Estrella Gold Corporation
TSX VENTURE : EST

Estrella Gold Corporation

November 18, 2010 13:40 ET

Estrella Gold Closes Private Placement Financing

TORONTO, ONTARIO--(Marketwire - Nov. 18, 2010) - Estrella Gold Corporation (TSX VENTURE:EST) ("Estrella" or the "Company") is pleased to announce it has closed a non-brokered private placement offering of 2,000,000 units (each a "Unit") at $0.50 per Unit for gross proceeds of $1,000,000 (the "Financing"). One director participated in the Financing.

Each Unit is comprised of one common share (each a "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 $0.80 per share until November 17, 2012. The Warrants are callable, at the option of Estrella, after March 18, 2011 if its Common Shares trade at or over $1.00 per share for 20 consecutive trading days. The number of Common Shares issuable pursuant to the Financing, if all Warrants are exercised, is 4,000,000 Common Shares for gross proceeds of $2,600,000.

In connection with the Financing, the Company paid eligible finders (the "Finders") fees in Units (the "Finder Units") equal to 6% of the Units issued through each Finder under the Financing and also issued compensation warrants equal to 10% of the total number of Units (the "Compensation Warrants") issued through each Finder under the Financing. Each Finder Unit consists of one Common Share and one Warrant. Each Compensation Warrant entitles the holder to acquire one Common Share of Estrella at $0.60 until November 17, 2012. On closing, the Company issued 118,800 Finder Units and 198,000 Compensation Warrants to the Finders.

The securities issued pursuant to the Financing will all be subject to a four month regulatory hold period from the date of closing. With the closing of this Financing, Estrella has 14,006,845 common shares issued and outstanding. 

The net proceeds of the offering will be used for:
  1. drill program of 1,500 metres at Colpayoc property;
  2. property payments; and
  3. working capital and general corporate purposes.

About Estrella Gold Corporation (TSX VENTURE:EST) Estrella Gold is a precious metals exploration and development company focused on strategically-located properties in Latin America. Estrella Gold has seven precious metal exploration projects in Perú and one in Chile. The Company is focused on expanding its gold resource inventory, and making new gold discoveries. The Company has 14 million shares issued and outstanding on the TSX Venture Exchange (TSX VENTURE:EST). 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.

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