Estrella Resources : Excellent Massive Sulphides Assay Results Received

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ASX:ESR
8 March 2022	Excellent Massive Sulphides Assay Results Received
use	HIGHLIGHTS
 Spectacular Massive Sulphide assay results CBDD064 at the Carr Boyd Nickel & Copper Project:
	∙ Main Zone - 16.2m(1) @ 3.12% Ni and 0.60% Cu from 192.35m
		∙ Including 8.07m(1) @ 4.31% Ni and 0.75% Cu from 199.85m
		∙ Individual assays up to 6.42% Ni
		∙ Mid Zone - 1.45m(1) @ 1.57% Ni and 0.75% Cu from 242.8m
personalFor		∙ Lower Zone - 12.97m(1) @ 1.07% Ni and 0.25% Cu from 256.0m
	∙ Including 3.98m(1) @ 1.25% Ni and 0.41% Cu from 256.77m
		∙ And 5.00m(1) @ 1.37% Ni and 0.21% Cu from 263.97m
	 Logging and geochemical analysis by CSIRO completed in order to determine Carr Boyd's relationship
		to the T5 mineralisation. Analysis of the data has commenced.
		Figure 1: Massive and semi-massivenickel-copper sulphides in CBDD064 at ~198m downhole.
	(1)	Downhole intersection quoted, style of mineralisation precludes true-width calculations at this time

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Office Address London House, Level 11, 216 St Georges Terrace, PERTH WA 6000 Postal Address GPO Box 2517, PERTH WA 6831 Phone [phone] Fax [phone] Email [e-mail]

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Estrella Resources Limited (ASX: ESR) (Estrella or the Company) is pleased to announce the receipt of assays from CBDD064 (Figure 1, Table 1)1, a diamond drillhole targeted below the existing workings at the Company's 100% owned flagship Carr Boyd Nickel and Copper Project, located approximately 80km NNE of the City of Kalgoorlie-Boulder, Western Australia.

Estrella Managing Director Chris Daws commented:

"The Carr Boyd project continues to produce some exceptional results, with numerous intersections of massive nickel sulphide and some very high nickel and copper assays associated with these drill hits.

Our understanding of this large mineralised system is gaining with every drill hole. The high-grade results received from hole CBDD064 beneath the historic Carr Boyd mine not only sees our geological model intact but also bolsters our confidence to unlock further massive nickel sulphides.

With nickel prices now reacting to strong demand from the global EV and battery revolution, Estrella is in an enviable position owning numerous quality nickel sulphide projects with scope for significant discoveries. The Ukraine War with Russia has seen nickel prices reach extraordinary levels overnighton the London Metal Exchange in excess of US$21.80/lb. These are prices that haven't been seen since the resource boom in 2007 and in Australian dollar terms we haven't seen such prices ever. As much as the nickel price rise is welcomed the war in Ukraine is not and I very much pray that peace is restored to the people of Ukraine.

We are also well funded to continue our drilling efforts to locate what we believe could be a world class nickel sulphide discovery at Carr Boyd and I look forward in providing further news as we push forward."

Table 1: Significant Assay Compilation from CBDD064

Hole	m From	m To	Interval	Ni%	Cu%	Co%	3PGE's*	Ag g/t
Main
Zone	192.35	208.55	16.2	3.12	0.60	0.09	0.33	1.02
Including	199.85	207.92	8.07	4.31	0.75	0.13	0.40	1.41
Mid Zone	242.8	244.25	1.45	1.57	0.75	0.05	0.47	1.68
Lower
Zone	256	268.97	12.97	1.07	0.25	0.04	0.17	0.41
Including	256.77	260.75	3.98	1.25	0.41	0.04	0.19	0.84
and	263.97	268.97	5.00	1.37	0.21	0.04	0.20	0.31

* 3PGE refers to Pt + Pd + Au in g/t

The assays confirm high-grade mineralisation continues below the old workings. The intersections coincide with a Downhole Electromagnetic (DHEM) response modelled from CBDD056A which was drilled by Estrella into the basal contact in October 2021 (Figure 2). A full assay list can be found in Table 2.

