ESTRELLA RESOURCES LIMITED — Capital/Financing Update 2012

Oct 25, 2012

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ASX ANNOUNCEMENT

Chile’s star in copper-gold

ESTRELLA RESOURCES LIMITED ACN 151 155 207

AUSTRALIAN REGISTERED OFFICE: Level 17, 15 Castlereagh Street Sydney NSW 2000 Australia

POSTAL ADDRESS: PO Box R514 Royal Exchange NSW 1225 Australia

CONTACT DETAILS: Telephone: +61 2 9993 4475 Facsimile: +61 2 9993 4433 Email: admin@estrellaresources.com.au

CHILE OFFICE: Av. Vitacura 5250, Oficina 802, Vitacura Santiago, Chile

26 October 2012

Estrella Secures Prospective New Project in Northern Chile

HIGHLIGHTS

• Estrella secures prospective new ground in Northern Chile

• “Jupiter” Project located in Region III is highly prospective for breccia hosted Copper-Gold mineralisation underlain by porphyry feeders

• Initial exploration planning now underway

1. Introduction

ASX CODE: ESR

Estrella Resources Limited ( ASX:ESR ) ( Estrella or the Company ) is pleased to announce that it has further extended its total tenement holdings in Chile by 17.5 km[2] . The new ground known as “Jupiter” was sourced, and is 100% owned by, Estrella’s wholly owned subsidiary, Estrella Chile SPA ( Estrella Chile .

Figure 1: Regional map of Estrella’s projects in Chile

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www.estrellaresources.com.au

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AUSTRALIA | CHILE

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The Jupiter Project covers a total area of 17.5 km[2] consisting of 8 contiguous exploration licences. The tenure is located in Region III of Northern Chile, some 670 km north of Santiago (see Figure 1) and is in close proximity to a traditional copper-gold mining district. The tenure is easily accessible by paved and gravel road from the city of Copiapo 50km to the east and is close to existing infrastructure.

2. Jupiter Geology

The geology at Jupiter features volcanic, volcaniclastics, conglomerates, arenites and lacustrine sedimentary rocks from the Cretaceous to the Eocene and intrusive Palaeocene plutonic rocks. The Jupiter tenure is generally underlain by tonalite to diorite phases of the Cabaca de Vaca batholith and is highly prospective for copper-gold mineralisation. The copper-gold mineralisation is associated with structurally controlled breccia pipes which are particularly prevalent within the local region. Within Jupiter, 2 such breccia pipes are visibly present at surface. The dimensions of breccia pipes have been observed to be up to 400 m in diameter in the region. Traditionally when breccia pipes form in clustered fashion as they do in Jupiter, it indicates the potential of a significant porphyritic “feeder” source beneath.

The northern half of Jupiter features high plain slopes with visible porphyritic argillic alteration and veining at surface (see Figure 2 and 3). The outcropping porphyry areas and the many faults within Jupiter are prospective for additional ‘hidden’ breccia pipes.

Figure 2: The Jupiter tenement

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Figure 3: Jupiter tenement and geology

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3. Regional Geology and Nearby Operations

Regionally, Jupiter is situated within the Cu-Au Metallogenic belt of the Cretaceous to Palaeocene period. This belt traditionally hosts many significant deposits including Freeport McMoran’s Candelaria and Pucobre’s Punta de Cobre mine. Region III is also well-known for the Maricunga belt that hosts Kinross’s Maricunga.

There is an existing, small scale mine situated in the south west section of Jupiter. A recent visit to the mine confirmed the presence of copper mineralisation at surface and situated within a breccia pipe (see Figure 4).

The three mentioned are large-scale operations and within 40 km.

Figure 4: Small artisan mine with visible Breccia copper oxide mineralisation at surface

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4. Exploration program

Historical drilling in nearby tenements has shown thick intersection with significant copper-gold mineralisation. Based on initial desk-top analysis, Estrella believes similar geology also prevails into Jupiter given the number of large faults and presence of breccia pipes at the surface.

An initial exploration program is currently underway at Jupiter. Estrella has conducted reconnaissance mapping and grab sampling (awaiting assay results) over a large area of the tenement. The terrain is also ideally suited for surface soil sampling and geophysical techniques such as IP resistivity surveys, which form part of the current program. It is expected this initial program will generate a number of priority targets and would be followed up by a subsequent drilling program.

ASX ANNOUNCEMENT[5]

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5. Commentary

Estrella's Managing Director, Dr. Jason Berton, who is currently in Chile said:

“Jupiter represents an exciting addition to Estrella’s current portfolio of projects in Chile.

Consistent with our strategy, Jupiter was added to our tenement portfolio after the area was assessed to be highly prospectively for the type of copper-gold mineralisation the Company is targeting.

Estrella is rapidly progressing an initial exploration program with a view to identifying targets for an aggressive early drilling campaign. Subject to favourable results, Estrella expects to commence drilling on Jupiter in Q1 2013.”

Competent Person’s Statement

Exploration information in this announcement is based upon work undertaken by Dr. Jason Berton, the Managing Director of Estrella Resources Limited whom is a Member of the Australasian Institute of Metallurgy and Mining (AusIMM). Dr Berton has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a ‘Competent Person’ as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code). Dr Berton consents to the inclusion in this presentation of the statements based on his information and context in which they appear.

About Estrella Resources

Estrella Resources Limited is an ASX listed, Chilean focused copper-gold exploration company. Estrella has a number of exploration projects in Chile: Agustina, Venus, Luna, Inca and Jupiter. With a highly experienced board, a strong operational and management team and a sole focus on Chilean copper and gold projects, the Company is well positioned to develop its projects and add value for shareholders.

Directors and Management

Dr. Jason Berton Managing Director

Gavin Solomon Non-Executive Chairman Julian Bavin Non-Executive Director

Simon Kidston Non-Executive Director

ESTRELLA RESOURCES LIMITED ACN 151 155 207

ASX CODE: ESR

ORDINARY FULLY PAID SHARES: 87,101,000

UNLISTED OPTIONS: 7,205,000

Juan Pablo Vargas de la Vega General Manager - Chile Justin Clyne Company Secretary