ESTRELLA RESOURCES LIMITED — Capital/Financing Update 2019

Mar 11, 2019

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• 12 March 2019

ASX ANNOUNCEMENT

Programme of Work Submitted

HIGHLIGHTS

• DMIRS CBLC Programme of Work (POW) application submitted

Estrella Resources Limited (ASX: ESR) (Estrella or the Company) is pleased to provide an 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).

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Figure 1. HPEM imagery map, showing the locations of two new EM targets at Target A and Target 5. The location of Carr Boyd mine, advanced prospects (red dots), and targets (yellow dots) are also shown. The interpreted basal contact is in a black dashed line.

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The Company has submitted via the DMIRS a Programme of Work to drill the high priority Target 5 EM anomaly which was generated by the Phase II moving loop HPEM late 2018. The Company expects approval from the DMIRS in the coming weeks so that drilling can proceed.

The target is compelling from both a geophysical and geological perspective having both a relative midhigh conductivity and nickel sulphides being identified in historic exploration drilling approximately 100m south of the target area.

There are several historic high priority exploration targets and prospects in this area based on surface geochemistry, downhole geochemistry, aero-magnetics, ground gravity, and interpreted geology datasets. ’ - HPEM has defined two significant conductor s indicative of the presence of well developed sulphides associated with two of the exploration targets, Target 5 and Target A.

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Figure 2. Geological map of the CBLC with outlines of Phase I and Phase II HPEM. The planned Phase III extension to the north is shown in mustard outline. Also shown are all ranked exploration targets (yellow dots) and advanced prospect locations (red dots).

TARGET 5

The first known report of this target appears in an internal company report written for Titan Resources in 2004. It is described again in an internal company report written for Yilgarn Mining in 2008.

The target is defined by a 450m long zone of highly anomalous nickel and copper mineralisation in drilling, located approximately 100m south of the newly defined EM conductor. The mineralisation and EM conductor appear to be located on or very close to the interpreted basal contact position of the CBLC. Historic drilling does not appear to have tested the conductor defined by the recently completed Phase II HPEM.

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Figure 3. Geological map showing the location of the T5 EM conductor, The T5 geochemical halo and nickel sulphide location, drillhole collar locations, and distance to the Carr Boyd Mine.

The EM conductor is discrete and moderately to highly conductive. The modelled conductance is 3000 – 5000S, making this a very high priority drill target.

Historic drilling returned many anomalous results over a 450m strike length of the interpreted basal contact at Target 5. The best of which was 3.35m at 0.79% Ni and 0.35% Cu, including 0.61m at 2.12% Ni and 0.56% Cu from 100.89m in GD124.* This occurs in a zone of disseminated and matrix sulphide on the interpreted basal contact of the CBLC. This is very positive support for the EM conductor located approximately 100m along strike to the north.

*Refer to ESR announcement “EM Confirms Two High Priority Targets at Carr Boyd” 26 November 2018

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Figure 4. Key cross section through Target 5 showing the location of nickel sulphide intercepts.*

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Figure 5. Long section of Target 5 showing drillhole pierce points coloured by nickel grade, the EM model, and a bouger gravity inversion model located at depth.*

*Refer to ESR announcement “EM Confirms Two High Priority Targets at Carr Boyd” 26 November 2018

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Table 1. Tenement Schedule of the CBNP.

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	6229	1/05/2017	All	100
Australia	WA	CBNP	E 29/1012	1780	20/09/2017	All	100
Australia	WA	CBNP	E 29/982	890	2/01/2017	All	100
Australia	WA	CBNP	E 31/726	5419	3/04/2008	All	100
Australia	WA	CBNP	E31/1162	9,196	26/03/2018	All	100
Australia	WA	CBNP	M 31/12	266	20/11/1984	All	100
Australia	WA	CBNP	M 31/159	79	21/01/1997	All	100
Australia	WA	CBNP	M 31/109	98	25/07/1991	All	100
Australia	WA	CBNP	L24/186	279	13/04/2007	N/A	100

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 breccias (pyroxenites) emplaced within the gabbroic sequence of the Complex. The CBLC is in a Tier 1 jurisdiction approximately 80km north north-east of Kalgoorlie Western Australia. An all-weather haul road accessible by Estrella under a granted miscellaneous license connects the Project to the Goldfields Highway via Scotia.

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

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 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 info@estrellaresources.com.au

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Figure 6. Location of Carr Boyd in relation to commercial centres and other major nickel projects.