Estrella Gold Corporation
TSX VENTURE : EST

Estrella Gold Corporation

July 28, 2011 15:00 ET

Estrella Gold Announces Closing of $250,000 Private Placement Financing

TORONTO, ONTARIO--(Marketwire - July 28, 2011) - Estrella Gold Corporation (TSX VENTURE:EST) ("Estrella" or the "Company") is pleased to announce it has closed a non-brokered private placement offering of 347,445 units (each a "Unit") at $0.72 per Unit for gross proceeds of $250,160 (the "Offering"). The financing was completed with strategic investors of the Company. Each Unit is comprised of one common share and one non-transferable warrant (each a "Warrant"). Each Warrant entitles the holder to purchase one common share at an exercise price of $1.05 per share during the first year or at a price of $1.20 during the second year following the date of closing of the Offering. No finder's fees or commissions were paid in connection with the Offering.

The proceeds of the offering will be used for:

  1. drill program of 1,800 metres at Colpayoc property;
  2. accelerated property payments; and
  3. working capital and general corporate purposes.

The securities issued pursuant to the Offering will all be subject to a four month regulatory hold period commencing from the date of closing. The Offering remains subject to TSX Venture Exchange acceptance of requisite regulatory filings.

About Estrella Gold Corporation (TSX VENTURE:EST) Estrella Gold is a "Prospect Generator" company focused on gold exploration and resource definition in Latin America. Estrella Gold has seven precious metal exploration projects in Perú and one in Chile. The Company has a minimum inferred gold resource of 144,000 ounces at its Colpayoc Project in Peru (NI 43-101 Inferred Resource) and is expanding its resource inventory, and also making new gold discoveries. The Company has 24,095,304 shares issued and outstanding on the TSX Venture Exchange (TSX VENTURE:EST) following the closing of the Offering. Further information is available at Estrella Gold's website: www.estrellagold.com.

STATEMENTS IN THIS NEWS RELEASE, OTHER THAN PURELY HISTORICAL INFORMATION, INCLUDING STATEMENTS RELATING TO THE COMPANY'S FUTURE PLANS AND OBJECTIVES OR EXPECTED RESULTS, MAY INCLUDE FORWARD-LOOKING STATEMENTS. FORWARD-LOOKING STATEMENTS ARE BASED ON NUMEROUS ASSUMPTIONS AND ARE SUBJECT TO ALL OF THE RISKS AND UNCERTAINTIES INHERENT IN RESOURCE EXPLORATION AND DEVELOPMENT. AS A RESULT, ACTUAL RESULTS MAY VARY MATERIALLY FROM THOSE DESCRIBED IN THE FORWARD-LOOKING STATEMENTS.

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information