ESTRELLA RESOURCES LIMITED — Interim / Quarterly Report 2012

Jul 30, 2012

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QUARTERLY REPORT

Quarter Ending 30 June 2012

HIGHLIGHTS

• Commenced a 2,000m drilling program at the Orion Prospect within the

• flagship Agustina Project;

• Trenching and soil sampling program commenced at the Centauri gold

• prospect located on the west of Agustina;

• Detailed geochemical testing at the Luna/Inca prospect; and

• Successful ASX IPO raising $6 million closed early and significantly

• oversubscribed.

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Estrella Resources Limited (ASX:ESR) (Estrella or Company) is pleased to provide its Quarterly Activities and Appendix 5B for the quarter ending 30 June 2012.

1. EXPLORATION ACTIVITY

Estrella commenced its exploration in 2011 and since listing, has adopted an aggressive approach towards exploring each of its projects.

1.1 Agustina Project (100%) – Orion Prospect During the quarter, Estrella drilled 4 holes at the Orion Prospect for a cumulative 983 metres. Three of these holes were drilled to test the mineralisation beneath the existing mining adits. One hole was drilled at the large geophysical anomaly located on the south east of the Agustina concession area to test the true thickness and structural repetition at the anomaly.

The anomaly target was identified by an Induced Polarisation (IP) survey conducted by the Company in early 2012 prior to its ASX listing. Details of the IP survey are shown in Table 1 below. Estrella has been targeting IOCG style deposits which are known to form along the Atacama fault zone.

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Table 1: IP survey results showing significant high grade copper, gold and iron assay results from a reconnaissance grab sample program taken from the Agustina Project.

CHILE’S STAR IN COPPER-GOLD

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QUARTERLY REPORT

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All drill cores have been moved off site to a workshop in La Serena for core-cutting and sampling. However, due to the significant backlog of samples at most of the labs in Chile, results have not been forthcoming and are now expected in mid-August 2012.

A visual inspection of the cores from the drill holes has identified the presence of mineralisation. Several of 30-50m of alterations zones made of chalcopyrite, bornite and pyrite can be observed. There is also evidence to suggest that the mineralisation under the mine adits is due to a later structural event unrelated to the geophysical anomaly.

Estrella plans to undertake a detailed geochemical review of the drilling results once assays have returned from the labs. This will enable the Company to better align its future drilling with the geometry of the known mineralisation.

1.2 Agustina Project Tenure

In addition to commencing the maiden drilling program, Estrella has also extended its exploration tenure at the Agustina project. The additional blocks adjoin the existing Agustina concession to the north and south (Figure 1). As a result, the total area of Agustina has increased from 18.5km² to 22.25km².

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Figure 1: Map showing Agustina and Venus concessions including new tenure.

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QUARTERLY REPORT

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1.3 Agustina Project (100%) – Centauri Prospect Estrella is also currently undertaking a comprehensive rock chipping and soil sampling program at Centauri, which is prospective for high grade gold mineralisation. Centauri features a number of parallel 10-15m wide shear zones, which feature magnetite veinlets. Initial rock chip sampling at Centauri has returned a significantly elevated gold level.

Some of the results are listed below in Table 2.

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Table 2: Centauri rock chip sample results.

Estrella has retained additional geologists to focus on the gold prospectivity at both the Centauri Prospect and Estrella’s Venus Project over the next two months.

1.4 Luna Project (100%) & Inca Project (91.5%) During the quarter, Estrella completed a reconnaissance grab sample program at Luna and Inca over an area featuring old artisanal workings.

The grab samples returned significant copper and gold grades and demonstrates the prospectivity of the area. Some of the key results are shown in Table 3 below:

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Table 3: Grab samples results from Luna and Inca.

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QUARTERLY REPORT

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Following the encouraging results, Estrella is increasing exploration efforts to refine targets along the main fault structure, which hosts the artisanal workings. To this end, Estrella will be undertaking a geochemical surface soil sampling program and detailed mapping at Luna in September 2012.

The Company has also received strong interest from third parties following its recent announcements. Given the large footprint of Luna and Inca, the Company believes that bringing in a potential JV partner at the appropriate stage may help unlock significant shareholder value.

2. CORPORATE

Estrella Resources listed on the ASX on May 9, 2012 after successfully raising A$6m via an Initial Public Offering. The listing was well received by institutional and retail investors internationally and was significantly oversubscribed. As a result, the offer closed early and the Company admitted to Official Quotation ahead of schedule. Estrella joins a handful of junior explorers listed on ASX with exploration projects in Chile.

The funds raised will be used primarily to undertake an aggressive exploration program on the Company’s four projects Agustina, Venus, Luna and Inca situated in Region IV in Central Northern Chile (see Figure 2, Page 5).

