ESTRELLA RESOURCES LIMITED — Capital/Financing Update 2014

Apr 6, 2014

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ASX ANNOUNCEMENT

Chile’s star in copper-gold

07 April 2014

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: Santa Beatriz 294 Providencia, Santiago, Chile

ASX CODE: ESR

First Assays from Diamond Drilling Program at Dania identify near surface copper oxide to compliment Colupo

HIGHLIGHTS

• Estrella moves closer to discovering a “District” of complimentary, close proximity copper projects in northern Chile.

• Assays from the 1[st] diamond drill hole at Dania (DHD-01) identifies Copper Oxide intercepts from surface:

• 271m @ 0.14% Cu from surface; including

  • 54 m @ 0.3% Cu from surface including;

  • 17m @ 0.4% Cu from 10 m.

• ‘Vectors’ indicate hypogene mineralised zone target below DHD-01.

• Near surface system open to north, south and east.

• Mineralisation open at depth.

• Significant tonnage potential for near-surface CuOx resource to compliment Colupo.

1. Introduction

Estrella Resources Limited (ASX:ESR) ( Estrella or Company ) is pleased to report the assay results from its first diamond drill hole DHD-01 at Dania (see location map Figure 1 ).

Assay results are still pending for the second diamond drill hole DHD-02 at Dania which are due mid April 2014.

2. Assay results and significance

Hole DHD-01 was first drilled to 316.2 metres at an azimuth of 055[o] at an inclination of -75[o] .

Copper oxide (CuOx) mineralisation commenced from surface with a long interval of 54 metres that averaged 0.3% Cu including a 17 metre interval of 0.4% Cu from 10 to 27 metres. (refer Table 1 ). In total, the hole was mineralised for 271 m at an average grade of 0.14% Cu.

The near surface CuOx mineralisation is strong throughout the upper realms of the rhyolite dome unit. The assay results from DHD-01 are consistent with Estrella’s review of historical drilling of 19 RC holes by SQM.

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ASX ANNOUNCEMENT

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(Refer to ASX announcement 20 March 2014, which displayed CuOx mineralisation throughout the first 100 m from surface at Dania. References are made in this announcement to historical drilling results by SQM at Dania as previously announced to the ASX by Estrella on 18 March 2013 and 20 March 2014. The Company is not aware of any new information or data that materially affects these drilling results.)

It is expected that the higher grade hypogene zone lies beneath the upper layer of the CuOx and is yet to be penetrated.

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BMZ trend
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Figure 1: Location Map of Dania Prospect.

The combination of Estrella’s current drilling and historical RC drilling by SQM at Dania (see Figure 2 and Figure 3 ) has identified near surface oxide copper over a northwest trend covering 430 m with a width of 400 m and to depths varying between 50 m and 100 m. The system remains open in all directions except to the east where the contact with the unmineralised andesite unit has been established at surface and 298.4 m downhole in DHD-01.

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7508000
OPEN
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Figure 2: Surface drill plan layout for Dania including SQM’s historical RC collars and Estrella’s initial diamond core collars (Map datum: WGS84 zn19s).

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DHD-02
DHD-01
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Figure 3: 3D Model of the near surface Copper mineralisation at Dania (prepared by SRK) with 0.1% Cu shell (light green) to indicate the mineralised zone identified by SQM’s historical exploration. The red shells represent the rhyolite dome and the dacite dykes are in grey. Note the blue sections of the historical SQM RC holes were not assayed.

The assay results at depth ( Figure 4 and Table 1 ) in DHD-01 show several long intercepts grading 0.2% to 0.3% Cu. Geological observations confirm mineralisation has porphyry emplacement, structural controls and secondary enrichment .

