ESTRELLA RESOURCES LIMITED — Capital/Financing Update 2012

Oct 16, 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

17 October 2012

Agustina Update - Drilling Recommencing

HIGHLIGHTS

• Geophysical data review and remodelling has re-confirmed prospectivity of the IP Anomaly target at Orion prospect on Agustina.

• New drilling targets identified based on calibrated data.  Drilling expected to commence in the first week of November 2012.

CHILE OFFICE:

Av. Vitacura 5250, Oficina 802, Vitacura Santiago, Chile

ASX CODE: ESR

1. Drilling Recommencing

Estrella Resources Limited ( ASX: ESR ) ( Estrella or the Company ) is pleased to announce that drilling activity at its Orion Project within the Company’s Agustina tenement is recommencing. The renewed drilling will be targeting to penetrate the mineralised core of the large IP Anomaly at the Orion prospect (see Figure 1).

1.1 Orion Drilling

Following the completion of the recent maiden drilling program, Estrella retained Zonge Ingeniería y Geofisica (Chile) S.A, a recognised Chilean based geophysical consultancy firm ( Zonge ), to undertake an independent geophysical appraisal of the IP Anomaly at the Orion Prospect.

Data from the recently drilled and announced Hole ORI-03 was used to ‘ calibrate ’ the remodelling of the Project’s geophysical data. The geophysical report from Zonge confirmed the prospectivity of the Orion Prospect and they strongly recommended that additional drilling be undertaken at the Orion IP Anomaly target.

Based on the analysis to date, Estrella believes that Hole ORI-03 entered the top of the mineralised zone at the IP Anomaly target. However, the 60[o] drilling angle appeared to have caused the hole to exit the ‘ mineralised zone’ prematurely without adequately testing its expected true extent.

Preparation for the proposed new drilling is currently underway. The new drilling area has been established which is situated further up the hillside from Hole ORI-03. Two holes will be initially drilled to the west and north of Hole ORI-03 (see Figure 2). These new holes have been designed to penetrate the mineralised core of the IP target. The first new hole is anticipated to be drilled during the first week of November 2012.

AUSTRALIA | CHILE

www.estrellaresources.com.au

ASX ANNOUNCEMENT[2]

Chile’s star in copper-gold

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Figure 1: Agustina tenement with prospects. The Anomaly target at Orion is situated in the south east of Agustina at Orion

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Figure 2: IP Anomaly at Orion and proposed drill hole location, note the drill hole inclinations will be steeper than depicted.

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2. Commentary

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

"The new geophysical analysis confirms our initial expectation that the IP Anomaly target is likely to be underlain by a significant IOCG system. As such, we are excited to be renewing our drilling exploration efforts.

“We look forward to the commencement of the new drilling program and we believe this program will adequately test the potential of the Agustina project. Results from this new drilling program are anticipated to be on hand and announced pre Xmas 2012.”

AUSTRALIA | CHILE

www.estrellaresources.com.au

ASX ANNOUNCEMENT[3]

Chile’s star in copper-gold

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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 four brownfields exploration projects in Chile: Agustina, Venus, Luna and Inca. 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. Pre - IPO exploration activities have identified a number of exploration targets. The Company has commenced an aggressive exploration program at Agustina where it is completing its maiden drill program. Estrella’s near term goal is to identify a JORC compliant resource by 1Q 2013.

Directors and Management

Dr. Jason Berton Managing Director Gavin Solomon Non-Executive Chairman

Julian Bavin Non-Executive Director

Simon Kidston Non-Executive Director

Juan Pablo Vargas de la Vega General Manager - Chile

ESTRELLA RESOURCES LIMITED ACN 151 155 207

ASX CODE: ESR

ORDINARY FULLY PAID SHARES: 87,101,000

UNLISTED OPTIONS: 7,205,000

Justin Clyne Company Secretary

AUSTRALIA | CHILE

www.estrellaresources.com.au