Estrella Resources : Sulphides Continue at Depth Below T5

ASX:ESR

30 March 2022

Sulphides Continue at Depth Below T5

HIGHLIGHTS

•  CBDD067 intersects basal contact nickel-copper sulphide mineralisation 700m below surface at T5 (Figure 1)

  •  Cumulative 17.5m of disseminated and blebby sulphides intersected (Table 1)

  •  Sulphides closely associated with silica-sulphide plume material

  •  Hole cased successfully and DHEM scheduled to begin shortly

•  CBDD068 collared at new Mossgiel Prospect

•  New diamond drill rig due at site shortly, supplied by Topdrive Drillers Australia

Figure 1: Diamond core with globular nickel-copper sulphides at approximately 802m downhole in CBDD067.

Estrella Resources Limited (ASX: ESR) (Estrella or the Company) is pleased to announce a broad ~24m wide zone containing a cumulative 17.5m wide Ni-Cu sulphide intersection below the T5 nickel discovery in the 946m deep downhole electromagnetic (DHEM) platform hole CBDD067.

The intersection occurred between ~782m-806m on the T5 Basal Contact, 80m south and 150m below the massive sulphide discovered in CBDD042A1 which until now has been the deepest intersection informing the known T5 mineralisation (Figure 2).

The drillhole was designed to intersect the basal contact underneath a set of flat faults that have been inferred from geological studies on previous drilling. DHEM will be used down this hole to explore a large vertical section of the basal contact for additional massive sulphides often seen associated with the silica-sulphide plume material identified in CBDD067 (Figure 3). This method of establishing deep DHEM

1 Refer to ASX announcement dated 9th April 2021 _________________________________________________________________________________

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] [e-mail]

platform holes was used successfully by Estrella in 2020 to discover the T5 mineralisation along the basal contact of the Carr Boyd Intrusion.

Estrella Managing Director Chris Daws commented:

"Making further sulphide discoveries at depth is very encouraging as this is the deepest intersectionof T5 mineralisation drilled to date by Estrella, further highlighting the continuing expansion of T5mineralisation. Through methodical drill testing, we are gaining a better understanding of thegeological setting at T5.

CBDD067 will allow our teams to undertake a DHTEM survey to further test the surrounds for possiblemassive sulphide accumulations. There is still a very large area of highly prospective basal contactat the Carr Boyd intrusion yet to be fully tested and we look forward to the second new diamond rigarriving on site to expedite the exploration activities."

Figure 2: 3D rendering of the Carr Boyd Igneous Complex basal contact showing the location of CBDD067 with respect to the known T5 mineralisation.

Figure 3: T5 mineralisation model showing the role of the silica-sulphide plume material in the formation of the T5 massive sulphides.

Regional Exploration

The Phase 5 regional program continues with the diamond drill rig moving back to Mossgiel to continue a series of DHEM platform holes, the latest of which is CBDD068 (Figure 2). Phase 5 involves drilling a series of holes where previous RC and diamond drilling has located nickel sulphides in pyroxenites on the basal contact (Figure 4).

Some 12km of fertile basal contact has been mapped to date, comprising three main prospects; Mossgiel, T5-Broonhill and Gossan Hill. Scout drilling at all three prospects had proven that the rocks in these positions are fertile, containing nickel-copper sulphides.

Phase 5 is aimed at systematically covering a cross-section of the contact with diamond drilling and DHEM so as to locate additional massive sulphides. To assist in timely exploration, a second diamond drill rig is expected on site shortly to assist in completing a series of exploration holes between T5 and Broonhill.

Figure 4: Image of the Carr Boyd Igneous Complex with the fertile basal pyroxenite contacts highlighted in red.

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]

Media:

David Tasker Managing Director Chapter One Advisors

E:[e-mail] T: [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.

