EEN

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES


Estrella International Energy Services Ltd. (the "Company" or "Estrella") (TSX
VENTURE:EEN) is pleased to announce that it has executed a definitive investment
agreement with Ringo Holding L.P., a subsidiary of Southern Cross Latin America
Private Equity Fund IV, L.P. (the "Purchaser"), dated June 26, 2012 (the
"Investment Agreement"). Pursuant to the Investment Agreement, the Purchaser has
agreed to purchase, 166,666,667 units ("Units") of the Company at a price of
CAD$0.15 per Unit, for gross proceeds of CAD$25,000,000 to the Company (the
"Private Placement"). The subscription price of CAD$0.15 represents a premium of
approximately 100% over the closing price of the Common Shares on June 25, 2012.
Canaccord Genuity Corp. ("Canaccord") acted as financial advisor to the Company
in connection with the Private Placement. 


Each Unit is composed of 1 common share (a "Common Share") in the capital of the
Company and 0.4 Common Share purchase warrants (each whole warrant a "Warrant").
Each Warrant will entitle the holder to purchase 1 Common Share at an exercise
price of CAD$0.15 per share (the "Exercise Price") for a period of 18-months
from the date of issuance. After six months from the date of issuance, if the
10-day weighted average market price of the Common Shares is greater than
CAD$0.25, the exercise price of the warrants will be equal to the higher of
CAD$0.15 or 90% of the current market price.


Upon closing of the Private Placement, the Purchaser will hold approximately
55.7% of the outstanding Common Shares, which will result in the creation of a
new control person of the Company, as defined by the rules of the TSX Venture
Exchange ("Exchange").


Closing of the Private Placement is subject to, among other things, the approval
of the shareholders of Estrella and the approval of the Exchange, the amendment
of the Credit Suisse Credit Facility (as defined below) on terms set forth
below, and to certain other conditions precedent customary in transactions of
this type, all as more specifically set forth in the Investment Agreement, a
copy of which has been filed by the Company on SEDAR. 


The board of directors of the Company has considered and has unanimously
approved the transaction and will recommend the approval of the Private
Placement to the shareholders of Estrella at the Company's upcoming annual
general and special meeting of shareholders (the "AGM"). The parties intend to
complete the transaction as soon as practicable following the AGM, subject to
receipt of final approval from the Exchange.


All of the officers and directors of the Company, together with certain of the
Company's shareholders, representing a total of 70,471,773 (53.1%) of the issued
and outstanding Common Shares, have entered into support agreements with the
Purchaser, wherein they have agreed to vote the Common Shares held by them in
favour of the Private Placement and the creation of the new control person.


The Company expects to use part of the proceeds of the Private Placement to
repay US$10,000,000 of outstanding indebtedness on its existing credit facility
("Credit Facility") with Credit Suisse AG (the "Lender"). The balance of the
proceeds may be used to further reduce indebtedness and for working capital
reserves to assist with new project start-ups in Latin America.


As part of Estrella's plan to repay US$10,000,000 of the Credit Facility, the
Company has entered into a term sheet with the Lender that contemplates: (i)
modifying the existing credit agreement to reduce administrative fees; (ii)
modifying the amortization schedule such that Estrella will repay the remaining
indebtedness in seven quarterly instalments of US$2,000,000 beginning on May 31,
2014; and (iii) freeing up certain collateral currently pledged under the credit
agreement in an effort to reduce administrative costs. In addition, the
3,072,000 Common Share purchase warrants which were issued to the Lender in
connection with the Credit Facility would be returned to the Company for
cancellation. 


For its role as financial advisor, the Company has agreed to pay Canaccord a
success fee in connection with the closing of the Private Placement.


About Southern Cross Group

Southern Cross is a value oriented private equity buyout firm focused on
operational and strategic management. Southern Cross was created to make
value-oriented, control investments in Latin American companies that have
significant potential for improved performance and growth. Since its inception
in 1998, Southern Cross has raised over $2.5 billion and has completed 25
investments in the region, including investments in oil & gas companies in the
region. Southern Cross seeks to deliver superior returns by optimizing its
companies' strategic direction and operating performance through the Principals'
direct involvement with the management of each portfolio company. As a result of
its extensive regional experience, Southern Cross is well-positioned to identify
and capitalize on high quality investment opportunities in Latin America.


Warren Levy, CEO of Estrella, commented, "We are very pleased to be entering
into this Investment Agreement with Southern Cross. The transaction gives the
company the capital required to improve our balance sheet. In conjunction with
the US$6 million in amortization payments made by the Company in the last seven
months, this transaction will help the Company achieve a substantial reduction
in indebtedness. This will allow the Company to exert all of its focus on
continued operational improvements. Southern Cross also brings extensive
experience and knowledge about the Latin American marketplace, and we look
forward to having them as partner moving forward."


Annual and Special Meeting

The annual and special meeting of shareholders of Estrella will be held at the
offices of Aird & Berlis LLP, Brookfield Place, 181 Bay Street, Suite 1800,
Toronto, Ontario, on or about July 25, 2012, at 10:00 a.m. (Toronto time).
Shareholders of record as of June 25, 2012, will be entitled to vote on all
matters under consideration


Statements in this press release may contain forward-looking information. Any
statements in this press release that are not statements of historical fact may
be deemed to be forward-looking information. Forward-looking information are
often identified by terms such as "may", "should", "anticipate", "expects",
"will", "intend" and similar expressions. Forward-looking statements in this
press release include, but are not limited to, statements with respect to
services anticipated use of proceeds of the Private Placement, the repayment of
the Credit Facility and matters related thereto, the anticipated closing date of
the Private Placement and timing for the annual and special meeting of
shareholders of Estrella.


The reader is cautioned that assumptions used in the preparation of any
forward-looking information may prove to be incorrect. Events or circumstances,
such as future availability of capital on favourable terms, may cause actual
results to differ materially from those predicted, as a result of numerous known
and unknown risks, uncertainties, and other factors, many of which are beyond
the control of Estrella. The reader is cautioned not to place undue reliance on
any forward-looking information. Such information, although considered
reasonable by management at the time of preparation, may prove to be incorrect
and actual results may differ materially from those anticipated. Forward-looking
statements contained in this press release are expressly qualified by this
cautionary statement. The forward-looking statements contained in this press
release are made as of the date of this press release, and Estrella does not
undertake any obligation to update publicly or to revise any of the included
forward-looking statements, whether as a result of new information, future
events or otherwise, except as required by securities law.


THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR
DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES,
AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SELL
ANY OF THE SECURITIES DESCRIBED HEREIN IN THE UNITED STATES. THESE SECURITIES
HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES
ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR
SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT
THEREFROM.

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