ESTRELLA RESOURCES LIMITED - Capital/Financing Update 2017

19 October 2017

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ASX ANNOUNCEMENT

SIR WILLIAM WALLACE DRILLING UPDATE

HIGHLIGHTS

Diamond drillhole NCB0001 at the Sir William Wallace EM target currently at 104m depth
From a visual inspection nickel and copper sulphides are starting to appear within the core drilling
Hole currently 50m from the estimated target zone

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Figure 1. Photograph of drilling crew in action on NCB0001 at Sir William Wallace.

Estrella Resources Limited (ASX: ESR) (Estrella or the Company) is pleased to provide a drilling update on the Carr Boyd Nickel Project (CBNP or the Project). The CBNP is comprised of the Carr Boyd Layered Complex (CBLC or the Complex).

NCB0001 PROGRESS

The hole has been drilled to a 104m depth. From a visual inspection, nickel copper sulphides have been identified in the core drilling and were first encountered from around 92m downhole in the form of intermittent cloud sulphide with occasional blebs. The mineralisation appears to be strengthening with depth, with the largest bleb of sulphide identified at approximately 102m depth, as shown in Figure 2. The hole is collared at 366578mE, 6669672mN, and 415mRL on GDA94 Zone51, drilling at -60 towards 200 grid azimuth. The core sample is yet to be assayed and analysed.

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The presence of this style of mineralisation starting at approximately 60m above the target, and the host rock types, are strong encouragement and vindication of the conceptual geological model for Sir William Wallace. The geological model is a “Voisey Bay Style” basal massive sulphide accumulation. Cloud, disseminated and blebby sulphides strengthening with depth in this location is what would be expected for this model style.

The hole started in a thin layer of soil before passing into transported gravels and lateritic material, then into saprolite and saprock (after peridotite) at 14.6m depth, and finally into pyroxenites at 48.3m. The pyroxenites contain layers gabbro and peridotite, and are occasionally intruded by felsic and mafic dykes. The hole was in mineralised pyroxenite at 104m at the time of writing and will be drilled to a total depth of 300m.

Sulphide mineralisation has mainly been identified in the pyroxenites, but also occurs in the gabbros. Preliminary HXRF analysis has proven the presence of nickel and copper sulphides in the mineralisation. The Company looks forward to providing further results as they come to hand, interpreted and approved for release to shareholders.

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Figure 2. Cross section of NCB0001, showing the current geological interpretation, the progress of the hole in relation to the HPEM target, and an inset photograph showing the location of a bleb of magmatic nickel-copper sulphides.

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Figure 3. Conceptual idealised target model cross section, showing the Sir William Wallace and co-funded drill targets in the context of the CBLC and the “Voisey Bay” target model.

ABOUT THE PROJECT AND THE CBLC

The CBLC is a 75km2 layered mafic igneous complex, which hosts several occurrences of nickel and copper sulphides. The most significant occurrence discovered to date is at the Carr Boyd Rocks mine, where mineralisation is hosted by bronzitite breccia’s (pyroxenites) emplaced within the gabbroic sequence of the Complex. The CBLC is located in a Tier 1 mining jurisdiction approximately 80km north north-east of Kalgoorlie Western Australia.

A “Voisey Bay” style model has not been adequately explored within the CBLC. This represents a compelling exploration target opportunity which the Company intends to aggressively pursue.

The Project is conveniently located, just 80km north north-east of Kalgoorlie. An all-weather haul road accessible by Apollo under a granted miscellaneous license connects the Project to the Goldfields Highway via Scotia.

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Figure 4. Location of Carr Boyd in relation to commercial centres and other major nickel projects.

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Table 1. Tenement Schedule of the CBNP.

Schedule of Mining and Exploration Tenements	Schedule of Mining and Exploration Tenements	Schedule of Mining and Exploration Tenements	Schedule of Mining and Exploration Tenements	Schedule of Mining and Exploration Tenements	Schedule of Mining and Exploration Tenements	Schedule of Mining and Exploration Tenements	Schedule of Mining and Exploration Tenements
Country	State/Region	Project	Tenement ID	Area Ha	Grant Date	Mineral Rights	Interest %
Australia	WA	CBNP	E 31/1124	623	1/05/2017	All	100
Australia	WA	CBNP	E 29/1012	178	Application	All	100
Australia	WA	CBNP	E 29/982	89	2/01/2017	All	100
Australia	WA	CBNP	E31/726	542	3/04/2008	All	100
Australia	WA	CBNP	M31/12	27	20/11/1984	All	100
Australia	WA	CBNP	M 31/159	8	21/01/1997	All	100
Australia	WA	CBNP	M 31/109	10	25/07/1991	All	100
Australia	WA	CBNP	E 31/1162	920	Application	All	100

This drilling update is not an end to the trading halt, which is expected to be lifted prior to commencement of trading Monday, 23[rd] October 2017 upon completion of a material capital raising.

