Austral delivered another quarter of operational progress and a stronger balance sheet, with Guanaco production up 17% and unit costs lower following commissioning of additional crushing capacity, toll proc essing at Casposo generating US$5.9 million in fee revenue at
1
Austral Gold Limited (ASX:AGD | TSXV: AGLD | OTCQB:AGLDF) (Austral or the Company), which
owns and operates the Casposo (Argentina) and Guanaco (Chile) gold and silver producing mines, is
pleased to provide its Quarterly Activities Report for the three-month period ended 30 June 2026.
Austral delivered another quarter of operational progress and a stronger balance sheet, with
Guanaco production up 17% and unit costs lower following commissioning of additional
crushing capacity, toll proc essing at Casposo generating US$5.9 million in fee revenue at
recoveries above the 85% incentive threshold, exploration advancing in both countries, and
further financial debt reduction alongside a solid cash position of US$20.3 million. Subsequent
to quarter-end, the Company filed an updated Guanaco Technical Report supporting a 14 -year
mine life and US$192.1 million after-tax NPV (10% discount rate). (note 1 on page 2)
Highlights
• Guanaco (Chile): production up 17% quarter-on-quarter to 3,381 gold equivalent ounces (GEO) (Q1
2026: 2,879 GEO), reflecting commissioning of an additional secondary crusher and higher grades
and recoveries. Operating cash cost (C1) and all-in sustaining cost (AISC) decreased 9.6% and
2.6%, respectively, from Q1 2026 to US$2,542/oz and US$2,954/oz.
• Casposo (Argentina): following the commencement of toll processing on 1 May 2026, production
from Company-owned material totalled 932 GEO during April (Q1 2026: 4,456 GEO). During May
and June, an additional 1,651 GEO was produced from 39,342 tonnes of third-party toll material with
GEO recovery rates exceeding 85%. The toll processing counterparty elected not to supply material
in July 2026, and the processing of Company-owned material resumed during the month.
• Combined revenue: US$31.8 million (Q1 2026: US$34.1 million), comprising US$25.9 million from
gold and silver sales (81%) with 5,664 GEO sold at US$4,569/GEO (Q1 2026: US$4,846) and
US$5.9 million (19%) from toll processing (Q1 2026: nil). The decrease reflects lower realised prices
and sales volumes during Casposo's two-month toll processing period, when revenue was generated
from processing fees rather than metal sales.
• Balance sheet: financial debt reduced to US$22.0 million at 30 June 2026, down US$4.6 million
since the 31 December 2025 audited year-end, while cash and cash equivalents increased to
US$20.3 million (31 December 2025: US$10.5 million). Net financial debt was US$1.7 million (31
December 2025: US$16.1 million), and net current assets improved to US$20.8 million (31
December 2025: net current liabilities of US$6.4 million). A further US$2.5 million of related party
debt was repaid in July 2026.
Austral Gold Limited ABN30 075 860 472
ASX: AGD TSXV: AGLD OTCBQ: AGLDF
Quarterly
Activities Report
For the three-month period ended 30 June 2026 (Q2 2026)
www.australgold.com
PRODUCTION | EXPLORATION | EQUITY INVESTMENTS
2
• Updated Guanaco Technical Report: filed subsequent to quarter-end under NI 43-101, extending
life of mine to 14 years (Jan 2026 – Feb 2040) with an after-tax NPV of US$192.1 million (10%
discount rate; LOM gold price US$3,135/oz).¹
PRODUCTION FROM AUSTRAL GOLD MATERIAL
Owned Production (Casposo + Guanaco)
Gold and Silver Revenue
4,313 GEO
US$25.9m
Combined Cash Cost (“C1”) of
US$2,478/oz and all-in-sustaining cost
(“AISC”) of US$2,996/oz *
Sales Volume: 5,664 GEO.
Average selling price of US$4,569/GEO*
Revenue mix: 83% gold | 17% silver
* Weighted average
• Cash flow and capital investment: Sales of 5,664 GEO exceeded production of 4,313 GEO,
reflecting the timing of export shipments at quarter -end. Both operations continued to generate
consistent operating cash flow, with an average cash margin of ~45% (average selling price less C1).
AISC included ongoing sustaining capital. At Guanaco, sustaining capital included the installation of
an additional secondary crusher and continued expansion of the leach pads (strips 5 and 6), with
commissioning expected in August 2026. At Casposo, sustaining capital mainly included plant
equipment purchases, while engineering studies progressed and vendor selection commenced for a
classification plant to support the reprocessing of dry-tailings material.
