ESTRELLA RESOURCES LIMITED - Capital/Financing Update 2016

==> picture [212 x 88] intentionally omitted <==

7 November 2016

ASX ANNOUNCEMENT

ESTRELLA TO ACQUIRE KEY W.A. LITHIUM PROJECT

HIGHLIGHTS

Lithium rights acquired over 129km[2 ] landholding in an emerging world class LCT pegmatite province
Numerous outcropping pegmatites identified occurring in several swarms with surface footprints and grades comparable with those of Mt Marion
Several pegmatite occurrences have strike lengths of over 500m at surface.
Grab Samples of exposed pegmatite from the historic Munda gold pit have returned grades of up to 3.37% Li2O
It is estimated that 58,000m of historic drilling has occurred on the project area which will provide a platform for analysis
Granted mining leases to enable short timeline to production
Project located within first-world jurisdiction and major mining district

==> picture [395 x 35] intentionally omitted <==

==> picture [395 x 36] intentionally omitted <==

Figure 1. Location of the MELP in relation to other significant LCT pegmatite projects in the region

==> picture [596 x 12] intentionally omitted <==

Office Address Suite 1503B Level 15, 1 Alfred Street New South Wales 2000 Australia Postal Address PO Box R933 Royal Exchange New South Wales 1225 Australia Phone +61 2 9078 7671 Email [email protected]

==> picture [153 x 63] intentionally omitted <==

Estrella Resources Limited (ASX:ESR) (Estrella or the Company), is pleased to announce the execution of an agreement for the acquisition of Mt Edwards Lithium Pty Limited (MELP), which holds 75% of the lithium rights to a group of tenements held by Apollo Phoenix Resources Limited (which holds the remaining 25% of the lithium rights).

The project consists of 17 tenements covering over 129km[2] on the highly prospective Widgiemooltha Dome.

The MELP is located centrally within what is emerging as a highly endowed and globally significant lithium province. The MELP location in relation to the other significant LCT pegmatite projects in the province is as follows:

2km east of the recent Goldfields Lithium Alliance (GLIA) Widgiemooltha project acquisition
2km south of Maximus Resources’ recent “high grade lithium discovery” at Spargoville
40km south of the Mt Marion Lithium project
40km SSE of the Londonderry Pegmatites and Lithium Australia’s Lithium Hill project
60km west of the Bald Hill Sn-Ta-Li project and Tawana Resources’ Cowan project
30km north of Pioneer Resources Limited Pioneer Dome Lithium project

Mt Edwards Lithium has discovered and sampled a number of outcropping pegmatite occurrences on the MELP that are highly anomalous. A grab sample from the historic Munda gold pit returned an assay of 3.37% Li2O. These samples were collected during a brief reconnaissance trip to the project from the pegmatites easily accessible by road. This leaves a vast majority of the pegmatites completely untested.

==> picture [468 x 42] intentionally omitted <==

==> picture [468 x 43] intentionally omitted <==

==> picture [468 x 42] intentionally omitted <==

==> picture [468 x 43] intentionally omitted <==

==> picture [468 x 42] intentionally omitted <==

Figure 2. Area of recent sampling by Mt Edwards Lithium showing the pegmatite outcrops in red and Li2O assay results with blue crosses. Results are in ppm unless stated otherwise. BD means Below Detection.

