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Austral Gold Reports Encouraging Results at Casposo

Corporate Updates

Austral Gold Reports Encouraging Results at

Casposo

Sydney, Australia--(Newsfile Corp. - July 27, 2022) - Austral Gold Limited (ASX: AGD) (TSXV: AGLD)

(the

"Company"

or

"Austral"

) is pleased to announce exploration results at its Casposo-Manantiales

project in Argentina.

Highlights:

At the Manantiales vein, the follow-up drilling program intercepted high gold grades for the first

time, opening the upside at depth and indicating the continuity of mineralisation in the south ore-

shoot.

−

MDH-02-63:

4.40 meters @ 18.65 g/t gold and 58 g/t silver

-

including: 3.12 meters @ 26.04 g/t gold and 37 g/t silver

-

sub-including: 0.75 meters @ 76.26 g/t gold and 75 g/t silver

−

MDH-02-64:

2.35 meters @ 15.61 g/t gold and 81 g/t silver

-

including: 1.58 meters @ 22.30 g/t gold and 116 g/t silver

−

MDH-02-60:

2.50 meters @ 9.73 g/t gold and 49 g/t silver

-

including: 0.90 meters @ 25.48 g/t gold and 125 g/t silver

-

sub-including: 0.45 meters @ 48.16 g/t gold and 192 g/t silver

At the Cerro Amarillo project, the delineation process continued with rock-chip sampling providing

gold grades up to 149.74 grams per tonne ("g/t") Au and 622 g/t Ag at the La Puerta, Awada and

Fabiola targets. Subsequent follow-up with channel sampling indicates high-grade mineralisation

associated with intense silicification and the presence of multiple minor veining. The channels with

the best results by area are:

−

La Puerta: 6.20 m @ 11.22 g/t gold and 76 g/t silver

−

Awada: 2.60 m @ 19.62 g/t gold and 54 g/t silver

−

Fabiola: 1.50 m @ 19.70 g/t gold and 12 g/t silver

The first phase of drill testing in La Puerta, Awada and Fabiola were completed. At La Puerta, the

three holes drilled had no significant results, while the results from the three holes in Fabiola and

one in Awada have not yet been received.

To date, a total of 2,321.3 meters were drilled in 12 diamond drill holes and assays from 8 drill

holes have been received to date.

We plan to resume the drilling program in September 2022 when weather conditions improve,

which we expect to include the following:

(i)

infill drilling program at the Manantiales vein;

(ii)

follow-up drilling program at the best targets at the Cerro Amarillo project;

(iii)

revisit of remaining mineral resources in the Casposo mine

Chief Executive Officer, Stabro Kasaneva, commented:

"We are encouraged with the latest assay

results from our exploration program at the Casposo-Manantiales cluster. These results indicate that we

are on the path towards achieving our strategic objective of re-starting mining operations at Casposo.

We will keep our shareholders informed on further drill results and our next drilling campaign starting

during September 2022."

Manantiales Vein

The phase II drilling campaign commenced in 2022 as announced in the Company's press release

dated 28 April 2022. The drill campaign covered 1,273 meters in 5 holes with 4 holes oriented to define

the southern ore-shoot extensions and a fifth hole to explore the continuity of mineralisation in the

northern ore-shoot at the lower contact of the flat intrusive.

The best result obtained to date is drill hole MDH-22-063, which intercepted a high-grade gold structure

with a width of more than 4 meters. This intercept indicates that the best mineralisation control in

Manantiales vein is related to the lower contact of the dacitic intrusive opening the potential along this

discontinuity and at depth.

Results from the drill holes MDH-22-060 and MDH-22-064 confirmed the continuity of the blind ore-shoot

previously intercepted by drill holes MDH-22-057/058. Drill hole MDH-22-060 opens the mineralisation

to depth, while drill hole MDH-22-64 indicates mineralisation closer to the surface. Drill hole MDH-0061

intercepted a post mineral dyke using the same space of the structure in that segment and did not show

veins or mineralised structure.

The next drilling campaign is being planned to define the upside of the northern and southern ore-shoots

and to explore the potential to the South and North at the protected blocks related to the Vallecito

reverse faulting.

