Estrella Gold Corp : Estrella Gold Announces Closing of $4,030,000 Private Placement Financing and Nomination of New Director

July 20, 2011

Estrella Gold Announces Closing of $4,030,000 Private Placement Financing and Nomination of New Director

Toronto, Canada, July 20, 2011 - Estrella Gold Corporation (TSX V: EST) ("Estrella" or the "Company") is pleased to announce it has closed a non-brokered private placement offering of 6,200,000 units (each a "Unit") at $0.65 per Unit for gross proceeds of $4,030,000 (the "Offering"). 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 $1.05 per share during the first year or at a price of $1.20 during the second year following the date of closing of the Offering.

In connection with the Offering, the Company paid eligible persons (the "Finders") a finder's fee equal to up to 6% of the gross proceeds from the Units placed by each Finder in cash or Units and also issued compensation warrants (each a "Compensation Warrant") equal to 10% of the total number of Units placed through each Finder under the Offering. Each Compensation Warrant entitles the holder to acquire one common share of Estrella at $0.80 for a period of 24 months from the closing date of the Offering. On closing of the Offering, the Company issued 231,014 Units, 573,862 Compensation Warrants and paid aggregate cash fees in the amount of $75,447 to the Finders.

The proceeds of the offering will be used for:

(i) drill program of 1,800 metres at Colpayoc property;

(ii) accelerated property payments; and

(iii) working capital and general corporate purposes.The securities issued pursuant to the Offering will all be subject to a four month regulatory hold period commencing from the date of closing. The Offering remains subject to TSX Venture Exchange acceptance of requisite regulatory filings. One director participated in the Offering in the amount of 19,231 Units.

Mark Brown has been nominated to be a director of Estrella, which will be voted upon at Estrella's Annual & Special Meeting on July 26th, 2011 in Toronto. Mr. Brown is President and Director of Pacific Opportunity Capital Ltd. based in Vancouver and is also an officer and/or director of several public and private companies, including Rare Element Resources, Almaden Minerals, Tarsis Resources, and Avrupa Minerals. He holds a Bachelor of Commerce from the University of British Columbia and he became a Chartered Accountant while with PriceWaterhouseCoopers. Two current directors of Estrella, Bernard Kraft and Michael Kraft have chosen not to stand for re-election and will be removed from the list of nominees. The Board of Directors wishes to express their deep appreciation for the services of Bernard Kraft and Michael Kraft. Both will continue to serve the Company as members of the Company's Corporate Advisory Committee.

About Estrella Gold Corporation (TSX-V: 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 a minimum inferred gold resource of 144,000 ounces at its Colpayoc Project in Peru (NI 43-101 Inferred Resource) and is expanding its resource inventory, and also making new gold discoveries. The Company has 23,747,859 shares issued and outstanding on the TSX Venture Exchange (TSX-V: EST) following the closing of the Offering. Further information is available at Estrella Gold's website: www.estrellagold.com.

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For further information, contact:

Estrella Gold Corporation

Keith Laskowski MSc., President

Direct Tel: [phone] or [phone]

Fax: [phone]

Email: [e-mail]

To learn more visit: www.estrellagold.com

Investor Contact:

For First Canadian Capital

Dan Boase, Partner

Tel: [phone] x 232

Fax: [phone]

Email: [e-mail]

To learn more, visit www.firstcanadiancapital.com

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.