Announcement PDF CHILE’S STAR IN COPPER-GOLD April 2014 Disclaimer This presentation has been prepared by Estrella Resources Limited (“Estrella” or “Company”). The presentation does not contain all the information that a prospective investor may require about the companies, their business or the proposal. It is not a complete statement of material information. Except where stated, the information disclosed in this presentation (“Information”) relates to the proposed business of the Company at the date of this document. This presentation does not contain advice relating to legal, taxation or investment matters. The Company makes no representation or warranty (express or implied) as to the accuracy, reliability or completeness of the Information. The Company and its subsidiaries, directors, employees, agents and consultants shall have no liability (including liability to any person by reason of negligence or negligent misstatement) for any statements, opinions, information or matters (express or implied) arising out of, contained in or derived from, or for any omissions from this presentation, except liability under statute that cannot be excluded. This presentation may contain reference to certain intentions, expectations and plans of a Company (“forward looking statements”). Those intentions, expectations and plans may or may not be achieved. Any forward looking statements are subject to inherent risks and uncertainties and are based on certain assumptions that may not be met or on which views may differ. The performance and operations of a Company may be influenced by a number of factors, many of which are outside the control of the Company. Actual future results may be materially different. No representation or warranty, express or implied, is made by either Company or any of its directors, officers, employees, advisers or agents that any intentions, expectations or plans will be achieved either totally or partially or that any particular rate of return will be achieved. You are cautioned against relying upon any forward looking statement in this document. This presentation does not contain an offer of securities in a Company, nor an invitation to apply for such securities. Nothing in this document should be construed as investment advice or financial product advice, whether personal or general, for the purposes of Section 766B of the Corporations Act. The document does not involve or imply a recommendation or a statement of opinion in respect of whether to buy, sell or hold a financial product. You should obtain professional advice and carry out your own independent investigations and assessment of the Information before acting. The Company has not verified the accuracy or completeness of the information, statements and opinions contained in this presentation. Accordingly, to the maximum extent permitted by law, the Company makes no representation and give no assurance, guarantee or warranty, express or implied, as to, and take no responsibility and assume no liability for, the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omissions, from any information, statement or opinion contained in this presentation. The contents of this presentation are confidential. Information in this presentation which is attributed to a named third party source has not been checked or verified by the Company. This presentation remains the property of Estrella Resources Limited and may not be reproduced, distributed, transmitted or published (in whole or in part) without the prior consent of the Company. The table on page 7 of this presentation and information contained therein relates to nearby deposits, none of which are owned by Estrella and is obtained from publicly available information. All deposits have been published in compliance with the 2004 JORC code. Estrella makes no comparison between its projects and these named deposits other than to demonstrate their locality. There is no guarantee that Estrella’s projects will realise similar results. On page 9 of this presentation references are made to historical drilling results by SQM as previously announced to the ASX by Estrella on 18 March 2013, 7 May 2013, 22 August 2013 and 9 September 2013. References made on page 9 to Estrella’s own drilling results are as previously announced to the ASX on 11 November 2013 and 3 December 2013. The Company is not aware of any new information or data that materially affects either of these drilling results. Extracts only of Estrella’s drilling results are outlined on page 9 with the full drilling results found in the ASX announcements of 11 November and 3 December 2013. Competent Person’s Statement The information in this presentation that relates to exploration activities by Estrella is based on information compiled by Dr. Jason Berton, who is a Member of the Australasian Institute of Metallurgy and Mining (AusIMM) and is the full-time Managing Director of Estrella . Dr Berton has sufficient experience that is relevant to the style of mineralisations and type of deposits under consideration and to the activities which 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 Resources and Ore Reserves (JORC Code). Dr Berton consents to the inclusion in this presentation of the statements based on their information and context in which it appears. 