ESTRELLA RESOURCES LIMITED — Capital/Financing Update 2014

Aug 27, 2014

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ASX ANNOUNCEMENT

Chile’s star in copper-gold

28 August 2014

ESTRELLA RESOURCES LIMITED ACN 151 155 207

AUSTRALIAN REGISTERED OFFICE: Level 51 MLC Centre 19-29 Martin Place Sydney NSW 2000 Australia

CONTACT DETAILS: Email: admin@estrellaresources.com.au

High Grade Copper intersected at Estrella’s Colupo Norte Prospect

HIGHLIGHTS

Colupo Norte:

CHILE OFFICE: Santa Beatriz 294 Providencia, Santiago, Chile

ASX CODE: ESR

• High grade copper intersected from surface at Colupo Norte;

• Shallow RC drilling program intercepts at Colupo Norte include:

• 4 m @ 1.1% Cu from 1m (RCCN-02), including;  1m at 2.6% Cu from 3m; and

• o 2 m @ 1.1% Cu from 8m (RCCN-02), including;

  • 1m at 1.5% Cu from 9m.

• Two mineralised tourmaline breccias intersected near surface; and

• 125 m strike length identified and remains open along strike and depth. Colupo:

• Colupo shallow RC drilling identifies prospective tourmaline breccias; and

• Colupo maiden Mineral Resource due late September. Antucoya West:

• Large Porphyry Target drill testing ready at Antucoya West.

1. Introduction

Estrella Resources Limited ( ASX: ESR , Estrella or the Company ) is pleased to advise that it has now received the assay results from its initial 4 hole Reverse Circulation (RC) drilling program at the Colupo Norte prospect. Drilling has identified high grade copper mineralisation from surface and intersected two tourmaline breccias in the process. A strike length of 125m has been identified and mineralisation remains open along strike and depth.

In addition to the ongoing work at Colupo Norte, the Company is proceeding with obtaining its initial JORC resource at the Colupo Prospect and has undertaken a detailed review of all available data for its Antucoya West Prospect where the Company believes that there is a strong potential for a significant copper mineralised porphyry system beneath this zone

www.estrellaresources.com.au

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2. Colupo Norte

Estrella’s initial 4 hole RC drilling program has identified high grade copper mineralisation from surface at the Colupo Norte Prospect within Estrella’s flagship project, Altair. Estrella’s exploration team is pleased to report that its systematic and targeted approach has been successful in identifying further Colupo-style high grade copper mineralisation commencing near-surface.

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Mineralisation trend
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Figure 1: Trenches at Colupo Norte where shallow drilling has identified high grade copper mineralisation commencing at surface within two tourmaline breccias.

Assay results from the initial drill program have been received which demonstrates that all mineralisation is hosted within two tourmaline breccias (refer Table 1 below).

Table 1: Colupo Norte assay summary using 0.2% Cu cut-off. Note, all mineralisation is host within Tourmaline Breccias.

Hole ID	Easting	Northing	RL	EOH	Azimuth	Dip	From (m)	To (m)	Interval	Cu%
RCCN-01 400,988 7,517,317 2075 24 230 -70							2	8	6	0.4
							9	10	1	0.4
RCCN-02 400,981 7,517,410 2075 26 230 -70							1	5	4	1.1
incl							3	4	1	2.6
							8	10	2	1.1
incl							9	10	1	1.5
RCCN-03 400,983 7,517,383 2075 20 230 -70							1	4	3	0.4

(Coordinates in PSAD56, zone19s)

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Table 2: Colupo Norte assay results summary without using a copper grade cut. Note, all intersections are within tourmaline breccias.

Hole ID	Easting	Northing	RL	EOH	Azimuth	Dip	From (m)	To (m)	Interval	Cu%	Cu ppm
RCCN-01 400,988 7,517,317 2075 24 230 -70							0	13	13	0.2
							18	23	5	0.2
RCCN-02 400,981 7,517,410 2075 26 230 -70							0	10	10	0.8
RCCN-03 400,983 7,517,383 2075 20 230 -70							0	5	5	0.3
							8	12	4	-	658
							14	17	3	-	881

(Coordinates in PSAD56, zone19s)

The Colupo Norte Prospect is 2.8 km north northwest of the Colupo Prospect with both Prospects having easy vehicle access. Estrella’s exploration team identified copper oxide mineralisation at Colupo Norte in January 2014 (refer ASX announcement 28 January 2014). The initial interest in Colupo Norte followed regional hyperspectral image processing that Estrella undertook across the Altair Project and identified similar alteration zones expressed at surface to those observed at Colupo. Subsequent mapping of trenches at Colupo Norte revealed one tourmaline breccia with copper oxide in a similar fault setting to Colupo. The hyperspectral work identified numerous other similar alteration zones which Estrella’s exploration team is currently assessing with field visits.

