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Estrella Announces New Joint Venture with Cliffs on Yanac

Estrella Announces New Joint Venture with Cliffs on Yanac Porphyry
Copper Project, Peru 
Property of Merit Confirmed for Joint Venture 
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 12/04/12 -- Estrella
Gold Corporation (TSX VENTURE:EST) ("Estrella" or the "Company") is
pleased to announce that Cliffs Natural Resources Exploration Inc., a
wholly owned subsidiary of Cliffs Natural Resources Inc.
(NYSE:CLF)(Paris:CLF) ("Cliffs"), has accepted the Yanac Property as
a Joint Venture Project. Cliffs and Estrella each now hold a 50%
interest in the property, and Cliffs must spend a firm commitment of
US $500,000 in year one on exploration or payment to Estrella; with
an additional US $250,000 (not firm) to a total of US $750,000 to
maintain their interest beyond year one. Details of the Agreement are
included below. 
The Yanac Project is located 50 km northwest of the town of Chincha
in the department of Ica in south-central Peru. The project contains
5,200 hectares that were acquired by Estrella through concession
applications in April of 2011 within the Exploration Alliance
Agreement with Cliffs (see prior news releases). Results to date
identify a prospective outcropping area covering 1.0 km x 0.75 km
containing a porphyry-copper style quartz-iron oxide stockwork zone,
with 3 centers of silicification, within a phyllic alteration zone.
The alteration and mineralization is hosted by a
plagioclase-hornblende-biotite quartz-eye porphyry intrusion of
probable Cretaceous age. Initial rock samples over a 300 x 200 meter
area returned copper values ranging from 0.12- 2.9%, with 8 of those
samples greater than 0.74%. A systematic grid sampling program was
completed with three hundred and five (305) samples of approximately
one meter square chip samples, collected on a 100 meter square grid.
Assay results identify a continuous core area containing 0.2 - 2.8%
copper covering an area extending approximately 900 meters
(north-south) by 400 meters (east-west). Copper mineralization is
closely related to stockwork development within this porphyry system.
Outcropping mineralization occurs within a zoned ASTER alteration
anomaly which suggests that the mineralized system may be much
larger, extending beneath surrounding covered areas. The outcropping
copper mineralization occurs w
ithin phyllic, or sericitic facies
alteration assemblages which suggests that higher grade, and/or
larger areas of copper mineralization may be present at depth. The
property contains four historical drill holes located outside the
main zones of mineralization, however analytical results are not
available. 
Mr. Mark Brown, President and CEO of Estrella, commented, "Yanac is
an exciting new porphyry copper discovery that provides Estrella with
the upside of a major deposit, if exploration is successful. The
identification and selection of Yanac demonstrates the benefits of
our prospect generator model." 
EARN-IN TERMS: Cliffs can acquire an additional 20% interest in the
Yanac Project, to a total 70% interest, by spending a minimum of
US$4,000,000 (including the above mentioned US$750,000) and
completing 3,000 meters of drilling within four years of selection.
If Cliffs fails to acquire the additional 20%, the property reverts
to Estrella. Upon earning 70%, Cliffs can acquire an additional 10%
interest in the Yanac Project, to a total 80% by completing an NI
43-101 Compliant Pre-Feasibility Study or by defining a compliant
Mineral Resource containing a minimum of 1,000,000, ounces of gold or
gold equivalent, within four years of earning its 70% interest. If
Cliffs elects not to earn an additional 10% interest, Cliffs will pay
Estrella US$2,000,000 within 60 days and the parties will fund their
proportional interest, subject to conventional dilution. If either
party's interest in the Project is reduced to 10%, that interest will
be convert to a 2% NSR royalty. 
QA/QC: Rock samples were collected as described and in accordance
with accepted industry standards and procedures. The samples were
submitted to the ALS Chemex Labs (ISO 9001:2000 accredited) in Lima,
Peru for analysis. Gold was analyzed by fire assay with an AAS finish
and multi-element analyses were determined with aqua regia digestion
and ICP MS/AAS techniques. The Company conducts routine QA/QC
analysis on all assay results, including the systematic utilization
of certified reference materials, blanks and field duplicates. 
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
twenty-three (23) active exploration properties in Peru, with
fourteen (14) held in venture agreements, most in a strategic
exploration alliance with Cliffs. Of the nine properties held 100% by
Estrella, the Company has six new epithermal gold targets, two early
stage epithermal gold targets, and the Colpayoc gold-porphyry target
which has a NI 43-101 compliant inferred gold resource containing
313,000 ounces of oxide gold (19.3 Mt @ 0.5 g/t gold, Global
Geotechnologies Inc.; News Release dated 12/21/2011). The Company has
31.7 million shares issued and outstanding on the TSX Venture
Exchange (TSX VENTURE:EST). Mr. Keith A. Laskowski, MSc., is the
Company's 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. 
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS
THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE)
ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. 
Contacts:
Estrella Gold Corporation
Mark Brown, CA
President and CEO
(604) 687-3520
(888) 889-4874 (FAX)
mtbrown@pacificopportunity.com
www.estrellagold.com
 
 
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