ESTRELLA RESOURCES LIMITED — Capital/Financing Update 2013

Dec 2, 2013

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ASX ANNOUNCEMENT

Chile’s star in copper-gold

3 December 2013

ESTRELLA RESOURCES LIMITED ACN 151 155 207

AUSTRALIAN REGISTERED OFFICE: Level 7, 15 Castlereagh Street Sydney NSW 2000 Australia

CONTACT DETAILS: Telephone: +61 2 9993 4478 Facsimile: +61 2 9993 4433 Email: admin@estrellaresources.com.au

CHILE OFFICE:

Pedro de Valdivia 555 Piso 11 (Oficina 1101) Santiago, Chile

Continuing High Grade Copper drilling results at Colupo

HIGHLIGHTS

• Assay results received for final 5 holes of initial drilling campaign at Colupo Prospect

• High grade copper again intersected beneath known mineralised breccia:

• More than doubles the previous known depth in the eastern zone to at least 120 m from surface

ASX CODE: ESR

• Confirmed northeast extension zone of mineralised breccias to at least 120 m strike length

• Best additional mineralised breccia intersections include:

• 8 m @ 1.1% Cu from 126 m (hole RCC06) including:

  • 3 m @ 2.5% Cu, 0.15 g/t Au & 20.3 g/t Ag

• 6 m @ 0.8% Cu from 102m (hole RCC06) including:

  • 3 m @ 1.2% Cu

• 5 m @ 0.7% Cu from 55m (hole RCC07)

1. Colupo Assay Results

Estrella Resources Limited (ASX:ESR) ( Estrella or Company ) is pleased to report that the assay results for the final five Reverse Circulation ( RC ) holes have been received from the initial drilling campaign at the Colupo Prospect. High copper grades were intersected over significant thickness in hole RCC06.

2. Colupo Drilling Results

Eight RC drill holes were angled between 60[o] and 70[o] inclinations, positioned perpendicular to strike and designed to intersect mineralised breccias at depth. The intersected breccias outcrop at the surface and are projected downwards to all the drill hole intersections.

Estrella’s first four holes (RCC01 to RCC04 - refer ASX announcement 11 November 2013) confirmed that the mineralised breccias start from surface and extend to at least 220 m, likewise 4 of the remaining holes have continued to intersect mineralised breccias that commence from the surface.

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ASX ANNOUNCEMENT

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The purpose of the location of holes RCC06 and RCC07 was to test the continuity of mineralisation intercepted by hole RCC03 (e.g. 7 m @ 1.0% Cu from 87 m - refer ASX announcement 11 November 2013) and extension of then identified mineralisation depth. The strike-length continuity of the extension of the northeast trending breccia is at least 120 m as confirmed by hole RCC06 (including 6 m @ 0.8% Cu from 102 m) ( Figure 1 ) and hole RCC07 (including 5 m @ 0.7% Cu from 50 m) .

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Figure 1: Oblique SE (left) to NW (right) trending cross section of hole RCC06 at Colupo with drill holes, average grade intervals and >0.5% Cu (red) and >0.2% Cu (purple) copper mineralisation shells (see Figure 2 for cross section line location) (Datum PSAD1956 zone 19s).

Additionally, Hole RCC06 intersected high grade copper (6 m @ 1.4% Cu from 126 m) beneath a high grade mineralised breccia previously identified from SQM’s historical drilling (refer ASX announcements 18 March 2013 – hole ARCO-10 23 m @ 1.0% Cu from 23 m ). RCC06 has now extended the known depth of this high grade breccia to beyond 100 m. In this eastern zone, SQM’s historical holes ARCO-06, ARCO-08 and ARC0-10 each intersected mineralised breccias that remain open to mineralisation along strike and at depth. This identified mineralised zone now requires diamond drilling to determine the breccia dips and how the breccias link from intersection to intersection (see Section 3 below). Further to this, surface mapping of SQM’s historical trenches observe copper oxide within breccias 50 m to the east ( Figure 2 ) that remain untested with drilling.

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ASX ANNOUNCEMENT

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Oblique section line
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Figure 2 - Colupo drilling program in relation to historical trenches by SQM and mapped occurrences of copper oxide within breccias. The gold lines denote the WNW trending mineralised breccias and the blue lines denote the NE trending breccias. The dashed red line denotes an inferred post-mineralisation fault, note that mineralised breccias have been mapped on either side of the fault.

A 3 dimensional ore mineralisation shell model using a 0.2% Cu cut-off is presented in Figure 3 below to illustrate how:

• The increase in known mineralisation depth extent in the eastern zone is over 120 m and it remains open at depth;

• The lateral mineralisation extents of both the eastern and north eastern zones remains open;

• The potential to further link surrounding surface exposed mineralised breccias with mineralised breccias intersected deeper down drill holes; and

• The mineralised system remains open at depth and extension.

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ASX ANNOUNCEMENT

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Surface breccia
Oblique section line
Known mineralised
depth extent prior
to Estrella drilling
RCC01 Drill hole
trace to south, not
Eastern extension zone east and has not
remains untested tested eastern
zone
Breccias intersected at depth in
Eastern zone – potential link to
surface breccias. Open at depth
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Figure 3. The 3-dimensional ore shell model for Colupo using a 0.2% Cu cut-off grade. View is to the southwest. This figure illustrates the breccia system is open to the east and northeast with outcropping mineralised breccias potentially linking to intersected mineralised breccia and significantly increases in the depth extent of mineralisation. The red line represents the trend of the cross-section in Figure 1.

