Estrella Gold Corp : Estrella Gold Closes Private Placement for $1.1 Million

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Estrella Gold Corporation (TSXV: EST) ("Estrella" or the "Company") is pleased to announce that the non-brokered private placement offering announced on September 18, 2012 and increased on October 3, 2012 has been closed.

Certain strategic investors have participated in the financing. One of these investors is part of the Sprott group of companies who will now be a reporting insider of Estrella. The management team and several shareholders have also increased their positions. The support of the current shareholder group is a significant benefit to Estrella in working to achieve its goals.

Estrella issued 7.555 million units (a "Unit") at $0.15 per Unit for gross proceeds of $1,133,250 million. Each Unit is comprised of one common share and one non-transferable common share purchase warrant. Each warrant entitles the holder to purchase one additional common share for a 36 month period, expiring on October 9, 2015 at a price of $0.25 per common share starting from the date of closing.

The securities issued pursuant to the Offering will all be subject to a 4 month regulatory hold period expiring February 9, 2013.

About Estrella Gold Corporation (TSX-V: 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-five exploration properties in Perú, with thirty-two 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-V: 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.

For further information, contact:

Estrella Gold Corporation
Keith Laskowski President/CEO, MSc./QP,

Direct Tel: [phone] or [phone]
Fax: [phone]
Email: [e-mail]

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. 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.