TOLL PRODUCTION FROM CHALLENGER GOLD MATERIAL
Casposo Tolling (Hualilan Project)
Tolling Fee Revenues
39,342 tonnes
US$5.9m
An average GEO recovery rate of 85.9%
(gold 87.9% | silver 65.1%)
Including variable incentive fee based on
recovery rates
• Toll processing of Challenger Gold's Hualilan ore: during the quarter, Casposo processed 39,342
tonnes of ore from ASX-listed Challenger Gold Limited’s Hualilan Project during May and June. GEO
recovery rates exceeded 85%, resulting in the maximum 30% variable incentive fee under the toll
processing agreement, and generating US$5.9 million in toll processing revenue. Under the
agreement, Challenger Gold was to supply material for up to three months in the first batch cycle ;
however, it elected not to supply material for processing in July . The Company accordingly returned
to processing its own material at Casposo, which it expects to continue pending Challenger Gold's
confirmation of any subsequent batch cycle in accordance with the agreement.
¹ “Technical Report on the Guanaco Mine, An tofagasta Region, Chile” with an effective date of 31 May 2026 is available under the
Company's profile on SEDAR+ at www.sedarplus.ca and on the ASX website at (www.asx.com.au). Austral Gold Limited is not aware of
any new information or data that materially affects the original market announcement.
3
EXPLORATION
• Exploration advanced across both jurisdictions during the quarter, targeting near -mine resource
growth (brownfield) and new discoveries (greenfield) in Chile and Argentina.
• Brownfield exploration at Guanaco (Chile): commenced infill and step -out drilling at Los Nanos,
Dumbo Sur, Dumbo–Defensa and Cerro Estrella near the Guanaco processing facility.
• Brownfield exploration at the Casposo District (Argentina): launched an 8,500m drilling program
(announced on 18 May 2026), initially focused on Casposo Norte, with results expected in early
August 2026. Follow-up drilling is planned at Amanda in Q3 2026.
• Greenfield exploration at Juncal, Guanaco (Chile): channel sampling announced on 22 June
2026 returned significant silver -gold results, with continuous surface mineralisation identified across
seven of eleven mapped veins. Magnetic surveys and geological mapping are complete, supporting
IP surveys in Q3 2026 and a planned maiden drilling campaign in Q4 2026.
• Greenfield exploration at the Casposo District (Argentina): geophysical surveys at Cerro
Amarillo (Manantiales) are scheduled for Q3 2026 to prioritise targets ahead of a plann ed maiden
drilling campaign in Q4 2026.
EQUITY INVESTMENTS
• The Company maintained its holding in ASX -listed Unico Silver Limited ("Unico"), comprising
15.7 million shares valued at US$6.2 million at 30 June 2026 (31 March 2026: US$6.6 million). The
holding remains a liquid asset that provides additional financial flexibility and exposure to the silver
sector.
FINANCIAL POSITION
• Cash and liquidity: cash and cash equivalents
of US$20.3 million as at 30 June 2026 (31 March
2026: US$24.3 million), the movem ent mainly
reflecting debt repayment and capital investment
during the quarter (see cash flow section on page
7). Toll-processing receivables of US$5.9 million
further support near-term liquidity.
• Working capital: net current assets increased to
US$20.8 million as at 30 June 2026, up US$6.4
million in the quarter (31 March 2026: US$14.4
million), continuing a sustained improvement
from net current liabilities of US$6.4 million at 31
December 2025.
• Financial debt: reduced to US$22.0 million as at
30 June 20 26, down US$1.7 million on the
quarter and US$4.6 million since 31 December
2025. Of this, US$10.7 million (49%) was owed
to related parties. Net financial debt was US$1.7
million (debt less cash and cash equivalents).
Subsequent to quarter -end, the Company repaid
US$2.5 million of related party loans.
