Austral Gold Updates Mineral Resource Estimate at Casposo

Sydney, July 16, 2024 - Established gold producer Austral Gold Ltd.'s (ASX: AGD) (TSXV: AGLD) (OTCQB: AGLDF) (Austral or the Company) is pleased to announce the positive results of its updated Mineral Resource Estimate prepared by independent Qualified Person, Marcos Valencia FAusIMM in accordance with CIM Definitions 2014, National Instrument 43-101 ("NI 43-101") and Joint Ore Reserves Committee Code, 2012 (JORC 2012) for the Company's 100% owned Casposo-Manantiales Mine Complex in the province of San Juan, Argentina. The updated Mineral Resource estimates will be supported by a technical report prepared in accordance with NI 43-101 that will be filed on SEDAR (www.sedarplus.com) within 45 days of this news release (the "Technical Report").

Notes: Per Table 14.15 below

Chief Executive Officer of Austral, Stabro Kasaneva commented, "We are pleased to share the new mineral resource update at Casposo. The consolidation of Casposo's mineral resource inventory brings us closer to a decision on restarting mining operations. We plan to continue keeping our stakeholders informed with further updates as we progress."

The updated estimates are based on Company drilling and exploration activities, which mostly occurred between 2020 and 2022, as well as metallurgical test work on the Casposo project.

Table 14.15: Casposo Au-Ag deposit Mineral Resource Statement (April 30, 2024).

Notes:

• Effective date April 30, 2024
• Stationary domains were modelled according the lithological and structural continuities.
• Mineral Resources were classified and reported in accordance with the NI 43-101.
• Indicated Resources was declared under a grid pattern of 25 m in the strike direction and 25 m in the dip direction.
• Mineral Resources are defined via optimization for open pit and stockpile.
• A cut-off grade of 1.0 g/t AuEq was defined to mine Stockpiles.
• A cut-off grade of 1.5 g/t AuEq was defined to Open Pit Mining Method.
• A cut-off grade of 2.0 g/t AuEq was defined to Underground Mining Method beneath the open pit shells and optimized using the Vulcan Stope Optimizer.
• Metallurgical recoveries were applied by deposit.
• Selective Mining Unit were defined and built according to the underground optimization. Dilution has been incorporated into the SMU.
• A bulk density of 2.5 ton/m3 has been applied to all domains in open pit and underground and 1.8 ton/m3 for stockpile.
• Numbers may not add due to rounding.

Table 14.16: Casposo Au-Ag deposit Mineral Resource Statement by Deposit (April 30, 2024).

TECHNICAL CONTENT AND QUALIFIED PERSON

The Technical Report for the Casposo Mine referenced in this news release was prepared by Marcos Valencia FAusIMM, Registered Member ChMC, an Independent "Qualified Person" as defined by NI 43-101 (the "QP"). The scientific and technical information contained in this news release is extracted from the Technical Report. The Technical Report to support the updated Mineral Resource estimates for the Casposo Mine, prepared in accordance with NI 43-101, will be filed on SEDAR+ (www.sedarplus.ca) within 45 days of this news release.

COMPETENT PERSON'S STATEMENT

For the purposes of Listing Rule 5.22, the Company confirms that the updated Mineral Resource estimate for the Casposo Mine was based on work reviewed or compiled by Marcos Valencia, an independent "Qualified Person" as defined by NI 43-101 and a "Competent Person" as defined in the JORC (2012) Code, either as a Member of the Australian Institute of Geoscientists, or members in good standing of Recognised Professional Organisations in Canada and the United States.

The Competent Person is a consultant of Wampeso Holdings Inc.

The Competent Person consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

The Competent Person has sufficient experience which is relevant to the style of mineralisation and types of deposits under consideration and to the activities undertaken to qualify as a Competent Person as defined in the JORC (2012) Code.

