Ann: Response to ASX Price & Volume Query, page-2

Dear Ben
Estrella Resources Limited (“ESR”): Price & Volume Query Response
In response to the letter from the ASX to Estrella Resources Limited (ASX: ESR or the ‘Company’) and dated 10 October 2017, the Company responds below:
1. The Company was involved in confidential negotiations for a proposed material acquisition (Proposed Acquisition) which may or may not have contributed to the trading in its securities.
2. (a)
Yes, as the negotiations were then incomplete and confidential the Company was unable to announce the Proposed Acquisition.

1. (b)  As the Company was unable to immediately announce the Proposed Acquisition, out of prudence it requested that ASX place its securities in a trading halt to ensure that there was no trading in its securities until an appropriate announcement could be made in relation to the Proposed Acquisition.
2. (c)  The Company will shortly release an announcement on the Proposed Acquisition.

1. Not applicable. However, the Company also notes that the current optimism surrounding the resources industry (and in particular companies involved in the energy metals sector) may have led to the increase in price and volume.
2. Confirmed.
3. Confirmed.

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