Competent Person Statement

The information in this announcement relating to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Luke Marshall, who is a consultant to Apollo Phoenix Resources and Estrella Resources, and a member of The Australasian Institute of Geoscientists. Mr Marshall has sufficient experience relevant to the style of mineralisation and type of deposit under consideration, and to the activity 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.

FURTHER INFORMATION CONTACT Christopher J. Daws Chief Executive Officer Estrella Resources Limited [email protected]

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

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 channels,	•Not applicable, no sampling has been undertaken.
*techniques*	random chips, or specific specialised industry	•HXRF readings have been taken but are not being reported as they are not considered
	standard measurement tools appropriate to the	representative.
	minerals under investigation, such as down hole
	gamma sondes or handheld XRF instruments,
	etc.). These examples should not be taken as
	limiting the broad meaning of sampling.
	•Include reference to measures taken to ensure	•Not applicable, no sampling has been undertaken.
	sample representivity and the appropriate
	calibration of any measurement tools or systems
	used.
	•Aspects of the determination of mineralisation that	•Determination of mineralisation has been done on a visual basis with the support of HXRF
	are material to the Public Report.	readings.

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Criteria	JORC Code explanation	Commentary
	•In cases where ‘industry standard’ work has been	•Not applicable, no sampling has been undertaken.
	done this would be relatively simple (e.g. ‘reverse
	circulation drilling was used to obtain 1 m samples
	from which 3 kg was pulverised to produce a 30g
	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-hole	•NCB0001 is being drilled by diamond core HQ triple tube from surface.
*techniques*	hammer, rotary air blast, auger, Bangka, sonic,	•The core is orientated using a Reflex ACTIII orientation tool.
	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).

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Criteria	JORC Code explanation	Commentary
*Drill sample*	•Method of recording and assessing core and chip	•Sample core recoveries have averaged 94.73% to 104m.
*recovery*	sample recoveries and results assessed.	•Significant sample loss was encountered in the weathering profile.
	•Measures taken to maximise sample recovery	•Recoveries have been close to 100% from 50m downhole.
	and ensure representative nature of the samples.
		•No relationship has been established between sample recovery and reported grade as no
	•Whether a relationship exists between sample	sampling has been completed.
	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	•Detailed industry standard drill hole logs are collected as the drilling progresses.
	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.

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Criteria	JORC Code explanation	Commentary
*Sub-*	•If core, whether cut or sawn and whether quarter,	•Not applicable as no sampling is being reported.
*sampling* *techniques*	half or all core taken.	•Host rock for nickel copper mineralisation is mainly pyroxenite, but also peridotite and gabbro.
*and sample*	•If non-core, whether riffled, tube sampled, rotary
*preparation*	split, etc and whether 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 sampling 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*	•For geophysical tools, spectrometers, handheld	•Not applicable as no assay data is being reported.
*assay data*	XRF instruments, etc, the parameters used in
*and*
*laboratory*	determining the analysis including instrument
*tests*	make and model, reading times, calibrations
	factors applied and their derivation, etc.

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Criteria	JORC Code explanation Commentary
	•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. •Not applicable as no assay data is being reported.
*Verification* *of sampling* *and* *assaying*	•The verification of significant intersections by either independent or alternative company personnel. •Not applicable as no assay data is being reported.
	•The use of twinned holes. •No twin holes have been drilled.
	•Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. •The data for the hole is yet to be loaded into a database.
	•Discuss any adjustment to assay data. •Not applicable as no assay data is being reported.
*Location of* *data points*	•Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. •The hole was pegged by Cardno Surveys using a RTDGPS. •The rig was setup within 500mm of the peg.
	•Specification of the grid system used. •GDA94_51

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Criteria	JORC Code explanation Commentary
	•Quality and adequacy of topographic control. •More than adequate given the early stage of the project
*Data spacing* *and* *distribution*	•Data spacing for reporting of Exploration Results. •Not applicable as this is the first hole.
	•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. •Not Applicable, no Mineral Resource is being stated.
	•Whether sample compositing has been applied •Not applicable as no assay data is being reported.
*Orientation* *of data in* *relation to* *geological* *structure*	•Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. •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. •The drill line and drill hole orientation is oriented as close as possible to normal the interpreted target. •At this stage, we cannot determine the relationship between drilling direction and direction of mineralised structures.
*Sample* *security*	•The measures taken to ensure sample security. •Not applicable as no assay data is being reported.

