ESTRELLA RESOURCES LIMITED — Interim / Quarterly Report 2018

Jan 29, 2018

==> picture [137 x 57] intentionally omitted <==

QUARTERLY ACTIVITIES REPORT

Estrella Resources Limited ABN 39 151 155 207

Quarter ending 31 December 2017

ASX RELEASE 30 January 2018

ASX Code: ESR

HIGHLIGHTS

• Acquisition of the Carr Boyd Nickel Project

• Drilling continued at Sir William Wallace

Board and Management

Chief Executive Officer Christopher Daws (CEO)

Non-Executive Directors John Kingswood ACQUISITIONS Ray Shorrocks Stephen Brockhurst

Company Secretary Stephen Brockhurst

Address

Level 11, London House 216 St Georges Terrace Perth WA 6000

• Deep co-funded hole completed at South Tregurtha

• HPEM survey to be extended to the north

• WA Nickel transaction progressed to completion

Estrella Resources Limited (ASX: ESR) (Estrella or Company) is pleased to provide its Activities Report for the quarter ended 31 December 2017.

The Company executed a binding conditional agreement for the acquisition of the Carr Boyd Nickel Project (CBNP) from Apollo Phoenix Resources (Apollo) during the quarter. The transaction involved the issue of 59.6 million fully paid shares in ESR and a deposit of $160,000 (total consideration valued at A$1,650,000). The CBNP is comprised of the Carr Boyd Layered Complex (CBLC or the Complex).

The acquisition is subject to various conditions precedent, the material ones being;

• approval of the acquisition by ESR shareholders;

• the CBN shares (currently held by Apollo) are distributed in specie to the Apollo shareholders pro-rata to their Apollo shareholding;

• the CBNP tenements are transferred to CBN; [completed] and

• there is no breach of warranty.

PO Box 2517 Perth WA 6831

Telephone: +61 8 9481 0389 Facsimile: +61 8 9463 6103

The Company continued to finalise the acquisition of WA Nickel Pty Ltd (WAN) over the December quarter with the transaction completed post quarter end. Under the terms of the acquisition, WAN was acquired by ESR. WAN holds a 100% interest in nickel rights at the Spargoville Project, 100% of the gold and nickel rights at the Munda Project (M15/87), and 25% lithium rights at the Munda Project. The transaction gives ESR 100% ownership of all metals on M15/87.

info@estrella.resources.com.au www.estrellaresources.com.au

CBNP SUMMARY

The focus of fieldwork during the quarter was at the CBNP. Three diamond holes were completed in the Sir William Wallace and Tregurtha South areas and preparations were made to extend a moving loop high power electromagnetic survey further to the north over the prospective basal contact position of the CBLC. This work is expected to commence in the March 2018 quarter (see EM Surveying later in this report).

==> picture [482 x 357] intentionally omitted <==

Figure 1. Map showing Carr Boyd exploration targets and prospects over interpreted bedrock geology.

SIR WILLIAM WALLACE HPMLTEM TARGET

Sir William Wallace was targeted by drillhole NCB0001. The hole intersected the basal contact at approximately 122.6m downhole. Several zones of nickel and copper sulphides were intersected, including within the CBLC, on the basal contact, and in the immediate footwall. This has provided further vindication of the target model being pursued at Sir William Wallace, even though the EM conductor source was attributed to a sulphide black shale horizon located outside of the intrusion further downhole. The zones of nickel and copper sulphides identified were cut and sampled, confirming the presence of nickel-copper sulphides (see Table 1: Assay results NBC0001).

The unmineralised sections of the ultramafic sequence in NCB0001 appear to be nickel depleted, with HXRF readings typically significantly lower than would be expected, particularly in the peridotites. Nickel depletion of the ultramafics silicate minerals, particularly olivine’s, is a key indicator for the formation of large and super-large nickel deposits at the base of layered mafic intrusions.

The basal contact was intersected significantly shallower than previously anticipated in NCB0001. As a result a second hole, NCB0002, was drilled up dip of NCB0001 to get a better understanding of the basal contact geometry. This subsequently allowed for refined positioning of the co-funded drill hole to screen a larger area of the contact.

