Estrella Gold Corporation (CSRFF)

[chmcnfunds]

Estrella Announces Drill Program at Colpayoc Gold Project

June 14, 2011 10:30 ET

TORONTO, ONTARIO--(Marketwire - June 14, 2011) -Estrella Gold Corporation (TSX VENTURE:EST) ("Estrella" or the "Company") is pleased to announce the next phase of drilling at its Colpayoc gold project, located 12 kilometers southwest of the Yanacocha gold mine complex, in Peru. Yanacocha produced 1.5 million ounces of gold in 2010 and is the largest gold producer in South America. The Colpayoc property contains 5774 hectares (57.7 square kilometers) with gold and silver mineralization in three areas. Approximately 1,800 meters of core drilling in eight holes are planned at the Daylight Zone and the Cerro Rico Zone. Drilling is planned for early July.

The Daylight Zone has been the focus of most work at Colpayoc and contains oxidized, outcropping gold and copper mineralization hosted within a porphyry gold-copper system. The zone contains a 300 meter diameter area of outcropping gold mineralization, surrounded by sedimentary rocks. Based on previous drill results, SRK Consultants calculated an initial NI 43-101 compliant inferred resource (2010) containing 7.6 million tonnes @ 0.6 g/t gold with 144,600 ounces of gold (0.3 g/t cutoff). The historic drilling and resource block model indicates that the gold zone is open at depth and in all directions with higher grade zones oriented northeast-southwest. Estrella completed three drill holes in late 2010, totaling 462.6 meters. Each drill hole intersected wide zones of gold mineralization, including values up to 100.7 meters @ 0.67 g/t Au (COL-02), confirming the potential to increase the gold resource. Infill and extension drilling is planned to expand the size of the gold resource.

The first drilling is also planned at the Cerro Rico Zone, testing high grade silver and gold mineralization identified in recent trenching results. Estrella completed an initial trenching program in February, located less than two kilometers northwest of the Daylight Zone. Three trenches totaling 231.8 meters identified high grade silver and gold replacement style mineralization, hosted in fault zones within sedimentary and volcanic rocks. Trench sampling was restricted and drilling will help to determine the true width of these mineralized zones. Trench assays results include:

Trench CR-01: 8.0 meters @ 372.5 g/t silver with 3.9 g/t gold (74.0-82.0 m)
Trench CR-03: 5.8 meters @ 872.6 g/t silver with 0.7 g/t gold (37.8-43.6 m)
including 1.8 meters @ 1,515 g/t silver and 0.8 g/t gold (41.8-43.6 m)
Reprocessing of available ground magnetic data indicated that both the Daylight Zone and the Cerro Rico Zone occur within a zone of possible alteration that covers a total diameter of more than 3,000 meters. *See attached magnetics map with drill holes and trench locations. Additional targets in this area may also be tested. Drilling was suspended in January following dissolution of the local administrative leadership, and expiration of surface access agreements. Estrella has recently obtained a long-term access agreement with the local community.

Keith Laskowski, Estrella's President commented "We are pleased that the Presidential election is completed in Perú, and especially to see the moderation in the President-elect's stated policies. We are also excited to drill test some of these new trench results at Cerro Rico, and to expand the Daylight Zone gold resource at Colpayoc. The property has a great deal of potential, and the next drill phase will help us to better understand the size of this large system. We are grateful to the local communities for their ongoing support."

To view the magnetics map, please follow the link: http://media3.marketwire.com/docs/estfig1.pdf

About Estrella Gold Corporation (TSX VENTURE:EST) Estrella Gold is a "Prospect Generator" company focused on gold exploration and resource definition in Latin America. Estrella Gold has seven precious metal exploration projects in Perú and one in Chile. The Company has 144,000 ounces of gold at its Colpayoc Project in Peru (NI 43-101 Inferred Resource) and is expanding its gold resource inventory, and also making new gold discoveries. 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. The Company has 17.3 million shares issued and outstanding on the TSX Venture Exchange (TSX VENTURE:EST). 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.
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