As only two long diamond drill holes have been drilled at Dania, Estrella’s exploration team has not yet determined a definitive mineralisation model for Dania, however recognition of the interplay of three emplacement factors should facilitate further exploration success:

• i. The drill hole has intersected the outer pyrite shell and has characteristics comparable with the classic porphyry copper mineralisation model and appears to end above the mineralisation zone in the vertical plane;

• ii. Highest copper mineralisation zones relate to the structural controls from the sub-vertical faults of the Buey Muerto Fault zone;

• iii. Multiple mineralised porphyry intrusions have taken place along the BMZ and the potential exists to find many oxide and hypogene zones along the fault zone; and

• iv. Oxidation, leaching, remobilisation of copper and secondary enrichment.

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Table 1: Significant assay results for hole DHD-01 from the Dania prospect.

Hole_ID	Hole_ID	Coordinates (PSAD56)	Coordinates (PSAD56)	RL	EOH	Dip	Azimuth	From (m)	To (m)	Interval (m)	Copper	Comments
		East	North								%Cu
DHD01		402692	7508346	1580	316.2	-75	55	2	298	271	0.14	excludes 27.5 metres of dyke
						including		2	56	54	0.3	CuOx from 2 m below surface
						including		10	27	17	0.4
								72	75	4	0.2
								118	122	4	0.1
								161	171	10	0.13
								180	183	4	0.13
								192	194	3	0.2
								200	212	13	0.2
								Unmineralised dyke
								220	233	14	0.2
								Unmineralised dyke
								256	271	16	0.3	exit rhyolite at 299 m into eastern andesitic contact
								274	298	25	0.14
	Porphyritic Rhyolite ? Porphyritic Rhyolite

Figure 4: Dania Cross Section, 7,508,000N for DHD-01 – the near-surface CuOx results confirm the significant exploration potential for further near-surface CuOx. Further exploration is needed to test for a porphyry style ore shell at depth.

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3. Dania Location

Estrella’s Dania Prospect lies approximately 8 km south of Estrella’s Colupo Prospect and is only 9 km northnorthwest from the Antucoya Porphyry Deposit (owned by Antofagasta Minerals PLC). Antucoya (Seen in Figure 1 and Figure 5 ) is currently under development (USD1.9B) and due to produce its first copper cathode in April 2015 (source: Antofagasta Minerals PLC Investor Presentation 2013 titled “Antucoya Site Visit”).

All prospects and projects are linked via road access.

Estrella considers the Antucoya Deposit relevant to its own exploration activities in this region, in particular at Colupo, Dania and Antucoya West, as it demonstrates the potential for economic extraction of copper resulting from successful exploration.

With on-going exploration success, Estrella considers the Colupo, Dania, Ivannia and Antucoya West prospects ideally create a potential district of mining and production operations with facilities to be positioned in the optimal locality between all of these prospects.

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Figure 5: Estrella’s prospects Antucoya West, Dania, Colupo and Ivannia lie within Region II of northern Chile which is well populated with mining projects and infrastructure.

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Table 2: Collar table for SQM’s historical RC drill holes (ARDA1 to 19) and Estrella’s diamond drill hole program (of at Dania (Coordinates are in PSAD56 zn19s).

Hole ID	**EASTING **	NORTHING	RL	**AZIMUTH **	**DIP **	LENGTH	Date drilled	Hole type	Drilled by
ARDA-1	402662	7508355	1553	65	70	200	2010	RC	SQM
ARDA-2	402485	7508198	1567	245	70	60	2010	RC	SQM
ARDA-3	402441	7508180	1566	245	70	60	2010	RC	SQM
ARDA-4	402508	7508257	1568	245	70	80	2010	RC	SQM
ARDA-5	402617	7508397	1545	65	70	130	2010	RC	SQM
ARDA-6	402689	7508272	1544	65	70	100	2010	RC	SQM
ARDA-7	402797	7508352	1577	245	70	90	2010	RC	SQM
ARDA-8	402604	7508449	1548	65	70	120	2010	RC	SQM
ARDA-9	402599	7508343	1547	245	70	138	2010	RC	SQM
ARDA-10	402574	7508440	1550	245	70	102	2010	RC	SQM
ARDA-11	402602	7508497	1549	65	70	72	2010	RC	SQM
ARDA-12	402705	7508494	1574	245	75	125	2010	RC	SQM
ARDA-13	402919	7508648	1581	275	70	100	2010	RC	SQM
ARDA-14	402792	7508569	1590	230	70	108	2010	RC	SQM
ARDA-15	402540	7508561	1557	65	70	72	2010	RC	SQM
ARDA-16	402726	7508159	1550	245	70	150	2010	RC	SQM
ARDA-17	402835	7508226	1573	245	70	110	2010	RC	SQM
ARDA-18	402795	7508149	1566	65	70	90	2010	RC	SQM
ARDA-19	402393	7508470	1578	65	70	54	2010	RC	SQM
DHD-01	402692	7508346	1580	55	75	316.2	2014	DD	ESR
DHD-02	402600	7508430	1550	80	65	289	2014	DD	ESR