==> picture [578 x 12] intentionally omitted <==

==> picture [153 x 63] intentionally omitted <==

Table 1. Rock chip sampling details

Sample_ID	Zone	East	North	RL	B_ppm	Li_ppm	Nb_ppm	Ta_ppm	Li2O_ppm
36739	51J	360580	6513865	377	<20	1020	140	20	2196
36740	51J	360533	6513867	375	<20	1230	70	10	2648
36741	51J	360513	6513863	375	<20	75	70	10	161
36742	51J	359779	6514410	374	<20	15	<10	<10	32
36743	51J	359727	6514722	369	<20	280	120	15	603
36744	51J	360668	6514689	370	<20	60	65	20	129
36745	51J	360654	6514740	371	<20	280	130	150	603
36746	51J	360613	6514922	372	<20	90	65	30	194
36747	51J	360601	6515107	370	<20	60	105	70	129
36748	51J	358261	6514378	362	<20	<10	30	15	11
36749	51J	358116	6514264	362	<20	15	25	25	32
36750	51J	357981	6514448	360	<20	120	85	10	258
36751	51J	357933	6514680	355	<20	70	125	35	151
36752	51J	357915	6514683	354	<20	475	75	10	1023
36753	51J	357519	6514674	347	<20	25	15	<10	54
36754	51J	357519	6514674	347	<20	20	<10	<10	43
36755	51J	357548	6514855	347	<20	360	60	15	775
36756	51J	353908	6515772	350	<20	50	50	<10	108
36757	51J	356050	6516818	362	<20	25	30	<10	54
36758	51J	356050	6516818	362	<20	<10	<10	<10	11
36759	51J	355682	6516990	364	125	<10	<10	<10	11
36760	51J	360318	6516518	364	25	155	60	105	334
Munda Grab Sample(Bulk)	51J	360565	6513714	380					33680
Munda Grab Sample(Pink)	51J	360563	6513717	380					20490

==> picture [459 x 341] intentionally omitted <==

Figure 3. Example of a pegmatite rock chip sample location

==> picture [578 x 12] intentionally omitted <==

==> picture [153 x 63] intentionally omitted <==

Acquisition Terms

Estrella has entered into an agreement with the shareholders of Mt Edwards Lithium Pty Ltd to purchase Mt Edwards Lithium Pty Ltd which holds 75% of the lithium rights (and associated minerals) to the following tenements:

Table 2. Tenement Schedule

All tenements are based in Western Australia and the 75% interest in the lithium (and associated minerals) rights are collectively referred to as the Mt Edrwards Lithium Project.


Schedule of Miningand Exploration Tenements
Tenement ID	Area Km²	Grant Date
M15/698	4.2	22/12/1994
M15/75	5.7	10/11/1984
M15/699	3.4	23/12/1994
M15/87	3.6	26/07/1984
M15/74	9.3	10/11/1984
M15/101	9.6	23/07/1984
M15/99	9.8	23/07/1984
M15/653	10	28/01/1993
m15/97	6.8	23/07/1984
M15/96	8.4	23/07/1984
P15/4962	1.3	30/09/2008
M15/102	9.3	4/01/1985
M15/100	9.6	23/07/1984
M15/1271	4.8	2/07/2007
E15/1505	2	5/10/2016
E15/1507	15	Application
E15/1562	16	Application

The 25% interest in the lithium rights held by Apollo Phoenix Resources Pty Ltd will be free carried to decision to mine.

The material terms of the acquisition, which is subject to due diligence, are as follows:

Material Terms of agreement:

Consideration: 106,000,000 Estrella shares to be issued to the vendors of MEL or their nominees.
Estrella has agreed to pay a facilitator transaction fee associated with the acquisition of the project in the amount of 13,333,333 shares. The facilitator is not related to Estrella.
The replacement of one ESR director with a nominee of the vendors of MEL who is a mining industry executive.
Completion of the acquisition is subject to the following conditions precedent:
The execution of a mineral rights deed in relation to the lithium rights over the Apollo Phoenix Resources Pty Ltd tenements on terms acceptable to Estrella.
Due diligence being conduct by Estrella on MELP
Estrella shareholder approval for the issue of the consideration shares to the vendors and the issue of the capital raising shares to participants in the capital raising.

==> picture [578 x 12] intentionally omitted <==

==> picture [153 x 63] intentionally omitted <==

Proposed Capital Raise

Subject to shareholder approval Estrella proposes to raise $610,000 through the issue of 30,500,000 shares at $0.02 per share to provide additional capital to further exploration. Estrella has received firm commitments for this amount.

Use of Funds from Capital Raise

The Company had approximately $900,000 in cash as at 30 September 2016 and plans to raise a further $610,000 to be used in the exploration of the Mt Edwards Lithium project.

Preliminary work - Mt Edwards Lithium has located several hundred metres of pegmatite intersections in historical drill core produced in the 1980’s and 1990’s which was assessed for nickel and gold but not lithium. This core will be sampled at an early stage to identify key target areas. This work will be undertaken at the same time as comprehensive mapping of the tenement area and sampling of visible pegmatite areas. Cost approximately $100,000.

Intitial Programme – following the results from the preliminary exploration work the Company will undertake a reverse circulation (RC) drilling programme of approximately 4,000 metres to confirm the key lithium deposits identified in the preliminary work. Costs including assays are estimated at $500,000. These results will then be evaluated to determine how the mineralization can be efficiently exploited.

