Announcement PDF Proposed issue of securities Announcement Summary Entity name ESTRELLA RESOURCES LIMITED Announcement Type New announcement Date of this announcement Monday August 3, 2020 The Proposed issue is: A placement or other type of issue Total number of +securities proposed to be issued for a placement or other type of issue ASX +security code +Security description Maximum Number of +securities to be issued ESR ORDINARY FULLY PAID 75,000,000 Proposed +issue date Friday August 7, 2020 Refer to next page for full details of the announcement Proposed issue of securities 1/5 Proposed issue of securities Part 1 - Entity and announcement details 1.1 Name of +Entity ESTRELLA RESOURCES LIMITED We (the entity named above) give ASX the following information about a proposed issue of +securities and, if ASX agrees to +quote any of the +securities (including any rights) on a +deferred settlement basis, we agree to the matters set out in Appendix 3B of the ASX Listing Rules. 1.2 Registered Number Type Registration Number ABN 39151155207 1.3 ASX issuer code ESR 1.4 The announcement is New announcement 1.5 Date of this announcement Monday August 3, 2020 1.6 The Proposed issue is: A placement or other type of issue Proposed issue of securities 2/5 Proposed issue of securities Part 7 - Details of proposed placement or other issue Part 7A - Conditions 7A.1 - Are any of the following approvals required for the placement or other type of issue? +Security holder approval Court approval Lodgement of court order with +ASIC ACCC approval FIRB approval Another approval/condition external to the entity No Part 7B - Issue details Is the proposed security a 'New class' (+securities in a class that is not yet quoted or recorded by ASX) or an 'Existing class' (additional securities in a class that is already quoted or recorded by ASX)? Existing class Will the proposed issue of this +security include an offer of attaching +securities? No Details of +securities proposed to be issued ASX +security code and description ESR : ORDINARY FULLY PAID Number of +securities proposed to be issued 75,000,000 Offer price details Are the +securities proposed to be issued being issued for a cash consideration? Yes In what currency is the cash consideration being paid? What is the issue price per +security? AUD - Australian Dollar AUD 0.00700 Will these +securities rank equally in all respects from their issue date with the existing issued +securities in that class? Yes Proposed issue of securities 3/5 Proposed issue of securities Part 7C - Timetable 7C.1 Proposed +issue date Friday August 7, 2020 Part 7D - Listing Rule requirements 7D.1 Has the entity obtained, or is it obtaining, +security holder approval for the entire issue under listing rule 7.1? No 7D.1b Are any of the +securities proposed to be issued without +security holder approval using the entity's 15% placement capacity under listing rule 7.1? Yes 7D.1b ( i ) How many +securities are proposed to be issued without security holder approval using the entity's 15% placement capacity under listing rule 7.1? 23,749,169 ordinary shares 7D.1c Are any of the +securities proposed to be issued without +security holder approval using the entity's additional 10% placement capacity under listing rule 7.1A (if applicable)? Yes 7D.1c ( i ) How many +securities are proposed to be issued without +security holder approval using the entity's additional 10% placement capacity under listing rule 7.1A? 51,250,831 ordinary shares 7D.1c ( ii ) Please explain why the entity has chosen to do a placement rather than a +pro rata issue or an offer under a +security purchase plan in which existing ordinary +security holders would have been eligible to participate This is the most efficient mechanism for raising funds at this time 7D.2 Is a party referred to in listing rule 10.11 participating in the proposed issue? No 7D.3 Will any of the +securities to be issued be +restricted securities for the purposes of the listing rules? No 7D.4 Will any of the +securities to be issued be subject to +voluntary escrow? No Part 7E - Fees and expenses 7E.1 Will there be a lead manager or broker to the proposed issue? Yes Proposed issue of securities 4/5 Proposed issue of securities 7E.1a Who is the lead manager/broker? CPS Capital Group Pty Ltd 7E.1b What fee, commission or other consideration is payable to them for acting as lead manager/broker? 2% Management Fee and 4% Placement Fee of all funds raised 7E.2 Is the proposed issue to be underwritten? No 7E.4 Details of any other material fees or costs to be incurred by the entity in connection with the proposed issue Part 7F - Further Information 7F.01 The purpose(s) for which the entity is issuing the securities To fund exploration at the Company's Carr Boyd Nickel Project and for general working capital 7F.1 Will the entity be changing its dividend/distribution policy if the proposed issue proceeds? No 7F.2 Any other information the entity wishes to provide about the proposed issue The subscribers to the Placement will receive 1 free attaching option for every 1 ordinary share subscribed, exercisable at $0.02 on or before 31 July 2023. The Company will obtain shareholder approval for the issue of these options and these are included within a separate Appendix 3B lodged with the ASX on 3 August 2020. Proposed issue of securities 5/5