==> picture [496 x 305] intentionally omitted <==

Figure 2. Photograph of a bleb of semi massive nickel sulphide at approximately 125.4m downhole in NCB0001. This sulphide is interpreted to be remobilised into the pillow margins of the footwall basalt sequence from the CBLC.

NCB0002 was successfully completed to a final depth of 146.6m. It was designed to test the basal contact position 40m up dip of the NCB0001 pierce point and to determine the basal contact orientation. This would assist with the positioning of the co-funded deep platform hole (NBC0003), which targeted a gravity-magnetic feature within the CLBC. NCB0002 intersected the basal contact zone at approximately 107m downhole, confirming the position and orientation of the basal contact, which was intersected within a few metres of the projected position based on structural interpretations of NCB0001.

Sulphide mineralisation was intersected by NCB0002, though it was less abundant than observed in NCB0001 deeper down the contact. This suggests that the sulphide mineralisation could be increasing with depth at Sir William Wallace. A follow-up hole testing the basal contact at a deeper level is planned to commence shortly. This will be an EM platform hole, drilled at a low angle to the basal contact. The hole will be drilled approximately 140m east of NCB0001 and NCB0002, targeting a change in strike in the basal contact which is coincident with a subtle magnetic anomaly.

If nickel-copper mineralisation is developed deeper below surface in the Sir William Wallace area, it would be in an area below the black shale horizon detected by surface EM and targeted by NCB0001. If this was the case it would be virtually invisible to surface EM techniques, as the black shale would effectively obscure conductors located at a deeper level.

==> picture [505 x 386] intentionally omitted <==

Figure 3. Cross section of NCB0001 and NCB0002, showing the current simplified geological interpretation and a stylised depiction of the nickel-copper sulphides in the basal contact zone.

**Table 1. Assay results from NCB0001 **	**Table 1. Assay results from NCB0001 **	**Table 1. Assay results from NCB0001 **
Hole_ID	Easting	Northing	RL	mFrom	mTo	Ni ppm	Cu ppm	Co ppm
NCB0001	366578	6669672	415	75.15	76	444	85	68
				76	77	452	409	69
				77	77.25	432	61	65
				77.25	78	450	22	68
				78	78.75	456	240	68
				78.75	79.2	90	219	39
				79.2	80	498	95	67
				80	81	415	76	65
				81	82	458	70	66
				82	82.8	386	140	59
				82.8	83	113	604	30
				83	84	105	538	26
				84	84.2	78	644	30
				84.2	85	29	215	21

Hole_ID	Easting	Northing	RL	mFrom	mTo	Ni ppm	Cu ppm	Co ppm
NCB0001	366578	6669672	415	85	85.8	13	111	13
				85.8	86.15	96	521	34
				86.15	87	380	109	63
				87	88	406	257	65
				88	89	406	204	66
				89	90	433	219	68
				90	91	357	331	61
				91	91.5	256	119	48
				91.5	92.2	383	60	63
				92.2	93	417	90	66
				93	93.9	347	43	57
				93.9	95	38	112	14
				95	95.4	31	108	13
				95.4	95.6	220	104	40
				95.6	96.1	391	11	61
				96.1	96.85	37	42	15
				96.85	97.15	317	199	51
				97.15	98	396	241	62
				98	99	498	4671	87
				99	100	444	31	70
				100	101	463	41	72
				101	102	471	106	71
				102	103	439	162	71
				103	104	439	36	72
				104	104.7	419	91	66
				104.7	105.2	56	481	17
				105.2	106	428	13	70
				106	107.1	436	13	68
				107.1	107.6	35	719	20
				107.6	108	417	5	72
				108	109	483	18	69
				109	110	469	9	71
				110	111	554	703	72
				111	112	650	547	79
				112	113	532	105	72
				113	113.9	464	27	70
				113.9	115	361	68	57
				115	115.35	191	200	34
				115.35	115.95	467	20	64
				115.95	116.35	60	116	28
				116.35	117	167	172	39
				117	118	37	110	24
				118	119	41	30	25
				119	120	36	92	26
				120	121	49	205	36