Table 3. Capital Structure Post Transaction and Capital Raise

		Shares on Issue

OrdinaryShares	Current	188,248,959

Project Acquisition		106,000,000

Capital raise	$610,000	30,500,000

Advisoryfee	$200,000	13,333,333

Post Transaction		338,082,292
	% increase shares	179.6%

Unlisted options 38,670,000 at variousprices and expirydates.

For more information, please contact:

Ray Shorrocks [email protected]

Competent Person Statement

The information in this announcement that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Luke Marshall, who is a consultant to Apollo Phoenix Resources Limited and a member of The Australasian Institute of Geoscientists. Mr Marshall has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that 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 Resource and Ore Reserves”. Mr Marshall consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

==> picture [578 x 12] intentionally omitted <==

APPENDIX 3 JORC TABLE 1 - JORC CODE, 2012 EDITION – TABLE 1 MELP

Section 1 Sampling Techniques and Data

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

Criteria	JORC Code explanation	Commentary
*Sampling*	Nature and quality of sampling (e.g. cut	The samples reported in this document are rock chip grab samples collected at surface
*techniques*	channels, random chips, or specific specialised	from outcropping pegmatite occurrences.
	industry standard measurement tools	This involved taking a random grab sample of approximately 3kg using a geological
	appropriate to the minerals under investigation,	hammer and numbered calico bag.
	such as down hole gamma sondes, or handheld
	XRF instruments, etc.). These examples should	These rock chip samples should not be considered to be representative samples of the
	not be taken as limiting the broad meaning of	pegmatite occurrences.
	sampling.	Drill testing is required to collect representative sample data through the pegmatites
		Samples were analysed by an industry standard crush and grind prep, a 4 acid digest, and
		ICP-MS or ICP-OES finish depending on the element being analysed
	Include reference to measures taken to ensure	No measures have been taken to ensure sample representivity at this stage as the project
	sample representivity and the appropriate	is in the very early stages of assessment.
	calibration of any measurement tools or systems
	used.
	Aspects of the determination of mineralisation	No determinations were made in this regard. Pegmatite occurrences were sampled and
	that are material to the Public Report.	assayed regardless of determination with regard to mineralisation.
	In cases where ‘industry standard’ work has	Rock chip samples were collected using a geological hammer and a calico bag to achieve
	been done this would be relatively simple (e.g.	a random grab sample.
	‘reverse circulation drilling was used to obtain 1	These samples are not considered to be representative of the pegmatites
	m samples from which 3 kg was pulverised to

==> picture [600 x 13] intentionally omitted <==


Criteria	JORC Code explanation	Commentary
	produce a 30 g charge for fire assay’). In other
	cases more explanation may be required, such
	as where there is coarse gold that has inherent
	sampling problems. Unusual commodities or
	mineralisation types (e.g. submarine nodules)
	may warrant disclosure of detailed information
*Drilling*	Drill type (e.g. core, reverse circulation, open-	Not applicable, no drill results are being reported
*techniques*	hole hammer, rotary air blast, auger, Bangka,
	sonic, etc.) and details (e.g. core diameter, triple
	or standard tube, depth of diamond tails, face-
	sampling bit or other type, whether core is
	oriented and if so, by what method, etc.).
*Drill*	Method of recording and assessing core and	Not applicable, no drill results are being reported
*sample*	chip sample recoveries and results assessed.
*recovery*
	Measures taken to maximise sample recovery
	and ensure representative nature of the
	samples.
	Whether a relationship exists between sample
	recovery and grade and whether sample bias
	may have occurred due to preferential loss/gain
	of fine/coarse material.
*Logging*	Whether core and chip samples have been	A log was collected for each sample, which included sample location, sample type, date
	geologically and geotechnically logged to a level

==> picture [600 x 13] intentionally omitted <==


Criteria	JORC Code explanation	Commentary
	of detail to support appropriate Mineral Resource	sampled, and sample condition.
	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 whether	Not applicable, no drill results are being reported
*sampling* *techniques*	quarter, half or all core taken.	Not applicable, no drill results are being reported
*and sample* *preparation*	If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry.	Sample condition field to record moisture and sample recovery is included in the sampling log sheet and populates the assay table of the database.
	For all sample types, the nature, quality and	Sample preparation is considered to be appropriate for rock chip sampling as per industry
	appropriateness of the sample preparation	standard practices.
	technique.
		No quality control procedures have been undertaken other than the laboratory’s own
	Quality control procedures adopted for all sub-	internal QAQC check and procedures.
	sampling stages to maximise representivity of
	samples.	Sample sizes may not be appropriate to the grain size of the material being sampled.
		Grain sizes of the pegmatites varied from 4mm to 25mm.
	Measures taken to ensure that the sampling is
	representative of the in situ material collected,
	including for instance results for field
	duplicate/second-half sampling.