Financial Position
Summary
(US$ million)
Q2 2026
(June)
Q1 2026
(March)
Q4 2025
(Dec)
Cash & Cash
equivalents
20.3 24.3 10.5
Financial Debt 22.0 23.7 26.6
(Net Financial
Debt) / Net Cash
(1.7) 0.6 (16.1)
Net Current
Assets / (Net
Current
Liabilities)
20.8 14.4 (6.4)
Unico Silver
Investment 6.2 6.6 10.4
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Q2 2026 Production Overview
Guanaco Operations
Gold and Silver Production Operating Cash Costs (C1)
3,381 GEO US$2,542/oz
17.4% increase from Q1 2026
(2,879 GEO)
16.9% increase from Q2 2025
(2,891 GEO)
9.6% decrease from Q1 2026 (US$2,811)
0.2% decrease from Q2 2025 (US$2,548)
All-In-Sustaining Costs (AISC)
US$2,954/oz
2.6% decrease from Q1 2026 (US$3,034/oz)
7.5% increase from Q2 2025 (US$2,749/oz)
Quarterly Production and Costs
Key Operating Metrics
Q2 2026
(June)
Q1 2026
(March)
Q2 2025
(June)
Milled Ore (t) 68,808 65,327 68,148
Gold (Oz) (2) 3,221 2,707 2,818
Silver (Oz) (2) 9,823 9,780 7,123
GEO (2) (3) 3,381 2,879 2,891
C1 Cost of Production
(US$/GEO) (4) 2,542 2,811 2,548
All-in Sustaining Cost
(US$/GEO) (4) 2,954 3,034 2,749
Gold Selling Price (US$/Oz) 4,491 4,805 3,280
Silver Selling Price (US$/Oz) 74 81 34
(1) Tonnes processed through the agitation leaching process.
(2) Reported production also includes material processed through the heap leaching circuit, with a breakdown provided on page 11
(3) Average Ag:Au ratio was 61.4:1 for Q2 2026, 56.9:1 for Q1 2026 (5); and 97.6:1 Ag:Au for Q2 2025
(4) Composition of the operating cash cost (C1) and all-in sustaining cost (AISC) are provided on page 11
(5) *Reported as 57.0:1 in the Q1 2026 Quarterly Activities Report
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Casposo Operations
During Q2 2026, the Casposo plant processed the Company's own material for one month (April) and
ore from Challenger Gold's Hualilan Project on a toll basis during May and June.
Quarterly Production from Casposo Material
Key Operating Metrics
Q2 2026
(June) (**)
Q1 2026
(March)
Q2 2025
(June)
Milled Ore (t) (1) 22,135 80,342 (*)
Gold (Oz) 567 2,765 (*)
Silver (Oz) 22,588 97,488 (*)
GEO (2) 932 4,456 (*)
C1 Cost of Production
(US$/GEO) (3)
2,245 1,456 (*)
All-in Sustaining Cost
(US$/GEO) (3)
3,148 1,609 (*)
Gold Selling Price (US$/Oz) 4,651 4,930 (*)
Silver Selling Price (US$/Oz) 77 84 (*)
(1) Tonnes processed through agitation leaching process
(2) Average Ag:Au ratio was 61.9:1 for Q2 2026 and 57.7:1 for Q1 2026
(3) Composition of the cash cost (C1) and All-in Sustaining Cost (AISC) are provided on page 20
(*) Care and maintenance and refurbishment phase of the Casposo plant.
(**) Q2 2026 includes only one month of production.
Quarterly Production from Hualilan Material
Key Operating Metrics
Q2 2026
(June) (*)
Q1 2026
(March)
Q2 2025
(June)
Processed (t) 39,342 (*) (*)
Plant Grade (g/t Au) 1.39 (*) (*)
Plant Grade (g/t Ag) 8.10 (*) (*)
Gold recovery rate (%) 87.9 (*) (*)
Silver recovery rate (%)
65.1 (*) (*)
GEO recovery rate (%) 85.9 (*) (*)
Gold (Oz)
1,543 (*) (*)
Silver (Oz) 6,670 (*) (*)
GEO (Oz) 1,651 (*) (*)
Tolling Fee (US$ million) (1) 5.9 (*) (*)
(1) The Tolling Fee comprises: (i) a Basic Tolling Fee, covering processing costs and G&A; (ii) a Variable Incentive Fee, set as a
percentage of the Basic Tolling Fee based on metallurgical recovery (20% for recovery from 70% to 80%, 25% from +80% to 85%, and
30% above 85%), being the maximum tier, which the Company achieved in Q2 2026; and (iii) a Fixed Monthly Fee.
(*) The first production batch cycle with Hualilan material commenced on 1 May 2026 (Q2 2026).
6
Forecast Calendar Year (CY) 2026 Production and Costs
Guanaco's production guidance remains unchanged, although full -year output is expected to be at the
lower end of the range, reflecting lower than forecast production in Q1 2026 with a gradual improvement
throughout Q2 2026. At Casposo, the Company maintains its initial guidance for production from owned
material, which remains dependent on the timing of the next Hualilan batch cycle under the toll
processing agreement.
Guanaco Mine
• Production: 16,000–20,000 GEO1
• Operating Costs: C1 annual average of US$2,400-2,700/oz and AISC of US$2,600-2,900/oz.