Casposo - Manantiales District: Targeting and Location Map

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

https://images.newsfilecorp.com/files/690/132024_d0a14f25942a8afc_002full.jpg

Manantiales Vein:

Drilling results at longitudinal section

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

https://images.newsfilecorp.com/files/690/132024_d0a14f25942a8afc_003full.jpg

Cerro Amarillo - Exploration Update

At Cerro Amarillo, the delineation process continued with rock chip sampling showing high gold values in

the La Puerta, Awada and Fabiola sectors.

These results are related to multiple centimeter veinlets in at least three main directions, all

predominantly hosted in a complex of exogenous rhyolitic domes. The largest known structures appear

to be controlled by the N-S oriented fault contacts of the domes with an andesitic tuff (Oveja Negra Fm).

Their formation is related to a low sulphidation system, likely developed as sheeted veinlets and

stockwork of millimeter to centimeter veinlets of quartz and quartz-adularia with the presence of ginguro.

The results of reconnaissance sampling in veinlets and veins from 2 to 60 cm obtained the following

results:

−

La Puerta:

-

Sample 9935 - 149.74 g/t gold and 622 g/t silver

-

Sample 10098 - 106.39 g/t gold and 1,110 g/t silver

-

Sample 9959 - 89.11 g/t gold and 441 g/t silver

-

Sample 9897 - 68.11 g/t gold and 200 g/t silver

−

Awada:

-

Sample 0122 - 38.22 g/t gold and 65 g/t silver

-

Sample 10124 - 27.36 g/t gold and 65 g/t silver

-

Sample 10125 - 6.61 g/t gold and 12 g/t silver

-

Sample 9411 - 6.52 g/t gold and 12 g/t silver

−

Fabiola:

-

Sample 9207 - 5.12 g/t gold and 11 g/t silver

-

Sample 9589 - 1.03 g/t gold and 201g/t silver

Subsequent follow-up channel sampling confirmed high-grade mineralisation associated with intense

silicification and the presence of veining. Highlights of the results from the channels are as follows:

−

La Puerta:

-

Channel LP04 - 6.20 m @ 11.22 g/t gold and 76 g/t silver

-

Including 5.10 m @ 13.47 g/t gold and 91 g/t silver

-

sub-including: 2.90 meters @ 20.06 g/t gold and 127 g/t silver

-

Channel LP17 - 0.80 m @ 45.07 g/t gold and 206 g/t silver

-

Including 0.40 m @ 83.45 g/t gold and 353 g/t silver

−

Awada:

-

Channel AW07 - 2.6 m @ 19.62 g/t gold and 54 g/t silver

-

Including 2.30 m @ 21.95 g/t gold and 60 g/t silver

-

sub-including: 1.05 meters @ 40.85 g/t gold and 118 g/t silver

-

Channel AW09 - 1.60 m @ 20.36 g/t gold and 62 g/t silver

-

Including 0.50 m @ 27.51 g/t gold and 61 g/t silver

−

Fabiola:

-

Channel FA03 - 1.50 m @ 19.70 g/t gold and 12 g/t silver

-

Including 0.65 m @ 34.61 g/t gold and 21 g/t silver

At La Puerta, the first phase of drilling was completed including 3 holes without significant results. The

drill testing program was completed in Fabiola and the results are pending. The three holes intercepted

a structure with widths that do not exceed one meter.

At Awada, one follow-up hole was drilled to the high grade AW07 channel, intercepting the sheeted

quartz veinlets with apparent presence of ginguro, continuing 50 meters below surface. We expect to

receive the results from this drill hole shortly.

Upcoming work program priorities are focused on drilling the second phase in Fabiola and Awada, with

the goal of finding the vertical continuity of high-grade mineralisation. In addition, the second drilling

phase at La Puerta is being designed.

Cerro Amarillo:

Channel and rock chip sampling results

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

https://images.newsfilecorp.com/files/690/132024_d0a14f25942a8afc_004full.jpg

Competent Person

Technical information in this press release that relates to Exploration Results is based on work

supervised, or compiled on behalf of Robert Trzebski, a Director of the Company. Dr. Trzebski, who is a

member of the Australasian Institute of Mining and Metallurgy (AusIMM) and qualifies as a Competent

Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results,

Mineral Resources and Ore Reserves' consents to the inclusion of the technical information that he has

reviewed and approved or has been compiled on his behalf.