2 Company Overview ASX Code ASX.ESR Share Price (as at 31/03/2014) A$0.14 $0.30 Market Cap (as at 31/03/2014) (undiluted) A$13.5M $0.25 No. Shares on issue 96,601,000 No. Options on issue 12,380,000 Volume 1.6 Close 1.4 1.2 $0.20 1 $0.15 0.8 0.6 $0.10 Debt 0.4 Nil $0.05 Cash at bank (31 Dec 2013) A$1.9M Board of Directors Millions Share Price Performance 0.2 $0.00 Nov-12 0 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Shareholder Composition Gavin Solomon Non-Executive Chairman Dr. Jason Berton Managing Director Institutional 22% Julian Bavin Non-Executive Director Retail Board 18% Simon Kidston Non-Executive Director Rob Thomson Non-Executive Director 60 % 3 Company Overview (Cont) Estrella Resources Altair Project Next Milestones for Altair Project  ASX listed, Australian based, Chilean focused copper-gold exploration company  Copper Flagship - Altair Project located in Region II, Northern Chile  Board & Management expertise in exploration through to production  1,100 km2 in Coastal Belt in northern Chile  Straddling the highly prospective Atacama Fault Zone for 85km  Region II host of multiple world class copper/gold deposits  Long term option agreements with SQM (NYSE: SQM)  Colupo:   • JORC Resource Q3 2014 • Extend known mineralisation extents • Mining concept study Dania: • Define near surface Copper oxide resource • Test for larger system Antucoya West RAB drilling near surface targets 4 Project Altair Close to Infrastructure Adjacent Antucoya mine development Altair Project Exploration for Production  Project Altair is within 30 km of the coast, ideally located close to vital mine infrastructure:  Power  Water pipelines  Deep water ports  Major roads  Mining district  70% owned by Antofagasta Minerals, 30% owned by Marubeni Group  First production due April 2015 – 20 year. LOM  Heap-leach SX-EW mine  85,000 t.p.a Cu cathode production  Region ideal for heap-leach & SX-EW  Colupo – Copper oxide mineralisation from surface.  Dania – Copper oxide from surface.  Antucoya West – large anomaly, Copper oxide visible at surface. 5 Projects Overview- Priority Prospects Colupo Dania & Ivannia Antucoya West Mineralised breccia system – remains open Mineralised Cretaceous volcanics & porphyries intruded Jurassic volcanics Porphyry prospectivity High grade / from surface: Dania – mineralised Rhyolite Dome Antucoya West • High Cu grades near surface • 19 historical RC holes. • Structural continuity • CuOx from surface • Large chargeability anomaly – 7 km2 • Significant mineralisation widths • • CuOx exposed on surface above anomalous zone. • Progressing to JORC Resource Q2 2014 Possible porphyry feeder at depth - Large scale potential • • Initial Diamond drilling now completed Breccia and ‘crackle’ zone identified at surface – porphyry indicators.. • Conceptual mining study to follow JORC Resource in Q2 2014 • RAB drilling program commencing Q2 2014 • Potential shallow CuOx resource - SX-EW compliment with Colupo production plan Ivannia – Co-Mo porphyries • Granodiorite & Tonalite intrusives • Similar geology to Antucoya Drilling ongoing Testing near surface CuOx and for mineralisation source ‘vectors’ West & east extensions of Antucoya magnetic anomalies Near term production aim Potential for large porphyry orebody Potential for large porphyry orebody Drilling at Dania, March 2014 Core Logging at Colupo January 2014 6 Altair Project Overview  Agreement with SQM to acquire up to 100% of all metal discoveries at Altair  Covers 1,100 km2 of highly prospective exploration grounds: • Ground held by government nitrate producers since 1920 • Limited historical exploration for metals  Located in northern Chile within the Coastal Belt within the Antofagasta mining district  Regions hosts a number of significant deposits  Close to all mining related infrastructure & services  Additional ground Saturno (3,408 ha) and Mercurio (7,405 ha) 100% owned by Estrella Nearby Deposits * Ore Reserve Mineral Resource Mineralisation style Proximity to Altair N/A Measured: 26.7Mt @ 1.61% Indicated: 24.7Mt @ 1.45% Inferred: 15.8Mt @ 1.67% Manto & Breccias 17 km west of Saturno Proven: 215Mt @ 0.38% Measured:278 Mt @ 0.34% Porphyry Probable: 427Mt @ 0.34% Indicated:737 Mt @ 0.30% Inferred:91 Mt @ 0.28% Proven: 26.3 Mt @ 0.83%, 8.3 Mt @ 0.54%, 2.1Mt @ 0.18% Measured:47.8 Mt @ 0.75%, 14.1Mt @ 0.47% Probable: 19.7 Mt @ 0.80%, 16.3 Mt @ 0.33%, 49.6Mt @ 0.23% Indicated: 68.1 Mt @ 0.56%, 10.5 Mt @ 0.43%, 8.3 Mt @ 0.20% Inferred: 30.5 Mt @ 0.55%, 5.2Mt @ 0.49% (not owned by Estrella) Michilla Antucoya Los Mantos Blancos Surrounded by Altair Rhyolite dome 40 km south of Altair *For additional information regarding this table refer to the disclaimer on page 2. 