4. Commentary

Commenting on the Initial Diamond Drilling Program at Dania, Estrella's Managing Director, Jason Berton, said:

“The results from our first diamond drill hole at Dania have characteristics fitting with the classic porphyry model.

Through further exploration drilling Estrella is keen to progress the near-surface copper oxide potential at Dania as this style of mineralisation may provide a good compliment to the copper mineralisation already identified at the Colupo prospect.

Copper oxide mineralisation at both Dania and Colupo commences from surface and at this stage has the potential to develop into a joint heap-leach style mining project.

Thus Estrella is moving along the path to creation of a multi-faceted copper oxide “district” of projects in northern Chile.”

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ASX ANNOUNCEMENT

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Competent Person’s Statement

Exploration information in this announcement is based upon and fairly represents, information, supporting documentation and work undertaken by Dr. Jason Berton, the Managing Director and a full-time 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

Non-Executive Chairman: -Gavin Solomon

Non-Executive Directors: -Julian Bavin -Simon Kidston -Robert Thomson Managing Director -Dr. Jason Berton Company Secretary -Justin Clyne

ESTRELLA RESOURCES LIMITED ACN 151 155 207

ASX CODE: ESR

ORDINARY FULLY PAID SHARES: 96,601,000

UNLISTED OPTIONS: 12,380,000

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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	Commentary	Commentary
Sampling	 Nature and quality of sampling (eg cut		Core samples for Diamond Drilling
techniques	channels, random chips, or specific		were systematically recorded. HQ3,
	specialised industry standard		HQ, NQ3 and NQ size core was
	measurement tools appropriate to the		undertaken at intervals of one meter
	minerals under investigation, such as		by splitting longitudinally the half of
	down hole gamma sondes, or		the core for assay with a core cutting
	handheld XRF instruments, etc).		saw (SAW-01 ALS code), while the
	These examples should not be taken		other half is retained in the core box.
	as limiting the broad meaning of		The diamond core were sampled
	sampling.		under the company supervision at
	 Include reference to measures taken		the facilities of ALS Chemex, an
	to ensure sample representivity and		international certified Laboratory in
	the appropriate calibration of any		Antofagasta. The core boxes are
	measurement tools or systems used.		stored for logging and reference in
	 Aspects of the determination of		the warehouse of the company at
	mineralisation that are Material to the		Maria Elena town, II Region, Chile.
	Public Report.		Control of recovery percentage,
	 In cases where ‘industry standard’		Quick Logs, field core photos, RQD
	work has been done this would be		and cutting line pinstripe were
	relatively simple (eg ‘reverse		performed at the field.
	circulation drilling was used to obtain		_Photography of core box (_PHO-
	1 m samples from which 3 kg was		COR10_ALS code) and cutting_
	pulverised to produce a 30 g charge		process were performed at the Lab
	for fire assay’). In other cases more		facilities. The bag (40x60cm and
	explanation may be required, such as		0.3mm plastic bag) labeling of core
	where there is coarse gold that has		samples in the Lab and selection of
	inherent sampling problems. Unusual		field duplicates were carried out.
	commodities or mineralisation types		Approximately 2kg of <10# coarse
	(eg submarine nodules) may warrant		reject material is stored on the Lab
	disclosure of detailed information.		for reference. Pulps of all samples
			are stored for reference in the
			warehouse of the company.
Drilling	 Drill type (eg core, reverse circulation,		The drilling method was down-the-
techniques	open-hole hammer, rotary air blast,		hole diamond drilling with a Sandvik
	auger, Bangka, sonic, etc) and details		DE710 HEAVY-DUTY CORE
	(eg core diameter, triple or standard		DRILL, and the most frequently used
	tube, depth of diamond tails, face-		diamond drill bit was HQ (96 cm
	sampling bit or other type, whether		diameter) and NQ (75.7 cm
	core is oriented and if so, by what		diameter). Core barrels used include
	method, etc).		a 3 meter double tube type and a
			1.5m meter.
Drill sample	 Method of recording and assessing		Standard half cutting and sampling
recovery	core and chip sample recoveries and		protocols were implemented from
	results assessed.		the start of the Dania Project drilling
	 Measures taken to maximise sample		campaign. Diamond core are
	recovery and ensure representative		reduced by core cutting saw in the
	nature of the samples.		Lab to 50% of the original drilled
	 Whether a relationship exists		interval. Sample protocols included
	between sample recovery and grade		sample duplicates for diamond core
	and whether sample bias may have		(50% of total) at ~5% of total
	occurred due topreferential loss/gain		samples. Blank material(quartz) is