Hole_ID	Easting	Northing	RL	mFrom	mTo	Ni ppm	Cu ppm	Co ppm
NCB0001	366578	6669672	415	121	122	43	127	25
				122	122.85	471	224	58
				122.85	123.2	2230	729	248
				123.2	123.6	324	112	58
				123.6	124.25	146	91	56
				124.25	125.05	162	122	55
				125.05	125.25	3051	4255	241
				125.25	126	219	194	29
				126	126.6	398	5092	52
				126.6	127	207	439	51
				127	128	189	221	56
				128	129	117	73	51
				144.65	145	106	16	39
				145	146	85	161	53
				146	146.75	61	87	41
				146.75	147	74	44	43
				147	148.15	68	63	42
				148.15	148.45	286	2870	171
				148.45	149	73	532	54
				149	150	70	74	38
				150	150.8	72	189	43
				150.8	151.25	118	365	97
				151.25	152	64	31	29
				152	152.7	58	58	31
				152.7	153	41	98	20
				153	154.05	115	661	65
				154.05	155	229	783	127
				155	155.3	293	681	169
				155.3	155.55	90	1377	62
				155.55	156	76	798	45
				156	156.75	111	636	85
				156.75	157.8	88	1551	81
				157.8	159	45	56	32
				159	160	52	17	35
				160	161	54	12	34
				161	162	62	59	47
				162	162.5	60	128	45
				180	180.25	54	105	42
				180.25	180.9	64	489	62
				180.9	181.85	65	423	45
				181.85	183	48	416	30
				183	183.95	44	136	26

SOUTH TREGURTHA COFUNDED TARGET

Apollo received a large archive of high resolution aeromagnetic and ground gravity datasets as part of the CBNP acquisition. Previous operators had collected gravity data on a 100m by 100m grid and aeromagnetic data on 50m line spacing over most of the western lobe of the CBLC. These datasets had been processed and interpreted in 2D, but not before in 3D.

Apollo compiled these datasets, reprocessed and constructed 3D inversion models from them. This identified a series of coincident gravity and magnetic anomalies (targets). The target at South Tregurtha was identified as very high priority due to:

• Proximity to the basal contact;

• Proximity to cloud and disseminated sulphide mineralisation at Tregurtha and West Tregurtha;

• Located in a window of limited historic drill testing; and

• Strong geological, structural, and geochemical support.

Therefore, this target was selected for drill testing by a single deep drillhole (NCB0003) with support from a co-funding grant of $120,000.

The hole was drilled to a depth of 827.4m, before being stopped in late December 2017 to allow enough time to complete the co-funding interim report before the December 31 deadline. Failure to complete the drilling and submit the report before this date would result in forfeiture of the co-funding grant. The hole will be continued in the New Year, aiming to penetrate to at least 1000m depth and intersect the basal contact of the CBLC.

The hole was surveyed by HPDHTEM, gyroscope, magnetic susceptibility and gamma density to ensure the maximum amount of data was generated. This aimed to de-risk potential follow-up drilling by providing “hard targets” based on physical properties. The Company is currently interrogating these new datasets.

==> picture [466 x 356] intentionally omitted <==

Figure 4. Cross section showing 3D inversion models, structural interpretations, interpreted basal contact position, and the location of the proposed co-funded drillhole.

==> picture [457 x 470] intentionally omitted <==

Figure 5. Map of the Phase I HPEM area, showing the location of the new drillholes and historic holes greater than 150m depth.

EM SURVEYING

The current moving loop HPEM* (Phase I) survey extends approximately 1.5km north, 1.7km west and 3.3km east of Sir William Wallace. The basal ultramafic sequence is interpreted to extend northward along the western contact of the CBLC to at least 1.4km north of the Carr Boyd Rocks mine, but more likely to 3.6km north of the mine.

A Phase II moving loop HPEM survey is proposed to extend the coverage 3.3km further north from the current Phase I survey, screening the interpreted basal contact position and immediate footwall sequence to 1.4km north of the Carr Boyd Rocks Mine. There are several historic high priority exploration targets and prospects in this area based on surface geochemistry, downhole geochemistry, aeromagnetics, ground gravity and interpreted geology datasets. HPEM will determine if significant conductors indicative of the presence of well-developed sulphides are associated with any of the exploration targets.

