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ESTRELLA RESOURCES LIMITED AGM Information 2012

Nov 21, 2012

64878_rns_2012-11-21_4a33c2d9-81a6-46b4-ad52-e9e45f071e8e.pdf

AGM Information

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Level 17, 15 Castlereagh Street Sydney NSW 2000 PO Box R514 Royal Exchange NSW 1225

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t. +61 2 9993 4444 f. +61 2 9993 4433 e. [email protected] estrellaresources.com.au

Chairman’s Address to Shareholders – Annual General Meeting

  • There is no doubt that 2011/12 has been a difficult time for commodity companies, especially those at the junior end of the market. Despite this, we at Estrella have made significant progress in terms of our vision of becoming a successful copper and gold exploration and development company.

  • Since our last AGM we have raised circa $7,000,000, listed on the ASX and commenced exploration work on a number of our projects.

  • As we all know, throughout 2012 the general equity markets have performed poorly, impacted by instability in the global economy and more recently with declining commodity prices.

  • Estrella’s share price has not been immune from the declines seen in resource stocks in general and, in particular, stocks in the junior exploration sector.

  • If the dismal size of Australia’s 2012 IPO market wasn’t disappointing enough for investors, just one third of the 40 companies that did IPO this calendar year are trading above their issue price.

  • Interestingly, since our IPO on 9 May only 5.75% of our shares have traded on the ASX. This turnover is quite low when compared, firstly, with normal volumes following an IPO and, secondly, when compared to other listed junior explorers.

  • In this context, the Company and your Directors have been diligent in managing our available cash. As at 30 September 2012 Estrella had $4,400,000 in cash, ensuring that we remain in a strong, financial position to undertake adding value and capitalising on opportunities as they arise.

  • As I have said, the Board of Estrella are disappointed with our share price performance but that being said:

  • We have considerable confidence in our management team led by Jason Berton as well as;

  • The high prospectivity of our portfolio of projects which we are continuously developing and exploring;

  • Adding to our portfolio with high quality projects such as our new Jupiter project plus;

SYDNEY I SANTIAGO

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  • We continue to be actively present in Chile seeking new investment opportunities;

  • We are managing our cash carefully in this difficult market to ensure shareholders’ funds are only being directed towards the best value adding activities; as well as

  • One must remember that your Board owns some 13.2% of the issued capital and that all our shares are escrowed for 2 years from the IPO so we are strongly motivated to make our Company the success we believe we can achieve.

  • I would like to thank my fellow Directors for all their hard work on behalf of shareholders during the year, and equally recognise the great efforts of the Company’s management and staff in a very demanding environment.

  • The Directors would like to thank shareholders for their continuing support and patience in the current environment and we look forward to on-going support as the Company explores its portfolio of quality copper and gold assets in Chile.

Gavin Solomon Non-Executive Chairman Estrella Resources Limited 22 November 2012

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’ CHILE S STAR IN COPPER-GOLD

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AGM Investor Presentation
22 November 2012
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Important Information Disclaimer

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This presentation has been prepared by Estrella Resources Limited (“ Company ”). The presentation does not contain all the information that a prospective investor may require about the companies, their business or the proposal. It is not a complete statement of material information. Except where stated, the information disclosed in this presentation (“ Information ”) relates to the proposed business of the Company at the date of this document. This presentation does not contain advice relating to legal, taxation or investment matters. The Company makes no representation or warranty (express or implied) as to the accuracy, reliability or completeness of the Information. The Company and its subsidiaries, directors, employees, agents and consultants shall have no liability (including liability to any person by reason of negligence or negligent misstatement) for any statements, opinions, information or matters (express or implied) arising out of, contained in or derived from, or for any omissions from this presentation, except liability under statute that cannot be excluded.

This presentation may contain reference to certain intentions, expectations and plans of a Company (“ forward looking statements ”). Those intentions, expectations and plans may or may not be achieved. Any forward looking statements are subject to inherent risks and uncertainties and are based on certain assumptions that may not be met or on which views may differ. The performance and operations of a Company may be influenced by a number of factors, many of which are outside the control of the Company. Actual future results may be materially different. No representation or warranty, express or implied, is made by either Company or any of its directors, officers, employees, advisers or agents that any intentions, expectations or plans will be achieved either totally or partially or that any particular rate of return will be achieved. You are cautioned against relying upon any forward looking statement in this document.

This presentation does not contain an offer of securities in a Company, nor an invitation to apply for such securities. Nothing in this document should be construed as investment advice or financial product advice, whether personal or general, for the purposes of Section 766B of the Corporations Act. The document does not involve or imply a recommendation or a statement of opinion in respect of whether to buy, sell or hold a financial product. You should obtain professional advice and carry out your own independent investigations and assessment of the Information before acting.