The purpose of the RC drill program at Colupo Norte was to cost-effectively penetrate the ‘Caliche’ gravel cover to identify occurrences of tourmaline breccias and test the near-surface mineralisation potential of the copper oxide. Three of the four holes drilled at Colupo Norte intersected mineralised tourmaline breccias as shown in Tables 1 and 2. Three drill holes were drilled to 20 metres depth, with the maximum depth drilled to 26 metres (hole RCCN-02). The fourth hole was drilled in the opposite direction to test the dip direction of the tourmaline breccias. No mineralisation was intersected and the dip was confirmed to be to the northeast.

Estrella is greatly encouraged by the results from the shallow RC drill holes because holes RCCN-01, 02 and 03 each intersected two mineralised tourmaline breccias (where previously only one was thought to occur) along a 125 metre strike length. The system remains open along strike and at depth.

The hyperspectral image processing technique has identified approximately a dozen other targets within the same 30 km trend along the Buey Muerto Fault Zone (BMZ) upon which both Colupo and Colupo Norte are situated. Estrella’s exploration team is rapidly assessing each target in the field to be ready for drill testing in October. Some of the targets identified lie within Estrella’s 100% owned tenements and will be announced to the market once the field program is completed and all information has been collated.

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Figure 2: Strong copper oxide mineralisation within a tourmaline breccia from surface at Colupo Norte.

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Figure 3: Locality map of Estrella’s Altair Project in Region II, northern Chile (Map Datum WGS84 Zn19s).

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3. More Tourmaline breccias identified at Colupo

Assay results have also been received for the 21 shallow RC drill holes from the program at Colupo. Several holes successfully intersected tourmaline breccias with anomalous copper and molybdenum values. The purpose of the drilling program was to identify tourmaline breccias near to the known extents of mineralisation but concealed by the ‘caliche’ gravel cover. Mineralisation at Colupo is host within the tourmaline breccias with the first objective being to locate the breccias. All drill holes were drilled to only 20 metres deep to conserve costs and avoid unnecessarily drilling long intercepts of non-prospective volcanic rocks. It is unlikely that every breccia will host high grade mineralisation within the first few metres although it can occur (for example, high grades at Colupo Norte in hole RCCN-02). Consequently, any detection of tourmaline breccias is considered highly prospective and requires deeper drilling to test their metal content.

Assay results for the non-prospective volcanic units at Colupo are typically below 80 ppm. The best anomalous intervals detected within the prospective tourmaline breccias were in holes RCBC-017 and RCBC-018 (800 ppm Cu) (see Table 3). Estrella will further test this zone to see if it is a displaced section of the main WNW trending mineralised tourmaline breccias. It is important to note that in Table 2, similar anomalous values were detected in hole RCCN-03 at Colupo Norte to the anomalous values detected in tourmaline breccias at Colupo (approximately 800 ppm), where just 27 metres away, high grade copper grades were intersected in hole RCCN-02 within the same tourmaline breccias.

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Figure 4: Colupo drill plan layout showing follow up tourmaline breccia zones identified by the shallow RC drill hole campaign (Map Datum WGS84, zn19s).

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Table 3: Copper oxide anomalies in tourmaline breccias intersected by shallow RC drill holes at Colupo.

**Hole ID **	**Easting **	**Northing **	**RL **	EOH	**Azimuth **	**Dip **	From (m)	To (m)	Interval	Cu ppm
RCBC-01	402,223	7,514,634	1910	20	0°	-90°	8	10	2	355
							10	12	2	425
RCBC-08	401,884	7,514,539	1910	20	190°	-70°	14	16	2	800
RCBC-012	401,918	7,514,591	1910	20	120°	-70°	16	18	2	397
RCBC-017	401,864	7,514,454	1910	20	210°	-70°	0	2	2	761
							2	4	2	542
RCBC-018	401,862	7,514,455	1910	20	120°	-70°	0	2	2	485
							2	4	2	789
							4	6	2	556
							10	12	2	432
RCBC-019	401,974	7,514,606	1910	20	120°	-70°	6	8	2	444

(Coordinates in PSAD56, zone19s)

The combination of identifying several more Tourmaline Breccias at Colupo and Colupo Norte highlights the potential for Estrella to extend the known mineralisation at these prospects and discover more prospects with high grade nearsurface occurrences in a similar geological setting. Continued exploration success will greatly assist Estrella’s objective of eventually extracting the ore for economic purposes.