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Criteria	JORC Code explanation	Commentary
*Audits or*	•The results of any audits or reviews of sampling	•No audits or reviews have been conducted for this release as there is no data to audit.
*reviews*	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, location and	•Apollo Phoenix Pty Ltd holds a 100% interest in the nickel and base metal rights to the project
*tenement and*	ownership including agreements or material	which it has agreed to sell to ESR pursuant to a conditional agreement as announced on 16
*land tenure* *status*	issues with third parties such as joint	October 2017.
	ventures, partnerships, overriding royalties,	•There are no known impediments to operate in the area.
	native title interests, historical sites,
	wilderness or national park and	•Refer to Table 2 of this announcement for the tenement schedule.
	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	•The Carr Boyd Rocks deposit was discovered by Great Boulder Mines, in a joint venture with
*done by other*	by other parties.	North Kalgurli Ltd in 1968. The deposit was mined between 1972 and 1975, during which time
*parties*		they explored for additional breccia pipe occurrences near the mine.
		•WMC acquired Great Boulder Mines Ltd in 1975, briefly reopening the mine in 1977 before
		closing it permanently shortly thereafter due to a collapse in the nickel price. The mine had

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Criteria	JORC Code explanation	Commentary
		produced 210,000t at 1.44% Ni and 0.46% Cu before its closure.
		•From 1968 Pacminex Pty Ltd held most of the ground over the CBLC outside of the immediate
		mine area. Between 1968 and 1971 they conducted extensive exploration programs searching
		for large basal contact and/or stratabound Ni-Cu deposits. It was during this time that most of
		the disseminated and cloud sulphide occurrences such as those at Tregurtha, West Tregurtha
		and Gossan Hill were discovered.
		•Defiance Mining acquired the regional tenements from Pacminex in 1987 and focused on
		exploration for PGE deposits between 1987 and 1990. In 1990 Defiance purchased the Carr
		Boyd Rocks mine from WMC and switched focus to the mine area between 1990 and 2001,
		leaving many PGE targets untested.
		•From 1990 Defiance dewatered the mine to conduct testwork and feasibility studies on the
		remnant mineralisation. Metallurgical testwork, mineral resource estimations and scoping
		studies were completed. Around 1996 the focus shifted again to regional exploration for large
		tonnage basal contact deposits.
		•In 2001 Titan Resources Ltd (Titan) acquired the project and recommenced economic
		evaluations of the remnant material at Carr Boyd Rocks before embarking on another regional
		exploration program focusing on the basal contact. An aeromagnetic survey, airborne EM
		reprocessing, and several programs of RAB and RC drilling were completed.
		•From 2005 Yilgarn Mining entered a JV with Titan and continued with some regional
		exploration, but focused most attention in and around the Carr Boyd Rocks mine.
		•In 2007 Titan was acquired by Consolidated Minerals Ltd (Consmin). Consmin conducted IP
		surveys and detailed gravity surveys, but did not drill any targets before selling the project to

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Criteria	JORC Code explanation	Commentary
		Salt Lake Mining (SLM) in 2013. SLM completed limited drilling to meet expenditure
		commitments, before selling the project to Apollo Phoenix Resources in 2016.
*Geology*	•Deposit type, geological setting and style of	•The Carr Boyd project lies within the Achaean Yilgarn Craton in a 700km belt of elongate
	mineralisation.	deformed and folded mafic, ultramafic rocks and volcanic sediments intruded by granitoids which
		is referred to as the Norseman-Wiluna Belt. The belt has been divided into several geological
		distinct terranes, with the project area lying at the northern end of the Gindalbie terrane (Swager,
		1996).
		•The geology of the Carr Boyd area is dominated by the Carr Boyd layered mafic-ultramafic
		intrusive complex (CBLC). This layered intrusive covers an area of 17 km by 7 km and has
		intruded into an Achaean Greenstone/Granite succession. The CBLC is comprised of a basal
		sequence of dunites, which are overlain by peridotites / pyroxenites and above that by gabbros.
		The intrusion has been interpreted to have been tilted to the east with the geometry of the
		intrusive further complicated by regional deformation and folding. The sequence has been
		metamorphosed to upper greenschist to lower amphibolite facies.
		•Several distinctive styles of Ni and Ni-Cu mineralisation have been identified within the CBLC.
		At the Carr Boyd Rocks Nickel Mine Ni-Cu mineralisation is hosted within several 20 - 60m
		diameter brecciated pipe-like bodies that appear to be discordant to the magmatic stratigraphy.
		Mineralisation is hosted by a matrix of sulphides (pyrrhotite, pentlandite, pyrite and chalcopyrite)
		within brecciated Bronzite and altered country rock clasts.
		•Stratiform Ni-Cu-PGE mineralisation has been identified at several different stratigraphic levels
		within the layered magmatic complex. Low grade stratiform disseminated Ni-Cu-PGE sulphides
		have been identified at several locations within the basal parts of the complex and at shallower