==> picture [600 x 13] intentionally omitted <==


Criteria	JORC Code explanation	Commentary
	Whether sample sizes are appropriate to the
	grain size of the material being sampled.


*Quality of*	For geophysical tools, spectrometers, handheld XRF instruments,		No QAQC procedures have been put in place for the MELP given the
*assay data*	etc., the parameters used in determining the analysis including		very early stage of assessment.
*and* *laboratory* *tests*	instrument make and model, reading times, calibrations factors applied and their derivation, etc.		No geophysical methods or hand-held XRF units have been used for determination of grades in this announcement.
	Nature of quality control procedures adopted (e.g. standards, blanks,
	duplicates, external laboratory checks) and whether acceptable levels
	of accuracy (i.e. lack of bias) and precision have been established.
*Verification*	The verification of significant intersections by either independent or		Not applicable as no intersection are being reported
of	alternative company personnel.
*sampling*
*and*	The use of twinned holes.		Not applicable, no drill results are being reported
*assaying*
	Documentation of primary data, data entry procedures, data		Drill hole data were sourced from digital sources and original hard-
	verification, data storage (physical and electronic) protocols.		copy sampling and assay records, and imported into a central
			electronic database. Datashed software is used to validate and
			manage the data.
	Discuss any adjustment to assay data.		Li2O was calculated as Li x 2.153.
*Location of*	Accuracy and quality of surveys used to locate drill holes (collar and		Rock chip sample locations were recorded by handheld GPS.
*data points*	down-hole surveys), trenches, mine workings and other locations
	used in Mineral Resource estimation.

==> picture [600 x 13] intentionally omitted <==


	Specification of the grid system used.	Original surveying was undertaken in MGA94 zone 51
	Quality and adequacy of topographic control.	Topographic control is considered more than adequate for the results
		being reported
*Data*	Data spacing for reporting of Exploration Results.	These are random rock chip sampled with no regular data spacing
*spacing* *and*	Whether the data spacing and distribution is sufficient to establish the	Not applicable
*distribution*	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	Not applicable
*Orientation*	Whether the orientation of sampling achieves unbiased sampling of	Not applicable
*of data in*	possible structures and the extent to which this is known, considering
*relation to* *geological*	the deposit type.
*structure*	If the relationship between the drilling orientation and the orientation
	of key mineralised structures is considered to have introduced a
	sampling bias, this should be assessed and reported if material.
*Sample*	The measures taken to ensure sample security.	Samples were submitted to the SGS Kalgoorlie laboratory by Apollo
*security*		Phoenix Resources. Sample security was ensured up to this point as
		the samples were always in the presence of Apollo staff.
*Audits or*	The results of any audits or reviews of sampling techniques and data.	No audits or reviews have been undertaken on the samples being
*reviews*		reported due to the small number of samples in the dataset.

==> picture [600 x 13] intentionally omitted <==

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, location and ownership including	Apollo Phoenix Resources and Mt Edwards Lithium hold a
*tenement and*	agreements or material issues with third parties such as joint	combined 100% interest the lithium rights to the project.
*land tenure* *status*	ventures, partnerships, overriding royalties, native title interests,	There are no known impediments to operate in the area.
	historical sites, 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.
*Exploration*	Acknowledgment and appraisal of exploration by other parties.	Exploration has been undertaken by previous holders, but
*done by other*		predominantly Western Mining Corporation (WMC) during the
*parties*		1980s and Titan Resources from 2001. Consolidated Minerals took
		over Titan in 2006. No mining for Li has been undertaken on the
		project.
*Geology*	Deposit type, geological setting and style of mineralisation.	The geology at MELP consists of a mafic-ultramafic belt bound to the
		east by metasediments and to the west by granites.
		The mineralisation at MELP consists of pegmatite swarms in
		greenstone belts at some distance from their parent granites.
		The lithium baring minerals identified to date are spodumene and
		accessory lepidolite.