==> picture [504 x 373] intentionally omitted <==

Figure 6. Geological map of the CBLC showing current Phase I HPEM coverage and the proposed Phase II survey. *High Power Electromagnetics

ABOUT THE PROJECT AND THE CBLC

The CBLC is a 75km[2] 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 Apollo 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.

==> picture [449 x 545] intentionally omitted <==

Figure 7. Location of Carr Boyd in relation to commercial centres and other major nickel projects.

WIDGIEMOOLTHA ENERGY METALS PROJECT

The Company finalised the WA Nickel Pty Ltd (WAN) acquisition during the quarter, with shareholder approval received and all relevant due payments settled post quarter end. This gave ESR 100% interest in nickel rights at the Spargoville Project and 100% ownership of all metals on M15/87 (Munda).

The new projects were added to the Mount Edwards Lithium Project (MELP), with the consolidated project now referred to as the Widgiemooltha Energy Metals Project (WEMP). The WEMP hosts several high priority nickel, gold and lithium targets, which the Company intends to further develop in the coming

year. This includes gold and nickel opportunities at Munda, nickel opportunities at Spargoville, and lithium opportunities at Atomic Three and Inco Boundary.

MUNDA GOLD

The Munda project hosts a JORC Code 2012 reported Inferred gold Mineral Resource estimate of 511,000t at 2.82g/t Au (Table 2).* Within this Mineral Resource several very high-grade zones occur, which are interpreted to be formed where sub vertical NNW trending structures intersect a sheared basal contact between an ultramafic hangingwall and metabasaltic footwall.

This is interpreted to result in very high-grade plunging shoots within a lower grade envelope of gold mineralisation. These high-grade shoots will be targeted by drilling and if the interpretation is confirmed, they will be evaluated beginning with a Scoping Study to determine if they can be economically extracted.

An open pit mining operation was commenced in 1999 by Resolute Mining Limited, but was shut in 2000 due to a dramatic fall in the gold price at the time to sub A$400/oz Au. With gold now holding above A$1,500/oz, there is considerable scope to complete the mining of the remaining Mineral Resource.

==> picture [505 x 357] intentionally omitted <==

Figure 8. Munda gold cross section at 360460mE, looking east.

A POW was submitted and approved for the drilling of two holes, targeting the high-grade gold zone intersected by MND1406. The Company intends to drill these holes as soon as possible.

• Refer to ESR announcement “ESR to Acquire Munda Gold and Spargoville Nickel Projects”, 04 September 2017

Table 2. Munda Gold Mineral Resource Estimate*

Resources Category Cut off Tonnage (Au g/t) (Kt) Inferred 1 511 Total 1 511	Metal Grade Gold (g/t) 2.82 2.82	Contained Metal Gold (oz) 46,337 46,337

Table 3. Summary of the significant gold intercepts immediately north and beneath the Munda open pit. These will be targeted by drilling and economic evaluations starting with confirmatory drillholes around MND1406 and MND1407.*

Hole_ID	mFrom	mTo	Width (m)	Au_g/t
MND1406	53.0	60.0	7.0	41.23
Including	58.0	59.0	1.0	195.00
MND1407	70.0	74.0	4.0	40.10
MND1508	98.0	114.0	16.0	10.13
MND1724	94.1	97.1	3.1	23.17
MND1405	76.0	83.0	7.0	25.38
Including	76.0	78.0	2	82.5
MND1660	140.0	142.5	2.5	22.89
MND1417	111.0	128.0	17	10.34
MIRC009	46.0	50.0	4.0	38.80
MIRC006	20.0	23.0	3.0	16.31

(Note: the full tabulation of intersections is provided in Table 5)

MUNDA NICKEL

Closely associated with, but separated from the gold mineralisation at Munda, is a significant deposit of nickel sulphide. A JORC Code 2012 reported Inferred Mineral resource of 240,000t at 2.36% Ni has been estimated for the deposit.*

The nickel mineralisation is interpreted to be a “Kambalda Style” nickel sulphide occurrence, located at the basal contact between a high MgO komatiitic ultramafic unit and a footwall basalt. Mineralisation is concentrated in thermal and structural embayments in the basal contact and in “footwall carrots” in the basalt.