4. Colupo progressing to Mineral Resource and Exploration Target

The next step along Estrella’s path to becoming a copper producer is progressing to a maiden JORC 2012 Mineral Resource statement for Colupo. Estrella expects to release the resource statement in late September 2014, which will include both a Mineral Resource statement and an Exploration Target.

5. Antucoya West porphyry target

In August, Estrella reviewed all geological data obtained from the recent 38 RC hole porphyry detection program (refer ASX announcement 5 August 2014) with respect to the geophysical dataset across Antucoya West and the Antucoya mine development (owned by Antofagasta Minerals PLC, LON:ANTO). Estrella’s recent exploration activity at Antucoya West has been highly successful in identifying mineralisation, increasing understanding of the geology and the relevance of all the geophysical responses, which has boosted the project’s porphyry prospectivity.

Estrella’s exploration team has concluded following the review that the highest ranked porphyry target lies 1000 metres to the northeast of hole RCAW019. Estrella believes that there is strong potential for a significant copper mineralised porphyry system beneath this zone. Based on the MT inversion depth slices (see Figure 7) copper sulphide mineralisation is expected to commence at approximately 150 metres beneath the surface, copper oxide mineralisation is expected between the surface and 150 metres.

In summary, Estrella believes in the strong potential and has selected the porphyry target zone location because of:

• The large ‘washed-out’ anomaly between two magnetic highs (La Negra Volcanics) is similar to the ‘washedout’ zone over Antucoya (not Estrella owned) (see Figure 4);

• The extensive presence of Cu-Copiapite and Jarosite oxidation located above a strong pyrite zone;

• Typically, copper sulphides such as Chalcopyrite emit chargeability responses around 25 to 35 msecs. Estrella currently believes that the chargeability responses consistent with Chalcopyrite lie immediately adjacent to the pyrite zones (see Figure 5) and

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• The Magnetotelluric ( MT ) inversion model (Figure 6) indicates that the Chalcopyrite target zone commences at about 150 metres depth.

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Figure 5: Airborne Magnetics image (ASVI) over Antucoya West overlaid with mapped geology, mineralisation related oxidation extents and copper oxide intercepts from the recent 38 RC hole detection program by Estrella in June-July 2014 (Map Datum WGS84 Zn19s).

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Figure 6: Vector IP image over Antucoya West overlaid with mapped geology, mineralisation related oxidation extents and copper oxide intercepts from the recent 38 RC hole detection program by Estrella in June-July 2014 (Map Datum WGS84 Zn19s).

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Figure 7: MT inversion model 100m depth slice over Antucoya West overlaid with mineralisation related oxidation extents and copper oxide intercepts from the recent 38 RC hole detection program by Estrella in June-July 2014 (Map Datum WGS84 Zn19s).

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6. Commentary

Commenting on the exploration progress across the Altair Project, Estrella's Managing Director, Dr. Jason Berton, said:

“Estrella has been successful at generating high quality prospects through diligent and cost effective exploration.

As an exploration company Estrella is in a unique position to potentially develop multiple near-surface high copper grade prospects of the Colupo area into a mining district as well as potentially unveil a large localised porphyry system at Antucoya West”

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

Independent Non-Executive Chairman: -Robert Thomson Independent Non-Executive Director: -Julian Bavin

ESTRELLA RESOURCES LIMITED ACN 151 155 207

ASX CODE: ESR

ORDINARY FULLY PAID SHARES: 108,278,728

UNLISTED OPTIONS: 12,380,000

Managing Director -Dr. Jason Berton Company Secretary -Justin Clyne

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JORC Code, 2012 Edition – Table 1 report template