The Board looks forward to achieving further milestones and continuing to deliver value for its shareholders over the long term.

Dr. Jason Berton Managing Director

Simon Kidston Non-Executive Director

Gavin Solomon Non-Executive Chairman

Juan Pablo Vargas de la Vega General Manager - Chile

Julian Bavin Non-Executive Director

Justin Clyne Company Secretary

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Figure 2: Locality map of Estrella’s Projects.

Competent Person’s Statement

Exploration information in this announcement is based upon work undertaken by Dr. Jason Berton, the Managing Director 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 2004 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.

CHILE’S STAR IN COPPER-GOLD QUARTERLY REPORT

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APPENDIX 5B

Mining exploration entity quarterly report Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10

		Name of entity
		Estrella Resources Limited
	ABN	Quarter Ended (''Current Quarter'')
39	151 155 207	30 June 2012

Consolidated statement of cash flows Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration and evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) Net operating cash flows	Current	Year to date (12 months) $A’000
	quarter
	$A’000
		- (695) - - (628) - 43 - - 10
	-
	(231)
	-
	-
	(288)
	-
	32
	-
	-
	-
	(487)	(1,270)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.1 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other- Project Option Fees Net investing cash flows		- - (48) - - - - - (280)
	-
	-
	(48)
	-
	-
	-
	-
	-
	-
	(48)	(328)
1.15 Total operatingand investingcash flows(carried forward)	(535)	(1,598)

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ESTRELLA RESOURCES LTD | APPENDIX 5B |JUNE 2012

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1.15 Total operating and investing cash flows (brought forward)	(535)	(1,598)
Cash flows related to financing activities 1.16 Proceeds from issues of shares, options, etc. 1.17 Proceeds from sale of forfeited shares 1.18 Proceeds from borrowings 1.19 Repayment of borrowings 1.2 Dividends paid 1.21 Other – Capital raising costs Net financing cash flows		7,630 - - - - (957)
	6,000
	-
	-
	-
	-
	(693)
	5,307	6,673
Net increase (decrease) in cash held 1.22 Cash at beginning of quarter/year to date 1.23 Exchange rate adjustments to item 1.20 1.24 Cash at end of quarter	4,772	5,075 40 (5)
	343
	(5)
	5,110	5,110

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.25 1.26	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
		68
		-
1.27	Explanation necessary for an understanding of the transactions
	Directors fees /salary for the period: $68,000

Non-cash financing and investing activities

• 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows Nil

2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest Nil

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities 3.2 Credit standby arrangements	Amount Avaliable $A,000	Amount used $A,000
	-	-
	-	-

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ESTRELLA RESOURCES LTD | APPENDIX 5B |JUNE 2012

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Estimated cash outflows for next quarter 4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration Total	$A’000
	469
	-
	-
	286
	755

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $A’000	Previous quarter $A’000
5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Commercial Bills 5.4 Other: Term Deposit Total: cash at end of quarter (item 1.22)	651	343
	4,459	-
	-	-
	-	-
	5,110	343

Changes in interests in mining tenements

6.1	Interests in mining tenements relinquished,
	reduced or lapsed
6.2	Interests in mining tenements acquired or increased

		Interest	Interest at end of quarter
Tenement reference	Nature of interest	at beginning
		ofquarter
None
None

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ESTRELLA RESOURCES LTD | APPENDIX 5B |JUNE 2012

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Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

	Total Number	Number quoted	Issue price per security (see note 3)	Amount paid up per security (see note 3)
7.1 Preference +securities(description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs	87,101,000	38,187,500
	30,000,000	30,000,000	$0.20	$0.20
7.5 Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7 Options Unlisted Unlisted Unlisted Unlisted Unlisted			Exercise price	Expiry date
	3,600,000	-	25 cents	12-Sep-14
	1,000,000	-	25 cents	25-Oct-14
	505,000	-	20 cents	19-Dec-16
	600,000	-	20 cents	25-Oct-16
	1,500,000	-	20 cents	9-May-17
7.8 Issued during quarter 7.9 Exercised during quarter 7.1 Expired during quarter 7.11 Debentures (totals only) 7.12 Performance Rights (totals only) 7.13 Unsecured notes (totals only)	1,500,000	-	20 cents	9-May-17
		-
	-

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ESTRELLA RESOURCES LTD | APPENDIX 5B |JUNE 2012

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Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5).

• 2 This statement does give a true and fair view of the matters disclosed.

Sign here: Date: 31 July 2012 Print name: Justin Clyne- Company Secretary

Notes

• 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities. The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.

• 4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

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ESTRELLA RESOURCES LTD | APPENDIX 5B |JUNE 2012