Table 4. Munda Nickel Mineral Resource Estimate*

Resources Category Cut off Tonnage (Ni%) (Kt) Inferred 1 240 Total 1 240	Metal Grade Nickel (%) 2.36 2.36	Contained Metal
		Nickel (t)
		5676 5676

Significant potential exists for further nickel sulphide mineralisation down plunge of the Munda Mineral Resource. Several DHTEM conductors were identified down plunge to the nickel mineralisation by Titan Resources during exploration programs conducted up to 2007, but these are yet to be followed up by drilling. The project was abandoned at the time due to a fall in the nickel price.

There are also two greenfields EM conductor targets, M15/87-C1 and M1587-C4, located north west of Munda within M15/87. These conductors were identified by Consolidated Minerals during MLTEM surveys completed in 2010. During the quarter, a follow-up soil sampling program was completed over this area.

==> picture [505 x 350] intentionally omitted <==

Figure 9. Long section of the Munda nickel mineralisation, outlined by Titan Resources, showing the EM anomaly down plunge and the location of the high-grade gold cross section shown in Figure 3.

SPARGOVILLE NICKEL

The Spargoville area hosts several nickel mines which have been exploited to varying degrees in the past, including 1A (nickel), 5A (nickel), 5B (nickel and gold), and 5D (nickel). Global and remnant Mineral Resources have been published by previous operators for each of these occurrences, but they are not up-dated to JORC Code 2012 reporting compliance, so cannot be quoted at this stage. It is envisaged that only a small amount of new data will need to be collected, if any, to advance these projects to JORC Code 2012 reporting standard. The Company intends to add them to the Mineral Resource inventory and to conduct economic evaluations.

Now that the WAN transaction has been finalised, the Company can take possession of the historic drill cores and digital databases for Spargoville and progress 1A, 5A, 5B, and 5D to JORC 2012 reporting standard.

1A

The 1A project was mined between 1990 and 1992. It produced 112,800t @ 3.8% Ni (4,286t Ni metal) before its closure in 1992. Three 25m spaced underground levels were mined to a vertical depth of 175m below surface.

Breakaway Resources (BRW) conducted drilling programs through 2007 and 2008 confirming depth continuation of high grade nickel sulphide mineralisation, including intercepts of 5.60m at 4.27% Ni, 7.29m at 6.94% Ni, 8.35m at 3.49% Ni, 1.84m at 4.95% Ni.[*] This extended the mineralisation up to 200 metres down-plunge of the mine workings on three separate surfaces.

Optiro completed a fully depleted Inferred Mineral Resource estimate on the project in 2009. This Mineral Resource estimate was completed to JORC 2004 reporting standard, terminating at 280m below surface. There is significant potential to upgrade this to JORC Code 2012 Mineral Resource reporting standard and to extend it further down plunge.

Down plunge extensions could be achieved using targeted drilling programs guided by modern high power DHTEM surveying. The DHTEM technology available today was not available to previous operators.

• Refer to ESR announcement “ESR to Acquire Munda Gold and Spargoville Nickel Projects”, 04 September 2017

==> picture [451 x 389] intentionally omitted <==

**Figure 10. Cross section of the 1A project care of Minotaur Exploration showing mineralisation domains, mine workings and interpreted down plunge potential. ***

5A

Thick high-grade nickel intercepts have been returned from drilling by previous operators beneath an historic oxide gold open pit at 5A. These intercepts represent a compelling target for generating a JORC Code 2012 Mineral Resource estimation and economic evaluations.

The high-grade nickel mineralisation appears to be open at depth. This represents significant exploration upside at the project.

Scoping Studies completed by previous operators have determined that high metallurgical recoveries are achievable on the mineralisation. This would be advantageous should an economic mining operation be possible on the project.

A strong downhole EM conductor has been identified within and below currently defined mineralisation. This conductor represents a compelling drill target for ESR.