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Sampling		Nature and quality of sampling (eg cut		Sample recoveries for reverse circulation were
techniques		channels, random chips, or specific		systematically recorded. The sampling of RC drilling
		specialised industry standard measurement		cuttings was undertaken at intervals of two meter by
		tools appropriate to the minerals under		reduction of the drill cuttings with a Jones riffle splitter
		investigation, such as down hole gamma		to provide approximately 60kg of RC cuttings per 2m
		sondes, or handheld XRF instruments, etc).		interval. Approximately 20kg of <10# coarse reject
		These examples should not be taken as		material is stored on site for reference.
		limiting the broad meaning of sampling.		The sampling procedures included two reduction of
		Include reference to measures taken to		the drill cutting with the Jones riffle splitter for the
		ensure sample representivity and the		sample to be analyzed and for the duplicate, the ticket
		appropriate calibration of any measurement		identification, the cutting box labeling and the bag
		tools or systems used.		labeling of RC samples in the field area and selection
		Aspects of the determination of mineralisation		of field duplicates were carried out.
		that are Material to the Public Report.		The RC drilling cuttings samples were transported to
		In cases where ‘industry standard’ work has		the facilities of ALS Chemex, an international certified
		been done this would be relatively simple (eg		Laboratory in Antofagasta. The cutting boxes and
		‘reverse circulation drilling was used to obtain		pulps of all samples are stored for logging and
		1 m samples from which 3 kg was pulverised		reference in the temporal warehouse of the company
		to produce a 30 g charge for fire assay’). In		at Maria Elena town, II Region, Chile.
		other cases more explanation may be		Photography of cutting box were performed at the
		required, such as where there is coarse gold		Maria elena Company facilities.
		that has inherent sampling problems. Unusual
		commodities or mineralisation types (eg
		submarine nodules) may warrant disclosure
		of detailed information.
Drilling		Drill type (eg core, reverse circulation, open-		The RC drilling method was down-the-hole hammer
techniques		hole hammer, rotary air blast, auger, Bangka,		drilling and the most frequently used hammer bit was
		sonic, etc) and details (eg core diameter,		5¾” diameter, although occasionally 5½” bits were
		triple or standard tube, depth of diamond tails,		also used. Shallow hole were drilled ranging from 20
		face-sampling bit or other type, whether core		to 66m depth. The objective of this drilling campaign
		is oriented and if so, by what method, etc).		was to investigate and intersect targets zone below
				the caliche cover, defined by surface geological
				mapping, surface rock chip anomalies and XRF
				surface anomalies zones in conjunction with structural
				potentially mineralized corridor and chargeability and
				resistivity VIP survey results.
Drill sample		Method of recording and assessing core and		Standard splitting and sampling protocols were
recovery		chip sample recoveries and results assessed.		implemented.. RC cuttings are reduced by riffle
		Measures taken to maximise sample recovery		splitting in the field to 25% of the original drilled
		and ensure representative nature of the		interval. Sample protocols included sample duplicates
		samples.		for RC (25% of total) at ~5% of total samples
		Whether a relationship exists between		RC samples weight data capture for recovery has
		sample recovery and grade and whether		been systematically implemented at the drilling site.
		sample bias may have occurred due to
		preferential loss/gain of fine/coarse material.
Logging		Whether core and chip samples have been		All RC cuttings are logged on site immediately after
		geologically and geotechnical logged to a		drilling, and geologists carried out a Quick Logging
		level of detail to support appropriate Mineral		1:1000 scale for preliminary geological interpretation.
		Resource estimation, mining studies and		The Quick Log captures lithology contrast, general
		metallurgical studies.		alteration type and relevant ore mineralization. Paper
		Whether logging is qualitative or quantitative		RC Quick logs are filed on site and data is input into
		in nature. Core (or costean, channel, etc)		the pdf database.
		_photography. _		The entire drill hole cuttings are detailed logged at

