ESTRELLA RESOURCES LIMITED — Capital/Financing Update 2013

May 6, 2013

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ASX ANNOUNCEMENT

Chile’s star in copper-gold

7 May 2013

ESTRELLA RESOURCES LIMITED ACN 151 155 207

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

POSTAL ADDRESS: PO Box R514 Royal Exchange NSW 1225 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

ASX CODE: ESR

Exploration update at the Altair Project including acquisition of airborne data

HIGHLIGHTS

• Estrella secures airborne magnetic and radiometric dataset over approximately 80% of Altair Project

• Significant information, cost and time benefits allowing Estrella to fast track exploration efforts at Altair

• Altair exploration program commenced

1. Introduction

Estrella Resources Limited (ASX:ESR) ( Estrella or the Company ) is pleased to advise that as part of its due diligence process, it has located and secured access to airborne geophysical magnetic and radiometric data over approximately 80% of the Altair Project (including over the Dania, Ivannia and Colupo brownfields prospects) excluding only the north-western corner of Altair.

The airborne data provides Estrella with significant exploration advances, time and cost savings. Given Altair’s size, the undertaking to generate airborne geophysics over the whole of the project area would have been prohibitively expensive.

Fortunately, airborne data covering 80% of Altair was generated by a third party during a large regional survey program. Estrella has entered into a license agreement with that third party to access this data for a minimal license fee.

Estrella is now uniquely positioned as the only company to possess both security of exploration tenure plus historical airborne and in-ground data over the extensive Altair grounds.

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ASX ANNOUNCEMENT

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2. Altair Project (Altair)

The Altair Project (including Dania, Ivannia and Colupo) is located 90 km NNE from Antofagasta and covers 2,655 km[2] (265,510 hectares) of tenement along the Atacama Fault Zone. (See Figure 1)

Figure 1: Chile Location Map

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ASX ANNOUNCEMENT

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As part of its due diligence process over the past few months, Estrella, together with SRK Consulting (SRK) have identified 11 highly prospective target zones within Altair for follow-up exploration, as shown in Figure 2.

Figure 2: The Altair Project showing the locality of the 11 highly prospective target zones

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3. Geology & Mineralisation – Altair Project

The Altair Project lies in the Coastal Iron Oxide Copper Gold ( IOCG ) belt of Chile. The region contains rocks of Palaeozoic and Mesozoic age which occur as a series of N-S striking plutonic and volcanic belts. The Mesozoic plutonic complexes are emplaced into similarly aged volcanic arc successions. The underlying metasedimentary units and granites are of Palaeozoic age. Large regional scale fault systems including the AFZ are found within the Altair project area.

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ASX ANNOUNCEMENT

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Regionally, there are several known mineralisation systems nearby to Altair which are summarised in table 1 below and illustrated in Figure 3. Significantly all three brownfield projects are within a 20 km radius of Antofagasta Minerals’ Antucoyca Project (Antucoya), which has a Resource of 642 Mt of 0.35% Cu.

Table 1: Known mineralisation systems nearby to Altair.

Deposit	Company	Ore Resource	Mineralisation style	Location
Michilla	Antofagasta Minerals	66.7 Mt @ 1.57% Cu	Manto	40km west of Altair south
Antucoya	Antofagasta Minerals	642 Mt @ 0.35% Cu.	Porphyry	5km from Altair north
Toyaku	Pucobre and Codelco	na	Manto	Borders Altair north
Los Mantos Blancos	Anglo American	372.6 Mt @0.48% Cu	Manto	10 km east of Altair
Mantos de la Luna	Private	na	Manto	10 km east of Altair

Figure 3: Mines and development projects nearby Altair Project.

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4. Colupo Prospect

The Colupo Prospect (Colupo) covers 873 ha. Historical exploration by SQM consisted of surface mapping, trench mapping and sampling, and Reverse Circulation ( RC ) drilling.

Locally, Colupo features mineralised tourmaline breccias interfingered within volcanic rocks (La Negra Formation) situated between intersecting NNE to NE and NW trending faults. These fault structures occur throughout the region, extending from Antucoya, over Dania and Ivannia, and continue beyond Colupo.

As reported in Estrella’s ASX announcement dated 18 March 2013, in 2010-2011 SQM drilled 15 RC holes to a limit of 70 m vertical depth which returned significant high grade copper results including:

• 31 m @ 1.39% Cu from 28 m (ARCO 02)

• 22 m @ 0.98% Cu from 28 m (ARCO 10)

• 39 m @ 0.63% Cu from 1 m (ARCO 11)

• 8 m @ 1.34% Cu from 55 m (ARCO 11)

• 35 m @ 0.60% Cu from 6 m (ARCO 08)

The drill hole locations and mapped geology can be viewed in plan in Figure 6. Drilling results with geological interpretation can be viewed in cross-sections in Figures 4, 5, 6 and 7. Significantly, gold assaying has not been performed by SQM for the drilling undertaken at Colupo and, accordingly, Estrella has retrieved sample pulps preserved from previous drilling and is currently assaying them for gold.