==> picture [505 x 317] intentionally omitted <==

**Figure 11. Long section of the 5A project care of Minotaur Exploration showing mineralisation domains, a selection of significant drill intercepts, drill targets, and the strong DHTEM conductor at depth. ***

5D (Andrews)

The 5D project was mined via the Andrews Shaft. The mine was active between 1975 and 1979 when it was developed to 250m below surface. There are no production figures available on open file for the project.

A fully depleted remnant Mineral Resource was estimated by Geostat in 2004 to JORC Code 1999 reporting standard. This Mineral Resource estimate only included material between levels 2 and 11 of the mine, excluding lateral and depth extensions. Drilling completed by BRW in 2007 and 2008 confirmed the mineralisation extends at depth beyond the 11 level, with DHTEM modelling indicating that the mineralisation extends further to the north.

==> picture [445 x 206] intentionally omitted <==

Figure 12. Nickel sulphides in drill core from Spargoville.

==> picture [328 x 386] intentionally omitted <==

**Figure 13. Long section of the 5D (Andrews) project from Minotaur Exploration showing the mine workings, drill intercepts and DHTEM conductor models. ***

5B

The 5B project was mined between 1975 and 1982, and again between 1992 and 1993 via an open pit. Approximately 14,000t of nickel was produced between the two mining campaigns.

A decline was established post mining to allow drilling of the nickel and gold mineralisation from underground. The details of this operation are not available on open file.

A drilling program completed by Minotaur in 2014 confirmed historic nickel intercepts. Results included:

• 15m @ 1.41% Ni in hole SPRC001*

• 16m @ 0.98% Ni in hole SPRC002*

• 16m @ 1.82% Ni (including 6m @ 3.60% Ni) in hole SPRC003*

• 24m @ 1.53% Ni (including 6m @ 3.08% Ni) in hole SPRC005*

Mineral Resource estimates were completed on 5B by previous operators, but they were not completed to JORC Code 2012 reporting standards and therefore cannot be stated. ESR believes there is strong potential to upgrade the project to a JORC Code 2012 Mineral Resource and extend mineralisation with further drilling down plunge.

• Refer to ESR announcement “ESR to Acquire Munda Gold and Spargoville Nickel Projects”, 04 September 2017

==> picture [365 x 240] intentionally omitted <==

Figure 14. Long section of the 5A project from Minotaur Exploration, modified from BRW, showing the 5 %Ni x m nickel envelope, significant drill intercepts, and mine workings.

These existing mineralised occurrences are located on a significant landholding of exploration tenure, providing potential exploration upside to ESR, particularly given the recent advances in electrical geophysical technology and power levels since previous operators were active on the projects.

ESR has already identified four electromagnetic conductors in the historic data. One of which, M15/96C1, straddles the boundary between ESRs existing tenement M15/96 and the newly acquired tenement M15/395. The conductor is located between 5A and 5D and appears to be located on the same basal contact. It has a conductance of 6000 siemens and has good support from aeromagnetic data. This target will be assessed against geological and geochemical datasets before a decision to drill.

LITHIUM PROGRAMS

Approximately 12 – 15 RC holes are proposed for Atomic Three, with planned depths between 60m and 72m. Holes will be drilled at -60 towards 80 in a “top to tail” formation, roughly perpendicular to the stratigraphy. This will ensure the entire stratigraphic width of the anomalous pegmatites is sampled. Drilling will target directly beneath the highest-grade rock chip results, and the where pegmatites have the widest surface expressions. Three holes are also planned for Inco Boundary.

POW approvals remain in place for the follow-up drilling programs at Atomic Three and Inco Boundary. The Company intends to complete them in the first half of 2018.

A soil sampling program was completed over the Atomic Three prospect area during the previous quarter, which includes Bravo Charlie. 458 samples were collected on a 200m by 50m grid pattern. The aim of the soil sampling program was to determine if soil sampling could be an effective technique for identifying blind lithium bearing pegmatites with no visible surface expression, and if so, determine if there are any such pegmatites in the Atomic Three area. At this stage it is unclear if soil sampling is an effective technique for identifying blind pegmatites.