Table 1: Visual Sulphide Intersection Details for CBDD067

Hole ID	Depth From	Depth To	Interval	Rock Type	Sulphide Texture	Visual Sulphide Estimation	Visual Pentlandite Estimation	Visual Chalcopyrite Estimation
CBDD067	781.95	782.46	0.51	Pyroxenite	Cloud	0.1	Tr	Tr
782.46	782.66	0.2	Pyroxenite	Disseminated	2	0.25	0.5
782.66	785.5	2.84	Pyroxenite	Cloud	0.1	Tr	Tr
785.5	786.3	0.8	Pyroxenite	Disseminated	2	0.25	0.5
786.3	788.65	2.35	Pyroxenite	Disseminated	5	1	1
788.65	790.55	1.45	Pyroxenite	Disseminated	2	0.5	0.25
790.55	792.2	0.55	Dolerite Dyke
792.2	793.3	1.1	Pyroxenite	Disseminated	2	0.5	0.25
793.3	794.25	0.95	Pyroxenite
794.25	795.41	1.16	Pyroxenite	Blebby	2	0.25	0.25
795.41	799.9	4.49	Pyroxenite	Blebby	0.5	0.1	0.1
799.9	804.2	4.3	Pyroxenite	Blebby	1.5	0.25	0.25
804.2	806	1.8	Pyroxenite	Disseminated	3	0.5	0.5
806	813.2	7.2	Pyroxenite
813.2	946.2	Footwall Basalt & Seds

In relation to the disclosure of visual mineralisation, the Company cautions that visual estimates of sulphide abundance should never be considered a proxy or substitute for laboratory analysis. Laboratory assay results are required to determine the widths and grade of mineralisation. The Company will update the market when laboratory analytical results become available.

Table 2: Drill hole collar details

Hole ID	Final Depth	Easting	Northing	RL	Dip	Azimuth	Status
CBDD067	946.2	367637	6673412	429.6	-65	270	Completed
CBDD068	TBA	365563	6670955	434.5	-84	270	Ongoing

APPENDIX 1 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 Sampling techniques

JORC Code explanation

Commentary

•  Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling.

•  DD core samples have been half cut with an automatic core saw.

•  0.25m-1.1m samples are collected from the core trays as marked out by the supervising geologist.

•  A handheld XRF tool was used to verify the mineralisation with samples reporting >0.3% Ni in disseminated zones and >1% Ni in the matrix sulphide zones.

•  XRF results have not been reported and are used as a logging/sampling verification tool only.

  •  Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

•  Core is cut and sampled to ensure the sample is representative and no bias is introduced. Cutting of specific, banded or stringer sulphide zoned core is done orthogonal to the banding to ensure there is no bias.

•  Aspects of the determination of mineralisation that are material to the Public Report.

•  In cases where 'industry standard' work has been done this would be relatively simple (e.g. 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30g 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 techniquesDrill sample recovery

•  Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

•  Determination of mineralisation has been based on geological logging, visual sulphide estimates and confirmation using a pXRF machine. Samples were dispatched to an accredited laboratory for multi-element analysis.

  .

•  Diamond core drilling was used to obtain 3m length samples from the core barrel which are then marked in one meter intervals, based on core block measurements.

•  Samples are selected based on geological logging boundaries or on nominal meter marks.

•  Collected samples weigh a nominal 2-3 kg (depending on sample length).

•  Samples have been dispatched to an accredited commercial laboratory in Perth for analysis.

•  Samples are being analysed using a 4-acid digest, ME-ICP for 33 elements and ore zone samples are also being tested for Au & PGE elements using ICP analysis.

•  Drilling was undertaken using NQ2 sized drill core.

•  Holes have been collared with mud rotary from surface, HQ rough cored to top of fresh rock then NQ2 cored to EOH.

•  Method of recording and assessing core and chip sample recoveries and results assessed.

•  Measures taken to maximise sample recovery and ensure representative nature of the samples.

•  Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

•  Core recovery was recorded by the field crew and verified by the geologist.

•  RQD measurements were digitally recorded to ensure recovery details were captured.

•  Sample recovery in all mineralised zones is high with negligible core loss observed.

•  Diamond core drilling is the highest standard and no relationship has been established between sample recovery and reported grade as the core is in very good condition.

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