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Criteria JORC Code explanation

of fine/coarse material.

• Logging  Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

• Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

• The total length and percentage of the relevant intersections logged.

• Sub-  If core, whether cut or sawn and sampling whether quarter, half or all core taken. techniques  If non-core, whether riffled, tube and sample sampled, rotary split, etc and whether preparation sampled wet or dry.  For all sample types, the nature, quality and appropriateness of the sample preparation technique.

• Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

• Measures taken to ensure that the

Commentary

• inserted at ~2.5% of total samples.

• Recovery data capture has been systematically implemented at the cutting site as well as the weight data capture at the cutting site.

• All diamond cores are logged on site immediately after drilling, and geologists carried out a Quick Logging 1:5000 scale for samples selection to analysis id apply and preliminary geological interpretation. The Quick Log captures lithology, lithological contacts, alteration assemblages, mineralization and the mineral zones. Paper DDH Quick Logs are filed on site and data is input into the pdf database.

• The entire diamond drill core is detailed logged at 1:100 scales. The logging scheme and logging sheet 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, alteration type, intensity and occurrence style, mineralization type and minerals, intensity, relative abundance in percentage of ore minerals, texture and occurrence type of mineralization and interpreted relevant 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 core sample at 1m support is completed mineralization coding will be revised to perform the mineralogy description.

• Samples from the current program are prepared and analyzed at ALS Chemex Laboratories (ALS) in Antofagasta, II Region, Chile. The ALS laboratory holds ISO 9001:2008 and ISO 17025 certification and is independent of the company and its subsidiaries.

• Samples were typically dried, crushed to 70% passing -2 mm, and pulverized to 85% passing -0.075 mm using the ALS code PREP-31B.

