Estrella Gold Increases Private Placement to $1.1 Million

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/03/12 -- Estrella Gold Corporation (TSX VENTURE: EST) ("Estrella" or the "Company") is pleased to announce that the non-brokered private placement offering announced on September 18, 2012 has been over-subscribed. Estrella has increased the offering from $750,000 to $1,133,250 or 7,555,000 units and the offering is fully subscribed.

Two strategic shareholders decided to increase their positions significantly and this has oversubscribed the financing. Each of these shareholders have been long term investors in Estrella and supporters of the prospect generator model which Estrella follows.

Estrella will use the proceeds on several strategic fronts which include:

   (i)   advancing three of Estrella's gold targeted Peruvian properties;
   (ii)  continuing Joint Venture negotiations on current projects;
   (iii) exploring 4 licenses under application in the Dominican Republic;
         and,
   (iv)  for working capital and general corporate purposes.

Each Unit is comprised of one common share and one non-transferable warrant (each a "Warrant"). Each Warrant entitles the holder to purchase one common share at an exercise price of $0.25 per share for three years following the date of the closing. The Offering is subject to TSX Venture Exchange acceptance and is expected to close shortly.

The securities issued pursuant to the Offering will all be subject to a 4 month regulatory hold period commencing from the date of closing.

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-five exploration properties in Peru, 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 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, MSc./QP

President/CEO

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

(888) 889-4874 (FAX)
klaskowski@estrellagold.com
www.estrellagold.com