Holes RCC05 and RCC09 were drilled to test down-dip continuity of mineralisation previously intersected by hole RCC04 (refer ASX announcement 11 November 2013). Whilst mineralised breccias were observed in both RCC05 and RCC09 the ore body appears to be offset in this zone by a post-mineralisation fault structure that trends to the northeast. Estrella is currently trenching across the strike of this proposed fault to establish the precise location of the western side of the high grade mineralised breccias.

Hole RCC08 was drilled to test a geophysical anomaly at depth for potential deeper mineralisation to a separate system than holes RCC01 to RCC07 and RCC09 that was prospective according to the magnetotelluric dataset. Whilst trace amounts of pyrite and chalcopyrite were observed in hole RCC08 rock chips, no data of significance can be reported.

Estrella’s future exploration at Colupo will now focus more on observed breccias rather than geophysical anomalies.

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ASX ANNOUNCEMENT

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Table 1: A summary of the assay results from holes RCC01 to RCC09 at Colupo is set out below (using a cut-off of 0.3% Copper):

Hole_ID	Coordinates(PSAD56)	Coordinates(PSAD56)	RL	EOH	Dip	Azimuth		From	To	Interval	Copper	Gold	Silver
	East	North						(m)	(m)	(m)	%Cu	g/t Au	g/t Ag
RCC01	402081	7514511	1910	210	-60	180	10 16 6 0.7
	Incl 12 15 3 1.1
								34 37 3 0.5
	43 56 13 0.4 Incl 47 51 4 0.6
								53 55 2 0.5
RCC02	402089	7514579	1910	200	-70	180		7 10 3 0.5
								118 122 4 0.4
	144 158 20 0.9 Incl 150 153 3 3.4
RCC03	402096	7514638	1910	200	-60	130		41 44 3 0.3
								52 54 2 0.5
								87 94 7 1
RCC04	402033	7514550	1910	230	-60	180		12 31 20 2.4
	Incl 23 26 6 6.6 0.5 27.1
								56 62 6 0.4
								102 108 6 0.4
	115 122 7 0.5 Incl 116 119 3 0.7
	131 147 16 1.5 Incl 131 137 6 1.6 0.2 7.5 Incl 141 147 6 2.2 0.2 11.8
RCC05	402008	7514595	1910	250	-60	180		91 96 5 0.3
								197 199 2 0.4
RCC06	402067	7514616	1910	200	-60	146		102 108 6 0.8
	Incl 104 107 3 1.2
	125 133 8 1.1 Incl 127 130 3 2.5 0.15 20.3
RCC07	402140	7514653	1910	199	-60	130		50 55 5 0.7
								194 196 2 0.3
RCC09	402050	7514600	1910	257	-60	180		83 89 6 0.4
								101 103 2 0.5
								184 186 2 0.3
								195 199 5 0.5 0.2

The initial 9 hole drilling program now fully reported only extends across a 3 hectare area within the 2,650 hectare total exploration area of the Colupo Prospect. A follow up diamond core drilling program is now being immediately undertaken to substantially increase the mineralisation foot print at Colupo.

3. Next Steps

Estrella will now commence a diamond core drilling program at Colupo later this month (December 2013). To date only RC holes have been drilled at Colupo and Estrella now desires enhanced detailed geological information from diamond core to increase the geological knowledge of the this area within the Colupo Prospect.

The diamond core drilling program should determine:

• Strike and dip of the structural contacts to assist validating the current geological model;

• Geometrical nature of the multiple breccia system and subsequent mineralisation;

• Deeper extensions of multiple mineralisation zones; and

• True width thicknesses of each mineralisation zone.

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ASX ANNOUNCEMENT

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The mineralisation style at Colupo continues to appear consistent with nearby Manto/breccia deposits such as Michilla (66.7 Mt @ 1.57% Cu) and Mantos de la Luna (40.5 Mt @ 1.39% Cu) (both not owned by Estrella). This is due to the minerals already observed and geological setting of mineralisation.

Estrella considers the follow up diamond drilling program as a necessary and immediate step towards determining the inaugural Exploration Target and potentially the inaugural inferred resource according to the revised standards of the JORC 2012 Code.

For Table 1 of the JORC 2012 related to the drilling program in this announcement please refer to Table 1 of the Appendix to Estrella’s 11 November 2013 ASX announcement.

4. Commentary

Commenting on the exploration success at Colupo, Estrella's Managing Director, Dr. Jason Berton, said:

“The latest assay results from the northeast and eastern zones of Colupo again extend the known mineralisation beyond previous extents and remains open for further testing.

The initial drilling program has been very successful for Estrella. Naturally, as is common in the Atacama Fault zone, all mineralisation at Colupo is controlled by a network of faults and fractures. Diamond drilling is the next step to quantitatively measure the controls on the ore body to provide Estrella with the data to increase our geological understanding and move the Prospect forward in an expeditious manner.

Estrella will recommence exploration activities in December 2013 by diamond core drilling and looks forward to bringing more updates to shareholders in the short term.

Estrella takes great comfort that the initial 9 hole drilling program has supplemented and grown upon the dataset from the historic SQM drilling activities, the aeromagnetics acquired by Estrella and the on ground geophysics that we have already completed at Colupo.

Colupo is continuing quickly upon the desired path to becoming a highly prospective, near term target for Estrella.”

Competent Person’s Statement

Exploration information in this announcement is based upon work undertaken by Dr. Jason Berton, the Managing Director and a fulltime employee 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 2012 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. 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 Justin Clyne Company Secretary

ESTRELLA RESOURCES LIMITED ACN 151 155 207

ASX CODE: ESR ORDINARY FULLY PAID SHARES: 96,601,000 UNLISTED OPTIONS: 11,130,000

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