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Criteria	JORC Code explanation	Commentary	Commentary
	sampling is representative of the in		Pulverized samples were assayed
	situ material collected, including for		for 33 elements by atomic emission
	instance results for field		spectroscopy/inductively-coupled
	duplicate/second-half sampling.		plasma (ICP-AES) using the ALS
	 Whether sample sizes are		ME-ICP61 method which comprises
	appropriate to the grain size of the		near-total, four acid digestion,
	material being sampled.		followed by HCl dilution and ICP-
			AES determination. In addition, all
			samples were assayed for Au using
			the ALS AuAA23. Selected samples
			were also assayed for Cu and Ag
			using the ALS ME-OG62 method,
			and for Au using the AA21 method,
			when assays by ALS method ME-
			ICP61, exceeded the analytical
			range.
Quality of	 The nature, quality and		Mechanical Sample preparation was
assay data	appropriateness of the assaying and		undertaken by ALS Chemex in a
and	laboratory procedures used and		sample preparation facility installed
laboratory	whether the technique is considered		in Antofagasta. Preparation
tests	partial or total.		procedures followed the following
	 For geophysical tools, spectrometres,		mechanical preparation steps:
	handheld XRF instruments, etc, the		Drying at 105°C; Primary crushing in
	parametres used in determining the		a “Rhino” jaw crusher to 70%
	analysis including instrument make		passing <10#; Homogenization and
	and model, reading times, calibrations		reduction by Jones Riffle Splitter
	factors applied and their derivation,		Pulverizing to 85% passing <200#
	etc.		Tyler; Splitting to 2 sample pulp
	 Nature of quality control procedures		bags of approx. 500 g each.
	adopted (eg standards, blanks,		Three certified standard reference
	duplicates, external laboratory		materials were inserted each 20
	checks) and whether acceptable		samples in the sample pulps stream
	levels of accuracy (ie lack of bias)		during the Company drilling
	and precision have been established.		campaign at ALS Chemex facilities
			in Antofagasta. New bar codes
			sequence for pulps stream were
			generated and 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. Three certified
			GEOSTATS standard were used for
			Copper and Gold reference. High
			grade copper standard (code Std Cu
			GbM399-5) nominal value: 2.94%
			CuT; low grade copper standard
			(code Std Cu GbM301-4) nominal
			value: 0,165% CuT and gold
			standard (code STD Au GLG908-4)
			nominal value: 0,0658 ppm Au.
			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

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Criteria	JORC Code explanation	Commentary
		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 seven
		days per week.
Verification	 The verification of significant	 Assay data are supplied electronically by
of sampling	intersections by either independent or	ALS, and uploaded into the spread sheet.
and	alternative company personnel.	Additionally ALS provides an access
assaying	 The use of twinned holes.	controlled server data base were the
	 Documentation of primary data, data	results could be revised and/or
	entry procedures, data verification,	downloaded. All the process of labelling
	data storage (physical and electronic)	and sampling at the Lab is labelled by bar
	protocols.	codes.
	 Discuss any adjustment to assay
	data.
Location of	 Accuracy and quality of surveys used	 The local coordinate system employed
data points	to locate drill holes (collar and down-	for collar location is PSAD56 19S in UTM
	hole surveys), trenches, mine	projections. The collar locations of all
	workings and other locations used in	holes are surveyed by an independent
	Mineral Resource estimation.	contractor using total station surveying
	 Specification of the grid system used.	methods. All survey certificates are held
	 Quality and adequacy of topographic	in the hard copy files for each drill hole
	control.	stored on site. Drill hole surveying for the
		2 holes drilled were surveyed with
		Gyroscope at 10m intervals.
		 The reproducibility of the survey methods
		is considered acceptable.
Data	 Data spacing for reporting of	 Not determinable at this stage of
spacing and	Exploration Results.	exploration.
distribution	 Whether the data spacing and
	distribution is sufficient to establish
	the degree of geological and grade
	continuity appropriate for the Mineral
	Resource and Ore Reserve
	estimation procedure(s) and
	classifications applied.
	 Whether sample compositing has
	been applied.
Orientation	 Whether the orientation of sampling	 Distrital and local scale structures are a
of data in	achieves unbiased sampling of	key factor in the localization of the
relation to	possible structures and the extent to	mineralized systems and units in the
geological	which this is known, considering the	project area. Faults and fractures zones
structure	deposit type.	and lithological contacts are highly
	 If the relationship between the drilling	significant aspects for the mineralization
	orientation and the orientation of key	emplacement.
	mineralised structures is considered	 The property is located along the Buey
	to have introduced a sampling bias,	Muerto Fault Zone an interpreted north
	this should be assessed and reported	west-south east trending fault splay
	if material.	which control the location of Antucoya
		Porphyry deposit, as a part of a 3 to
		15km wide zone of inter-related faults of
		the major regional, north-south trending,
		sinistral strike-slip Atacama Fault Zone,
		which was active during the Early