7 Altair Project (Cont) Geology Exploration  Altair Project runs along the Atacama Fault Zone (AFZ)  Cretaceous – Jurassic aged porphyritic and volcanic rocks:  Lies along the mineralised Buey Muerto Fault (BMZ):  • Hosts Antucoya deposit • Prospective for Porphyries, Breccias, Domes & Mantos 3 brownfield projects – Colupo, Dania & Ivannia • SQM 77 historical RC & Diamond drill holes • All have copper mineralisation near surface  Estrella: 9 RC and 6 Diamond drill holes  Large geophysical & geochemical dataset • Similar magnetic anomaly at Antucoya identified at Altair  Progressing Colupo to maiden JORC Resource.  Dania: currently drilling mineralised Rhyolite dome. Project Altair: airborne magnetic data coverage 8 Altair Project – Colupo Prospect Overview  Colupo prospect covers 2,650 hectares  Exceptional Estrella drilling results *: • • • 20m @ 2.4% Cu from 12m (RCC04) • Incl. 6m @ 6.6% Cu, 0.5 g/t Au & 27.1 g/t Ag 16m @ 1.5% Cu from 131m (RCC04) • Incl. 6m @ 2.2%Cu, 0.2 g/t Au & 11.8 g/t Ag 20m @ 0.9% Cu from 144m (RCC02) *Representing 3 of the best intercepts within the RC drilling program, the full drilling results can be obtained from ASX Announcements lodged 11 November 2013 and 3 December 2013  Mineralistion commences at or near surface  Consistent with historical SQM drilling results: • 31 m @ 1.4% Cu from 28 m (ARCO 02) • 22 m @ 1.0% Cu from 28 m (ARCO 10) • 39 m @ 0.6% Cu from 1 m (ARCO 11) • 8 m @ 1.3% Cu from 55 m (ARCO 11)  Diamond program confirms significant true widths: upto 21 metres  Mineralisation remains open at depth (below 150m) and laterally to North, East and West Drill plan layout at Colupo January 2014 9 Colupo Section 402035E: drill holes RCC04 & RCC09, 0.2%Cu (purple) & >0.5%Cu (red) mineralised shells Colupo Drilling Nov 2013 402850E 402035E Altair Project – Colupo Prospect (Cont) Section 402085E: drill holes RCC01 & RCC02, 0.2%Cu (purple) & >0.5%Cu (red) mineralised shells 10 Altair Project – Colupo Prospect (Cont) Geology  Multiple interfingered breccias: • Steeply dipping (70o) breccias sheets outcropped at surface  Structurally controlled with local faulting  Manto style mineralisation observed in current drilling, potential to discover mantos related to breccia emplacement Mineralised breccia exposed at Colupo (Nov 2013) HQ diameter diamond core from hole DHC-01 at Colupo identifying copper mineralised breccia intercept at approximately 43 metres to 51 metres downhole (January 2014). HQ diameter diamond core from DHC-02 at Colupo identifying intercept 97 metres to 104 metres with visual extensive tourmaline filled breccia with copper mineralisation (January 2014). 11 Altair Project – Colupo Prospect (Cont) 70 m 150 m  At least 5 breccias identified within a tight cluster  Mineralisation thickness ranges between 3m-22m  Cu grade ranges between 0.4% -2.4%  Mineralisation starts from surface  Mineralisation extends down to at least 150m  Strike length of 250m defined to date  Open to north, east, west and at depth 3D copper mineralised shells for Colupo. The 3-dimensional ore shell model for Colupo using a 0.2% Cu cut-off grade. View is to the southwest. This figure illustrates the breccia system is open to the east and northeast with outcropping mineralised breccias potentially linking to intersected mineralised breccia and significantly increases in the depth extent of mineralisation. The mineralised system extends to 150m depth and remains open at greater depths. 12 Altair Project – Dania & Ivannia Prospects Dania Project Overview Ivannia Project Overview Exploration Program  Covers a combined area of 1,476 hectares  Geology features Rhyolite dome intrudes Jurassic andesites  Previous SQM drilling identified open central mineralised zone:  Dania has potential to host porphyry mineralisation beneath the Rhyolite dome  Dania potential for shallow CuOx resource to compliment Colupo production goal  Covers an area of 1,000 hectares  Mineralised Granodiorite and Tonalite porphyries (Cu, Mo)  Similar geology to Antucoya  Previous SQM exploration includes 36 RC drill holes: • 28 holes to a maximum of 110 depth for a total of 1,870 metres • 8 holes from 150 to 300m depth for a total of 1,860 metres  Infill sampling, mapping and geophysical surveys  Currently drilling at Dania Significant mineralised rhyolite dome (red) at Dania prospect is currently being drilled to 300 metres depth. Historical SQM RC drilling identified near-surface Cu oxide mineralisation (green shape details the 0.1% Cu shell). 