† Refer to ESR announcement “Mt Edwards Lithium Project Exploration Update”, 09 August 2017

==> picture [468 x 661] intentionally omitted <==

Figure 15. Map of Bravo Charlie prospect showing all the rock chips sampled to date, labelled with % Li2O for anomalous results above 0.1% Li2O. The better of the more recent sampling results are labelled in a white highlight.[ †]

CORPORATE

CAPITAL

The Company’s cash balance as at 31 December 2017 was A$1,118,000, after raising $1,360,000 through the issue of 34,000,000 shares via a placement at $0.04 per share. Cofunding drilling equity is expected in the coming quarter amounting to $120,000. The Company is assessing the potential for R&D claims in relation to the past and future work being undertaken at the CBLC.

Fully Paid Ordinary Shares 395,283,292 Unlisted options exercisable $0.024 on or before 31 March 2020 – 8,250,000 $0.044 on or before 31 May 2018 – 5,000,000 $0.40 on or before 13 November 2019 – 1,375,000 $0.80 on or before 3 October 2018 – 118,752 $1.40 on or before 21 November 2018 – 750,000

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 Mt Edwards Lithium, 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@estrella.com.au

Appendix 1 – Tenement Information as Required by Listing Rule 5.3.3.

				Change in	Current
				Holding	Interest
Country	Location	Project	Tenement	(%)	(%)
Australia	WA	Mt Edwards Lithium Project	M15/698	75	75
Australia	WA	Mt Edwards Lithium Project	M15/75	75	75
Australia	WA	Mt Edwards Lithium Project	M15/699	75	75
Australia	WA	Mt Edwards Lithium Project	M15/87	75	75
Australia	WA	Mt Edwards Lithium Project	M15/74	75	75
Australia	WA	Mt Edwards Lithium Project	M15/101	75	75
Australia	WA	Mt Edwards Lithium Project	M15/99	75	75
Australia	WA	Mt Edwards Lithium Project	M15/653	75	75
Australia	WA	Mt Edwards Lithium Project	M15/97	75	75
Australia	WA	Mt Edwards Lithium Project	M15/96	75	75
Australia	WA	Mt Edwards Lithium Project	M15/102	75	75
Australia	WA	Mt Edwards Lithium Project	M15/100	75	75
Australia	WA	Mt Edwards Lithium Project	M15/1271	75	75
Australia	WA	Mt Edwards Lithium Project	E15/1505	75	75
Australia	WA	Mt Edwards Lithium Project	E15/1507	N/A	Application
Australia	WA	Mt Edwards Lithium Project	E15/1562	N/A	Application

Note – Estrella Resources Limited owns 75% in the lithium rights of the tenements noted Mt Edwards Lithium Project. All tenements are held by Apollo Phoenix Resources Pty Ltd and are in Western Australia.

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,	NCB0001 was sampled by cutting the core in half with an Almonte core cutting machine.
techniques	random chips, or specific specialised industry	HXRF readings have been routinely taken on the sulphide mineralisation but are generally not
	standard measurement tools appropriate to the	reported as they are not considered representative.
	minerals under investigation, such as down hole
	gamma sondes or handheld XRF instruments,	HXRF readings have also been taken on unmineralised rocks
	etc.). These examples should not be taken as
	limiting the broad meaning of sampling.
	Include reference to measures taken to ensure	Standard reference material is inserted into the sample stream every nominal 20 samples,
	sample representivity and the appropriate	adjusted to focus on areas of geological interest and expected higher grade zones.
	calibration of any measurement tools or systems
	used.
	Aspects of the determination of mineralisation that	Determination of mineralisation has been undertaken on a visual basis with the support of
	are material to the Public Report.	HXRF readings.

Criteria	JORC Code explanation	Commentary
	In cases where ‘industry standard’ work has been	NQ diamond core was cut in half and bagged on 1m intervals adjusted to geological domains.
	done this would be relatively simple (e.g. ‘reverse	The entire nominal 1m sample was crushed and pulverised to produce a 50g charge for fire
	circulation drilling was used to obtain 1 m samples	assay for gold and PGEs and a 50g charge for 4 acid digest with ICP finish for multielement
	from which 3 kg was pulverised to produce a 30g	analysis.
	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 was drilled by diamond core HQ triple tube from surface. NCB0002 was drilled by
techniques	hammer, rotary air blast, auger, Bangka, sonic,	open hole blade to refusal, then HQ triple tube thereafter. NCB0003 was being drilled by HQ2
	etc) and details (e.g. core diameter, triple or	from surface and will switched to NQ2 at approximately 312m downhole.
	standard tube, depth of diamond tails, face-	The core is orientated using a Reflex ACTIII orientation tool.
	sampling bit or other type, whether core is
	oriented and if so, by what method, etc).