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Criteria	JORC Code explanation	Commentary
		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, to some degree, the
		localization of intense fracturing and
		emplacement of hydrothermal alteration.
		The local structures are significant in
		control of the rhyolite dome emplacement
		and in hosting oxide copper
		mineralization showing a good degree of
		continuity in the north north west-south
		south east direction.
		 Bedding has been observed within the
		volcanic rocks indicating a monoclynal
		attitude gently dipping to the north east.
		 The diamond drilling campaign included 2
		holes systematically inclined to the East
		(-70° to -75°) with an azimuth between 50
		and 90 degrees and 1 hole inclined to the
		South-West (-70°) with an azimuth of
		245.
Sample	 The measures taken to ensure	 Samples were transported by ALS using
security	sample security.	transport services (ALS code PKP-21)
		trucks and personnel, and were securely
		locked at the ALS Labs. Chain-of-custody
		procedures consisted of filling out core
		boxes submittal forms that accompanied
		the core shipments to confirm that all
		boxes were received by the laboratory.
		Sample security consisted of locking
		samples, once collected, in the Lab. 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	 Not relevant at this stage.
reviews	sampling techniques and data.

Section 2 Reporting of Exploration Results

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

Criteria	JORC Code explanation	Commentary
Mineral	 Type, reference name/number,	 Dania consists of 6 small scale mining
tenement	location and ownership including	permits (known as Pertenencia’s) held by
and land	agreements or material issues with	SQM. Estrella has a 4 year option
tenure status	third parties such as joint ventures,	agreement to explore the Dania

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Criteria	JORC Code explanation	Commentary
	partnerships, overriding royalties,	tenements, which was initiated 12 months
	native title interests, historical sites,	ago and has 3 years remaining.
	wilderness or national park and environmental settings.  The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	 Estrella holds 100% ‘metals’ rights with SQM maintaining 49% ‘clawback’ upon completion of a prefeasibility study. Royalty commitments have been previously published in ASX announcements.
		 There are no native title interests,
		historical sites, national parks, wilderness
		or environmental settings to Estrella’s
		knowledge.
Exploration	 Acknowledgment and appraisal of	 SQM undertook exploration activities at
done by	exploration by other parties.	Dania throughout 2009 and 2010
other parties		consisting of surface trenching and
		sampling and drilled and sampled 19 RC
		holes (Table 1 in this announcement).
		 SQM sampled 55% of the total metres
		drilled using chemical analysis performed
		by CIMM Laboratories. Pulverized
		samples were assayed for 33 elements by
		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. No
		intervals were composited and sampled.
		45% of the metres drilled were not
		sampled however each metre drilled has
		been archived in rock chip cutting trays.
		Bag farms were not established at the
		drilling sites. Estrella has reviewed the
		archived rock chips to assist its
		exploration planning.
		 Estrella has used the assay results,
		geological logs, cross-sections and maps
		from SQM’s drilling program to assist in
		3D modelling, which is assisting Estrella’s
		exploration planning.
		 SQM’s historical exploration results have
		not been presented in this announcement
		to JORC 2012 standards because Estrella
		is still seeking: to establish Chain of
		Custody verification of SQM’s assay
		testing, QA/QC standard, blank and
		duplicate sampling techniques used.
Geology	 Deposit type, geological setting and	 A variety of copper deposits, including
	style of mineralisation.	Stratabound copper-(silver), porphyry
		copper deposits, copper bearing veins
		and IOCG type deposit could be found in
		the district and represent an Early
		Cretaceous metallogenic episode along
		the Coastal Cordillera from Peru to
		Central Chile.
		 The Antucoya porphyry copper deposit is
		located approximately 9 km SSE of Dania
		Project and is related to a succession of

