Estrella Gold Corp. Announces Drilling at La Estrella Gold-Silver Project

Estrella Gold Corporation (TSX VENTURE:EST) ("Estrella" or the "Company") is
pleased to announce the start of a 2,500 meter core drilling program at the
Company's namesake La Estrella project in Central Peru. Goals of the program are
to drill test a strong induced polarization geophysical target located adjacent
to the main mineralized zone and to expand the southwest extend of
mineralization and define the distribution of high-grade mineralization.
Geological mapping and soil sampling will also be completed to evaluate new
areas adjacent to the main zone of mineralization. The program is funded and
operated by Mines Management Inc ("MMI") under Estrella's recently announced
Option Agreement. Estrella is also funded by MMI to provide geological and
administrative support and remains responsible for community relations programs.
MMI can earn a 75% interest in the property by making payments of US$550,000 to
Estrella, spending US$5 million on exploration, and completing a NI 43-101
compliant Preliminary Economic Analysis ("PEA") on the property. 


The La Estrella property contains approximately 2,500 hectares in the Central
Peru polymetallic belt, Department of Huancavelica, a region with a history of
silver mining dating to the 1500's. The Project area contains well-developed
roads and electricity, and is located within 30 km of the Julcani Silver Mine,
which began operation in 1955. Previous core and RC drilling at La Estrella
included 5,796 meters in 33 holes and identified a mineralized area
approximately 1,800 long and 300 meters wide. Drilling has tested only 200
meters below the surface and the mineralization remains open at depth.
Mineralized intervals average 133.5 meters wide in 18 holes. The property is an
advanced stage exploration project which contains a volcanic-hosted epithermal
gold-silver system with associated base-metal mineralization. 


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 thirty-two exploration
properties in Peru, with twenty-eight held in venture agreements, most in a
strategic exploration alliance with Cliffs Natural Resources Exploration Inc. Of
the four properties held 100% by Estrella, the Company also established a NI
43-101 compliant inferred resource containing a minimum of 313,000 ounces of
oxide gold at its Colpayoc Project in Peru (from 19.3 Mt @ 0.5 g/t gold, NI
43-101 Inferred Resource, 2011 Global Geotechnologies Inc.; News Release dated
12/21/2011). The Company has 24.1 million shares issued and outstanding on the
TSX Venture Exchange (TSX VENTURE:EST). Mr. Keith A. Laskowski, MSc., is a
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.