The Company has not verified the accuracy or completeness of the information, statements and opinions contained in this presentation. Accordingly, to the maximum extent permitted by law, the Company makes no representation and give no assurance, guarantee or warranty, express or implied, as to, and take no responsibility and assume no liability for, the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omissions, from any information, statement or opinion contained in this presentation. The contents of this presentation are confidential. Information in this presentation which is attributed to a named third party source has not been checked or verified by the Company. This presentation remains the property of Estrella Resources Limited and may not be reproduced, distributed, transmitted or published (in whole or in part) without the prior consent of the Company.

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Presentation Overview

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1. Executive Summary 4
2. Company Overview 5
3. Why Chile? 6
4. Projects 8
5. Board of Directors 17
6 Summary
.
18
7 Contact
.
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1. Executive Summary

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Australian based, Chilean focused copper-gold exploration company

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Estrella

Resources (ASX.ESR)

Exploring and developing 4 projects

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Pursuing aggregation and acquisition of additional highly prospective assets in Chile Listed on the ASX on 9 May 2012 (code: ASX.ESR)

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  • 4 Highly i. Agustina (100% owned): 22.25km[2] – Highly prospective for IOCG systems

  • Prospective Projects

  • ii. Venus (100% owned): 90km ² – Prospective for gold exploration

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Artisan mine shaft at Centauri

  • iii. Luna (100% owned)/Inca (91.5% owned): 258km[2] – Prospective for epithermal style gold and copper

  • iv. Jupiter (100% owned): 17.5km ² – Prospective for copper porphyry exploration

  • Key  Acquisition of Projects May to Dec 2011 Milestones  IP Survey, mapping & sampling at Agustina Jan 2012  Drilling commenced at Agustina May 2012  A$6 million IPO completed May 2012  Jupiter Project identified and added to portfolio Oct 2012  Phase 2 drilling at Agustina commenced Nov 2012

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Copper Ore found at Agustina

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2. Company Overview

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Estrella’s Exploration, development and expansion of high Chilean quality assets Strategy Low Capex & Opex advantages in Chile Access to existing mining infrastructure Untapped potential for large IOCG deposits Fast-track to production

ASX Code ASX.ESR
Share Price (as at 19 Nov 2012) A$0.05
Market Cap (as at 19 Nov 2012) A$4.36M
No. Shares on issue 87,101,000
No. Options on issue 7,205,000
Cash at bank (30 Sep 2012) A$4,300,000

Corporate Significant institutional presence on the share register Structure

Board Dr. Jason Berton , Managing Director Gavin Solomon , Non-executive Chairman Julian Bavin , Non-executive Director Simon Kidston , Non-executive Director Justin Clyne , Company Secretary

Estrella Resources Limited (Australia) 100% Estrella Resources (Chile) SpA. Luna/Inca Agustina Project Venus Project Jupiter Project Project (100%) (100%) (100%) (100%/91.5%)

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3. Why Chile?

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Why Chile?

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World’s largest copper producer with ~38% of global copper reserves

All major international miners active in Chile

  • BHP, Anglo, Rio Tinto, Xstrata, Teck Cominco, Kinross, Phelps Dodge, Barrick

  • Excellent infrastructure

One of South America’s most stable and prosperous nations

Experienced and professional mining and mining services workforce

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Santiago

Network

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Substantial Chilean networks of Estrella’s Board & Management

Mining Regime

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Modern mining laws and clear foreign investment framework

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Favourable royalty regime

  • Currently between 4% and 9% royalty on a sliding scale

  • A recent Bill raises this to 5% to 14% royalty starting in 2018 (note royalty rates determined by production capacity)

Chile

Taxation Regime

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Favourable tax regimes

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3. Why Chile? (Cont)

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Number of Copper Mining Projects by Country

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Sources: Brook Hunt, Codelco and AON Group (May 2011).

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4. Projects

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Overview

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4 Projects in central-northern Chile

  • i. Agustina – 450 km north-northwest of Santiago

  • ii. Venus – adjacent to Agustina

iii. Luna/Inca – 320 km north of Santiago

  • iv. Jupiter –670 km north of Santiago

Potential additions to portfolio with quality projects facilitated by Estrella’s unique ‘in-country’ advantages

All Projects located in established mining region

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Collahuasi (Anglo Xstrata)
Escondida (BHP RIO)
2,185mt @ 0.89% Cu
121mt @ 0.81% Cu
Productora (Hot Chili)
85mt @ 0.6% Cu Pascua Lama (Barrick)
17.8Moz Au, 718Moz Ag
Huasco Port
Jupiter Project
Venus
Project
Agustina Project
La Serena
Coquimbo Port Luna/Inca Project
Carmen de Andacollo
(Teck) 161mt Cu @ 0.42 Santiago
Legend:
Estrella’s Projects
Chilean Cities
Shipping Port
Producing Cu Mine
Atacama Fault Zone
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Location of Projects - Central Chile.

