Estrella Gold Signs Agreement to Sell 75% Interest in its La Estrella Gold-Silver Property, Peru

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 04/10/12 -- Estrella Gold Corporation (TSX VENTURE: EST) ("Estrella" or the "Company") is pleased to announce it has signed a formal Exploration Earn-In Agreement for the sale of 75% interest in its namesake La Estrella gold and silver property to Mines Management Inc. (AMEX: MGN)(TSX: MGT) ("Mines Management"). Terms of the Agreement call for Mines Management to make payments of $550,000 over three years, work expenditures totaling $5 million, and complete a NI 43-101 compliant Preliminary Economic Analysis ("PEA") on an established resource to obtain its 75% interest. Mines Management will also carry Estrella's 25% interest to production, with Estrella paying back its share of development costs from production revenues. Mines Management is planning to complete a minimum of 2,500 meters of drilling during 2012. The Agreement calls for the following payments and work commitments which are in addition to the $5,000,000 work expenditures (all amounts are US$):

Payments:          On Signing:                 $50,000
                   Year 1 Anniversary Payment: $100,000
                   Year 2 Anniversary Payment: $200,000
                   Subsequent Anniversaries:   $200,000 until exercising its
                                               Option

Work Expenditures: Year 1:                     $500,000 including 2,500
                                               meters of drilling
                   Year 2:                     $500,000 including 2,500
                                               meters of drilling

The La Estrella property contains approximately 2,500 hectares of land within the Central Peru polymetallic belt, located 130 km south of Huancayo in the Department of Huancavelica, a region with a history of silver mining dating to the 1500's. The Project is in an area of established infrastructure, with roads and electricity, and lies within 30 km of Minera Buenaventura's historic Julcani Silver Mine which began operation in 1955. Estrella has established and maintained constructive community agreements with all stakeholder communities, and the property is fully permitted for additional drilling. Estrella will continue to manage community relations during the first year, and is looking forward to providing open communication with all local communities, and providing opportunities for economic growth, combined with respect for all people and property. The property is an advanced stage exploration project which contains a volcanic-hosted epithermal gold-silver system with associated base-metal mineralization extending over a strike length of at least 1,200 meters.

Mr. Keith Laskowski, President and CEO of Estrella, commented, "Estrella is a 'Prospect Generator' and this is exactly the type of agreement we are seeking for our properties. We are pleased to work with Mines Management and to support their program at La Estrella as they work towards defining a significant new gold and silver resource. We are excited to see the drill turning again on this property. With their success, our retained 25% interest will contribute significant value to our shareholders."

Mines Management, Inc. is engaged in the business of acquiring, exploring, and developing mineral properties containing precious and base metals. Additional information is available at Mines Management's website: www.minesmanagement.com.

About Estrella Gold Corporation (TSX VENTURE: EST)

Mineral 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.

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

Keith Laskowski

President , MSc., QP

(720) 272-6224, (303) 235-8099 or (604) 687-3520

(604) 688-3392 (FAX)
klaskowski@estrellagold.com
www.estrellagold.com