Data Verification:

All information contained in this technical report was generated by Austral and was previously verified in the technical report prepared by RPA in 2016. The scientific and technical information included in the Technical Report, which forms the basis of this news release disclosure, was reviewed by the QP who determined that the disclosure is in accordance with the guidelines established by the CIM and falls under the requirements of NI 43-101 for publication to the market.

The data verification was carried out by taking the original information, comparing it with what was reported in the 2016 technical report, and also reviewing the procedures that Austral applied during its drilling and quality assurance activities.

All information captured and processing procedures and protocols have been developed to detect deviations in the early stages of the process and to apply corrective measures for mitigation and to minimize the sources of risk of failures in the information generated and declared as public.

A site visit was undertaken by the QP. However, it was not possible to oversee the drilling procedures and processes for data collection. The QP reviewed the protocols and procedures and determined that are in line with industry standards.

Analytical laboratories for the project have not been inspected at this stage. A thorough Quality Assurance and Quality Control ("QA/QC") program adhering to internationally accepted standards was completed for Austral drilling over the past phases. The QP is satisfied with the QA/QC methods employed for the internal data validation and for the purpose of the mineral resource estimate.

The QP considers that the sample preparation, security, and analytical procedures adopted for the resource drilling provide an adequate basis for the current mineral resource estimate and that the QA/QC program and procedures developed by the Austral geology team and reviewed by the QP are adequate.

The QP considers that the data contained in the drill hole database were generated and collected according to the industrial standards and Austral applied proper programs to keep the security of the data developed by the Austral geology team and reviewed by the QP.

Further information

For the purposes of listing Rule 5.8.1, the Company wishes to provide the following additional information which is to be read together with the JORC (2012) Code Table 1 for the Mineral Resource estimate.

Geology and Geological Interpretation

Casposo

The Casposo District is situated within the Cordillera Principal which runs along the border between Argentina and Argentina for approximately 1,500 km in a volcanic and seismic active zone. Basement is formed by Permian-Triassic rocks characterized by calk-alkaline affinity intrusive and volcanic rocks of andesitic to rhyolitic composition regionally known as Choiyoi Group. These and younger Jurassic- Cretaceous sediments were thickened by compression and trusting since the Late Cretaceous in a thin-skinned fold trust belt.

In the Mine area, the Cordillera Frontal is underlain by marine metasediments (shales, sandstones, and conglomerates) of La Puerta Formation (Carboniferous-Lower Permian). It correlates with the Agua Negra Formation to the north.

The Casposo gold-silver mineralization occurs in both the rhyolite and underlying andesite, where it is associated with banded quartz-chalcedony veins, typical of Low Sulphidation Epithermal environments. Adularia in the main veins gives an age date of 280 ± 0.8 Ma (K/Ar), very close to the published age dates for the andesite unit. Post-mineralization dykes, of rhyolitic, aphanitic-felsic and trachytic compositions which affects all the deposits Manantiales, Julieta, Mercado and B-Vein often cut the vein systems. These dykes, sometimes reaching up to 30 m thickness, are usually steeply dipping and north-south oriented. The mineralization at Casposo is typical of a low sulfidation type and is interpreted to be of a multi-stage, open space filling epithermal origin resulting in mineralized veins, hydrothermal breccias, stockworks or veinlets.

About Austral Gold

Austral Gold is a growing gold and silver mining producer building a portfolio of quality assets in the Americas. 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 Chief Executive Officer of Austral Gold, Stabro Kasaneva.

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 in this news release include the intention to file the Technical Report within 45 days of the news release, we plan to continue keeping our stakeholders informed with further updates as we progress and, Austral continues to lay the foundation for its growth strategy by advancing its attractive portfolio of producing and exploration assets, the prospects for exploration and development of the Casposo Mine, and mineralization prospects.

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, results of further exploration; 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 resources and reserves and other risks and hazards related to the exploration of a mineral property, and the availability of capital. 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.

JORC CODE (2012) TABLE 1

Section 3 Estimation and Reporting of Mineral Resources

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