Stars scored first through Mbunjane Mlungisi, but were undone by strikes from Thamsanqa Masiya and Bongi Ntuli at Coetzenberg Stadium in Stellenbosch, Cape Town on Sunday.
The new tournament serves as a reserve league to the topflight.
“I think we did pretty well taking into consideration that this is a fairly new team and again playing a side that have been together for a while,” Sithole told his club's official website.
“Despite the scoreline I am satisfied with the performance. We created a lot of scoring chances, but I suspect some of our players suffered from stage fright. I believe after the weekend match they have developed nerves of steel going forward.”
Sithole's charges next face AmaZulu in Soweto on Wednesday.
“We need to win our next match against AmaZulu this coming Wednesday 24 September so we can be in the race for top spot together with other teams who already have bagged three points,” added Sithole.