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Criteria	JORC Code explanation	Commentary
		granodioritic and tonalitic porphyritic
		stocks and dykes that were emplaced
		within andesitic rocks of the Jurassic La
		Negra Formation. Copper-bearing ore
		occurs as disseminations in altered rocks
		and stockwork, and is hosted by
		granodioritic and tonalitic porphyries, and
		by magmatic to hydrothermal breccias, all
		within an area of 1600 x 1200 m.		The
		Antucoya porphyry copper system is
		indicated to have been formed following
		the change in the stress field along the
		magmatic arc from extensional in		the Late
		Jurassic to transpressive in the Early
		Cretaceous. The deposit is located
		immediately west of the Atacama		Fault
		_Zone. _
		 The granodiorite and tonalite porphyries
		have mutual intrusion relationships,
		suggesting they are either composite
		intrusions or that they were intruded
		almost simultaneously. Four hypogene
		hydrothermal alteration assemblages
		have been recognised at Antucoya,
		namely: potassic, mainly within the
		tonalitic porphyry, characterized by a
		biotite, K-feldspar and quartz
		assemblage; chlorite-sericite; quartz-
		sericite; and propylitic, restricted	to the
		volcanic host rocks of the La Negra
		Formation,
		Most of the hypogene orebody has been
		overprinted by a pervasive supergene
		argillic alteration assemblage. The
		supergene zone extends downward to
		depths of 300 to 350 m below the surface.
		The deposit is believed to contain: 300
		Mt at 0.45% total Cu (Maksaev et		al.,
		2006). Published reserve and resource
		estimates are as follows (Antofagasta
		PLC website, 2012): total measured +
		indicated resource at 31 December, 2010
		- 1.1534 Gt @ 0.28% Cu; plus; total
		inferred resource at 31 December, 2010 -
		0.3557 Gt @ 0.24% Cu.
		 The Dania project exhibits quartz-sericitic
		alteration; limonitic haematitic dominant
		and disseminated copper oxide
		mineralization in outcrops. Structures are
		mostly NNW-SSE and ENE-ESW trending
		faulting and fracturing zones from 500 to
		800m long. The Dania system is	related to
		an intrusion succession of porphyritic
		rhyolite dome type units and dykes that
		were emplaced within dacitic-andesitic
		rocks of the Jurassic La Negra Formation.
		Copper-bearing ore occurs as infill
		fractures, veinlets and disseminations in

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Criteria	JORC Code explanation	Commentary
		altered rocks and local stockwork, and is
		hosted by porphyritic rhyolite dome type
		unit, and by local hydrothermal breccia, all
		within an area of 800 x 800 m
		 The altered and mineralized porphyritic
		intrusions that occur at Dania, is
		characterized macroscopically by
		approximately of 25% of quartz eyes,
		rounded, broken and euhedral; 25%
		plagioclase phenocrysts (altered to
		sericite and K Feldspar) in a groundmass
		(50%) composed of a microcrystalline
		aggregate of quartz and sericitized
		feldspar, with chlorite and disseminated
		opaque minerals and minor relicts of
		chloritized fine-grained mafic. This
		porphyritic rhyolite contains a
		conspicuous fracturing some with oxidized
		copper minerals (atacamite, chrysocolla
		and copper wad), hematite and limonites
		(after sulphide), and some with late veins
		of calcite and opaque minerals. A
		stockwork of D	type veinlets and late
		calcite veins, as well as fractures coated
		by limonite and copper oxide minerals are
		present. The Porphyritic rhyolite units
		exhibits textural variations, suggesting
		they are either	composite intrusions or
		that they were intruded almost
		simultaneously.
		 The contact between the porphyritic
		rhyolite and the country rock, the dacite-
		andesite are occupied by hydrothermal-
		contact breccia in the current centre of the
		deposit. This breccia is also spatially
		related to NW-striking fault interpreted
		zone, A second hydrothermal-late quartz
		matrix breccia bodies has been identified
		in the west part of the deposit and has a
		matrix of silica and opaque minerals,
		hematite after sulphide where breccia
		fragments are angular to sub rounded and
		are composed of altered and mineralized
		_porphyritic rhyolite. _
		 The NNW-striking, post-mineralisation
		dykes are dark-grey, dacitic and
		porphyritic and	are composed of
		approximately by 25% plagioclase which
		are fresh or partly chloritized or with
		disseminated epidote. The country rock in
		the contact zone with the porphyritic
		rhyolite potassically altered is affected by
		weak potassic alteration (biotite), with
		partial chloritization.
		 Three hypogene hydrothermal alteration
		assemblages have been recognised at
		Dania, namely: i). potassic, mainly within
		the deep levels of theporphyritic rhyolite

