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September 19, 2012

ESTRELLA GOLD ANNOUNCES PRIVATE PLACEMENT

Estrella Gold Corporation (TSXV: EST) ("Estrella" or the "Company") is pleased to announce a non-brokered private placement offering of up to 5,000,000 units (each a "Unit") at $0.15 per Unit for gross proceeds of up to $750,000 (the "Offering").

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. In connection with the Offering, the Company may pay eligible persons (the "Finders") a finder's fee equal to up to 5% of the gross proceeds from the Units placed by the Finder in cash and also issue up to 10% of finder's warrants (each a "Finder's Warrant") equal to 10% of the total number of Units placed through each Finder under the Offering. Each Finder's Warrant entitles the holder to acquire one Unit of Estrella at $0.15 for a period of 36 months from the closing date of the Offering. The Offering is subject to TSX Venture Exchange acceptance.

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-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 Per�, 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:                               

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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.