Copper oxide mineralisation at Agustina.

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4. Projects – Agustina/Venus

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Infrastructure

Nearby Projects

Road: 6km from the Pan American Highway via good gravel road

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Rail : 10km from a rail line to port of Coquimbo. Cape gauge and currently moves 7Mt per annum

Power: Grid power available via construction of a 10km power line

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Ports: Coquimbo/La Serena (90km) and Huasco (160km)

Processing: Concentrator facilities located within 10km of Agustina

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Water: Underground water available 13km NW of Agustina

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Andacollo (Teck Resources) – 484Mt @ 0.35% Cu (reserve)

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La Productora (Hot Chilli) – 85.1 Mt @ 0.6% Cu, 0.1 g/t Au (resource)

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Processing facility near Agustina.

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Port of
Coquimbo
Location map of Agustina Project.
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4. Projects - Agustina

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Overview Option to acquire 100% of Agustina concessions Covers 4 mining leases with total area of 22.25 km Numerous artisanal copper and gold mines

Geology Highly prospective for Cretaceous porphyry system

Phase 1 drilling confirmed bornite and chalcopyrite copper mineralisation in IP anomaly

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Phase 2 drilling program commenced Nov 12 targeting bornite bearing IP anomaly

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Orion: Large geophysical anomaly bearing Cu mineralisation

Prospects

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Centauri: structurally controlled Au host in two repetitious fault trends

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Nova: Cu with Au in structural system that links to Centauri

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Agustina project with prospect areas; phase II drilling is currently underway at Orion (blue arrows denote phase II target zones into IP anomaly).

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4. Projects - Agustina (Cont)

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Orion High ‘chargeability’ IP anomalies identified Exploration -

  • >2km long, >600m wide from 200m depth

Copper mineralisation intersected at the IP Anomaly target

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  • Mineralisation associated with finely disseminated chalcopyrite and bornite within two broad zones of alteration

  • Porphyritic alteration zones clearly visible in drill cores

  • Drilling likely intersected outer shell of mineralisation

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  • Remodelled geophysical data reviewed with geological drill hole data confirms target prospectivity

Favourable topography would allow side access from hillside or valley to a potential resource.

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Maiden 4 hole drilling program completed

Drilling

Program

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Follow up drilling program now underway

  • Aiming to penetrate mineralised core of the IP Anomaly

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IP survey 3D inversion model with phase two drill targets (yellow) and phase 1 drill hole (blue).

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Drilling core at Orion

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4. Projects - Agustina (Cont)

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Centauri Located on the western side of Agustina Prospective for high grade gold mineralisation Gold typically hosted in shear zones 10-15m in width - Multiple parallel repetitions within vicinity

Exploration Mapping and rock chip sampling completed

  • 57 samples were collected

  • Significant gold results found in a 6m interval including 19.28g/t Au

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Close space soil sampling program undertaken

  • Two mineralised structural trends; i. NNW to SSE, ii. N to S

  • Results indicate likely structural link to Nova

Exploration Q1 – Q2 2013 follow up sampling & mapping to north, south & southwest of soil program area to define drill targets strategy

5km

Soil sample results with mapped Au hosting fault trends at Centauri and Nova. Light blue ellipse show open areas for follow up exploration.

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4. Projects – Luna/Inca

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Luna/Inca Luna 100% and Inca 91.5% owned by Estrella Overview

Total area of 258 km[2] of which Inca is a 54 km[2] subset Located ~90km SE of Coquimbo High grade copper-gold-silver with bornite dominant copper mineralisation

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Favourable metallurgy; large breccia clasts & copper concentrated in matrix.

Luna tenement outline (pink) and Inca area (blue).

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Infrastructure - running water from rivers & stream plus nearby grid power Surrounding concession holders include

  • Barrick, Codelco, and Teck

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Good road access across tenement via Barrick/ Codelco JV road

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  • 3 sampling campaigns return Cu > 2.0% including 5.2% and 5.4% Cu and high grade Ag & Au

Regional Projects lie in a well-known mineralised Cu-Au region close to Area -

  • Mines: (Andacollo – Teck/Enami; Veladero; El Indio – closed)

Rock sample at Luna; the blue polygon shows the disseminated bornite throughout the rock matrix. The green ellipse shows the large epidote altered clast. This photo demonstrates the potential that ore has at Luna to be ‘easily’ separable from the gangue under relatively coarse crushing.