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
		The total length and percentage of the		1:100 scale. The logging scheme and logging sheet
		relevant intersections logged.		reflects the local geology in data capture. Standard
				logging and coding sheets were created for this work,
				a single person imposed consistency on the logging
				and coding processes. The holes mapped have
				complete data records that include lithology, alteration
				associations, degree and texture, mineralization type
				and minerals, intensity, relative abundance in
				percentage, texture and occurrence type and
				interpreted faulting.
				The mapping system, is undertaken on paper logging
				forms and data capture has been migrated to digital
				capture on the Excel database Once all analysis of
				RC sample at 2m support is completed mineralization
				coding will be locally revised to include the
				mineralogy as continual infill drilling progresses.
Sub-sampling		If core, whether cut or sawn and whether		Samples from the current program are prepared and
techniques and		quarter, half or all core taken.		analyzed at ALS Chemex Laboratories (ALS) in
sample		If non-core, whether riffled, tube sampled,		Antofagasta, II Region, Chile. The ALS laboratory
preparation		rotary split, etc and whether sampled wet or		holds ISO 9001:2008 and ISO 17025 certification and
		dry.		is independent of the company and its subsidiaries.
		For all sample types, the nature, quality and		Samples were typically dried, crushed to 70% passing
		appropriateness of the sample preparation		-2 mm, and pulverized to 85% passing -0.075 mm.
		technique.		Pulverized samples were assayed for 33 elements by
	 	Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. Measures taken to ensure that the sampling		atomic emission spectroscopy/inductively-coupled plasma (ICP-AES) using the ALS ME-ICP61 method which comprises near-total, four acid digestion, followed by HCl dilution and ICP-AES determination.
		is representative of the in situ material
		collected, including for instance results for
		field duplicate/second-half sampling.
		Whether sample sizes are appropriate to the
		grain size of the material being sampled.
Quality of		The nature, quality and appropriateness of		Mechanical Sample preparation was undertaken by
assay data and		the assaying and laboratory procedures used		ALS Chemex in a sample preparation facility installed
laboratory tests		and whether the technique is considered		in Antofagasta. Preparation procedures followed the
		partial or total.		following mechanical preparation steps: Drying at
		For geophysical tools, spectrometers,		105°C; Primary crushing in a “Rhino” jaw crusher to
		handheld XRF instruments, etc, the		70% passing <10# Tyler; Homogenization and
		parameters used in determining the analysis		reduction by Jones Riffle Splitter Pulverizing to 85%
		including instrument make and model,		passing <150# Tyler; Splitting to 2 sample pulp bags
		reading times, calibrations factors applied and		of approx. 500 g each.
		their derivation, etc.		One certified standard reference material were
		Nature of quality control procedures adopted		inserted each 20 samples in the sample pulps stream
		(eg standards, blanks, duplicates, external		during the Company drilling campaign at ALS
		laboratory checks) and whether acceptable		Chemex facilities in Antofagasta. New bar codes
		levels of accuracy (ie lack of bias) and		sequence for pulps stream were generated and
		precision have been established.		registered in the excel database and printed.
				Correlations between cutting samples and new bar
				codes were registered at the excel database and
				printed. A complete set of original pulps with bar
				codes is storage at ALS facilities. One certified
				GEOSTATS standard were used for Copper
				reference. Low grade copper standard (code Std Cu
				GbM301-4) nominal value: 0,165% CuT. Blanc
				material consist of quartz was inserted each 40
				meters at ALS facilities for approximately the 2,5% of
				the sampled material in the drilling campaign. ALS
				customarily inserts pulp duplicates, blanks and
				reference materials in the assay batches.
				The laboratory is clean and well run, with a full-time
				chemist supervising operations. Based on a shift