==> picture [600 x 13] intentionally omitted <==


Criteria	JORC Code explanation	Commentary
		Depth of complete oxidation varies from 10 to 80 metres below the
		natural surface but is typically around 40 metres.
*Drill hole*	A summary of all information material to the understanding of the	No drill results are reported in this announcement
*Information*	exploration results including a tabulation of the following information	No information is excluded
	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, weighting averaging techniques,	Not applicable for rock chip sampling
*aggregation*	maximum and/or minimum grade truncations (e.g. cutting of high
*methods*	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

==> picture [600 x 13] intentionally omitted <==


Criteria	JORC Code explanation	Commentary
	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	No metal equivalents are used
	should be clearly stated.
*Relationship*	These relationships are particularly important in the reporting of	No applicable for random rock chip grab samples
*between*	Exploration Results.
*mineralisation*
*widths and*	If the geometry of the mineralisation with respect to the drill hole
*intercept*	angle is known, its 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 (e.g. ‘down hole length,
	true width not known’).
*Diagrams*	Appropriate maps and sections (with scales) and tabulations of	Appropriate maps and tables are included in the body of the
	intercepts should be included for any significant discovery being	Report.
	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 Exploration Results is not	This is not a large enough dataset to ensure balanced reporting
*reporting*	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 and material, should be	Pegmatite occurrences were identified from historic detailed
*substantive*	reported including (but not limited to): geological observations;	geological mapping and then confirmed by ground checking
*exploration* *data*	geophysical survey results; geochemical survey results; bulk	Geological observations are included in the report. All core drilled

==> picture [600 x 13] intentionally omitted <==

Criteria JORC Code explanation Commentary samples – size and method of treatment; metallurgical test results; at MELP is available for review and is stored at the Fisher mine bulk density, groundwater, geotechnical and rock characteristics; offices in Kambalda. potential deleterious or contaminating substances.  Metallurgical test work is out of the scope of this report.  Multi-element assay suites have been analysed for all but two samples Further work  The nature and scale of planned further work (e.g. tests for lateral  Further field confirmation and rock chip sampling is planned extensions or depth extensions or large-scale step-out drilling). followed by drill testing of the most anomalous pegmatites.  Diagrams clearly highlighting the areas of possible extensions,  The presence of possible extensions cannot be determined at this including the main geological interpretations and future drilling stage. areas, provided this information is not commercially sensitive.

==> picture [600 x 13] intentionally omitted <==

AI assistant

ESTRELLA RESOURCES LIMITED Capital/Financing Update 2016

64878_rns_2016-11-06_ab58d194-aea1-49ec-bb7f-b66bc9cc10f3.pdf

7 November 2016

ASX ANNOUNCEMENT

ESTRELLA TO ACQUIRE KEY W.A. LITHIUM PROJECT

HIGHLIGHTS

Acquisition Terms

Table 2. Tenement Schedule

Material Terms of agreement:

Proposed Capital Raise

Use of Funds from Capital Raise

For more information, please contact:

Competent Person Statement

APPENDIX 3 JORC TABLE 1 - JORC CODE, 2012 EDITION – TABLE 1 MELP

Section 1 Sampling Techniques and Data

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

Section 2 Reporting of Exploration Results

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

AI assistant

ESTRELLA RESOURCES LIMITED — Capital/Financing Update 2016

64878_rns_2016-11-06_ab58d194-aea1-49ec-bb7f-b66bc9cc10f3.pdf

7 November 2016

ASX ANNOUNCEMENT

ESTRELLA TO ACQUIRE KEY W.A. LITHIUM PROJECT

HIGHLIGHTS

Acquisition Terms

Table 2. Tenement Schedule

Material Terms of agreement:

Proposed Capital Raise

Use of Funds from Capital Raise

For more information, please contact:

Competent Person Statement

APPENDIX 3 JORC TABLE 1 - JORC CODE, 2012 EDITION – TABLE 1 MELP

Section 1 Sampling Techniques and Data

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

Section 2 Reporting of Exploration Results

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

More from ESTRELLA RESOURCES LIMITED

ESTRELLA RESOURCES LIMITED Capital/Financing Update 2016