ESTRELLA RESOURCES LIMITED — Capital/Financing Update 2012

May 8, 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

9 May 2012

Commencement of Drilling Program

HIGHLIGHTS

• Estrella successfully lists on the ASX, oversubscribed and ahead of schedule;

• Maiden 2,000m drill program commences at the Agustina Project’s Orion prospect on 9 May 2012;

• Trenching, mapping and sampling at Agustina Project’s Centauri prospect is to commence mid May 2012;

• Reconnaissance sampling of artisanal workings along the Luna-Inca Projects structural corridor is continuing.

ASX CODE: ESR

1. Estrella Resources

Estrella Resources Limited ( ASX. ESR ) ( Estrella or the Company ) is an Australian-based Chilean-focused company investing in and developing copper-gold projects in Chile, the world’s largest copper producer.

Estrella has four Projects that it believes are highly prospective for coppergold mineralisation. They are:

• Agustina;

• Venus;

• Luna; and

• Inca.

The Company’s objective is to harness its strong “in-country, on-ground” technical presence in Chile to identify and develop mining projects for near term production for the benefit of its shareholders.

2. Initial Public Offering

Following its recent successful A$6 million Initial Public Offering (IPO) which closed early and over-subscribed, Estrella is now listed on the Australian Securities Exchange under the code “ESR”.

Estrella raised the majority of the IPO proceeds from Australian and Asian institutional investors as well as from Australian retail investors who participated via introductions from leading Australian stockbroking firms.

The majority of funds raised from the IPO are to be spent on exploration at the Company’s four projects.

AUSTRALIA | CHILE

www.estrellaresources.com.au

ASX ANNOUNCEMENT[2]

Chile’s star in copper-gold

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3. Exploration Program

Estrella has identified a number of ‘drill ready’ targets and has planned an aggressive exploration strategy to test these anomalies. Estrella’s initial and immediate exploration priorities are:

• Drilling the Agustina Project’s Orion prospect;

• Conducting a trenching program at the Agustina’s Project’s Centauri prospect; and

• Filed sampling along the Luna-Inca corridor.

3.1 Orion

Orion is located on the South Eastern side of the Agustina Project. See figure 1 below. A diamond drill rig has been located to the Orion prospect at Estrella’s flagship Agustina Project where a maiden 6 hole 2,000 metre drilling program has commenced. The program should take approximately 8 weeks to complete.

The drill program has been designed to test the extent of mineralisation beneath the small scale artisanal workings that currently exist at Orion. The program will also test a significant geophysical anomaly that has been identified by an induced polarisation (IP) survey that was conducted in January 2012. Details of the IP anomaly can be seen in Figures 2 and 3 below.

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Figure 1: The Orion Prospect is located within Estrella’s flagship project, Agustina.

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Figure 2: The Agustina IP survey (in plan view) with grab samples and structural trends overlaid.

600 m

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----- Start of picture text ----- 300 m----- End of picture text -----

Figure 3: Show a high anomalous response from surface to 300m depth.

AUSTRALIA | CHILE

www.estrellaresources.com.au

ASX ANNOUNCEMENT[3]

Chile’s star in copper-gold

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The aim of the drill program is to test the continuity of the already identified geological mineralisation beneath existing underground mine adits and the significant induced polarisation (IP) anomaly at Orion. See figures 2, 3 and 4. The IP results show an anomalous zone 300m deep from surface, 600m wide and extending in excess of 1.5km in length. These drill holes will be oriented at 55[o] to 60[o] either towards the east or to the west. The objective is to test the true thickness and repetitions of mineralised structures.

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Figure 4: Shows the proposed drill hole locations and the directions that they will be drilled. It also shows the trends of mineralised structures and IP anomalies that the program is designed to test.

AUSTRALIA | CHILE

www.estrellaresources.com.au

ASX ANNOUNCEMENT[4]

Chile’s star in copper-gold

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3.2 Centauri

Estrella’s work at the Centauri prospect involves trenching, mapping and soil sampling of existing mine adits. This area was chosen as a high priority target after initial grab sampling of tailings at the prospect returned grades of up to 69.5g/t Au. Trenching at Centauri is expected to begin mid May 2012.

3.3 Luna-Inca

Estrella’s work along the Luna-Inca corridor involves mapping and soil sampling over a 20 kilometre zone. Figure 5 below shows a map of the Inca and Luna projects. It also shows existing prospects and the major structural trend.

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Figure 5: Map showing the Inca and Luna Concessions and the major geological structures found at the Projects.

3.4 Drilling Results

The extent and nature of further field work at Orion, Centauri and Luna-Inca will depend on the results of current exploration programs. Assuming the current indications from third party providers remain accurate, Estrella anticipates the following program of exploration result announcements:

News flow:	Anticipated dates:
Luna & Incagrab sample results:	June 2012
Centauri trench samplingresults:	Mid-June 2012
Drill results from Orion	July2012 – September 2012

AUSTRALIA | CHILE

www.estrellaresources.com.au

ASX ANNOUNCEMENT[5]

Chile’s star in copper-gold

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Once the initial drill sample results have been announced, Estrella anticipates new result announcements on a regular basis until completed.

Commentary

Estrella’s Managing Director, Dr. Jason Berton, who is currently on the ground in Chile said:

“Despite a difficult climate for equity raisings, Estrella has closed its IPO offer two weeks early and oversubscribed. The success of the Estrella IPO augurs well for our shareholders and their investment in our Company.

A key goal of Estrella’s is to fast track our projects to production. In order to achieve this, Estrella has carefully selected what it believes are highly prospective projects that are located within proximity to mining infrastructure. We have also established a strong ‘on-ground’ presence and ‘incountry’ skills.

Estrella’s Agustina project is ‘drill ready’. Early exploration activities have identified encouraging sampling results and a large IP anomaly at Estrella’s flagship project, Agustina. Estrella has embarked on an aggressive drill program to test this anomaly.

I am excited about the future of our company and look forward to progressing the projects for the benefit of our shareholders.’’

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 intends to undertake an aggressive exploration program in 2012. 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 Justin Clyne Company Secretary

ESTRELLA RESOURCES LIMITED ACN 151 155 207

ASX CODE: ESR

ORDINARY FULLY PAID SHARES: 87,101,000

UNLISTED OPTIONS: 7,205,000

AUSTRALIA | CHILE

www.estrellaresources.com.au