Austral Gold Limited is listed on the TSX Venture Exchange (TSXV: AGLD) and the Australian

Securities Exchange. (ASX: AGD). For more information, please consult Austral'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 Chief Executive Officer of Austral Gold, Stabro Kasaneva.

For additional information please contact:

Jose Bordogna

Chief Financial Officer

Austral Gold Limited

[email protected]

+61 4666 892 307

Ben Jarvis

Director

Austral Gold Limited

[email protected]

+61 413 150 448

Forward-Looking Statements

Statements in this news release 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 news release

include future exploration activities including resumption of the drilling program in September 2022 and

detailed plans for the program, latest assay results indicate that we are on the path towards achieving

our strategic objective of re-starting mining operations at Casposo, planning of next drilling campaign at

the Manantiales vein and receipt of outstanding drilling results.

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, business integration risks; uncertainty of production, development

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

changes; currency fluctuations, the state of the capital markets especially in light of the effects of the

novel coronavirus,, uncertainty in the measurement of mineral reserves and resource estimates, Austral's

ability to attract and retain qualified personnel and management, potential labour unrest, reclamation and

closure requirements for mineral properties; unpredictable risks and hazards related to the development

and operation of a mine or mineral property that are beyond the Company's control, the availability of

capital to fund all of the Company's projects and other risks and uncertainties identified under the

heading "Risk Factors" in the Company's continuous disclosure documents filed on the ASX and on

SEDAR.

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.

Austral Gold Limited

ABN 30 075 860 472

(ASX: AGD) (TSXV: AGLD)

Level 5 126 Phillip St, Sydney NSW 2000 |

T

+61 2 9380 7233 |

F

+61 2 9251 7455 |

[email protected]

|

www.australgold.com

Table 1:

Manantiales and Cerro Amarillo Drill hole Results

Hole

East

North

RL

Dip

Azimuth

EoH

Sector

Section

Intercept

Width (m)

Depth (m)

Au gpt

Ag gpt

Significant intercepts reported at 1 gpt Au cutoff;

* include at 3 gpt Au cutoff; ** sub-include at 10 gpt Au cutoff

LPO-22-

001

2437811.00

6551998.00

2764.00

-60.00

135.00

224.0

La Puerta

Section 1

0.30

36.30

1.79

14.4

LPO-22-

002

2437774.00

6551967.00

2770.00

-60.00

135.00

182.5

La Puerta

Section 2

No significant intercepts

LPO-22-

003

2437975.00

6552004.00

2724.00

-60.00

270.00

198.8

La Puerta

Section 3

No significant intercepts

AW-22-

001

2437275.00

6552395.00

2738.00

-65.00

0.00

56.0

Awada

E2437200

Results pending

FDH-22-

001

2437674.00

6552763.00

2703.00

-50.00

90.00

107.0

Fabiola

N6552775

Results pending

FDH-22-

002

2437741.00

6553125.00

2687.00

-60.00

270.00

143.0

Fabiola

N6553150

Results pending

FDH-22-

003

2437695.00

6553240.00

2636.00

-60.00

270.00

137.0

Fabiola

N6553250

Results pending

MDH-22-

060

2432162.18

6552375.00

3356.00

-65.00

270.00

236.0

Manantiales

Vein

N6552375

2.50

188.00

9.73

48.6

Include*

0.90

188.00

25.48

124.8

sub-

include**

0.45

188.45

48.16

191.8

MDH-22-

061

2432220.75

6552275.9

3359.00

-65.00

270.00

261.0

Manantiales

Vein

N6552275

No significant intercepts

MDH-22-

062

2432227.7

6552374.9

3335.00

-65.00

270.00

308.0

Manantiales

Vein

N6552375

1.00

253.50

1.13

23.0

MDH-22-

063

2432305.06

6552735.7

3342.00

-65.00

270.00

329.0

Manantiales

Vein

N6552725

4.40

290.85

18.65

58.0

include*

3.12

291.15

26.04

37.0

sub-

include**

0.75

291.70

76.26

75.1

MDH-22-

064

2432126.00

6552479.00

3334.00

-50.00

280.00

101.0

Manantiales

Vein

N6552500

2.35

57.50

15.61

80.8

include*

1.58

58.27

22.33

115.7

Table 2:

Cerro Amarillo Channel sampling results

Hole

East

North

RL

Azimuth

EoH

Sector

Intercept

Width (m)

Au gpt

Ag gpt

Significant intercepts reported at 1 gpt Au cutoff;

* include at 3 gpt Au cutoff; ** sub-include at 10 gpt Au cutoff

LP-01

2437870.00

6551995.86

2726.00

145.00

1.50

La Puerta

No significant intercepts

LP-02

2437846.94

6551963.97

2754.00

100.00

8.00

La Puerta

No significant intercepts

LP-03

2437837.00

6551960.00

2762.00

115.00

9.10

La Puerta

No significant intercepts

LP-04

2437750.00

6552049.00

2763.00

120.00

7.20

La Puerta

6.20

11.22

76.15

Include*

5.10

13.47

90.91

sub-include**

2.90

20.06

126.62

LP-05

2437750.00

6552049.00

2763.00

135.00

40.00

La Puerta

No significant intercepts

LP-06

2437773.00

6552011.00

2766.00

135.00

13.50

La Puerta

No significant intercepts

LP-07

2437800.00

6551961.00

2763.00

135.00

37.50

La Puerta

1.00

4.39

19.30

LP-08

2437723.09

6551988.17

2769.00

135.00

21.00

La Puerta

No significant intercepts

LP-09

2437683.33

6551993.43

2767.00

130.00

11.25

La Puerta

No significant intercepts

LP-10

2437704.61

6552009.38

2767.00

123.00

10.80

La Puerta

0.20

1.69

4.10

LP-11

2437726.47

6552021.62

2771.00

135.00

2.20

La Puerta

No significant intercepts

LP-12

2437723.90

6552139.86

2770.00

170.00

6.65

La Puerta

No significant intercepts

LP-13

2437652.09

6552003.17

2746.00

145.00

16.00

La Puerta

No significant intercepts

LP-14

2437653.20

6552003.79

2748.00

85.00

2.30

La Puerta

No significant intercepts

LP-15

2437744.09

6551981.17

2699.00

155.00

8.00

La Puerta

No significant intercepts

LP-16

2437793.09

6551942.17

2760.00

140.00

7.90

La Puerta

No significant intercepts

LP17

2437833.00

6551980.00

2751.00

135.00

2.7

La Puerta

0.80

45.07

205.91

Include*

0.40

83.45

353.00

AW-01

2436782.00

6552488.00

2842.00

10.00

15.60

Awada

0.7

1.44

15.6

AW-02

2437108.00

6552446.00

2778.00

160.00

2.60

Awada

0.85

1.20

10.56

AW-03

2437175.00

6552450.00

2753.00

152.00

4.80

Awada

No significant intercepts

AW-04

2437489.00

6552467.00

2721.00

135.00

2.30

Awada

0.40

2.40

201.00

AW-05

2437771.00

6552625.00

2722.00

190.00

3.80

Awada

No significant intercepts

AW-06

2437761.00

6552638.00

2724.00

120.00

1.70

Awada

0.25

2.80

83.20

AW-07

2437274.00

6552440.00

2748.00

135.00

4.0

Awada

2.60

19.62

53.50

Include*

2.30

21.95

59.93

sub-include**

1.05

40.85

117.53

AW-08

2437279.00

6552434.00

2712.00

104.00

2.00

Awada

2.00

6.21

10.78

Include*

1.50

7.79

13.13

sub-include**

0.50

14.97

26.40

AW-09

2437281.00

6552434.00

2712.00

20.00

2.10

Awada

1.60

20.36

62.23

Include*

0.50

27.51

60.90

AW-10

2437290.00

6552425.7

2726.00

75.00

1.50

Awada

0.60

2.25

6.70

FA-01

2437732.00

6552907.00

2711.00

20.00

4.8

Fabiola

0.15

1.27

201.00

FA-02

2437666.00

6553052.00

2749.00

85.00

10.45

Fabiola

No significant intercepts

FA-03

2437699.00

6552765.00

2695.00

115.00

7.35

Fabiola

1.50

19.70

11.97

Include*

0.65

34.61

21.0

FA-04

2437651.00

6553271.00

2643.00

120.00

6.7

Fabiola

No significant intercepts

FA-05

2437663.00

6553306.00

2638.00

105.00

4.0

Fabiola

No significant intercepts

FA-06

2437671.00

6553204.00

2638.00

140.00

3.0

Fabiola

No significant intercepts​

Table 3:

Cerro Amarillo Rock chip sampling results

Hole

East

North

RL

Sector

Au gpt

Ag gpt

Samples reported at 2 gpt Au cutoff

M9709

2437711.00

6552007.00

2741.00

Cerro Amarillo Sur

6.63

19.2

M9712

2437752.00

6551991.00

2758.00

Cerro Amarillo Sur

4.12

10.6

M9719

2437912.00

6552115.00

2730.00

Cerro Amarillo Sur

10.72

62.6

M9720

2437967.00

6552056.00

2743.00

Cerro Amarillo Sur

17.14

14.5

M9732

2438020.00

6551832.00

2652.00

La Puerta

4.22

18.2

M9745

2437893.00

6551990.00

2710.00

Cerro Amarillo Sur

7.15

84.5

M9773

2437741.00

6552615.00

2708.00

Fabiola

2.52

5.2

M9774

2437759.00

6552633.00

2698.00

Fabiola

4.32

152.9

M9848

2437715.00

6552132.00

2761.00

La Puerta Oeste

2.89

10.3

M9856

2437689.00

6551988.00

2766.00

La Puerta Oeste

6.59

25.3

M9858

2437655.00

6551999.00

2763.00

La Puerta Oeste

2.18

9.3

M9888

2437881.00

6551974.00

2724.00

La Puerta Oeste

2.25

11.0

M9889

2437888.00

6551985.00

2718.00

La Puerta Oeste

8.72

52.0

M9892

2437836.00

6551968.00

2756.00

La Puerta Oeste

29.98

120.9

M9897

2437831.00

6551965.00

2761.00

La Puerta Oeste

68.11

200.0

M9898

2437803.00

6551960.00

2766.00

La Puerta Oeste

7.89

37.0

M9901

2438010.09

6552054.17

2730.00

La Puerta Oeste

4.53

10.4

M9906

2438016.09

6551834.17

2652.00

La Puerta Oeste

7.03

25.8

M9935

2437835.00

6551983.00

2742.00

La Puerta Oeste

149.74

621.9

M9936

2437837.00

6551977.00

2749.00

La Puerta Oeste

4.16

29.0

M9940

2437827.00

6551957.00

2762.00

La Puerta Oeste

2.05

8.3

M9956

2437734.00

6551981.00

2764.00

La Puerta Oeste

28.21

232.9

M9959

2437825.00

6551965.00

2754.00

La Puerta Oeste

89.11

440.9

M9973

2437812.00

6551964.00

2762.00

La Puerta Oeste

10.99

65.2

M9978

2437834.00

6551927.00

2762.00

La Puerta Oeste

2.11

4.3

M9980

2437844.00

6551934.00

2754.00

La Puerta Oeste

5.55

17.5

M9988

2437850.00

6551944.00

2739.00

La Puerta Oeste

64.57

176.8

M9989

2437850.00

6551944.00

2739.00

La Puerta Oeste

21.27

59.4

M9995

2437862.00

6551955.00

2737.00

La Puerta Oeste

5.63

31.9

M10000

2437863.00

6551958.00

2735.00

La Puerta Oeste

2.83

12.0

M10085

2437725.09

6552703.17

2688.00

Fabiola

2.48

22.5

M10096

2437844.00

6551980.00

2750.00

La Puerta Oeste

16.35

110.4

M10097

2437840.00

6551981.00

2752.00

La Puerta Oeste

17.36

114.5

M10098

2437836.00

6551978.00

2753.00

La Puerta Oeste

106.39

1109.6

M10114

2437233.00

6552469.00

2781.00

Awada

4.00

32.1

M10122

2437289.00

6552426.00

2746.00

Awada

27.36

64.6

M10124

2437280.00

6552437.00

2751.00

Awada

38.22

62.3

M10125

2437275.00

6552437.00

2752.00

Awada

6.61

12.4

M10172

2437581.64

6552122.11

2777.00

La Puerta Oeste

3.22

7.8

M10195

2437898.00

6551997.00

2699.00

La Puerta Oeste

51.94

187.4​

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

https://www.newsfilecorp.com/release/132024