Casposo Mine
• Production: 11,000–13,000 GEO. This guidance has been prepared on the basis that Casposo
would process both Company -owned ore and Hualilan toll material during 2026 for approximately
six months each. Two months of toll processing were completed during the first half of the year.
• Operating Costs: C1 annual average of US$2,200-2,400/oz and AISC of US$2,400-2,600/oz.
1 Notes
• Gold equivalent ounces (GEO), for budgeting purposes, are calculated using a silver-to-gold ratio of 95:1, per the formula AuEq (g/t) = (g/t
Au) + (g/t Ag) ÷ 95, where the factor of 95 reflects assumed metal prices of US$3,800/oz gold and US$40/oz silver.
• Gold and silver are expected to account for 97% and 3% of revenue at Guanaco, and 78% and 22% at Casposo.
• Forecast metallurgical recoveries are 85.0% gold and 50.0% silver at Guanaco, and 90.0% gold and 79.0% silver at Casposo.
• Forecast average head grades are 0.58–0.85 g/t gold and 3.00 g/t silver at Guanaco (heap and agitation leaching circuits, sourced from
heaps 2 and 3), and 1.33–3.86 g/t gold and 50.22–65.68 g/t silver at Casposo.
Casposo Mining Operations
7
Q2 2026 Financials Overview
As at 30 June 2026, the Company ended the quarter with US$20.3 million in cash and cash
equivalents and net financial debt of US$1.7 million (debt less cash and cash equivalents). This
position reflects the improvements achieved in liquidity since the reopening of Casposo in Q4
2025 with t he Company operat ing two cash -generating mining operations (Casposo and
Guanaco). Liquidity was maintained despite continued capital investments in both operations,
including exploration, the repayment of financial debt, and outstanding toll receivables.
Cash Flow
The table below provides a summary of cash flow for the June 2026 quarter, compared to the March 2026
quarter and the corresponding quarter in the prior year ended June 2025.
Cash Flow (US$ million) Q2 2026
(June)
Q1 2026
(March)
Q2 2025
(June)
Operating Cash flow before changes in working capital 12.2 18.9 0.4
Changes in working capital (11.5) (8.5) (0.9)
Operating (deficiency) cash flow after changes in
working capital 0.7 10.4 (0.5)
Net cash (used in) from investing activities (2.4) 1.3 (1.8)
Net cash (used in) from financing activities (2.3) 2.1 (0.3)
Net (decrease) increase in cash (4.0) 13.8 (2.6)
Cash beginning of period 24.3 10.5 3.6
Cash end of period 20.3 24.3 1.0
• Operating cash flow (after working capital movements) totalled US$0.7 million in Q2 2026,
down US$9.7 million from Q1 2026 and up US$1.2 million from Q2 2025. The quarte r-on-quarter
decrease from Q1 2026 primarily reflected lower cash generated during the two -month Hualilan toll
campaign, with the associated tolling fees still outstanding at quarter -end, together with a build -up of
ore inventory as Casposo's open -pit operations continued while the plant processed toll material.
Accordingly, working capital movements mainly comprised increases in receivables and inventory.
• Net cash used in investing activities totalled US$2.4 million during the quarter , primarily
comprising US$2.1 million in capital expenditures on plant and equipment and US$0.3 million
invested in exploration and evaluation activities, partially offset by proceeds of US$0.1 million from the
sale of equipment.
• Net cash used in financing activities totalled US$2.3 million during the quarter, primarily
reflecting repayments of borrowings, interest and lease liabilities.
8
Net Cash Position/ Financial Debt
Net Financial Debt Position (US$ million)(1) Q2 2026
(June)
Q1 2026
(March)
Q2 2025
(June)
Cash & Cash Equivalents 20.3 24.3 1.0
Financial Debt (2) 22.0 23.7 28.5
(Net Financial Debt) / Net Cash (1.7) 0.6 (27.5)
(1) Consolidated unaudited figures
(2) Includes US$0.1 million of financial leases as of 30 June 2026, US$0.2 million as of 31 March 2026, and US$0.7 million
as of 30 June 2025
• Financial debt totalled US$22.0 million as of 30 June 2026, of which US$10.7 million (49%) was
owed to related parties. This represented a decrease of US$1.7 million from 31 March 2026 and a
reduction of US$6.5 million from 30 June 2025.
The decrease in total debt reflects continued debt reduction during the period. Subsequent to the end
of the quarter, the Company repaid overdue related party loans totalling US$2.5 million.
Guanaco Processing Facilities (Chile)