Highlights from the cross sections at Colupo include:

• Contains high grade copper, mineralised from surface at an average grade of 0.99% Cu

• Understood well in terms of most prospective geological setting (sub-vertical breccias ‘cut’ into the La Negra Formation)

• Has potential to be more extensive than currently known

• Open at depth below 70 m

• Continuity between cross-sections and remains open along strike

• Likely deep source to mineralisation

Advanced mineralogical work has also been undertaken by SQM which provides important steps in understanding metallurgical properties at Colupo. These include:

• Petrological (polished and thin-section) analysis

• Copper total sample results (CuT) from ICP-MS

• Copper soluble results (CuS) from atomic absorption

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Figure 4: Colupo plan view geological map with RC drill hole codes, collar locations and azimuth direction. The blue lines denote cross-section profiles for Figures 7, 8 & 9. The mineralisation trend is illustrated by the green arrow.

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Trenches
Section 402125E
Section 402075E
Section 402100E
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Figure 5: Colupo Prospect - Profile 402100E Displays copper mineralisation commences at surface and has only been tested to a vertical depth of 70 m. Further, mineralised repetitions have also been intersected and require further drill testing. (Cu T- Copper total, Cu S- Copper soluble)

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50 m
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Figure 6: Colupo Prospect - Profile 402075 E This profile demonstrates continuity of mineralisation along strike and further occurrences of mineralised repetitions from surface and mineralisation open beyond 70 m vertical depth.

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Figure 7: Colupo Prospect - Profile 402125 E This profile demonstrates continuity of mineralisation along strike and mineralisation open beyond 70 m vertical depth.

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5. Dania Prospect

The Dania Prospect (Dania) covers 1,476 ha that hosts a copper, molybdenum and gold mineralised porphyry system however it also features andesites and volcanic agglomerates from the La Negra Formation and remains open to Colupo style mineralisation (see Figure 8).

Figure 8: The drill hole locations at Dania targeted the porphyritic rocks in the eastern zone and not the volcanics of the La Negra Formation or the breccias nearer to the fault system (as at Colupo). Significant Colupo style targets remain untested at Dania.

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ASX ANNOUNCEMENT

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SQM conducted an exploration program in 2010-2011 at Dania which focussed on porphyry mineralisation style targets similar to mineralisation at Antucoya. 19 RC drill holes were drilled (to a maximum depth 200m) for a total of 1,961 metres.

Detailed mapping was performed, which also identified several occurrences of volcanic units and breccias proximal to faults extending from Antucoya, however these zones were not tested with mechanical drilling or surface sampling. Estrella considers these zones at Dania and Ivannia to be compatible with the mineralisation at Colupo and will be followed up with further exploration activity.

6. Ivannia Prospect

The Ivannia Prospect (Ivannia) covers 1,000 ha and is similar to Dania in that it is also prospective for a copper, molybdenum and gold mineralised porphyry system.

SQM conducted an exploration program in 2010-2011 at Ivannia (focussed on porphyry mineralisation style targets) which consisted of 28 shallow RC drill holes (to a maximum depth 110 m) for a total of 1,870 metres and 8 deeper RC holes (150 to 300 m depth) for a total of 1,860 metres.

7. Altair Project –Exploration Program

SRK is currently reviewing all SQM data on the entire Altair Project with particular emphasis on the brownfields Dania, Ivannia & Colupo prospects in conjunction with the newly acquired airborne magnetic and radiometric data. SRK is also assisting Estrella with the preparation and planning of the exploration program which has now commenced.

In summary, the exploration data from SQM on Altair consists of:

• 70 RC drill holes across Dania, Ivannia and Colupo (all drilled to shallow depth only)

• 1,900 geochemical samples from shallow RC drill holes. Major elements tested; Ag, Cu, Fe, Mo, Zn & Pb.

• Airborne magnetics and radiometric survey across approximately 80% of the Project (see attached image). Flight line spacing at 500 m and flown at 100 m elevation.

• Trenching at Dania, Ivannia & Colupo (with surface sample results).

• Petrological studies (polished & thin section) on Colupo & Dania.

• Copper testing; CuT (Copper total) determined from ICP-MS, CuS (copper soluble) determined from atomic absorption.

Gold assaying has not been previously undertaken for drilling at Colupo, which has shown the highest grade Cu intersections to date. Estrella has arranged for RC pulps from historical Colupo drilling to be taken to labs in Antofagasta for testing. The results are expected to be returned within the next few weeks.

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ASX ANNOUNCEMENT

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The exploration program will initially focus on identifying high priority target areas by incorporating the airborne geophysics data with the pre-existing historical dataset. A significant amount of work has already been undertaken to assess the prospectivities of various targets in Altair. It is expected that this exercise will refine the target areas and rank them specifically in terms of priority.

Following the identification of the high priority areas, additional infill ground geophysical surveys are expectedly to be taken immediately. The results in combination with other exploration data will form the basis of an initial RC drilling program at Altair. It is expected the initial drilling will be focused around the brownfields prospects in order to test the mineralisation extent at Dania, Ivannia and Colupo. Other high priority targets on Altair will also be tested with surface trenching and sampling.

The purpose of the exploration program is to evaluate and validate all existing exploration data to expand the target areas for drilling campaigns at Colupo and throughout Altair.

8. Commentary

Commenting on the access to airborne geophysical data that covers the majority of Altair, Estrella's Managing Director, Dr Jason Berton, said:

“Estrella is very excited by the addition of the airborne geophysics into the Altair Project exploration dataset. This greatly reduces Estrella’s initial exploration costs to effectively explore the entire Altair Project. Airborne magnetics will enable us to improve delineation between geological units and refine our structural geological knowledge throughout Altair.

The airborne geophysical data gives Estrella the ideal addition to the existing dataset, and will facilitate rapid identification and prioritisation of exploration targets within Altair.”

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. 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 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: 7,655,000

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