Estrella Gold Corporation
TSX VENTURE : EST

Estrella Gold Corporation

June 12, 2012 09:00 ET

Estrella Gold Corp. Announces Drilling at La Estrella Gold-Silver Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 12, 2012) - Estrella Gold Corporation (TSX VENTURE:EST) ("Estrella" or the "Company") is pleased to announce the start of a 2,500 meter core drilling program at the Company's namesake La Estrella project in Central Peru. Goals of the program are to drill test a strong induced polarization geophysical target located adjacent to the main mineralized zone and to expand the southwest extend of mineralization and define the distribution of high-grade mineralization. Geological mapping and soil sampling will also be completed to evaluate new areas adjacent to the main zone of mineralization. The program is funded and operated by Mines Management Inc ("MMI") under Estrella's recently announced Option Agreement. Estrella is also funded by MMI to provide geological and administrative support and remains responsible for community relations programs. MMI can earn a 75% interest in the property by making payments of US$550,000 to Estrella, spending US$5 million on exploration, and completing a NI 43-101 compliant Preliminary Economic Analysis ("PEA") on the property.

The La Estrella property contains approximately 2,500 hectares in the Central Peru polymetallic belt, Department of Huancavelica, a region with a history of silver mining dating to the 1500's. The Project area contains well-developed roads and electricity, and is located within 30 km of the Julcani Silver Mine, which began operation in 1955. Previous core and RC drilling at La Estrella included 5,796 meters in 33 holes and identified a mineralized area approximately 1,800 long and 300 meters wide. Drilling has tested only 200 meters below the surface and the mineralization remains open at depth. Mineralized intervals average 133.5 meters wide in 18 holes. The property is an advanced stage exploration project which contains a volcanic-hosted epithermal gold-silver system with associated base-metal mineralization.

About Estrella Gold Corporation (TSX VENTURE:EST): Exploration is risky and Estrella is seeking to increase the chances of success as a "Prospect Generator" focused on gold exploration in Latin America. Estrella identifies and acquires new mineral properties, and then conducts initial, low-cost exploration to define a potential new deposit. Once defined, Estrella forms joint ventures with other companies that will provide funding and reduce Estrella's risk and expenditures. The Prospect Generator business model allows Estrella to aggressively seek the next major discovery. Estrella has thirty-two exploration properties in Perú, with twenty-eight held in venture agreements, most in a strategic exploration alliance with Cliffs Natural Resources Exploration Inc. Of the four properties held 100% by Estrella, the Company also established a NI 43-101 compliant inferred resource containing a minimum of 313,000 ounces of oxide gold at its Colpayoc Project in Peru (from 19.3 Mt @ 0.5 g/t gold, NI 43-101 Inferred Resource, 2011 Global Geotechnologies Inc.; News Release dated 12/21/2011). The Company has 24.1 million shares issued and outstanding on the TSX Venture Exchange (TSX VENTURE:EST). Mr. Keith A. Laskowski, MSc., is a Qualified Person for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators, and has prepared, reviewed and verified the technical information contained in this news release. 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.

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