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Austral Gold Provides Update on Casposo Plant Refurbishment

Metallurgy & Processing

Austral Gold Provides Update on Casposo

Plant Refurbishment

HIGHLIGHTS

Casposo Plant refurbishment advancing safely and efficiently across all core workstreams

Crushing Area completed refurbishment with initial unloaded tests underway

Commercial operations on track for start-up in the second half of 2025

Sydney, Australia--(Newsfile Corp. - April 29, 2025) -

Established gold producer Austral Gold

Limited

(ASX: AGD) (TSXV: AGLD) (OTCQB: AGLDF) (

"Austral"

or the

"Company"

) is pleased to

provide an update on the refurbishment of its 100% owned Casposo Plant, as previously announced on

30 December 2024, following the execution of a Toll Agreement with ASX-listed Challenger Gold

Limited.

Austral Gold's Chief Executive Officer, Stabro Kasaneva said:

"We are pleased with the continued

progress on the refurbishment of the Casposo Plant in Argentina. We expect this will enable us to

diversify our revenue streams by bringing our second mine complex into operation alongside our

flagship Chilean operational cluster. We will continue to keep our stakeholders informed and expect to

provide a further update during the second quarter of 2025."

Processing Plant Overview

The Casposo Gold-Silver Processing Plant, which has been in care and maintenance since 2019

following nearly a decade of operations, has traditionally been divided into nine key areas as follows:

Area 100:

Crushing

Area 200:

Grinding, gravitational concentration, thickening, and intensive leaching

Area 300:

Leaching

Area 400:

Counter current decantation and tailings filtration

Area 500:

Clarification and Merrill-Crowe process

Area 600:

Refinery 1-2 and smelting

Area 700:

Cyanide destruction

Area 800:

Reagents 1 and Reagents 2

Area 900:

Water and air supply

The plant has a capacity of 1,300 tonnes per day (tpd), as shown by previous production rates from

operations, covering the full process from crushing to agitation leaching and the Merrill-Crowe

processing stages. Since commencing operations in 2010, the Casposo Plant has processed more

than 530,000 gold equivalent ounces.

Refurbishment Plant Overview

Key activities completed to date as part of the Casposo Plant refurbishment include:

Inspection Phase Finalised:

Completion of the inspection stage to identify procurement needs

and align them with existing warehouse inventory.

Longer Lead items for Plant equipment:

Major equipment dismantled and sent for evaluation

and repair, including leaching tank reducers, mill motor, hydrocyclones, and impeller blades.

Crushing Circuit Works Completed (Area 100):

Mechanical, electrical, and fabrication works

finalised and ready for commissioning.

Leaching Tank Reducers Repaired (Area 300):

100% of leaching tank reducers refurbished

and ready for installation.

Leaching Tank Cleaning Progress (Area 300 and 400):

80% of accumulated solids removed

from leaching tanks.

Thickeners and Counter-Current Decantation (CCD) repaired (Area 400):

Milling thickeners

and counter current decantation systems are repaired and ready for commissioning.

Belt Filter Refurbishment Underway (Area 400):

Sandblasting and painting of belt filters 80%

complete.

Process Water System Ready (Area 900):

Refurbishment of the process water pumping system

completed.

Electrical Cabling Organised (Area 400 and 500):

Reorganisation and cleaning works finalised

in the electrical rooms supporting CCD, Filtration, and Merrill Crowe areas.

Electric Motor Maintenance Advancing:

80% of testing and servicing is completed for the

Plant's electric motors.

Valve Replacement Progress (Area 400):

40% of valves replaced across the CCD and

Filtration areas.

General View of the Crushing Circuit Area (Area 100)

To view an enhanced version of this graphic, please visit:

https://images.newsfilecorp.com/files/690/250255_f028e76714c72b2d_002full.jpg

Main works planned for Q2 2025 include:

Primary crusher refurbishment

SAG mill relining and SAG engine repair

Installation of new hydrocyclones.

Engines and reducers for leaching tanks and CCD's repair

Filter band refurbishment

Modifications and improvement of piping and ducts

The Company also intends to prepare a technical report on the feasibility of processing Casposo's own

mineralised material prior to completing the refurbishment of the Casposo Plant.

About Austral Gold

Austral Gold is a growing gold and silver mining producer building a portfolio of quality assets in the

Americas based on three strategic pillars: production, exploration and equity investments. Austral

continues to lay the foundation for its growth strategy by advancing its attractive portfolio of producing

and exploration assets.

For more information, please visit the Company's website at

www.australgold.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.

Release approved by the Company's Chief Executive Officer of Austral Gold, Stabro Kasaneva.

For additional information please contact:

David Hwang

Jose Bordogna

Joint Company Secretary

Chief Financial Officer and Joint Company

Secretary

Austral Gold Limited

Austral Gold Limited

[email protected]

[email protected]

+61 433 292 290

+61 466 892 307

Forward-Looking Statements

Statements in this announcement that are not historical facts are forward-looking statements. Forward-

looking statements are statements that are not historical, and consist primarily of projections -

statements regarding future plans, expectations and developments. Words such as "expects", "intends",

"plans", "may", "could", "potential", "should", "anticipates", "likely", "believes" and words of similar

import tend to identify forward-looking statements. Forward-looking statements in this announcement

include statements regarding our expectations for the refurbishment of the Casposo Plant in Argentina,

the diversification of our revenue streams, and the operation of our second mine complex alongside our

flagship Chilean operational cluster. Additionally, forward-looking statements include our plans to

provide updates during the second quarter of 2025 and to prepare a technical report on the feasibility of

processing Casposo's own mineralised material, the main works planned for Q2 2025, and our

expectation that we can continue to lay the foundation for our growth strategy by advancing our attractive

portfolio of producing and exploration assets.

All of these forward-looking statements are subject to a variety of known and unknown risks,

uncertainties and other factors that could cause actual events or results to differ from those expressed or

implied, including, without limitation, uncertainty of exploration programs, development plans and cost

estimates, commodity price fluctuations; political or economic instability and regulatory changes;

currency fluctuations, the state of the capital markets, uncertainty in the measurement of mineral

resources and reserves and other risks and hazards related to the exploration of a mineral property, and

the availability of capital and a skilled workforce. You are cautioned that the foregoing list is not

exhaustive of all factors and assumptions which may have been used. Austral cannot assure you that

actual events, performance or results will be consistent with these forward-looking statements, and

management's assumptions may prove to be incorrect. Austral's forward-looking statements reflect

current expectations regarding future events and operating performance and speak only as of the date

hereof and Austral does not assume any obligation to update forward-looking statements if

circumstances or management's beliefs, expectations or opinions should change other than as required

by applicable law. For the reasons set forth above, you should not place undue reliance on forward-

looking statements.

To view the source version of this press release, please visit

https://www.newsfilecorp.com/release/250255