINKSHEETS: SBOTF) (www.StellarBiotechnologies.com) is the world leader in sustainable manufacturing of pharmaceutical grade KLH (Keyhole Limpet Hemocyanin). 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 growing demand for renewable, 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.