ESTRELLA RESOURCES LIMITED — Capital/Financing Update 2019

Jul 21, 2019

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22 July 2019

ASX ANNOUNCEMENT

DIAMOND CORE DRILLING COMMENCES AT MUNDA GOLD MINE

HIGHLIGHTS

• Two holes totalling ~350-400m of HQ3 diamond core drilling has commenced at the Munda Gold Project at Widgiemooltha WA

• Topdrive Drilling Australia (TDA) has been contracted to undertake the drilling with the first hole now underway

• Drilling is designed to collect orientated core for structural and geological data to determine the optimal orientation of the gold hosting vein system

• This information will potentially lead to a drill out and resource estimation of the unmined portion of the historic Munda Gold Mine

• Nickel mineralisation located on the ultramafic basal contact zone at Munda will also be tested

Estrella Resources Limited (ASX: ESR) (‘Estrella’ or ‘the Company’) is pleased to advise that diamond core drilling has commenced at the Company’s 100% owned Munda Gold Project at Widgiemooltha, 34km south-west of Kambalda, WA. Drilling is now underway, with Topdrive Drilling Australia (TDA) contracted to complete 350-400m of HQ3 diamond core drilling to the immediate north of the historical Munda Gold Mine (Table 1 & Figure 1).

		**Table 1: Planned drill hole details. **	**Table 1: Planned drill hole details. **
Hole ID	Planned depth	Easting	Northing	Dip	Azimuth
EMD001	200m	360427mE	6513800mN	-65	063
EMD002	170m	360427mE	6513800mN	-60	090

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Figure 1. Topdrive Drilling Australia track-mounted diamond core rig setup and drilling at Munda Gold Project, Widgiemooltha WA.

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Drilling is designed to target postulated high-grade gold shoots that have been 3D modelled by the Company using historical drilling completed by WMC, Titan Resources, Consolidated Minerals and Eureka (Figure 2). Partial mining of the open pit in 1999 by Resolute Gold Mines Limited occurred before mining ceased due to low gold prices. Evaluation of the historical RC drilling was inconclusive in determining the dominant structural direction required to confidently resource model the deposit for mining. However, 3D grade shell modelling of the gold data (Figure 3) provides a structurally controlled ladder vein/shoot model that requires drill coring to collect orientated drill core for detailed structural and geological analysis. This data will be used to determine the grade, style and direction of the veins/shoots at Munda. This will greatly assist the Company in determining the orientation of the gold hosting vein system. This will lead to planning the next stage drilling at Munda. The Company’s aim will be to update the current JORC compliant Mineral Resource estimate of 511Kt @ 2.82g/t (46,337 oz Au) through a drill-out of the unmined gold mineralisation remaining below and north of the Munda pit.

Munda is located within the nickel rich Widgiemooltha region. The project is located on the basal contact of an ultramafic unit which has historically returned high-grade nickel intersections. While the drilling is designed to target and define the gold shoots, the holes may also intersect this ultramafic basal contact and the nickel mineralisation. If so, they will be logged and sampled accordingly.

Estrella’s Managing Director Chris Daws comments “The Company is actively progressing it’s projects through diligent exploration efforts. I look forward to the assay results in the coming weeks. A confirmation of the ladder vein/shoot model developed in recent months will give strong confidence in moving the project forward. The gold price continues to strengthen which is increasing the value of our work and the project.”

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Figure 2: Plan view showing the historical Munda Gold Pit (BLUE) with the planned drilling (RED) and targetted gold shoots (GREEN).

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Figure 3: Oblique section view showing the planned drill holes (RED) north of the Munda pit and target gold shoots (GREEN).

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Figure 4. Location of Munda Project and other major gold projects.

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Table 2: Schedule of Tenements

Country	**Location **	Project	Tenement	Interest (%)
Australia	WA	Munda Nickel & Gold Project	M15/87	100
Australia	WA	Carr Boyd Nickel Project	E29/1012	100
Australia	WA	Carr Boyd Nickel Project	E29/0982	100
Australia	WA	Carr Boyd Nickel Project	L24/0186	100
Australia	WA	Carr Boyd Nickel Project	E31/0726	100
Australia	WA	Carr Boyd Nickel Project	E31/1124	100
Australia	WA	Carr Boyd Nickel Project	M31/0012	100
Australia	WA	Carr Boyd Nickel Project	M31/0109	100
Australia	WA	Carr Boyd Nickel Project	M31/0159	100
Australia	WA	Carr Boyd Nickel Project	E31/1162	100
Australia	WA	Spargoville Nickel Project	M15/395	100*
Australia	WA	Spargoville Nickel Project	M15/703	100*
Australia	WA	Spargoville Nickel Project	M15/1828	100*
Australia	WA	Spargoville Nickel Project	L15/128	100*
Australia	WA	SpargovilleNickel Project	L15/255	100*

*Nickel rights only - underlying tenements held by third parties.

FURTHER INFORMATION CONTACT Christopher J. Daws Chief Executive Officer Estrella Resources Limited info@estrellaresources.com.au

Forward-Looking Statements

This document may include forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning the Company’s planned exploration program and other statements that are not historical facts. When used in this document, the words such as "could," "plan," "expect," "intend," "may”, "potential," "should,", “further” and similar expressions are forward-looking statements. Although the Company believes that its expectations reflected in these forward- looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that further exploration will result in Mineral Resources.