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Criteria	JORC Code explanation	Commentary
		stratigraphic levels of the complex. The presence of Ni-Cu-PGE mineralisation within multiple
		stratigraphic positions and of several unique styles of mineralisation highlights the potential of
		the CBLC for hosting a substantial Ni-Cu deposit.
*Drill hole*	•A summary of all information material to the	•The hole is collared at 366578mE, 6669672mN, and 415mRL on GDA94 Zone51. The hole is
*Information*	understanding of the exploration results	drilling at -60 towards 200 grid azimuth.
	including a tabulation of the following	•The hole is currently at 104m, with a planned EOH of 300m. This may change depending on the
	information for all Material drill holes:	geology encountered.
	`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	•No information is excluded.
	Competent Person should clearly explain why

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Criteria	JORC Code explanation Commentary
	this is the case.
*Data* *aggregation* *methods*	•In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high 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. •Not applicable as no assay data is being reported.
	•The assumptions used for any reporting of metal equivalent values should be clearly stated. •No metal equivalents are used in this announcement.
*Relationship* *between* *mineralisation* *widths and* *intercept* *lengths*	•These relationships are particularly important in the reporting of Exploration Results. •If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. •If it is not known and only the down hole lengths are reported, there should be a clear •The drill line and drill hole orientation in relation to mineralisation orientation cannot be determined at this stage. •True width cannot be determined.

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Criteria	JORC Code explanation	Commentary
	statement to this effect (e.g. ‘down hole
	length, true width not known’).
*Diagrams*	•Appropriate maps and sections (with scales)	•Appropriate maps and tables are included in the body of the Report.
	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 all	•Not applicable as no assay data is being reported.
*reporting*	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 and	•Not applicable as no assay data is being reported.
*substantive* *exploration* *data*	material, should be reported including (but not limited to): geological observations;	•Geological observations are included in the report.
	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

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Criteria	JORC Code explanation	Commentary	Commentary
	substances.
*Further work*	•The nature and scale of planned further work	•	Follow-up exploration drilling is planned and is ongoing.
	(e.g. tests for lateral extensions or depth	•	The potential for extensions cannot be determined at this stage given the early stages of the
	extensions or large-scale step-out drilling).		program.
	•Diagrams clearly highlighting the areas of
	possible extensions, including the main
	geological interpretations and future drilling
	areas, provided this information is not
	commercially sensitive.

AI assistant

ESTRELLA RESOURCES LIMITED Capital/Financing Update 2017

64878_rns_2017-10-18_a10692c2-70fb-42f2-a6e3-822e779b99f6.pdf

ASX ANNOUNCEMENT

SIR WILLIAM WALLACE DRILLING UPDATE

HIGHLIGHTS

NCB0001 PROGRESS

ABOUT THE PROJECT AND THE CBLC

Competent Person Statement

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

Section 1 Sampling Techniques and Data

Section 2 Reporting of Exploration Results

AI assistant

ESTRELLA RESOURCES LIMITED — Capital/Financing Update 2017

64878_rns_2017-10-18_a10692c2-70fb-42f2-a6e3-822e779b99f6.pdf

ASX ANNOUNCEMENT

SIR WILLIAM WALLACE DRILLING UPDATE

HIGHLIGHTS

NCB0001 PROGRESS

ABOUT THE PROJECT AND THE CBLC

Competent Person Statement

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

Section 1 Sampling Techniques and Data

Section 2 Reporting of Exploration Results

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