Criteria	JORC Code explanation	Commentary
Drill sample	Method of recording and assessing core and chip	Sample core recoveries have averaged over 95% for all drilling to date.
recovery	sample recoveries and results assessed.	Significant sample loss was encountered in the weathering profile. Very little sample was
	Measures taken to maximise sample recovery	recovered from the weathering profile when the open hole blade drilling technique was used.
	and ensure representative nature of the samples.	No relationship has been established between sample recovery and reported grade as the
	Whether a relationship exists between sample	project is in a preliminary exploration phase.
	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.

Criteria		JORC Code explanation	Commentary
Sub-		If core, whether cut or sawn and whether quarter,	The core is cut in half and half core is taken for assay.
sampling techniques		half or all core taken.	Host rock for nickel copper mineralisation is mainly pyroxenite and gabbronorite, but also
and sample		If non-core, whether riffled, tube sampled, rotary	peridotite, and gabbro.
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 hard geophysical data or spectra are 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.

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. A standard or blank is inserted into the sample stream on a nominal 20 sample spacing, adjusted to be located in zones of interest. All standards reported within acceptable levels of accuracy and precision.
Verification of sampling and assaying	The verification of significant intersections by either independent or alternative company personnel. No independent verification has been carried out given the early stage of the project.
	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. No adjustments have been made to assay data.
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 holes were pegged by Cardno Surveys using a RTDGPS. The rig was setup within 500mm of the peg for each hole.
	Specification of the grid system used. GDA94_51

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. NCB0001 and NCB0002 are drilled at a 40m separation at the target basal contact position. NCB0003 is drilled approximately 270m from west-north-west of NCB0001 and NCB0002.
	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 No sample compositing has been applied.
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 for NCB0001 and NCB0002. The hole orientation for NCB0003 is at a low angle to the basal contact target position as it will be used as an EM platform. 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. Drill core samples were in the possession of Company personnel until submission to the laboratory for cutting and sampling.

Criteria		JORC Code explanation	Commentary
Audits	or	The results of any audits or reviews of sampling	No audits or reviews have been conducted.
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	Carr Boyd Nickel Pty Ltd holds a 100% interest in the nickel and base metal rights to the project
tenement and		ownership including agreements or material	which is 100% owned ESR pursuant to a conditional agreement as announced on 16 October
land	tenure
status		issues with third parties such as joint	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 the body 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

Criteria	JORC Code explanation	Commentary
		closing it permanently shortly thereafter due to a collapse in the nickel price. The mine had
		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

Criteria	JORC Code explanation	Commentary
		surveys and detailed gravity surveys, but did not drill any targets before selling the project to
		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

Criteria		JORC Code explanation	Commentary
			have been identified at several locations within the basal parts of the complex and at shallower
			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	NCB0001 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. NCB0002 is collared at 366578mE, 6669672mN, and
		including a tabulation of the following	415mRL on GDA94 Zone51. The hole is drilling at -45 towards 200 grid azimuth. NCB0003 is
		information for all Material drill holes:	collared at 366325mE, 6669766mN, and 415mRL on GDA94 Zone51. The hole is drilling at -75
		o easting and northing of the drill hole	towards 20 grid azimuth.
		collar	NCB0001 was terminated at 186.4m depth. NCB0002 was terminated at 146.6m depth.
		o elevation or RL (Reduced Level –	NCB0003 was terminated at 824.7m.
		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

Criteria	JORC Code explanation Commentary
	this is the case. No information is excluded.
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 calculated intercepts are 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.

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 intercepts are 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 given the preliminary stage of the project.
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

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 preliminary stage of
	extensions or large-scale step-out drilling).		the 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.