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
				seven days per week.
Verification of		The verification of significant intersections by		Assay data are supplied electronically by ALS, and
sampling and		either independent or alternative company		uploaded into the spread sheet. Additionally ALS
assaying		personnel.		provides an access controlled server data base were
		The use of twinned holes.		the results could be revised and/or downloaded.
		Documentation of primary data, data entry
		procedures, data verification, data storage
		(physical and electronic) protocols.
		Discuss any adjustment to assay data.
Location of		Accuracy and quality of surveys used to		The local coordinate system employed for collar
data points		locate drill holes (collar and down-hole		location is PSAD56 19S in UTM projections. The
		surveys), trenches, mine workings and other		collar locations of all holes are surveyed using
		locations used in Mineral Resource		standard GPS method.
		estimation.
		Specification of the grid system used.
		Quality and adequacy of topographic control.
Data spacing		Data spacing for reporting of Exploration		Drill hole collars were at irregular intervals, at
and distribution		Results.		approximately 50m spaces. No attempt should be
		Whether the data spacing and distribution is		made to establish geological continuity at Colupo
		sufficient to establish the degree of geological		Norte at this early stage of exploration. Additionally it
		and grade continuity appropriate for the		is too early to infer that the tourmaline breccias
		Mineral Resource and Ore Reserve		identified at Colupo will progress to Miineral Resource
		estimation procedure(s) and classifications		category without further drill testing.
		applied.		2 metre sample intervals were used at Colupo and 1
		Whether sample compositing has been		metre sample intervals were used at Colupo Norte.
		applied.
Orientation of		Whether the orientation of sampling achieves		Distrital scale structures are a key factor in the
data in relation		unbiased sampling of possible structures and		localization of potential and observed mineralization in
to geological		the extent to which this is known, considering		the project area. Faults are highly significant aspects
structure		the deposit type.		of the project geology.
		If the relationship between the drilling		The property is located along the Buey Muerto Fault
		orientation and the orientation of key		Zone a north-northwest trending fault splay which
		mineralized structures is considered to have		control the location of Antucoya Porphyry deposit, as
		introduced a sampling bias, this should be		a part of a 3 to 15km wide zone of inter-related faults
		assessed and reported if material.		of the major regional, north-south trending, sinistral
				strike-slip Atacama Fault Zone, which was active
				during the Early Cretaceous, that extends for much of
				the length of the Coastal Cordillera. The Buey Muerto
				Fault Zone exhibit a 40 km length trace and contribute
				to lithological contact between the Upper Jurassic
				plutonic batholith to the west with the upper Jurassic-
				Cretacic volcanic sequences to the east. The syn-
				mineralization structures are likely to have controlled,
				the localization of intense fracturing and emplacement
				of hydrothermal alteration. The interpreted local
				structures in Colupo and Colupo Norte are significant
				in control of the limonite-altered outcrops
				emplacement and in hosting oxide copper
				mineralization occurrences showing a degree of
				continuity in the north north west-south south east
				direction.
				The RC drilling campaign included 21 holes (inclined
				and vertical) to 20m depth at Colupo and 4 holes
				inclined at Colupo Norte.
Sample		The measures taken to ensure sample		Samples were transported by ALS using transport
security		security.		services trucks
				and personnel, and were securely locked at the ALS
				Labs. Chain-of-custody procedures consisted of filling

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
				out sample submittal forms that accompanied the
				sample shipments to confirm that all samples were
				received by the laboratory. Sample security consisted
				of locking samples, once collected, in the field camp
				compound prior to delivery to ALS. This level of
				security is considered industry standard for early-
				stage exploration programs.
				Sample rejects and Pulps are currently stored at ALS
				in a secure environment. Company sampling data are
				stored in an Excel spread sheet.
Audits or		The results of any audits or reviews of		Assay results were found to remain well beneath 5%
reviews		sampling techniques and data.		deviation from reported lab results when compared
				with duplicate samples.

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Mineral		Type, reference name/number, location and		The Altair project under Option Agreement with SQM
tenement and land tenure status		ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.		and is comprised of 444 tenements known as ‘Pertenencia’s’ which are registered with and maintained by SQM and with no encumbrances. Estrella holds 100% ‘metals’ rights with SQM maintaining 49% ‘clawback’ upon completion of a
		The security of the tenure held at the time of		prefeasibility study. Royalty commitments have been
		reporting along with any known impediments		previously published in ASX announcements.
		to obtaining a licence to operate in the area.
				There are no native title interests, historical sites,
				national parks, wilderness or environmental settings
				to Estrella’s knowledge.
Exploration		Acknowledgment and appraisal of exploration		SQM drilled 15 RC holes at Colupo in 2010-2011, the
done by other parties		by other parties.		results of this have been released to the ASX by Estrella on multiple occasions See ASX
				announcements; 18 March 2013, 11 Nov 2013, 3
				Dec 2013, 18 March 2014.
Geology		Deposit type, geological setting and style of		Mineralization of the project and other deposits in the
		mineralisation.		region are part of the Stratabound family of deposits.
				Porphyry Cu (Mo), Copper bearing veins and IOCG
				type deposit could be found in the District. Strata-
				bound Cu- (Ag) deposits, long known as ‘Chilean
				manto-type’, occur along the Coastal Cordillera of
				northern Chile (22º-30ºS) hosted by Jurassic and
				Lower Cretaceous volcanic. The mineralisation took
				place at the time of structurally controlled
				emplacement of batholiths within the Mesozoic
				volcanic and sedimentary strata. The volcanic-hosted
				strata-bound Cu- (Ag) deposits invariably occur distal,
				but peripheral to coeval batholiths emplaced within
				tilted Mesozoic strata. The prevalent view that these
				deposits have an inherent genetic relationship with
				hydrothermal fluid derivation from sub volcanic stocks
				and dykes is contended here. The strata-bound Cu-
				(Ag) mineralisation appears to be produced by fluids
				of mixed origin that were mobilized within permeable
				levels and structural weakness zones of the Mesozoic
				arc-related volcano-sedimentary sequence during the
				emplacement of shallow granodioritic batholiths under
				transtensional regimes.
				Theproject exhibits alteration- limonitic outcrops and