13 Altair Project – Antucoya West Antucoya West & Saturno  Covers a combined area of 92.75 km2  Saturno is pegged and 100% owned by ESR  Immediately adjacent to Antofagasta PLC’s Antucoya project (642Mt @ 0.35% Cu)  Exploration Program in 2Q – 3Q 2014 Geological exploration models: • Porphyry • Hydrothermal Breccias  Lies along BMZ within the same magnetic trend as Antucoya  7 km2 chargeability anomaly  Copper oxide identified at surface within porphyry indicators - breccias and ‘crackle’ zone  Finalising surface mapping across dipole zone  RAB drilling across target zone  define RC drill targets for June campaign Exposed Cu Oxides, breccia & crackle zone at surface The VIP survey results for Antucoya West superimposed on the Analytic Signal of the first Vertical derivative (ASVI) total magnetic image for Altair Project. The high chargeability zone in the southwest of the VIP image displays a near 1:1 relationship with the westnorthwest trending ASVI magnetic anomaly. 14 Altair Project – SQM Option Agreements Terms  5 year exclusive rights to explore initial 1,100km2 tenement package including Colupo  4 year exclusive rights to explore Dania and Ivannia  Estrella retains 100% rights to all metallic mineral discoveries within Altair Project with: • SQM has 49% claw back rights on PFS per prospect; or • SQM may elect royalty stream per prospect as alternative to 49% claw back (rates vary based on prevailing LME price) Substation nearby Altair (view east to Chuquicamata) Estrella RC drilling at Colupo in Sept 2013 15 Board of Directors Gavin Solomon, Non-executive Chairman  Over 30 years experience in Australian and international investment banking, equity and capital markets.  Lawyer by background and experienced Director of ASX listed companies.  Former founding shareholder and former non-executive Director of Endocoal Limited Dr. Jason Berton, Managing Director  Over 15 years mining and exploration industry experience at Barrick, Homestake and BHP Billiton.  Also worked as a Senior Geology Consultant for SRK Consulting and as Chief Geologist co-ordinating due diligence for private equity investments.  Specialist Structural Geologist with experience in gold, copper, uranium and iron ore.  PhD in Structural Geology and B.Sc (Hons), B.Ec, member of AusIMM and GSA. Julian Bavin, Non-executive Director  Over 30 years experience in the mining industry, with over 20 years with Rio Tinto including 8 years as Exploration Director – South America.  Director of Pan Global Resources Inc. & Non-Exec. Director of Exeter Resources Inc.  BSc Mining Geology (Hons), MSc Mineral Exploration, Member of Institution of Mining & Metallurgy, Chartered Engineer & Fellow of Society of Economic Geologists. Simon Kidston, Non-executive Director  Over 20 years investment banking & company management experience in Australia, UK and Asia.  Former founding shareholder of Carabella Resources Limited and former Non-Executive Director  Current Executive Director of Genex Power Limited Robert Thomson, Non-executive Director  Sydney based mining engineer with extensive onsite mining experience, as well as significant corporate and board experience.  Experience in early stage exploration, through to project feasibility and successful operations.  Previously worked in senior project and executive roles with Oxiana, Kingsgate, Climax Mining and Finders Resources.  B.E (Mining) from the University of Queensland, MBA from the University of Wollongong and is a Fellow of the AusIMM and Member of the AICD 16 Reasons to Invest in Estrella  Exclusive holding over a large portion of northern Chile’s IOCG belt offering significant opportunity  Strategic partnership with Chilean major SQM  Production focussed Exploration program with large resource upside potential  Estrella has already identified strong presence of CuOX near surface with significant widths – Open pit, Heap Leach and SX-EW potential  On-ground presence and strong “in-country’’ Board and Management Strong potential exploration for production 17 Contact Us ESTRELLA RESOURCES LIMITED Sydney Office: Level 7, 15 Castlereagh Street Sydney, NSW 2000 Santiago Office: Santa Beatriz 294 Providencia, Santiago, Chile www.estrellaresources.com.au Email: admin@estrellaresources.com.au (ASX: ESR) 18