  • Pascua Lama Project (Barrick)

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4. Projects – Luna/Inca (Cont)

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Regional NW to SE trending structural corridor: 15km strike length Geology

Andesite host rock

Inca hosts five small scale Cu, Au and Ag mines including

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  • Mineralised epithermal breccia's 15m in width at surface

  • Alto del Valle mineralisation continues onto Luna

  • Repeated high grade mineralised zones

Exploration December 2012 – January 2013; focus on Inca to define drill targets for end Q2 2013 Strategy

  • Ongoing exploration program concentrating on 2 km length of the high grade Cu-Ag-Au structural corridor

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  • Stream sediment and further rock chip sampling

  • Undertake detailed structural and alteration mapping

  • Drilling program planned for Q2 – Q3 2013.

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Mapping and sampling at Alto del Valle located within Luna; mineralised breccia’s are situated within faults and feature strong epidote & chlorite alteration which provides a good rock ‘signature’ to explore for further occurrences.

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Exploration focus on defining Q2 2013 drill program at Luna. Summer stream sampling & mapping program of 2 km high grade ‘corridor’.

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4. Projects - Venus

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Venus 100% owned by Estrella

Overview

Located 75 km NNW of La Serena Covers area totalling 90 km[2 ]

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Highly prospective region for high grade copper-gold Southern extension of Agustina project Significant artisanal mining across entire tenement

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Exploration Mapping and sampling program completed

  • High grade grab samples up 69 g/t Au Confirms similar structural trends as Centauri

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  • Significant repetition of Centauri mineralisation expect at Venus

  • Trends cover a collective strike length of 9km

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Exploration Q2 2013: mapping and sampling traverses, soil samples and trenching strategy across the vein trends to delineate drill targets

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Agustina and Venus concessions including new tenure.

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4. Projects – Jupiter

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Jupiter 100% ESR owned

Overview

Prospective for mineralised feeder breccias to underlying porphyries

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Highly prospective Copiapo mining district that features Candelaria & Punta de Cobre

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Recent mapping and surface sampling campaign completed

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Definitive exploration planning upon recent campaign results

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Exploration strategy

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IP & electrical resistivity geophysical surveys likely in Q2 2013

Estrella seeking to consolidate its footprint in the district

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Mineralised breccia in Jupiter vicinity.

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Jupiter geological map with tenement boundaries

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5. Board of Directors

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Dr. Jason Berton, Managing Director (full time)

Over 14 years mining and exploration industry experience at Barrick, Homestake and BHP Billiton.

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  • Also worked as a Senior Geology Consultant for SRK Consulting and as Chief Geologist coordinating due diligence for private equity investments.

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  • Specialist Structural Geologist with experience in gold, copper, uranium and iron ore.

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  • PhD in Structural Geology and B.Sc (Hons), B.Ec, member of AusIMM and GSA.

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Julian Bavin, Non-executive Director

Over 30 years experience in the mining industry, with over 20 years with Rio Tinto including 8 years as Exploration Director – South America.

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  • Current Exec. Director of Pan Global Resources Inc. & Non-Exec. Director of Exeter Resources Inc.

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  • BSc Mining Geology (Hons), MSc Mineral Exploration, Member of Institution of Mining & Metallurgy, Chartered Engineer & Fellow of Society of Economic Geologists.

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  • Based in Santiago de Chile and Spanish speaker.

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Gavin Solomon, Non-executive Chairman

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  • Over 30 years experience in Australian and international equity and capital markets.

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  • Lawyer by background and experienced Director of ASX listed companies.

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  • Founding shareholder and continuing Nonexecutive Director of Endocoal Limited (ASX:EOC).

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Simon Kidston, Non-executive Director

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  • 20 years investment banking & equity capital markets experience in Australia, UK and Asia.

  • Former Director and co-founder of Endocoal Limited (ASX:EOC)

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  • Founding shareholder and continuing Nonexecutive Director of Carabella Resources Limited (ASX:CLR).

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6. Summary

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  • Large IP anomaly at Orion is currently being drilled to test underlying bornite & chalcopyrite bearing porphyry

  • Summer exploration campaign at Luna to delineate drill targets for Q2 2013 into high grade Cu-Ag-Au system

  • Continuity of gold bearing fault system at Agustina into Venus project

  • Jupiter project pegged in highly prospective Copiapo district

  • On-ground presence and strong “in-country’’ skills within Board and Management team

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Drilling at Orion, Agustina Project, central Chile.

  • Estrella concurrently pursuing numerous high quality acquisitions

  • and aggregation

Strong potential for near term exploration upside

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7. Contact

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ESTRELLA RESOURCES LIMITED

Sydney Office: Level 17, 15 Castlereagh Street Sydney, NSW 2000

www.estrellaresources.com.au ASX: ESR

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