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
				copper old mining works are present in the area.
				Structures are mostly NS and EW trending faulting
				and fracturing zones from 300 to 400m long. Copper
				high grades ores concentrate in rich sub-vertical
				zones, pockets and tourmaline quartz breccias zones
				along and between these structures zones, separated
				by low-grade sections of other tourmaline breccias
				and dacitic host rocks.
				Silicification, propylitic alteration and chloritization
				occur within and around these copper bearing
				breccias and pockets which exhibits local quartz-
				sericitic alteration, and extend some metres into the
				wall rocks. The supergene paragenetic sequence of
				the largest breccia is magnetite-quartz-tourmaline-
				pyrite-(chalcopyrite)–hematite-calcite and (chalcocite)
				atacamite and chrysocolla.
			The supergene copper minerals fill fractures and
			openings, either as irregular and discontinuous veinlets or
			semi-massive pockets with cummular and brecciated
			textures, or as fine dissemination. The structure of the
			Cu-bearing breccias is regular and continuous within
			_structural zones. _
Drill hole		A summary of all information material to the		A summary for all Material holes of this
Information		understanding of the exploration results		announcement is provided in the results tables:
		including a tabulation of the following		Tables 1, 2 & 3.
		information for all Material drill holes:
		o easting and northing of the drill hole collar
		o elevation or RL (Reduced Level –
		elevation above sea level in meters) of the
		drill hole collar
		o dip and azimuth of the hole
		o down hole length and interception depth
		o hole length.
		If the exclusion of this information is justified
		on the basis that the information is not
		Material and this exclusion does not detract
		from the understanding of the report, the
		Competent Person should clearly explain why
		this is the case.
Data		In reporting Exploration Results, weighting		No use of weighted averaging, no maximum grade
aggregation		averaging techniques, maximum and/or		cut, the minimum grade cut is 0.2% Cu for Table 1,
methods		minimum grade truncations (eg cutting of high		and no metal equivalent reporting was performed.
		grades) and cut-off grades are usually
		Material and should be stated.
		Where aggregate intercepts incorporate short
		lengths of high grade results and longer
		lengths of low grade results, the procedure
		used for such aggregation should be stated
		and some typical examples of such
		aggregations should be shown in detail.
		The assumptions used for any reporting of
		metal equivalent values should be clearly
		stated.
Relationship		These relationships are particularly important		There is insufficient information at this stage to
between		in the reporting of Exploration Results.		determine true width.
mineralisation		If the geometry of the mineralisation with
widths and		respect to the drill hole angle is known, its
intercept		nature should be reported.
lengths		If it is not known and only the down hole
		lengths are reported, there should be a clear
		statement to this effect (eg ‘down hole length,
		_true width not known’). _
Diagrams		Appropriate maps and sections (with scales)		Provided in this announcement.
		and tabulations of intercepts should be

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
		included for any significant discovery being
		reported These should include, but not be
		limited to a plan view of drill hole collar
		locations and appropriate sectional views.
Balanced		Where comprehensive reporting of all		All material results have been reported, including
reporting		Exploration Results is not practicable,		high, medium and low grades.
		representative reporting of both low and high
		grades and/or widths should be practiced to
		avoid misleading reporting of Exploration
		Results.
Other		Other exploration data, if meaningful and		Section 5 of this announcement refers to substantive
substantive		material, should be reported including (but not		geophysical data.
exploration		limited to): geological observations;
data		geophysical survey results; geochemical
		survey results; bulk samples – size and
		method of treatment; metallurgical test
		results; bulk density, groundwater,
		geotechnical and rock characteristics;
		potential deleterious or contaminating
		substances.
Further work		The nature and scale of planned further work		Further work programs have been discussed in this
		(eg tests for lateral extensions or depth		announcement, including Mineral Resource and
		extensions or large-scale step-out drilling).		Exploration Target schedule for Colupo and follow up
		Diagrams clearly highlighting the areas of		drilling areas for each project.
		possible extensions, including the main
		geological interpretations and future drilling
		areas, provided this information is not
		commercially sensitive.

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