1 See ASX Announcement dated 24 January 2022

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Figure 2: Location of CBDD064 mineralisation in relation to the historical workings and the Carr Boyd basal contact.

The Carr Boyd Mine (Figure 2 and Figure 3) was worked between 1972 and 1977 by Great Boulder Mines and then Western Mining Corporation (WMC) before being closed due to lowering nickel prices and WMC's commitments elsewhere.

In total 210,000 tonnes at 1.44% Ni and 0.46% Cu were extracted via a 214m deep, three-compartment shaft. However, despite this extensive history, the source of this high-grade mineralisation has never been fully explained.

The mineralisation has historically proven to be relatively simple to mine, with a 10% nickel concentrate produced that was high in iron and sulphur whilst being very low in deleterious elements. Recovery was good at 79% given the ore was treated at the converted Fimiston Gold Plant when flotation of nickel sulphides was still at an early stage of development. Modern flotation technology we believe will dramatically increase recoveries.

The remaining JORC2004 resource stands at 636,000t at 1.4% Ni and 0.5% Cu (8,800 NiT and 3,100 CuT), one of the levels with remaining mineralisation can be seen in Figure 3. This resource was calculated in 2007 by Resource Evaluations Pty Ltd based upon historical mine mapping and additional drilling. Further confirmatory drilling will need to be conducted by Estrella to produce a re-interpretation and JORC2012 compliant resource2.

2 This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

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Estrella has partnered with the CSIRO to determine if the Carr Boyd mineralisation was derived from remobilising sulphides from a pool of sulphides located on the T5 basal contact. If proven, the mineralisation represents a bleed-zone from something much larger at depth and would confirm the Company's model regarding the potential for the Carr Boyd Layered Igneous Complex to host large-scalenickel-rich sulphide trap sites. Geological work by Estrella and the CSIRO, assisted by drilling, downhole electromagnetics and seismic should be able to resolve this link.

Figure 3: Picture taken in the 1990's underground at Carr Boyd showing extensive remobilised breccia mineralisation.

Exploration Update

The company has recently collared CBDD067 which is targeting the T5 basal contact south and at depth below the T5 Discovery. The rationale behind this drilling is to get better downhole electromagnetic (DHEM) coverage south and below the currently identified mineralisation. The DHEM response from the known T5 mineralisation is very strong and tends to mask additional sulphides away from the main conductors, such as that seen in CBDD042A, where massive breccia sulphides were intersected yet there was no DHEM response.

Additionally, the structural information gained from drilling this hole will enable a better understanding of the possible late off-set controls on the T5 Mineralisation.

This hole will be completed in the next few weeks, around the same time as Topdrive Drillers Australia (the drilling contractor at Carr Boyd) takes receipt of a brand new UDR drill rig which will be commissioned at Carr Boyd towards the end of March. The Company retired the use of an RC rig as it was not achieving the targeted drill metres.

The availability of two diamond rigs will enable Estrella to quickly advance its Phase 5 exploration program, which will use a combination of diamond drilling and DHEM to blanket the highly prospective T5-Broonhill, Mossgiel and Gossan Hill Prospects, where the company has already identified mineralised pyroxenites along the basal contact (Figure 4). Additionally, see ASX announcement dated 31 January 2022 titled "Carr Boyd Exploration Program Encounters Sulphides in Both the Mossgiel and Gossan Hill Pyroxenites".

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Figure 4: Architecture of the Carr Boyd Intrusive Complex showing 12 km of prospective very highly basal contact

The Board has authorised for this announcement to be released to the ASX.

FURTHER INFORMATION CONTACT

Christopher J. Daws

Managing Director Estrella Resources Limited [phone]

[e-mail]

Media:

David Tasker

Managing Director

Chapter One Advisors

1. [e-mail]

1. [phone]

Competent Person Statement

The information in this announcement relating to Exploration Results is based on information compiled by Steve Warriner, who is the Exploration Manager of Estrella Resources, and a member of The Australasian Institute of Geoscientists. Mr. Warriner 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. Warriner consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.