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Criteria	JORC Code explanation	Commentary
		dome and the dacite-andesite country
		rocks, characterized by a K-feldspar and
		local fine biotite respectively; ii). quartz-
		sericite in the upper levels of the
		porphyritic rhyolite and intense fractured
		zones; andiii). chloritic; as a background
		alteration in the quartz – sericite zone and
		in the volcanic country rocks of the La
		Negra Formation, characterized by
		_chlorite, quartz, calcite and local pyrite. _
		 A dissemination and local stockwork of
		veins with pyrite and chalcopyrite and
		chalcocite with local quartz-sericitic
		haloes occurs in the uppermost part of the
		deposit.
		Partly of the hypogene orebody has been
		overprinted by a local supergene
		alteration with oxidation of sulphide to
		produce atacamite and chrysocolla,
		copper wad, jarosite, and limonite.
		 The exposed country rocks of La Negra
		Formation strikes approximately NS and
		dips at from 20 to 30°NE. It is composed
		of massive aphanitic to porphyritic dacite-
		andesites, locally with coarse-grained, tuff
		sequence. These units are masked by a
		layer of post-mineralisation gravel, partly
		cemented by nitrates (caliche) and
		regolith.
Drill hole	 A summary of all information	 See Table 1 of this announcement
Information	material to the understanding of the
	exploration results including a
	tabulation of the following
	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
	metres) 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,	 No weighted averages, no high grade cut,
aggregation	weighting averaging techniques,	mininimum cut 0.04%Cu.
methods	maximum and/or minimum grade
	truncations (eg cutting of high
	grades) and cut-off grades are
	usually Material and should be

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Criteria	JORC Code explanation	Commentary
	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	 Not determinable at this stage of
between	important in the reporting of	exploration.
mineralisatio	Exploration Results.
n widths and	 If the geometry of the mineralisation
intercept	with respect to the drill hole angle is
lengths	known, its nature should be
	reported.
	 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	 Provided in this announcement.
	scales) and tabulations of intercepts
	should be 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	 Provided in this announcement.
reporting	all Exploration Results is not
	practicable, 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	 No other substantive exploration data to
substantive	and material, should be reported	report.
exploration	including (but not limited to):
data	geological observations;
	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	 Assuming positive results from the current
	further work (eg tests for lateral	work, the second key issue can be tackled
	extensions or depth extensions or	which is more infill drilling to define the
	large-scale step-out drilling).	extents of the mineralized zones in depth
	 Diagrams clearly highlighting the	and their extension in the north-south
	areas ofpossible extensions,	favourable corridor, and determine the

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Criteria	JORC Code explanation	Commentary
	including the main geological	both the nature and location of boundaries
	interpretations and future drilling	between mineralization and porphyritic
	areas, provided this information is	rhyolite phases. There is evidence of
	not commercially sensitive.	mineralized drill holes from previous RC
		program of SQM.
		 Following the drill program, and assuming
		positive results, a new resource estimate
		will be carried out. It may be possible to
		include certain new geochemical analysis
		parameters within the data set and to
		interpolate this data into the block model,
		which could allow qualification of
		metallurgical ore types. Finally, grade
		blocks should be classified based on
		geostatistical properties to allow
		classification of ore into appropriate
		reporting categories.

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